2011/2012 audited annual accounts - Falkirk Council
2011/2012 audited annual accounts - Falkirk Council
2011/2012 audited annual accounts - Falkirk Council
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FALKIRK COUNCIL<br />
14. Financial Instruments Adjustment Account<br />
This is a balancing account to allow for differences in statutory requirements and proper accounting practices for<br />
borrowing and lending. This account is a technical accounting presentation and is not available for distribution.<br />
15. Financing Costs<br />
This includes the costs of financing the sums borrowed by the <strong>Council</strong> to cover the capital repayment of loans,<br />
interest charges and debt management expenses, as well as external repayments for operational leases.<br />
16. Fixed or Non-Current Assets<br />
These are created by capital expenditure incurred by the <strong>Council</strong>. They include property, vehicles, plant, machinery,<br />
roads, computer equipment, etc.<br />
17. Generally Accepted Accounting Practice in the UK (UK GAAP)<br />
This is the overall body of regulation that established how company and local authority <strong>accounts</strong> had to be prepared<br />
in the United Kingdom (prior to the transition to International Financial Reporting Standards).<br />
18. Gross Expenditure<br />
This includes all expenditure attributable to the service and activity including employee costs, expenditure relating to<br />
premises and transport, supplies and services, third party payments, support services and capital charges.<br />
19. Gross Income<br />
This includes the charges to individuals and organisations for the direct use of the <strong>Council</strong>’s services.<br />
20. Joint Venture<br />
This is an entity in which the <strong>Council</strong> has an interest on a long-term basis and is jointly controlled by the <strong>Council</strong> and<br />
one or more entities under a contractual or other binding agreement.<br />
21. Non-Distributable Costs<br />
These costs cannot be allocated to specific services and are, therefore, excluded from the total cost relating to service<br />
activity in accordance with the Service Reporting Code of Practice. Charges for added pension years and early<br />
retirement are examples of these costs.<br />
22. Payments to Other Bodies<br />
This includes grants to individuals and organisations, bursaries as well as payments to other local authorities, Health<br />
Boards, Joint Boards and organisations providing services that complement or supplement the work of the <strong>Council</strong>.<br />
23. Pension Reserve<br />
This represents the difference between accounting for pension costs in line with UK Accounting Standards, and the<br />
funding of pension costs from taxation in line with statutory requirements, and is equal to the change in the pension<br />
liability (i.e. the commitment to provide retirement benefits).<br />
24. Property Costs<br />
This includes rents, rates, insurance, repairs and maintenance, upkeep of grounds, heating, lighting, furnishings and<br />
fittings.<br />
25. Revaluation Reserve<br />
This fund is a store of gains on the revaluation of fixed assets not yet realised through sales. This reserve is a<br />
technical accounting presentation and is not available for distribution.<br />
26. Specific Government Grant<br />
This includes grants received from Central Government in respect of a specific purpose or service (e.g. housing<br />
benefit, education, community regeneration, or community services).<br />
27. Supplies & Services<br />
This includes food, materials, books, uniforms, protective clothing, the purchase of equipment, the purchase of tools,<br />
the maintenance of equipment or tools, and various services that are conducted by external contractors.<br />
28. Transfer Payments<br />
This includes the cost of payments to individuals for which no goods or services are received in return by the local<br />
authority e.g. Housing Benefit.<br />
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