2018/2019 Statement of Accounts Forest Heath District Council Brandon Country Park, Bliss Mausoleum Contents Introduction ................................................................................................................. 1 Narrative Report by the Chief Finance Officer .......................................................... 2 Certificate of approval for the Statement of Accounts ........................................... 10 Statement of responsibilities for the Statement of Accounts ................................ 11 Expenditure and Funding Analysis ................................................................................................ 12 Comprehensive Income and Expenditure Statement .................................................................... 13 Movement in Reserves Statement .................................................................................................. 14 Balance Sheet ................................................................................................................................... 15 Cash Flow Statement ....................................................................................................................... 16 Notes to the Core Financial Statements .................................................................. 17 Note 1 Accounting Standards that have been issued but have not yet been adopted . 17 Note 2 Critical judgements in applying Accounting Policies .......................................... 17 Note 3 Future Assumptions and Other Major Sources of Estimation Uncertainty ........ 19 Note 4 Material Items of Income and Expense ................................................................. 20 Note 5 Events after the Balance Sheet Date ..................................................................... 21 Note 6 Note to the Expenditure and Funding Analysis .................................................... 22 Note 7 Expenditure and Income Analysed by Nature ...................................................... 24 Note 8 Adjustments between Accounting Basis & Funding Basis under Regulations. 25 Note 9 Transfers to / (from) Earmarked Reserves ............................................................ 29 Note 10 Other Operating Expenditure ................................................................................. 32 Note 11 Financing and Investment Income and Expenditure............................................ 32 Note 12 Taxation and Non-Specific Grant Income ............................................................. 33 Note 13 Property, Plant and Equipment .............................................................................. 34 Note 14 Heritage Assets ....................................................................................................... 41 Note 15 Investment Properties ............................................................................................. 43 Note 16 Intangible Assets..................................................................................................... 45 Note 17 Debtors ..................................................................................................................... 46 Note 18 Cash and Cash Equivalents ................................................................................... 46 Note 19 Financial Instruments ............................................................................................. 47 Note 20 Creditors .................................................................................................................. 50 Note 21 Provisions ................................................................................................................ 50 Note 22 Unusable Reserves ................................................................................................. 51 Note 23 Cash Flow Statement – Operating Activities ........................................................ 56 Note 24 Cash Flow Statement – Investing Activities ......................................................... 57 Note 25 Cash Flow Statement – Financing Activities ........................................................ 57 Note 26 Trading Operations ................................................................................................. 58 Note 27 Members Allowances .............................................................................................. 59 Note 28 Officers’ Remuneration ........................................................................................... 60 Note 29 Grant Income ........................................................................................................... 63 Note 30 Related Parties ........................................................................................................ 64 Note 31 Capital Expenditure and Capital Financing .......................................................... 70 Note 32 Leases ...................................................................................................................... 71 Contents Note 33 Defined Benefit Pension Schemes ........................................................................ 73 Note 34 Contingent Liabilities .............................................................................................. 79 Note 35 Contingent Assets ................................................................................................... 79 Note 36 Nature and Extent of Risks arising from Financial Instruments ......................... 80 Note 37 External Audit Costs ............................................................................................... 83 Collection Fund and Notes ....................................................................................... 84 Collection Fund Comprehensive Income and Expenditure Statement ........................................ 84 Notes to the Collection Fund Comprehensive Income and Expenditure Statement .................. 85 Note C1 Council Tax Base .................................................................................................... 85 Note C2 Business Rates ....................................................................................................... 85 Note C3 Precepts and Demands ........................................................................................... 86 Accounting Policies .................................................................................................. 87 West Suffolk Annual Governance Statement 2018/19 .......................................... 102 Auditors Report ...................................................................................................... 113 Glossary .................................................................................................................. 117 Further Information ................................................................................................. 123 Introduction Introduction This statement of accounts reflects activity of the former Forest Heath District Council, which, along with St Edmundsbury Borough Council has been entirely superseded by West Suffolk Council, which was created on 1 April 2019. About the area A10 N SantonSantonSanton Well-connected with London, the rest of East Anglia DownhamDownham BrandonBrandon and the Midlands, the area previously covered by BrandonBrandon Forest Heath is a safe and comparatively RAFRAF LakenheathLakenheath A1065 LakenheathLakenheath prosperous place in which to live. It also has some To Thetford & beautiful and accessible countryside areas, Norwich including grassland, heath and forest. ElvedenElveden Forest Heath has three main market towns, BeckBeck RowRow BeckBeck RowRow EriswellEriswell Newmarket, Mildenhall and Brandon. HolywellHolywell RowRow WestWest RowRow Newmarket, the ‘home of horseracing’ has more A134 racehorses, trainers, stable staff, stud farms and MildenhallMildenhall A1101 IcklinghamIcklinghamIcklingham IcklinghamIcklinghamIcklingham racing organisations in and around the town than WorlingtonWorlington BartonBarton MillsMills WorlingtonWorlington FreckenhamFreckenham anywhere else in the world, with racing accountingA1123 FreckenhamFreckenham for a significant number of local jobs. Mildenhall TuddenhamTuddenham RedRed LodgeLodge and Brandon expanded significantly in the 1970s CavenhamCavenham A142 HerringswellHerringswell due to the construction of new housing. HerringswellHerringswell To Today, the area has a thriving, diverse economy, Cambridge KentfordKentford embracing a number of business sectors. These ExningExning HighamHigham To Bury St Edmunds & include tourism, food and drink, life sciences and Ipswich MoultonMoulton GazeleyGazeley advanced manufacturing, including a number of NewmarketNewmarket businesses trading with the two major US Air Force bases in West Suffolk. DalhamDalham A1303 In all of the area’s towns and our rural areas, many A1304 residents benefit from a good quality of life. ©© CrownCrown CopyrightCopyright andand databasedatabase rightsrights 20122012 OrdnanceOrdnance SurvSurv ey ey 100023282.100023282. However, some areas have suffered more than others from the impact of the economic downturn, A143 and others are facing issues such as rural isolation; a lack of skills or qualifications amongst young people; an ageing population with some in need of more specialist housing or care; poverty; or health deprivation. Forest Heath District Council was made up of 27 Councillors and was Conservative