Archived decisions

19

Movement on Reserves

Balance

Net

Balance

1 April

Movement

31 March

Reserve

2007

in the year

2008

£'000

£'000

£'000

see note

Revaluation Reserve

0

-273,073

-273,073

19a

Capital Adjustment Account

-2,453,102

38,995

-2,414,107

19b

Financial Instrument Adjustment Account

0

109

109

10

Capital receipts unapplied

0

-5,724

-5,724

Pensions Reserve

609,040

-170,180

438,860

7h

Earmarked Reserves

-109,607

-44,491

-154,098

19c

General Fund

-16,742

-6,558

-23,300

-1,970,411

-460,922

-2,431,333

19a

Revaluation reserve

In accordance with the Code of Practice, this is a new reserve created on 1 April 2007

with a zero opening balance. It replaces the fixed asset restatement account (FARA) and

represents a collection of net gains on the revaluation of individual fixed assets written down

by the excess of current value depreciation over historic cost depreciation.

Upon disposal, the balance on the revaluation reserve for the individual asset is written off

to the capital adjustment account. The reserve is not cash backed as it relates to

unrealised asset gains. The movement in the account is analysed below:

Fixed Asset

Revaluation

Restatement a/c

Reserve

2006/07

2007/08

£'000

£'000

Balance brought forward 1 April

-2,090,757

0

Net gain on valuation of fixed assets

-84,306

-304,707

Release of grants on assets transferred to Magistrates'

-17,672

0

Write off net gains for assets disposed of during the year

24,228

31,634

Balance at 31 March

-2,168,507

-273,073

19b

Capital adjustment account

This account replaces the Capital Financing Account and contains expenditure financed from

revenue and capital receipts together with the statutory amount required to provide for the

repayment of external loans less the amounts included for depreciation, impairment and

writing down deferred charges and the historic cost of asset disposals. The reserve is not

cash backed. The movement in the account is analysed below:

64

2006/07

2007/08

£'000

£'000

Balance brought forward 1 April

-283,550

-284,595

Balance brought forward from fixed asset restatement a/c

0

-2,168,507

Revenue contributions

-21,697

-16,845

Capital receipts applied

-24,228

-58,151

Minimum revenue provision

-22,322

-23,538

Depreciation and impairment

69,848

85,112

Deferred charges

9,324

36,264

Deferred government grants and contributions

-13,936

-21,765

released

External contribution to minimum revenue provision

1,966

1,887

Adjustment to prior year revaluations

0

10,263

Asset disposals current value

0

57,402

Write out revaluations on asset disposals

-31,634

Balance as at 31 March

-284,595

-2,414,107

19c

Earmarked reserves

Specific amounts are set aside as reserves for future policy purposes or to cover

contingencies. Schools reserves are made up of net underspendings on budgets

managed by governors as adjusted for advances made under the school balances

loan scheme. They are not available to other services.

The opening and closing balances for each reserve is shown below:

31 March

Net

31 March

2007

movement

2008

in the year

£'000

£'000

£'000

Schools

-38,039

-5,409

-43,448

Capital

-1,432

-11,901

-13,333

Landfill allowances

-2,835

-1,123

-3,958

Local Public Service Agreement

Reward Grant

-6,065

2,718

-3,347

Insurance

-6,015

-1,707

-7,722

Designated underspendings

-6,388

-4,772

-11,160

Grant equalisation

-24,950

-1,200

-26,150

Job evaluation implementation

-18,490

-17,936

-36,426

Trading accounts

-4,854

-2,736

-7,590

Invest-to-save

-261

-404

-665

Other

-278

-21

-299

-109,607

-44,491

-154,098

65