Statement of Accounts 2017/2018 Audited Version July 2018 Chief Executive 1 Contents Narrative Report ............................................................................................................................................................... 3 Statement of Responsibilities for the Statement of Accounts ....................................................................................... 14 Expenditure and Funding Analysis .................................................................................................................................. 15 Comprehensive Income and Expenditure Statement ..................................................................................................... 16 Movement in Reserves Statement ................................................................................................................................. 17 Balance Sheet .................................................................................................................................................................. 19 Cash Flow Statement ...................................................................................................................................................... 20 Note 1 - Accounting Policies ........................................................................................................................................... 21 Note 2 - Accounting Standards Issued, Not Adopted ..................................................................................................... 43 Note 3 - Critical Judgements in Applying Accounting Policies ........................................................................................ 45 Note 4 - Assumptions Made about the Future and Other Major Sources of Estimation Uncertainty ........................... 45 Note 5 - Material Items of Income and Expense ............................................................................................................ 47 Note 6 - Events After the Balance Sheet Date ................................................................................................................ 47 Note 7 - Note to the Expenditure and Funding Analysis ................................................................................................ 48 Note 8 - Expenditure and Income Analysed by Nature .................................................................................................. 50 Note 9 - Adjustments between Accounting Basis and Funding Basis under Regulations .............................................. 51 Note 10 - Transfers to/from Earmarked Reserves .......................................................................................................... 53 Note 11 - Other Operating Expenditure ......................................................................................................................... 56 Note 12 - Financing and Investment Income and Expenditure ...................................................................................... 56 Note 13 - Taxation and Non-Specific Grant Income ....................................................................................................... 56 Note 14 - Property, Plant and Equipment....................................................................................................................... 57 Note 15 - Heritage Assets ............................................................................................................................................... 61 Note 16 - Investment Properties .................................................................................................................................... 61 Note 17 - Intangible Assets ............................................................................................................................................. 64 Note 18a - Financial Instruments .................................................................................................................................... 65 Note 18b - Financial Instruments - Fair Value ................................................................................................................ 68 Note 19 - Inventories ...................................................................................................................................................... 70 Note 20 - Debtors ............................................................................................................................................................ 70 Note 21 - Cash and Cash Equivalents .............................................................................................................................. 71 Note 22 - Assets Held for Sale ......................................................................................................................................... 71 Note 23 - Creditors .......................................................................................................................................................... 71 Note 24 - Provisions ........................................................................................................................................................ 72 Note 25 - Usable Reserves .............................................................................................................................................. 73 Note 26 - Unusable Reserves .......................................................................................................................................... 74 Note 27 - Cash Flow from Operating Activities ............................................................................................................... 79 Note 28 - Cash Flow from Investing Activities ................................................................................................................ 79 Note 29 - Cash Flow from Financing Activities ............................................................................................................... 80 Note 30 - Trading Operations ......................................................................................................................................... 80 Note 31 - Agency Services ............................................................................................................................................... 81 Note 32 - Pooled Budgets ............................................................................................................................................... 81 Note 33 - Members’ Allowances ..................................................................................................................................... 82 Note 34 - Officers’ Remuneration ................................................................................................................................... 83 Note 35 - External Audit Costs ........................................................................................................................................ 86 Note 36 - Dedicated Schools Grant ................................................................................................................................. 86 Note 37 - Grant Income .................................................................................................................................................. 88 Note 38 - Related Parties ................................................................................................................................................ 89 Note 39 - Capital Expenditure and Capital Financing ..................................................................................................... 90 Note 40 - Leases .............................................................................................................................................................. 91 Note 41 - Impairment Losses .......................................................................................................................................... 94 Note 42 - Pension Schemes Accounted for as Defined Contribution Schemes .............................................................. 94 Note 43 - Defined Benefit Pension Scheme .................................................................................................................... 95 Bedford Borough Council Statement of Accounts 2017/18 2 Note 44 - Contingent Liabilities ....................................................................................................................................... 99 Note 45 - Contingent Assets ......................................................................................................................................... 100 Note 46 - Nature and Extent of Risks Arising from Financial Instruments ................................................................... 100 Note 47 - Heritage Assets Further Information ............................................................................................................ 103 Note 48 - Trust Funds .................................................................................................................................................... 106 Collection Fund ............................................................................................................................................................. 107 Bedfordshire Pension Fund Statements ......................................................................................................................