Issue - meetings

Statement of Accounts 2016-17

Meeting: 25/09/2017 - Audit and Standards Committee (Item 82)

82 Statement of Accounts 2016-17 pdf icon PDF 104 KB

a)    Training Session – Understanding the Statement of Accounts by Rachel Spain, Corporate Finance Manager

 

b)    2016-17 Statement of Accounts

 

Report of Andrew Burns, Director of Finance and Resource

Additional documents:

Minutes:

The Corporate Finance Manager delivered a presentation explaining the 2016-17 Statement of Accounts – how they are prepared, how public money has been spent in Staffordshire, the accounting concepts and principals and technicalities around the Balance Sheet.

 

The 2016-17 Statement of Accounts had been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom. The Director of Finance and Resources had prepared letters to the Auditors expressing an opinion that the accounts gave a true and fair view of the financial position of the Council and the Staffordshire Pension Fund in accordance with the appropriate rules and regulations.

 

In terms of Revenue Grant, the County Council had spent £477.8m after allowing for transfers to reserves, which was £4.7m more than had been budgeted for. The Health and Care Directorate had seen increasing pressures over recent years due to rising demographics and challenging market conditions. In addition to these pressures, the Better Care Fund income shortfall of £15m had impacted on this service area.

 

The Families and Communities Directorate ended the year with a small overspend of £0.4m, despite increasing placement costs for looked after children but these were offset by underspends in Education Services.

 

The Economy, Infrastructure and Skills Directorate achieved an overall underspend of £3.9m which has arisen from various initiatives. The underspend had been partially offset by overspend on waste tonnages and on winter maintenance.

In terms of Capital Outturn, the County Council spent grants from Government totalling £56.2m in 2015-16. £14.7m of borrowing to finance our capital spent was accounted for. The total capital spend for 2016-17 was £127.3m, compared to £84.8m in 2015-16.

 

The capital spend of £127.3m included £16.4m of revenue transformational spend which had been capitalised and funded from capital receipts generated in year, in accordance with the Capitalisation Direction issued by the Secretary of State.

 

The Balance Sheet showed that the total of assets less liabilities is £124.8 m which is a decrease of £173.8m when compared with the 2015-16 Balance Sheet. One of the main reasons for this decrease is that the value of property, plant and equipment had reduced due to the number of schools being disposed of following their conversion to academy status. Additionally there was an increase of £44.8m in the Councils share of liabilities associated with the pension fund.

 

The Balance Sheet also included a Prior Period Adjustment, required by the external auditors. This technical accounting adjustment which relates mainly to maintained schools, has not had an impact on the value which could be obtained should the assets be sold.

 

After taking account of the outturn, the General Fund Balance total was £21.0m as at 31 March 2017.  School reserves have decreased by £13.2m to £29.1m, reflecting the impact of academy conversions and schools using their reserves for specific protects or to support their revenue budgets. 

 

In 2016-17 the Pension Fund’s market value steadily increased over the year despite being impacted by volatility in global equity markets. The fund was now valued  ...  view the full minutes text for item 82