Notes to the Summary Revenue Account

1. Format

1.1 The summary revenue account brings together income and expenditure on the service. It uses the nationally recognised Best Value Accounting Code of Practice. This helps comparison between authorities.

2. Prior period adjustments

2.1 There are no prior period adjustments for 2004/05.

3. Expenditure on publicity

3.1 Section 5 of the Local Government Act 1986 required local authorities to keep a separate account of expenditure on publicity. Spending on publicity in 2004/05 was £188,000 (£169,000 in 2003/04), of which £52,000 (£47,000 in 2003/04) related to staff advertising.

4. Local Authorities (Goods and Services) Act 1970

4.1 Services are provided to other authorities and public bodies under the Local Authorities (Goods and Services) Act 1970. Income from this was £33,000 (£30,000 in 2003/04).

5. Asset Management revenue account

5.1 The balance on this account reflects the difference between capital charges levied on services (which represent a realistic economic cost of using assets in the delivery of services) and the costs to the Authority of financing its assets (from borrowing) and depreciation suffered on the assets during the year:

Capital charges to services

Less: Depreciation provision

Expenditure: Interest payable

Asset management revenue account surplus

6. Changes in Provisions

6.1 The contributions during the year were:

Provision for doubtful debts

Provision for uninsurable and other claims

These changes result from the assessment of risks at the end of each year. Note 11 to the balance sheet sets out more information on these provisions.

Notes to the Summary Revenue Account

6.2 The provision for debt repayment comprises:

Provision for repaying loans

Less : depreciation provision

: deferred charges written out

Provision for debt repayment

7. Officers' emoluments

7.1 The number of employees whose remuneration, excluding pension contributions, was £50,000 or more is set out below:

8. Local Authorities (Members' Allowances) Act 2003

From 1 May 2003 the Authority was required to make a scheme for the payments of basic allowances, special responsibilities, travelling and subsistence and other specified Members' allowances. In 2004/05 £119,000 was paid to Members under this scheme (£103,000 in 2003/04).

9. Audit fee disclosure

9.1 The following fees were paid to the Audit Commission during the year:

2003/04 2004/05

£000 £000

Code of Audit Practice audit 26 56

Statutory inspections 0 19

Certification of grant claims 0 2

Other work 35 0

Total 61 77

10. Pensions

10.1 As part of the terms and conditions of employment of its employees, the Authority offers retirement benefits. Although these benefits will not actually be payable until employees retire, the Authority has made a commitment to make the payments that needs to be disclosed at the time that employees earn their future entitlement.

Notes to the Summary Revenue Account

10.2 The Authority participates in two pension schemes:

· The Local Government Pension Scheme for non-uniformed staff, administered by Hampshire County Council - this is a funded scheme, meaning that the Authority and employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities with investment assets.

· The Firefighters' Pension Scheme for firefighters - this is an unfunded scheme, meaning that there are no investments assets built up to meet the pensions liabilities, and cash has to be generated to meet actual pensions payments as they eventually fall due.

10.3 The cost of retirement benefits are recognised in the Net Cost of Services when they are earned by employees rather than when the benefits are eventually paid as pensions. The charge made against the Constituent Authorities is based on the cash payable in the year, in the form of employer's contributions or actual pension payments. This is achieved as a result of a transfer to a pensions reserve to neutralise the impact of the amended accounting treatment. The following transactions have been made in the Summary Revenue Account:

Notes to the Summary Revenue Account

10.4 Details of the assets and liabilities for pensions can be found in note 19 to the Balance Sheet and details of the actuarial gains and losses are set out in note 5 to the Statement of Movements in Reserves.

10.5 Further information can be found in the actuary's valuation report, which has already been published and the Hampshire Pension Fund Annual Report which are both available from The Treasurer, The Castle, Winchester, SO23 8UB.

11. Related party transactions

11.1 The following Government grants were received during the year:

	2004/05
	£'000
General government grants	27,488
Transitional Grant	787
Other specific revenue grants	272
Capital grant - home fire safety checks	146
Total	28,693

11.2 During the year there were no related party transactions involving members or chief officers of the Authority.

12. Earmarked reserve accounts

The following additions to earmarked reserve accounts have been made:

13. Operating lease payments

The total operating lease payments made in 2004/05 was £1,179,000. These related to operational vehicles, leased cars and photocopiers.