SHEFFIELD CITY COUNCIL STATEMENT OF ACCOUNTS Page 175 2019/20 Audited For the period 1 April 2019 to 31 March 2020 Sheffield City Council Statement of Accounts 2019/20 Contents 15. Nature and Extent of Risks Arising Notes to the Housing Revenue Account ........ 122 from Financial Instruments ................. 48 01. Other Comprehensive Income and Contents .................................................................. 2 16. Long Term Debtors ............................ 57 Expenditure ...................................... 122 Narrative Report by the Executive Director of 17. Short Term Debtors ............................ 58 02. Adjustments Between Accounting Resources ............................................................... 3 18. Cash and Cash Equivalents ............... 58 Basis and Funding Basis Under Statement of Accounts .......................................... 19 19. Short Term Creditors .......................... 59 Regulation ........................................ 122 Statement of Responsibilities ........................... 19 20. Provisions and Deferred Credits ........ 59 03. Transfer to / (from) Reserves............ 122 The Core Financial Statements ........................ 20 21. Other Long Term Liabilities ................ 61 04. Housing Stock................................... 123 Comprehensive Income and Expenditure 22. Contingent Liabilities .......................... 61 05. Vacant Possession ........................... 124 Statement (CI&ES) ............................. 20 23. Property, Plant and Equipment (PPE) 64 06. Major Repairs Reserve ..................... 124 Movement in Reserves Statement (MIRS) .. 21 24. Service Concessions .......................... 70 07. Capital Expenditure .......................... 125 Balance Sheet.............................................. 23 25. Heritage Assets .................................. 73 08. Depreciation...................................... 125 Cash Flow Statement................................... 25 26. Investment Properties ........................ 79 09. Impairment and Valuations ............... 126 Notes to the Core Financial Statements ........... 26 27. Intangible Assets ................................ 81 10. Rent Arrears .................................... 126 01. Prior Period Restatement ................... 26 28. Assets Held for Sale ........................... 81 11. Rent Income ..................................... 126 02. Events After the Reporting Date ......... 26 29. Capital Expenditure and Capital 12. Dwellings Rents ................................ 126 Page 176 03. Material Items of Income and Financing ............................................ 82 13. Rebates ............................................ 126 Expense .............................................. 26 30. Leases and Lease Type Collection Fund .............................................. 127 04. Acquired and Discontinued Arrangements ..................................... 83 Notes to the Collection Fund .......................... 128 Operations .......................................... 26 31. Long Term Contracts ......................... 84 01. Council Tax ....................................... 128 05. Expenditure and Funding Analysis 32. Impairment Losses ............................. 84 02. National Non-Domestic Rates (EFA) Statement ................................. 28 33. Movements in Earmarked Reserves .. 85 (NNDR) ............................................. 130 05A. Note to the Expenditure and Funding 34. Usable Reserves ................................ 86 Accounting Policies ........................................ 131 Analysis .............................................. 31 35. Unusable Reserves ............................ 92 Notes to the Policies and Standards .............. 157 06. Segmental Income .............................. 33 36. Cash Flow Statement – Operating 01. Accounting Standards Issued, Not 07. Expenditure and Income Analysed by Activities ............................................. 98 Adopted ............................................ 157 Nature ................................................. 33 37. Cash Flow Statement – Investing 02. Critical Judgements in Applying 08. Adjustments Between Accounting Activities ............................................. 99 Accounting Policies .......................... 158 Basis and Funding Basis Under 38. Cash Flow Statement – Financing 03. Assumptions made about the future Regulations ......................................... 34 Activities ............................................. 99 and other major sources of 09. Other Operating Expenditure .............. 36 39. Pooled Budget Arrangements .......... 100 estimation uncertainty ....................... 159 10. Financing and Investment Income 40. External Audit Fees and Additional 04. Going Concern ................................. 163 and Expenditure .................................. 36 Audit Fees (Non Statutory) ............... 102 Annual Governance Statement ........................... 165 11. Taxation and Non Specific Grant 41. Related Party Transactions .............. 103 Trade Union (Facility Time Publication Income ................................................ 37 42. Members’ Allowances ...................... 108 Requirements) Regulations 2017 - (Not subject to 12. Grant Income ...................................... 38 43. Officers’ Remuneration .................... 108 audit) ................................................................... 178 13. Dedicated Schools Grant .................... 40 44. Termination Benefits ........................ 113 Glossary ......................................................... 181 14. Financial Instruments .......................... 41 45. Post-Employment Benefits ............... 114 Independent Auditor’s Report ............................. 185 Housing Revenue Account (HRA) ................. 120 2 Sheffield City Council Statement of Accounts 2019/20 Narrative Report by the Executive Director of Resources 1) INTRODUCTION Purpose of the Narrative Report Sheffield City Council is a large and diverse organisation and the information contained in these accounts can be technical and complex to follow. The purpose of the Narrative Report is to provide information on the authority, its main objectives and strategies and the principal risks that it faces. The Narrative Report therefore presents a summary of the City Council’s financial position and performance for the year and its prospects for future years. The Statement of Accounts contains all the financial statements and disclosure notes required by statute. These statements and notes have been prepared in accordance with the 2019/20 Code of Practice on Local Authority Accounting (the Code) together with guidance notes as published by the Chartered Institute of Public Finance and Accountancy (CIPFA). A glossary can also be found towards the end of these accounts to help explain some of the accounting terms used. Page 177 2) SHEFFIELD AS A PLACE Sheffield is an ambitious city and is England’s fourth largest city in terms of population. Historically the centre of the world’s steel industry, Sheffield has now diversified as a major centre for advanced manufacturing and engineering, as well as being home to a thriving creative and digital sector and a cultural hub for the arts and for leisure activities. Sitting on the edge of the peak district, Sheffield is known as the outdoor city, something we take great pride in. In 2020 the city and its population, like the rest of the world, have had to respond to the Coronavirus pandemic. This pandemic has impacted on the lives of everyone worldwide, leading to unprecedented measures to control the spread and impact of the disease. For the City Council these measures have led to significant challenges in terms of maintaining services to the general population, and in particular to the most vulnerable in our society. For example the Council provides social care services to 7,700 older and vulnerable people, makes payments of Housing Benefit to 34,200 households, awards of Council Tax Support to 46,300 households, supports the education provision at every school in the city, and looks after 622 children in care, with 1,799 children assessed as in need. The critical elements of all these services have had to be delivered during the emergency. The Council has put in place robust plans to protect its citizens and critical services during the response to COVID-19, receiving, paying out or granting rate reliefs over £214m to businesses, ensuring continuing social care provision to vulnerable children, adults and the elderly, and continuing benefits payments to the needy. Other key Council services such as refuse collection also continued. The scale of COVID-19’s impact has necessitated a whole-city response, with partners from across the public, private and voluntary, community and faith sectors collaborating and working alongside Sheffield’s communities to respond to a rapidly changing emergency. These efforts still continue; the infection rate and deaths 3 Sheffield City Council Statement of Accounts 2019/20 thankfully dropped during the summer, but climbed again in the autumn and winter, necessitating a second lockdown. We are now all hopeful that the vaccination programme will offer a route out of the pandemic. Even without the effects of the pandemic, like many UK cities, Sheffield faces a wide variation in the levels of income within the city. However, unlike many cities, it has been successful