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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.


2007/08	See		Income				2008/09
Net	note		Gross	Specific	Other	Total	Net
Expenditure	1		Expenditure	Grants	Income		Expenditure
£'000			£'000	£'000	£'000	£'000	£'000

3,967		Central services to the public	7,105	-	-2,301	-2,301	4,804
107,490		Cultural, environmental and planning services	155,617	-295	-21,294	-21,589	134,028
189,459	2	Children's Services & Education	1,502,004	-790,762	-106,852	-897,614	604,390
68,525		Highways, roads and transport services	86,617	-100	-7,417	-7,517	79,100
223,126		Adult Social Care	402,339	-6,493	-88,676	-95,169	307,170
428		Court services	1,438	-	-1,007	-1,007	431
12,841		Corporate and democratic core	15,251	-	-	-	15,251
-620		Reward grant		-1,919	-	-1,919	-1,919
15,123	3	Non-distributed costs	5,301	-	-275	-275	5,026
-168	-	Exceptional Item	-	-	-	-	-
-3,017	4	Reduction in provisions	-3,274	-	-	-	-3,274
617,154		Net cost of services	2,172,398	-799,569	-227,822	-1,027,391	1,145,007

-1,897	5	Surplus on trading undertakings					-3,432
10,558	6	Interest	20,392		13,039		7,353
16,640	7d	Pensions interest cost and expected return on					31,940
		pensions assets
-6,430	8	Gain/loss on disposal of assets					8,105
636,025		Net operating expenditure					1,188,973

		Amount to be met from Government grant and local taxpayers
		Area Based Grant					-64,742
-17,631		Revenue support grant					-17,432
-105,061		National business rates					-125,220
-471,356		Council tax income					-497,062
-4,175		Surplus on collection funds					-2,967


37,802		Deficit for the year on the Income and Expenditure Account					481,550

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.


2007/08		2008/09
£'000		£'000
37,802	Deficit on the Income and Expenditure Account for the year	481,550

-44,360	Net additional amount required by statute and non-statutory proper practices to be credited to the General Fund Balance for the year (this is shown in detail below)	-492,762


-6,558	Increase(-)/decrease in General Fund Balance for the year	-11,212

-16,742	Balance brought forward 1 April	-23,300

-23,300	Balance carried forward at 31 March	-34,512

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