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

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31 March 2011 NOTES TO THE FINANCIAL STATEMENTS 31 March 2012 £000 £000 Finance lease debtor (net present value of 26,287 minimum lease payments) 26,285 164,717 Un-earned finance income 163,271 191,004 Gross investment in the lease 189,556 The gross investment in the lease and the minimum lease payments will be received over the following periods: Gross investment 31 March 2011 31 March 2012 Minimum lease payments Gross investment Minimum lease payments £000 £000 £000 £000 ( 1,447 ) 1 Not later than one year ( 1,447 ) 1 Later than one year and not later than five ( 5,788 ) 6 years ( 5,788 ) 6 ( 183,769 ) 26,280 Later than five years ( 182,321 ) 26,278 ( 191,004 ) 26,287 ( 189,556 ) 26,285 Operating Leases The Council leases out commercial properties under operating leases, including shops, industrial units, market stalls and agricultural tenancies. This activity supports the provision of local services, and economic development in the Borough, including the provision of affordable accommodation for businesses. The future minimum lease payments receivable under non-cancellable leases in future years are: 31 March 2011 31 March 2012 £000 £000 1,516 Not later than one year 2,193 Later than one year and not later than five 5,274 years 7,006 52,643 Later than five years 68,826 59,433 78,025 The minimum lease payments receivable do not include rents that are contingent on events taking place after the lease was entered into, such as adjustments following rent reviews. In 2011/12 £838,000 contingent rents were receivable by the Council. In 2010/11 the income generated from leases was £2,914,000 and the contingent rents would have been broadly comparable. 39 Private Finance Initiatives and similar contracts The Building Schools for the Future (BSF) project involves the extensive building, remodelling and operation of a number of schools across various sites in Blackburn with Darwen together with ICT managed services. The total programme includes 3 schools funded under the Private Finance Initiative (PFI) and 2011/12 is the first year of a 25 year contract for the construction and maintenance of those schools. The contract specifies minimum standards for the services to be provided by the contractor, with deductions from the fees payable being made if facilities are unavailable. The contractor is required to construct and maintain the schools in line with agreed standards, and to procure and maintain the plant and equipment needed to operate the schools. The buildings will be transferred to the Council at the end of the contract for nil consideration, in the same condition as at the beginning of the concession. - - 66 - -
NOTES TO THE FINANCIAL STATEMENTS Property, Plant and Equipment The assets used to provide services at Pleckgate High School are recognised in the Council’s Balance Sheet. Movements in their value over the year are detailed in the movement on the Property, Plant and Equipment balance in Note 12. Payments The Council makes an agreed annual payment which is increased by inflation each year. Payments remaining to be made under the PFI contract at 31 March 2012 are as follows: Payment for services Reimbursement of capital expenditure Interest £’000 £’000 £’000 £’000 Pleckgate High School Payment in 2012/13 797 426 2,781 4,004 Payment within 2 to 5 years 3,316 1,752 10,947 16,015 Payment within 6 to 10 years 4,569 2,887 12,563 20,019 Payment within 11 to 15 years 4,250 5,041 10,728 20,019 Payment within 16 to 20 years 4,972 7,243 7,804 20,019 Payment within 21 to 25 years 4,463 9,738 3,486 17,687 Witton Park / Blackburn Central High Schools Payment in 2012/13 1,195 158 2,462 3,815 Payment within 2 to 5 years 5,241 4,219 14,664 24,124 Payment within 6 to 10 years 7,754 5,943 16,458 30,155 Payment within 11 to 15 years 7,381 8,880 13,894 30,155 Payment within 16 to 20 years 8,640 11,467 10,048 30,155 Payment within 21 to 25 years 9,255 15,927 4,973 30,155 Payment within 26 to 30 years 481 1,570 272 2,323 Although the payments made to the contractor are described as unitary payments, they have been calculated to compensate the contractor for the fair value of the services they provide, the capital expenditure incurred and interest payable whilst the capital expenditure remains to be reimbursed. The liability outstanding to pay the contractor for capital expenditure incurred is as follows: 2011/12 £000 Balance outstanding at start of year 0 Payments during the year ( 125 ) Capital expenditure incurred in the year 27,211 Balance outstanding at year-end 27,086 Total 40 Termination benefits During 2010/11, a number of employees applied for Early Retirement or Voluntary Redundancy, in order to assist the Council in its need to reduce expenditure in future years. In addition the Council terminated the contracts of a smaller number of employees in both 2010/11 and 2011/12 as part of an ongoing rationalisation programme. The amounts payable to senior officers have been included within the column for compensation for loss of office in Note 32. Exit Packages The Council is required to disclose Exit Packages agreed during the year, and the previous year, for which the Council is demonstrably committed (i.e. agreement of the package may be legal, contractual or constructive) at the end of the year in question. The total cost of an Exit Package includes: - all relevant redundancy costs – compulsory and voluntary - pension contributions in respect of added years (pension strain) - ex gratia payments - - 67 - -
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Statement of Accounts 2011/2012
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INDEPENDENT AUDITORS’ REPORT TO T
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FINANCIAL REPORT 2011/2012 1.0 Over
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FINANCIAL REPORT 2011/2012 it will
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FINANCIAL REPORT 2011/2012 Schools
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STATEMENT OF RESPONSIBILITIES 1.0 T
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Page 20 and 21: CASH FLOW STATEMENT The Cash Flow S
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Page 52 and 53: NOTES TO THE FINANCIAL STATEMENTS C
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Page 72 and 73: Assets and liabilities in relation
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Page 78 and 79: The provision made against estimate
Page 80 and 81: COLLECTION FUND INCOME AND EXPENDIT
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Page 86 and 87: ANNUAL GOVERNANCE STATEMENT Officer
Page 88 and 89: ANNUAL GOVERNANCE STATEMENT A healt
Page 90 and 91: GLOSSARY OF TERMS Accounting polici
Page 92 and 93: GLOSSARY OF TERMS Financial liabili
Page 94: GLOSSARY OF TERMS Remuneration - Al
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