Archived decisions

Income and Expenditure Account

This account summarises the resources that have been consumed and generated in providing services

and managing the council during the last year. It includes all day-to-day expenses and related income

on an accruals basis, as well as transactions measuring the value of fixed assets actually consumed and

the real projected value of retirement benefits earned by employees in the year. The net cost of services

is presented using the service expenditure analysis set out in the Best Value Accounting Code of Practice.

2005/06

See

Income

2006/07

Net

note

Gross

Specific

Other

Total

Net

Expenditure

Expenditure

Grants

Income

Expenditure

£'000

£'000

£'000

£'000

£'000

£'000

3,742

Central services to the public

4,770

-

-1,738

-1,738

3,032

91,504

Cultural, environmental and planning services

125,149

-1,699

-24,591

-26,290

98,859

656,947

2

Education

885,128

-699,525

-86,762

-786,287

98,841

65,862

Highways, roads and transport services

75,455

-1,973

-6,954

-8,927

66,528

267,862

Social Services

430,334

-63,773

-81,796

-145,569

284,765

481

Court services

1,321

-

-905

-905

416

13,016

Corporate and democratic core

12,968

-

-

-

12,968

-3,216

Reward grant

-3,561

-

-3,561

-3,561

2,328

3

Non-distributed costs

1,186

-

-

-

1,186

-

Exceptional Item

-

-

-

-

-

-2,290

4

Reduction in provisions

-3,505

-

-

-

-3,505

1,096,236

Net cost of services

1,532,806

-770,531

-202,746

-973,277

559,529

75

5

Surplus deficit on trading undertakings

-2,009

15,138

Interest

23,146

9,364

13,782

18,960

6d

Pensions interest cost and expected return on pensions assets

14,090

-

7

Loss/gain on disposal of assets

-

1,130,409

Net operating expenditure

585,392

Amount to be met from Government grant and local taxpayers

-304,349

Revenue support grant

-19,472

-380,761

National business rates

-100,871

-420,454

Council tax income

-444,717

-1,846

Surplus on collection funds

-3,300

22,999

Deficit for the year on the Income and Expenditure Account

17,032

Statement of Movement on the General Fund Balance

The Income and Expenditure Account shows the council's actual financial performance for the year, measured in terms of the

resources consumed and generated over the last financial year. However, the authority is required to raise council tax on a

different accounting basis, the main differences being:

*

capital investment is accounted for as it is financed, rather than when the fixed assets are consumed

*

retirement benefits are charged as amounts become payable to pension funds and pensioners, rather

than as future benefits earned.

The General Fund balance compares the council's spending against the council tax it raised for the year, taking into account

the use of reserves built up in the past and contributions to reserves earmarked for future expenditure.

The reconciliation statement summarises the differences between the outturn on the Income and Expenditure Account

and the General Fund balance

2005/06

2006/07

£'000

£'000

22,999

Deficit on the Income and Expenditure Account for the year

17,032

-9,545

Net additional amount required by statute and non-statutory proper practices to be credited

-29,607

to the general Fund Balance for the year (this is shown in detail below)

13,454

(Increase)/decrease in General Fund Balance for the year

-12,575

-17,621

Balance brought forward 1 April

-4,167

-4,167

Balance carried forward at 31 March

-16,742