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

NOTES TO THE FINANCIAL STATEMENTS
27 Cash Flow Statement – Investing Activities
31 March
2011
31 March
2012
£000 £000
Purchase of property, plant and equipment,
( 39,587 ) investment property, and intangible assets ( 30,859 )
( 6,457 ) Purchase of short-term and long-term investments 0
0 Other payments for investing activities ( 453 )
Proceeds from the sale of property, plant and
equipment, investment property, and intangible
768 assets 418
0 Proceeds from short-term and long-term investments 4,000
40,415 Other receipts from investing activities 25,533
( 4,861 ) Net cash flows from investing activities ( 1,361 )
28 Cash Flow Statement – Financing Activities
31 March
2011
31 March
2012
£000 £000
0 Cash receipts of short- and long-term borrowing 11,000
790 Other receipts from financing activities 2,284
( 2,691 ) Repayment of short- and long-term borrowing ( 966 )
0
Cash payments for the reduction of the outstanding
liabilities relating to finance leases and on-balance
sheet PFI contracts
( 125 )
( 1,901 ) Net cash flows from financing activities 12,193
29 Amounts Reported for Resource Allocation Decisions
The analysis of income and expenditure by service on the face of the Comprehensive Income and Expenditure
Statement is that specified by the Service Reporting Code of Practice. However, decisions about resource
allocation are taken by the Council’s Executive Board on the basis of budget reports analysed across portfolios.
These reports are prepared on a different basis from accounting policies used in the financial statements. In
particular:
• the cost of retirement benefits is based on cash flows (payment of employer’s pension contributions) rather than
current service cost of benefits accrued in the year
• no accrual is made for the cost of holiday entitlements (or flexi-leave or time off in lieu) earned by employees
but not taken before year end which employees can carry forward to the next financial year
• no effective interest rate adjustments are made to account for the impact of services making loans for less than
market rate (soft loans)
• lease income in respect of the Mall is credited directly to the appropriate portfolios, rather than the principal
element being used to write down the lease debtor and the finance element being credited to Financing and
Investment Income and Expenditure
• rental income from Investment Properties is credited directly to the appropriate portfolios, rather than being
credited to Financing and Investment Income and Expenditure
In addition, expenditure on central and departmental support services is fully recharged to services, therefore, the
expenditure and income in relation to support service cost centres is excluded from the Comprehensive Income
and Expenditure Statement to avoid double counting.
Although total net expenditure budgets are reported throughout the year, services focus on performance against
cash limited budgets. Items classified as outside cash limits include support services expenditure and income and
charges made in relation to capital expenditure e.g. depreciation, amortisations and revaluation and impairment
losses in excess of the balance on the Revaluation Reserve.
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