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

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
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