1 Introduction

1.1 This foreword gives:

· a summary of the various statements which make up the 2008/09 accounts

· a broad picture of where the money comes from and what it is spent on

· a summary of the revenue expenditure on services and capital expenditure on new assets over the course of the year.

2 Summary of Statement of Accounts

2.1 The accounts for 2008/09 are set out on pages 5 to 9 and 18 to 68. They consist of the following:

· Statement of accounting policies - sets out the policies adopted by the Authority in preparing the Accounts. They are largely determined by the Code of Practice.

· Statement of responsibilities for the statement of accounts - records the respective responsibilities of the Authority, Treasurer and Chairman of the Authority.

· Income and Expenditure Account - reports the net cost for the year of all the functions for which the Authority is responsible and how they have been financed.

· Statement of Movement on General Fund Balance - discloses the adjustments necessary to determine the movement on the General Fund Balance for council tax setting purposes.

· Statement of Total Recognised Gains and Losses - brings together all the gains and losses that reflect the Authority's net worth.

· Balance Sheet - this sets out the financial position on 31 March 2009.

· Cash flow statement - this summarises cash coming in or going out from transactions with others for revenue and capital purposes.

· Pension Fund Accounts - reflects the payments made to pensioners and those retiring, transfers between pension funds by employees joining and leaving the Authority and employer contributions. These costs are met by a specific Government grant.

2.2 In addition an Annual Governance Statement, which reviews the effectiveness of the system of internal control, is included on pages 10 to 17.

3 Where the money comes from

3.1 The Authority's income comes from general Government grants, a share of national business rates and the council tax. In addition specific Government grants are received for certain services and fees are charged to customers for some services. Interest is also earned on day to day balances.

3.2 The proportion of the Authority's income from these sources is as follows:

4 What the money is spent on

4.1 The Authority spent its money as follows:

5 Overview of the year - revenue account

5.1 The main components of the 2008/09 budget and actual income and expenditure are set out below:

6 Overview of the year - capital expenditure

6.1 In 2008/09 the Authority spent £3,024,000 on capital projects:

7 Debt

7.1 The Authority had 16 loans totalling £6,550,000 in addition to accrued interest of £42,000 as at 31 March 2009.

7.2 On a day to day basis the Authority is able to lend to and borrow from Hampshire County Council.

8 Changes

8.1 There were no major changes to the Authority's responsibilities in 2008/09.

8.2 There was one change in accounting policy relating to FRS 17 retirement benefits. The effect of this change is that the value of scheme assets was reduced by £20,000 as at 31 March 2008 with a corresponding increase in the pension deficit. More information on this change can be found under paragraph 10.2 in the Accounting Policies section.

9 Further information

9.1 Further information can be obtained about the accounts from the Treasurer to the Fire and Rescue Authority at the County Treasurer's Department, Hampshire County Council, The Castle, Winchester, Hampshire, SO23 8UB, telephone (01962) 847518, or e-mail [email protected].