Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

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CASH FLOW STATEMENT The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period. The statement shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. 2010/11 2011/12 £000 £000 ( 18,177 ) Net surplus or (deficit) on the provision of services ( 15,686 ) 60,786 Adjustments to net surplus or deficit on the provision of services for non cash movements (Note 26) 46,930 ( 36,618 ) Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities (Note 26) ( 29,742 ) 5,991 Net cash flows from Operating Activities 1,502 ( 4,861 ) Investing Activities (Note 27) ( 1,361 ) ( 1,901 ) Financing Activities (Note 28) 12,193 ( 771 ) Net increase or decrease in cash or cash equivalents 12,334 4,544 Cash and cash equivalents at the beginning of the reporting period 3,773 3,773 Cash and cash equivalents at the end of the reporting period 16,107 - - 18 - -
NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies a) General principles The Statement of Accounts summarises the Council’s transactions for the 2011/12 financial year and its position at the year end of 31 March 2012. The Council is required to prepare an annual Statement of Accounts by the Accounts and Audit Regulations 2011, which those regulations require to be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2011/12 (the Code) and the Service Reporting Code of Practice for Local Authorities 2011/12, supported by International Financial Reporting Standards (IFRSs). The accounting convention adopted in the Statement of Accounts is principally historical cost modified by the revaluation of certain categories of non-current assets and financial instruments. b) Accruals of expenditure and income Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular: • Revenue from the sale of goods is recognised when the Council transfers the significant risks and rewards of ownership to the purchaser and it is probable that economic benefits or service potential associated with the transaction will flow to the Council. • Revenue from the provision of services is recognised when the Council can measure reliably the percentage of completion of the transaction and it is probable that economic benefits or service potential associated with the transaction will flow to the Council. • Supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet. • Expenses in relation to services received (including services provided by employees) are recorded as expenditure when the services are received rather than when payments are made. • Interest receivable on investments and payable on borrowings is accounted for respectively as income and expenditure on the basis of the effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined by the contract. • Where revenue and expenditure has been recognised, but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. c) Cash and cash equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on demand. This is taken to include any instant access accounts. Cash equivalents are investments that are readily convertible to known amounts of cash, with insignificant risk of change in value. In general, short term is taken as being one month or less from the date of acquisition. Specifically, cash equivalents will be taken as including: • any bank accounts requiring more than one day and up to one month’s notice for withdrawal, or callable deposits where the Council can demand repayment within the same time periods, without penalty • investments in constant Net Asset Value (NAV) Money Market Funds, • any readily tradable one month treasury bills. Fixed term and callable deposits (where the bank can choose to repay early) will continue to be viewed as Investments, rather than cash equivalents, even if of less than one month’s initial duration, because the degree to which they may be readily convertible to cash before the maturity date is not certain. In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Council’s cash management. d) Exceptional items When items of income and expense are material, their nature and amount is disclosed separately, either on the face of the Comprehensive Income and Expenditure Statement or in the notes to the accounts, depending on how significant the items are to the understanding of the Council’s financial performance. e) Prior period adjustments, changes in accounting policies and estimates, and errors Prior period adjustments may arise as a result of a change in accounting policies or to correct a material error. Changes in accounting estimates are accounted for prospectively, i.e. in the current and future years affected by the change and do not give rise to a prior period adjustment. Changes in accounting policies are only made when required by proper accounting practices or the change provides more reliable or relevant information about the effect of transactions, other events and conditions on the Council’s financial position or financial performance. Where a change is made, it is applied retrospectively (unless stated otherwise) by adjusting opening balances and comparative amounts for the prior period as if the new policy had always applied. - - 19 - -
Page 1: Statement of Accounts 2011/2012
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Page 10 and 11: FINANCIAL REPORT 2011/2012 1.0 Over
Page 12 and 13: FINANCIAL REPORT 2011/2012 it will
Page 14 and 15: FINANCIAL REPORT 2011/2012 Schools
Page 16 and 17: STATEMENT OF RESPONSIBILITIES 1.0 T
Page 18 and 19: COMPREHENSIVE INCOME AND EXPENDITUR
Page 22 and 23: NOTES TO THE FINANCIAL STATEMENTS M
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- other departure costs (i.e. pay i
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Assets and liabilities in relation
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NOTES TO THE FINANCIAL STATEMENTS M
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NOTES TO THE FINANCIAL STATEMENTS I
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The provision made against estimate
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COLLECTION FUND INCOME AND EXPENDIT
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ANNUAL GOVERNANCE STATEMENT Forewor
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ANNUAL GOVERNANCE STATEMENT Equalit
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ANNUAL GOVERNANCE STATEMENT Officer
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ANNUAL GOVERNANCE STATEMENT A healt
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GLOSSARY OF TERMS Accounting polici
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GLOSSARY OF TERMS Financial liabili
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GLOSSARY OF TERMS Remuneration - Al
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Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

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