Annual Report 07/08: Finance

Finance

Statement from the Chief Finance Officer

The Council's Statement of Accounts has been prepared in accordance with public sector accounting codes of practice.   For the purpose of this statement, some modifications have been made to provide more meaningful information.

The Statement of Accounts has not yet been audited and this summary is therefore, subject to change.   The Audit Commission's District Auditor will audit the full Statement of Accounts for 2007/08 in August 2008.  

Financial Review

General Fund Revenue spend

The Council continues its drive for efficiency and actions taken during the year reduced expenditure by £466,000 less than originally budgeted for 2007/2008.   This leaves us with a very healthy General Fund revenue balance of £2.6m.

Housing Revenue Account Revenue spend

The Housing Revenue Account (HRA) records financial activities relating to the Council's housing stock. When setting the 2007/08 budget, it was anticipated that a deficit of £81,637 would arise during the year; the deficit was £498,102.   The housing stock transferred to a housing association on 30th July 2008 and the additional expenditure related principally to unforeseen costs arising post transfer. The closing balance on the HRA revenue balance was £709,954.  

Capital Spend

Capital spend provides benefit over a number of years (as opposed to revenue where the costs relate to the annual provision of services). During 2007/08, the Council spent £2.7m of its £9.9m      four year capital budget.   Main areas of spend included works to council dwellings and the award of private sector housing improvement grants; IT requirements and economic regeneration.  

Transfer of services

During 2007/08, the Council transferred its housing dwellings to the Meres and Mosses Housing Association ( 30th July 2007).   The HRA figures therefore relate to activity for only four months.   With effect from 1st October 2007, the operation of the Council's refuse and recycling collection service is delivered by a private contractor under the control of the Shropshire Waste Partnership (SWP).   As a member of the partnership, the Council retains control and funding for the service is transferred to the Partnership.  

Cost of Council services

General Fund cost of services:

Housing Revenue Account cost of services

Balance Sheet

What the Council owes and is owed

The General Fund, HRA and Collection Fund balances will support the provision of services in 2008/09.

Usable capital receipts and the major repairs reserves will support capital spend in 2008/09.   

Earmarked reserves will support both revenue and capital spend in 2008/09.   

Capital Spend

Capital spend during 2007/08 is summarised as follows:

Collection Fund

As a billing authority, this Council is responsible for collecting Council Tax from 25,920 chargeable dwellings in the district which is then distributed to the authorities who use the money to fund their services.   Income from Business ratepayers is paid over to the Government, as follows:

The surplus carried forward will be used to support the cost of services in the various authorities in 2008/09.

North Shropshire District Council retains less than 10% of the Council Tax collected in the district.  

A full copy of the Council's 2007/08 Statement of Accounts will be available on the Council's website following our annual audit www.northshropshiredc.gov.uk or alternatively a hard copy can be purchased by contacting our Accountancy Team on 01939 238452

Alison Manning B.A. [Econ] C.P.F.A.,

Chief Finance Officer,

Edinburgh House,

New Street

Wem, Shropshire SY4 5DB

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