Title: Front cover photo of South Hams - Description: C:\Users\awalker\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\W91MHO7L\SH_Debbie Sharkey_Soar Mill Cove (002).jpg

 

 

South Hams District Council

Audited Statement of Accounts

2022/2023

 

Title: South Hams District Council Logo

 

 

Contents                                                                                                      

 

                                                                                                                                                                        Page

 

                                               

Section 1 – Narrative Statement                                                                 3 - 31

 

·          Introduction

·          Review of the Year – the Revenue Budget         

·          Key areas to note from the 2022/23 Statement of Accounts      

·          Financial needs and resources

·          Looking forward to the future and next steps

·          Corporate Performance for 2022/23

·          Principal risks and uncertainties           

 

Section 2 - Core Financial Statements                                                       32 - 37

 

·          A. Comprehensive Income and Expenditure Statement 

·          B. Movement in Reserves Statement                 

·          C. Balance Sheet

·          D. Cash Flow Statement                                     

 

Section 3 - Notes to the Financial Statements                                          38 - 124

 

Section 4 - Collection Fund                                                                         125 - 128

 

Section 5 - Statement of Responsibilities/Approval of the Accounts    129 - 130

 

Section 6 - Auditors’ Report                                                                        131   

 

Section 7 - Glossary of Terms                                                                     132 – 134

 

 

 

Statement of Accounts 2022/23

 

The Statement of Accounts 2022/23 can be made available in large print, Braille, tape format or other languages upon request.

 

South Hams District Council is committed to reflecting the full diversity of our community and to promoting equality of opportunity for everyone.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 1

 

 

Narrative Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction to the 2022/23 Statement of Accounts by Councillor Julian Brazil, Leader of South Hams District Council

 

Title: Julian Brazil photo - Description: A person with a beard and mustache  Description automatically generated with low confidenceAs the newly elected Leader of the Council, I am pleased to welcome you to the 2022/23 Statement of Accounts for South Hams District Council. In 2022 we have had a cost of living crisis, with high inflation and households facing higher bills across the board and in particular in relation to energy. The Council has supported our communities and residents during these difficult economic circumstances.

 

In October, the Council agreed a cost of living action plan which has seen us work with partners to publish weekly newspaper articles signposting support, launching a scheme providing electric blankets and slow cookers to residents and acting quickly to process £4.2million of council tax energy support payments of £150 to 28,175 households in the District. We have also developed support programmes for those who have fled the war in Ukraine, by supporting 220 guests from Ukraine who have arrived in the District as part of the Homes for Ukraine scheme.

 

The Council took much pride in the opening of the Dartmouth Health Hub on 9th May 2023 where we have worked in partnership with the NHS Trust to deliver a modern GP facility for local residents.  The Hub will provide access to a broad range of Health and Wellbeing Services under one roof, including community nurses, therapists, Dartmouth Caring and Wellbeing Pharmacy.

 

During 2022/23 we also received confirmation that the District would benefit from £1million of UK Shared Prosperity Funding. This funding will enable the delivery of a range of projects to encourage people to use sustainable travel for work and leisure as well as providing support and advice to businesses on decarbonising their activities.

 

Last year also saw the Council take the waste service back in house in October 2022 and performance has really improved and I would like to thank the whole team for all their hard work in making this happen. In the Autumn we will be rolling out a weekly recycling service for all residents which will help us to further improve recycling across the South Hams.

Following the recent elections, we now have the chance to start enacting some of the exciting and ambitious plans and policies that we have. Our vision for the South Hams is a place where people and nature can thrive, resilient in the face of an increasingly uncertain future. A new Corporate Strategy will be developed later this year setting out how we will deliver on these ambitions.

The housing crisis continues to be a cause of frustration for us and a significant concern for many local people. The provision of affordable and social housing will be a top priority for the Council moving forward. The Council is building eight affordable homes at St Ann’s Chapel near Bigbury which will be completed this year.

 

We will also provide leadership on tackling environmental concerns and take direct action to tackle climate change and biodiversity loss.  At the heart of this is the need to work in partnership with communities and to involve them in all aspects of the work of the Council and the journey ahead. We have finished the year with our finances reporting a small surplus of £57,000 against budget (0.5% of a £10.464m net budget for 2022/23) which is a good position to be in moving ahead to the future.

Councillor J Brazil, Leader of the Council

Foreword by the Chief Executive

Title: Andy Bates photo - Description: A person wearing glasses and a blue suit  Description automatically generated with low confidenceThere’s been a huge amount on the agenda this year; we’ve been working hard to respond to the housing crisis, continued to take action on climate change, worked hard to support local business and the economy with securing UK Shared Prosperity Funding, and offered all the support we can to residents to help them through the cost-of-living crisis that we are all facing.

