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 2005/06

3 Expenditure on publicity

3.1 Section 5 of the Local Government Act 1986 requires local authorities to keep a separate account of expenditure on publicity. Spending on publicity in 2005/06 was £186,000 (£188,000 in 2004/05), of which £71,000 (£52,000 in 2004/05) 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 £36,000 (£33,000 in 2004/05) which covers the costs incurred.

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:

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 10 to the balance sheet sets out more information on these provisions.

7 Contribution from the capital financing account

8 Officers' emoluments

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

9 Local Authorities (Members' Allowances) Act 2003

9.1 The Authority is required to make a scheme for the payments of basic allowances, special responsibilities, travelling and subsistence and other specified Members' allowances. In 2005/06 £114,000 was paid to Members under this scheme (£119,000 in 2004/05).

10 Audit fee disclosure

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

	2004/05	2005/06
	£000	£000
Code of Audit Practice audit	56	52
Statutory inspections	19	0
Certification of grant claims	2	2
Other work	0	0
Total	77	54

11 Pensions

11.1 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.

11.2 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.

11.3 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 Council Tax 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:

11.4 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.

11.5 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.

12 Related party transactions

12.1 The following Government grants were received during the year:

	2004/05	2005/06
	£'000	£'000
General government grants	27,488	28,571
Transitional Grant	787	0
Other specific revenue grants	272	817
Capital grant - home fire safety checks	146	146
Total	28,693	29,534

12.2 The Treasurer is also the County Treasurer of Hampshire County Council.

The Authority's daily cash surplus or deficit is pooled with that of the County Council and interest is paid based on the average 7 day rate. The total interest received was £206,000 (£306,000 in 2004/05) and the balance temporarily invested as at 31 March 2006 was £6,343,000 (£5,521,000 on 31 March 2005).

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

13 Earmarked reserve accounts

The following variations to earmarked reserve accounts have been made:

14 Operating lease payments

The following operational lease payments have been made:

	2004/05	2005/06
	£'000	£'000
Vehicles	918	916
Leased cars	245	248
Photocopiers	16	22
Home Computers Initiative	0	59
Total	1,179	1,245

15 Non-distributed costs

In accordance with the BVACOP the additional pension costs for added years and early retirements are not charged to individual services. They are aggregated as non-distributed costs.