LLLOOONNNDDDOOONNN BBBOOORRROOOUUUGGGHHH OOOFFF CCCAAAMMMDDDEEENNN SSSTTTAAATTTEEEMMMEEENNNTTT OOOFFF AAACCCCCCOOOUUUNNNTTTSSS 222000111000///111111 1 Contents EXPLANATORY FOREWORD..................................................................................... 5 STATEMENT OF RESPONSIBILITIES FOR THE ACCOUNTS ................................ 25 CHAIR’S APPROVAL OF STATEMENT OF ACCOUNTS ........................................ 26 DRAFT INDEPENDENT AUDITOR'S REPORT TO MEMBERS OF LONDON BOROUGH OF CAMDEN........................................................................................... 27 CORE STATEMENTS ................................................................................................ 31 Movement in Reserves Statement.............................................................................. 31 Comprehensive Income And Expenditure Statement ................................................. 35 Balance Sheet............................................................................................................. 37 Cash Flow Statement.................................................................................................. 40 NOTES TO THE CORE STATEMENTS..................................................................... 41 Note 1. Accounting Policies ........................................................................................ 41 Note 2. Accounting Standards that have been issued but have not yet been adopted73 Note 3. Critical Judgements in Applying Accounting Policies ..................................... 73 Note 4. Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty.................................................................................................................. 75 Note 5. Material Items of Income and Expense .......................................................... 81 Note 6. Events after the Balance Sheet Date ............................................................. 81 Note 7. Movement in Reserves Statement – Adjustments between Accounting Basis and Funding Basis under Regulations ........................................................................ 81 Note 8. Movement in Reserves Statement – Transfers to/from Earmarked Reserves 92 Note 9. Comprehensive Income and Expenditure Statement - Other ......................... 95 Operating Expenditure ................................................................................................ 95 Note 10. Comprehensive Income and Expenditure Statement – Financing and Investment Income and Expenditure........................................................................... 96 Note 11. Comprehensive Income and Expenditure Statement – Taxation and Non Specific Grant Income................................................................................................. 97 Note 12. Property, Plant and Equipment..................................................................... 98 Note 13. Investment Properties................................................................................. 104 Note 14. Intangible Assets ........................................................................................ 105 Note 15. Financial Instruments ................................................................................. 108 Note 16. Inventories.................................................................................................. 114 Note 17. Debtors....................................................................................................... 115 Note 18. Cash Flow Statement – Cash and Cash Equivalents ................................. 116 Note 19. Assets Held for Sale................................................................................... 116 Note 20. Creditors..................................................................................................... 117 Note 21. Provisions................................................................................................... 117 Note 22. Balance Sheet – Usable Reserves............................................................. 120 Note 23. Balance Sheet – Unusable Reserves......................................................... 120 Note 24. Cash Flow Statement – Operating Activities .............................................. 127 2 Note 25. Cash Flow Statement – Investing Activities................................................ 127 Note 26. Cash Flow Statement – Financing Activities............................................... 128 Note 27. Amounts Reported for Resource Allocation Decisions ............................... 128 Note 28. Acquired and Discontinued Operations ...................................................... 137 Note 29. Trading Operations..................................................................................... 137 Note 30. Agency Services......................................................................................... 140 Note 31. Pooled Budgets .......................................................................................... 141 Note 32. Members Allowance ................................................................................... 142 Note 33. Officers’ Remuneration............................................................................... 143 Note 34. External Audit Costs................................................................................... 152 Note 35. Dedicated Schools Grant............................................................................ 153 Note 36. Grant Income.............................................................................................. 154 Note 37. Related Parties........................................................................................... 156 Note 38. Capital Expenditure and Capital Financing................................................. 160 Note 39. Leases........................................................................................................ 162 Note 40. Private Finance Initiatives and Similar Contracts ....................................... 164 Note 41. Impairment Losses ..................................................................................... 167 Note 42. Termination Benefits................................................................................... 167 Note 43. Pensions Schemes Accounted for as Defined Contribution Schemes........ 167 Note 44. Defined Benefit Pension Schemes ............................................................. 169 Note 45. Contingent Liabilities .................................................................................. 182 Note 46. Nature and Extent of Risks Arising From Financial Instruments................. 184 Note 47. Trust Funds and Other Accounts................................................................ 189 Note 48. Translation to IFRS..................................................................................... 190 SUPPLEMENTARY STATEMENTS......................................................................... 191 Housing Revenue Account Comprehensive Income and Expenditure Statement .................................................................................................................................. 191 Note 1. Gross Rent Income ...................................................................................... 193 Note 2. Housing Stock .............................................................................................. 193 Note 3. Rent Arrears ................................................................................................. 193 Note 4. HRA Subsidy ................................................................................................ 194 Note 5. Rent Rebates ............................................................................................... 194 Note 6. Interest Charges........................................................................................... 195 Note 7. Depreciation ................................................................................................. 195 Note 8. HRA Contribution to the Pension Reserve ................................................... 195 Note 9. Note to the Statement of Movement on the HRA Balance............................ 196 Collection Fund Revenue Account........................................................................ 197 Note 1. General......................................................................................................... 199 Note 2. Council Tax .................................................................................................. 199 Note 3. Council Demand........................................................................................... 199 Note 4. Council Tax Bands ....................................................................................... 200 Note 5. Community Charge ...................................................................................... 201 Note 6. Council Tax - Uncollectable Amounts........................................................... 201 Note 7. Fund Balance ............................................................................................... 201 Note 8. Collection of National Non-Domestic Rates.................................................. 202 3 Note 9. Business Rate Supplement .......................................................................... 204 Note 10. Restatement of the 2009/10 Collection Fund Balance...............................