1. Statement of Accounts Monitoring & Audit 27 th September 2011

2. To present the Council’s Statutory Statement of Accounts (for the financial year 2010/11) for member approval. Purpose of Report

3. Contents IFRS Background Main Changes to the Statement of Accounts Financial Performance

4. What is IFRS ? International Financial Reporting Standards (IFRS’s) are a suite of accounting standards used across the world. This replaces UKGAAP In the 2007 budget it was announced that the UK Public Sector would adopt IFRS, as this was seen as best practice and allowed for international comparisons to be made. Timeline for adoption – Health / Central Government.

5. IFRS Background The Transition to IFRS 2009/10 Accounts Apr 2010Apr 2011Sept 2011Sept 2010 2010/11 Accounts IFRS Conversion Sept 2009Apr 2009 2008/09 Accounts 2008/09 IFRS Comparatives 2009/10 IFRS Comparatives

6. Main Changes to the Accounts Increase in size (from 82 to 120 pages) Increased number of accounting policies (from 18 to 22) Increased number of disclosure notes (from 33 to 42) Approval of the Accounts

7. M  Fixed Assets -Component Accounting - Simple -Reclassification of Assets -Change in valuation methods – EUSHV (£55m)  Leases -Change in definition for Operating / Finance Leases (Off Balance Sheet / On Balance Sheet) -Vehicles / Land & Buildings -Documentation at commencement of lease -Lease Register Main Changes to the Accounts

8. Main Changes to the Financial Statements IFRSUKGAAP Movement in Reserves Statements (MiRS) Statement of Movement in GF / HRA Balances Comprehensive Income & Expenditure Account Income & Expenditure Account N/A (forms part of the Comprehensive I & E) Statement of Total Recognised Gains & Losses Balance Sheet (covers 3 financial years) 1 st Year Only Balance Sheet (covers 2 financial years) Cashflow Statement Statement of Changes in Equity N/A

9. Financial Performance Early Delivery of Framework Savings - £650,000 Additional One off Savings - £736,000 Increase in General Fund Balance by £31,000 to £1,415,000 General Fund Account Covers: Day to day expenditure and income on services other than Council Housing Budget: £49.0m Funding sources: Fees & Charges / Govt Grant / Council Tax

10. Financial Performance Balances increased by £258,000 to £563,000 Major Variances include –Repairs & Maintenance - £46,000 –General Management - £71,000 –Special Services - £65,000 Housing Revenue Account Covers: Day to day expenditure and income relating to being a Council Housing landlord Budget: £13.5m Funding sources: Council House Rents

11. Financial Performance 86% of the Capital Programme was spent in year Taking account of carry forwards variance will be within 1% Capital Programme Covers: Expenditure on acquiring, maintaining, enhancing assets Budget: £8.1m Funding sources: Govt Grant / borrowing / capital receipts / external contributions

12. Recommendations The Monitoring & Audit Committee is recommended to: Approve the Statement of Accounts for the financial year 2010/11.