2011/2012 audited annual accounts - Falkirk Council

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