Subject

Capital Grants - Receipts in Advance
Notes to the Core Financial Statements
Please see note 38 for a breakdown of Capital Grants Receipts in Advance.
14.
External Audit Fees
The Council’s auditors are Grant Thornton UK LLP who are one of the world’s leading organisations of
independent assurance. Included in 2015/16 is £15,000 for the cost of the certification of grant claims for 2014/15.
2015/16
£’000
2014/15
£’000
Fees payable for external audit service 61 80.
Fees payable for the certification of grant claims and returns 36 38.
Audit Commission refund for prior years 0 (7)
Fees for other services: Investors in people assessment 9 0.
Total 106 111.
15. Private Finance Initiative
The Council belongs to a partnership with KCC and other Kent District Councils, to deliver new homes for
vulnerable people in Kent using £72m approved Private Finance Initiative credits. KCC is procuring and managing
the project on behalf of the partners, so there are no further accounting implications for the Council.
16. Gains and Losses on Disposal of Non-Current Assets
The Council has a Community Asset Transfer (CAT) policy whereby the Council will agree to transfer land or
buildings into the ownership or management of a Voluntary or Community Sector organisation. Such transfers are
often effected by a long-term lease of the assets. Therefore, to reflect the lease and the diminished immediate
value of the asset to the council, assets subject to such a transfer have been removed from the Asset Register and
the removal of their value is recorded under this note as a loss. In 2015/16 the value of properties subject to a
CAT and removed from the Asset Register was £2,882,000, the greatest transfer being of the Faversham
Gymnastics and Activity Centre, value £2,052,000. The gross loss of other properties was £98,000. Net losses of
£2,623,000 were incurred for 2015/16 (net loss of £436,200 in 2014/15). Gains and losses on investment
properties are under Financing and Investment Income and Expenditure in the CI&ES.
Council Resources – Reserves
17. Usable Capital Receipts Reserve
Council Resources - Reserves
This reserve holds the proceeds from the disposal of land and other assets, which are restricted by statute from
being used other than to fund new capital expenditure or to be set aside to finance historical capital expenditure.
The balance on the reserve shows the resources that have yet to be applied at year-end.
2015/16
£’000
2014/15
£’000
Balance as at 1 April (911) (1,331)
Capital receipts in year from sale of assets (259) 0.
Capital receipts in year from repayment of grant & mortgages (98) (102)
Capital receipts applied during the year – financing fixed assets 63. 268.
Capital receipts applied during the year – financing REFCUS 63. 92.
Capital receipts applied during the year – financing loans 0. 168.
Other movements 15. (6)
Balance as at 31 March (1,127) (911)
18. Capital Grants Unapplied Account
This reserve holds the grants and contributions received towards capital projects for which the Council has met the
conditions that would otherwise require repayment of the monies but which have yet to be applied to meet
expenditure. The balance is restricted by grant terms as to the capital expenditure against which it can be applied
and/or the financial year in which this can take place.
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