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

More documents

Recommendations

Info

NOTES TO THE FINANCIAL STATEMENTS Mortality assumptions: Longevity at 65 for current pensioners: - Male 21.7 21.6 - Female 24.3 24.2 Longevity at 65 for future pensioners - Male 23.1 23.0 - Female 25.9 25.8 Financial assumptions: Rate of RPI inflation 3.4% 3.4% Rate of CPI inflation 2.5% 2.9% 2.5% 2.9% Rate of increase in salaries 4.5% 4.9% Rate of increase in pensions 2.5% 2.9% 2.5% 2.9% Rate for discounting scheme liabilities 4.9% 5.5% 4.9% 5.5% Take up of option to convert annual pension into retirement lump sum 50% 50% The Discretionary Benefits arrangements have no assets to cover its liabilities. The Local Government Pension Scheme’s assets consist of the following categories, by proportion of the total assets held: 31 March 2012 31 March 2011 % % Equities 58 64 Government Bonds 5 7 Bonds 15 14 Property 10 8 Cash/Liquidity 5 1 Other 7 6 100 100 History of experience gains and losses The actuarial gains identified as movements on the Pensions Reserve in 2010/11 and previous years can be analysed into the following categories, measured as a percentage of assets or liabilities at 31 March: 31 March 2012 31 March 2011 31 March 2010 31 March 2009 31 March 2008 % % % % % Differences between the expected and actual return on assets ( 4.82 ) 1.56 19.87 ( 33.9 ) ( 3.0 ) Experience gains/(losses) on liabilities 0 7.30 0 0 ( 0.4 ) 42 Contingent liabilities and contingent assets Contingent liabilities As at 31 March 2012, the Council had two material contingent liabilities: (a) Following the liquidation of Municipal Mutual Insurance (MMI) in 1992/93 there are a number of claims outstanding which may not be resolved for many years. Due to some clarification obtained from a recent court judgement, there is a risk of an increasing number of claims arising, and the risk of an insolvent run-off is increasing. In such a situation the “Scheme of Arrangement “ (which all councils have entered into with the administrators of MMI) may be invoked requiring the Council to make a contribution towards any deficits incurred by MMI Limited both in relation to the former Blackburn Borough Council and Lancashire County Council (in relation to transferred services). The maximum potential liability in relation the former Blackburn Borough Council claims as at 31 st March 2012 was around £2M, and a reserve has been created equivalent to half this sum. - - 72 - -
NOTES TO THE FINANCIAL STATEMENTS (b) The Council is involved with a complex property rental agreement, which includes shares of income less associated costs. A claim has been received form the partner organisation that errors have been made relating to the last six years, which would result in the Council being liable for costs of up to £960,000, although the council is contesting this. Contingent assets As at 31 March 2012, the Council had no material contingent assets to disclose. 43 Trust Funds The Council acts as a sole or custodian trustee for three trust funds, and as one of several trustees for a further two funds. In neither case do the funds represent assets of the Council, and they have not been included in the Council’s Balance Sheet. The Council also administers a fund on behalf of third parties. The Trust Funds generated a total income of £1,077 with nil associated expenditure, and at the year end total assets of the funds were £79,573. The third party funds are made up of savings and property of residents in the Council’s care. The capital value of these funds at 31 March 2012 was £26,300 44 Financial instruments Categories of Financial Instruments carried on the balance sheet are as follows: 31 March 2011 31 March 2012 £000 Category £000 Long Term Current Long Term Current Assets 929 11,185 Investments (loans and receivables) 929 7,004 0 3,773 27,779 10,114 Cash and Cash Equivalents (loans and receivables – includes bank overdraft) 0 16,107 Debtors (loans and receivables – excludes payments in advance and public sector / statutory elements) 26,763 9,782 Liabilities 99,351 14,262 Borrowings (financial liabilities at amortised cost) 108,873 17,945 0 0 PFI liabilities 26,660 426 0 18,335 Creditors (financial liabilities at amortised cost – excludes receipts in advance and public sector / statutory elements) 0 17,810 - - 73 - -
Page 1:
Statement of Accounts 2011/2012
Page 4 and 5:
INDEPENDENT AUDITORS’ REPORT TO T
Page 6 and 7:
- - 4 - -
Page 8 and 9:
- - 6 - -
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 20 and 21:
CASH FLOW STATEMENT The Cash Flow S
Page 22 and 23:
NOTES TO THE FINANCIAL STATEMENTS M
Page 24 and 25: NOTES TO THE FINANCIAL STATEMENTS F
Page 26 and 27: NOTES TO THE FINANCIAL STATEMENTS t
Page 28 and 29: NOTES TO THE FINANCIAL STATEMENTS T
Page 30 and 31: Depreciation is calculated on the f
Page 32 and 33: NOTES TO THE FINANCIAL STATEMENTS C
Page 34 and 35: NOTES TO THE FINANCIAL STATEMENTS
Page 36 and 37: NOTES TO THE FINANCIAL STATEMENTS P
Page 38 and 39: NOTES TO THE FINANCIAL STATEMENTS A
Page 40 and 41: NOTES TO THE FINANCIAL STATEMENTS 7
Page 44 and 45: 12 Property, Plant and Equipment -
Page 46 and 47: Reconciliation of the carrying valu
Page 52 and 53: NOTES TO THE FINANCIAL STATEMENTS C
Page 58 and 59: NOTES TO THE FINANCIAL STATEMENTS R
Page 68 and 69: 31 March 2011 NOTES TO THE FINANCIA
Page 70 and 71: - other departure costs (i.e. pay i
Page 72 and 73: Assets and liabilities in relation
Page 76 and 77: NOTES TO THE FINANCIAL STATEMENTS I
Page 78 and 79: The provision made against estimate
Page 80 and 81: COLLECTION FUND INCOME AND EXPENDIT
Page 82 and 83: ANNUAL GOVERNANCE STATEMENT Forewor
Page 84 and 85: ANNUAL GOVERNANCE STATEMENT Equalit
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
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?