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

NOTES TO THE FINANCIAL STATEMENTS
It should be noted that details of these interests have been recorded in the Register of Members’ Interests, which
is open to public inspection.
Interests in companies and other entities
The Council has financial interests and related party transactions with a number of companies in which it has
invested, and which are shown in Note 16.
The Council has a 30% shareholding in CX Limited, a company jointly owned with Blackpool Borough Council and
Lancashire County Council to provide high quality information, advice and guidance to help individuals move
forward in work and to support employers in developing their staff. The Council provided basic financial support to
the company amounting to £1,300,000 in 2011/12 and made other payments totalling £185,000 for other services
and projects.
The Council has a 5% shareholding in Blackburn with Darwen and Bolton Local Education Partnership, which was
formed in order to deliver the capital investment elements of the Building Schools for the Future programme. The
Council has also invested in Blackburn with Darwen and Bolton Phase 1 Holdings Ltd, Blackburn with Darwen
and Bolton Phase 1 Ltd, Blackburn with Darwen and Bolton Phase 2 Holdings Ltd, Blackburn with Darwen and
Bolton Phase 2 Ltd, which are special purpose companies established solely to deliver the new schools at
Pleckgate, Witton Park and Central Blackburn under the Private Finance Initiative (see also note 39).
The Council has 50% interest in Blackburn Rovers Sports Arena (BRSA) Limited, which is a joint venture
company between the Council, Blackburn Rovers Football Club and Darwen Vale High School to provide sports
facilities at the school. The Council has a one third influence on the Board of Directors. The Council hired leisure
facilities for community use during the year to the value of £22,295, and provided management services to the
company costing £75,840. The Council’s share of the deficit for the year amounted to £10,300, which will be
recovered via an adjustment to the forthcoming year’s hire charges.
The Council has 14% voting rights in Lancashire and Blackpool Tourist Board Limited. In 2008 the Council
provided an interest-free loan to the company for £10,000 which is due to be repaid on 16 th May 2018.
The Council has one third voting rights on the Board of Twin Valley Homes (TVH). Under the terms of the large
scale voluntary transfer of council dwellings that resulted in the creation of TVH in 2001, the Council has rights to
make nominations into 75% of dwellings which are vacant and available for letting. The Council made payments
to TVH of £244,500 during the year, in respect of renting properties under the asylum seekers scheme, and also
paid over £751,500 to fund schemes providing temporary accommodation for single homeless people / families,
and sheltered accommodation. In addition the Council made payments of housing benefit to TVH in its role as a
social landlord.
The Council is one of 7 local authorities with an interest in Regenerate Pennine Lancashire (formerly Elevate East
Lancashire) which was formed to deliver major developments on behalf of the local authorities including
continuing the Housing Market Renewal (HMR) work initiated by Elevate. The company is limited by guarantee,
there is no financial investment in the company, and there are no financial transactions with the company.
However, Blackburn with Darwen Borough Council acts as a host to the company’s administration and delivery
team incurring running costs of £464,000.
Officers
Officers are appointed by the Council to boards or committees of various organisations to act on behalf of the
Council in their official capacities. All officers are also required to declare any relevant interests in a departmental
register of interest, gifts and hospitality. There were no significant transactions with organisations in which Council
officers had declared interests.
Other Public Bodies (subject to common control by central government)
The main transactions with other public bodies are in relation to precepts paid to Lancashire Police Authority and
the Lancashire Combined Fire Authority, details of which are shown in the Collection Fund accounts on pages 78-
79.
Under Section 75 of the National Health Service Act 2006 an agreement has been made that Blackburn with
Darwen Teaching Care Trust Plus takes a lead commissioning approach to providing the local authority
commissioning services. Delegated responsibility of the Council’s statutory duty has been given to the Care Trust
Plus through the Section 75 agreement. Care Trust Plus has the role of strategic commissioner in respect of the
Council’s budget for Adult Social Care expenditure on services, both internal and external, together with the
commissioning staff costs and parts of the Children’s Services commissioning service. This is shown in the Adult
Social Care budget as “Care Trust Plus Services”, and in Children’s Services under “Joint and Health Authorities’
payments”. Included in these amounts are the salary budgets for staff transferred under TUPE arrangements.
The budgets for transport, training, administration and directorate salaries/costs remain within the Council.
The macro commissioning of Adults Social Care conducted by Care Trust Plus is supported by micro
commissioning performed by the Social Workers in community and mental health areas. It is the statutory duty of
the Council to assess the needs of the citizens requiring social services and to provide those services either from
their own facilities or from those of external providers. The commissioning teams therefore direct the flow of
services to service users under the strategic guidance of the Care Trust Plus.
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