Archived decisions
8 |
Net loss/gain on disposal of assets |
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2006/07 |
2007/08 |
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£'000 |
£'000 |
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Sale proceeds |
24,228 |
63,875 |
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less net book value of assets sold |
24,228 |
57,402 |
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Costs of sale |
35 |
43 |
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net loss in 2006/07 gain in 2007/08 |
-35 |
* |
6,430 |
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* included in the net cost of services in 2006/07. The approach taken in 2006/07 to |
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revalue assets on disposal was not continued in 2007/08 in line with generally accepted | |||||||||||
practice. |
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9 |
Government grants and contributions deferred |
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|
2006/07 |
2007/08 |
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£'000 |
£'000 |
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Balance at 1 April |
-344,537 |
-383,986 |
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Financing of expenditure in the year |
-71,056 |
-66,431 |
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Release of grants resulting from the |
13,936 |
21,765 |
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depreciation of assets |
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Release of grants resulting from the |
17,671 |
0 |
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disposal of assets |
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Balance at 31 March |
-383,986 |
-428,652 |
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|
|
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This account contains contributions and external grants that have been used to finance |
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capital expenditure. It is adjusted for depreciation (written down) to offset depreciation | |||||||||||
charges generated by the relevant assets, and when these assets are sold. |
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10 |
Soft Loans |
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One interest free loan was advanced in 2007/08 to enable a foster carer to purchase |
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a larger house. The amount was £247,597 repayable in monthly instalments within |
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30 years. 'In accordance with Financial Reporting Standard 26 (FRS 26), a charge |
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was made to the income and expenditure account equal to the sum by |
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which the amount lent exceeds the fair value of the loan (£114,763). The |
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fair value was assessed by calculating the present value of future cash flows |
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using the market rate of interest prevailing at the time the loan was advanced. |
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The income and expenditure was credited with an amount for the |
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effective interest calculated at the prevailing market rate (£5,818). The |
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Local Authorities (Capital Financing and Accounting)(Amendment)(England) |
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Regualtions 2007 allow this to be transferred to a financial instrument |
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adjustment account so that it does not impact on the General Fund. |
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11 |
Statutory provision for the repayment of debt |
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In accordance with accounting policies for 2007/08, the County Council's |
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provision to repay external debt is 4% of the capital financing requirement. |
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The debt arises from borrowing to finance previous years' capital |
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programmes. |
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50 |
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