2011/2012 audited annual accounts - Falkirk Council

18. Capital Expenditure and Capital Financing
FALKIRK COUNCIL
NOTES TO THE CORE FINANCIAL STATEMENTS
The total amount of capital expenditure incurred in the year is shown in the table below (including the value of assets
acquired under finance leases and PFI/PPP contracts), together with the resources that have been used to finance it. Where
capital expenditure is to be financed in future years by charges to revenue as assets are used by the Council, the expenditure
results in an increase in the Capital Financing Requirement (CFR), a measure of the capital expenditure incurred historically
by the Council that has yet to be financed. The CFR is analysed in the second part of this note.
2010/11 2011/12
£’000 £’000
Opening Capital Financing Requirement 395,537 385,855
Capital Investment
Property, Plant and Equipment 38,342 50,680
Intangible Assets - 38
Revenue Expenditure Funded from Capital under Statute 5,010 1,903
Sources of finance
Capital receipts (3,696) (2,543)
Government grants and other contributions (14,435) (23,250)
Sums set aside from revenue:
Direct revenue contributions (1,955) (1,755)
MRP/loans fund principal (32,948) (33,914)
Closing Capital Financing Requirement 385,855 377,014
Explanation of movements in year
Increase in underlying need to borrow (unsupported by government
financial assistance)
6,646
7,936
Assets acquired under finance leases (2,024) (1,462)
Assets acquired under PFI/PPP contracts (14,304) (15,315)
Increase/(decrease) in Capital Financing Requirement (9,682) (8,841)
79