We’ve also played our part in successfully implementing the Homes for Ukraine scheme across the District and have progressed a number of key construction projects including the new harbour office and workshops at Batson and affordable homes at St Ann’s Chapel.

In January 2023, the Council released its plans to spend £1m of UK Shared Prosperity funding to help support the economy and reduce carbon emissions across the District. The Council has agreed to the commissioning of a Local Cycling and Walking Infrastructure Plan to improve both walking and cycling routes across South Hams. This will inform the Council’s next steps in developing more inclusive and eco-friendly travel provisions and infrastructure. The Council’s roll-out of its specialist advisors programme will see wider business support and consultancy across the South Hams business community. Partnerships will be developed across the local agriculture sector, knowledge organisations, businesses and tech companies to develop a community of research and development in order to ensure the culture of regenerative farming. Feasibility studies and future planning of local marine activities and provisions will help to support the decarbonisation of the local marine economy.

During the year, £0.9m has been invested in properties across the District through the Green Homes Grant scheme, which uses Government funding to install energy efficiency measures for households on low incomes. This has seen the installation of 16 air source heat pumps, 63 solar panels, 8 storage heaters and 10 property insulations over 85 properties.

We have been unrelenting in seeking and attempting to deliver efficiencies and improve services. The Council has taken a hard look at where it can save money to keep balancing the books and has a track record of strong financial management over many years.

Our strategic financial planning enables the Council to make fully informed decisions and to deliver the quality of services that our residents, visitors and businesses have every right to expect. The Council has once more managed to balance its budget exceptionally well, whilst continuing to provide a level of good service to residents of the District. Our staff have continued to impress me with their efforts to support the people and communities of South Hams. There’s more to do, including rolling out the Devon Aligned Service for waste in the Autumn.

Finally, I am immensely proud that South Hams and West Devon Councils won the category of ‘Senior Leadership Team of the Year’ at the MJ Awards in June. It is great recognition for South Hams and West Devon for the work we’re doing to make a difference in our communities and for everything that our Councillors and staff achieve together as one team.

Andy Bates, Chief Executive

 

 

Message from the Section 151 Officer and Corporate Director for Strategic Finance - Lisa Buckle

Title: Picture of the Section 1 5 1 Officer and Corporate Director for Strategic Finance, Lisa BuckleTitle: Lisa Buckle photo - Description: A close-up of a person smiling  Description automatically generatedThe Statement of Accounts has been prepared in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA). The aim of the Accounts is to enable members of the public, Council Members, partners, stakeholders and other interested parties to:

·         Understand the financial position of the Council as at 31 March 2023 and how the Council has performed against the budget set for 2022/23

·         Be assured that the financial position of the Council is secure, with a degree of resilience.

This Narrative Statement provides information about South Hams District Council, including the key issues affecting the Council and its Accounts. It is very important to us to provide residents and other stakeholders with the confidence that the public money for which we are responsible has been properly accounted for.

The current economic climate has seen the Bank of England increase the Bank Base rate to 5%, the highest level in 15 years, in order to tackle surging inflation. This follows a difficult few years, with the COVID 19 pandemic and a rise in energy and fuel costs and higher inflation and interest rates. This has put added pressure on the finances of Councils up and down the country, including South Hams District Council.

Prudent financial management in the past, has meant that the Council was in a relatively healthy position financially before the pandemic hit. The management of risk and promoting financial resilience is a key principle of our budget strategy and this has helped facilitate our response and recovery. Key to the authority’s financial resilience are our reserves, which are at a prudent level. We continue to support our residents and businesses through this period of uncertainty.

Through its Council Tax Reduction scheme, the District Council will ensure that those who are in financial hardship are able to pay less Council Tax, while receiving the full range of support services. At the moment, the Council is supporting 4,900 households and has awarded £5.6m to reduce residents' bills through the scheme. To help prevent further worry, financial advice is also offered. In April 2023, the Council has administered a new Government business rates relief scheme which has provided vital support to a further 1,200 businesses in the retail, leisure and hospitality sector, helping them respond to adapting consumer needs. It is hoped that this support will be a boost to our high streets and town centres.

The Council is on a stable financial footing and this will help the Council manage the uncertainty of the future reforms of Local Government finances such as the Fair Funding Review, New Homes Bonus scheme and the business rates baseline reset. There is no indication yet of the detailed local government funding levels for 2024/25 and beyond and therefore there are many uncertainties in preparing for the challenges we know we will face in the near future.

Mrs Lisa Buckle BSc (Hons), ACA

Corporate Director for Strategic Finance (S151 Officer)

 

 

 

 

 

NARRATIVE STATEMENT – INTRODUCTION

 

1.         Each year South Hams District Council publishes a Statement of Accounts that incorporates all the financial statements and disclosure notes required by statute. The Statement of Accounting Policies summarises the framework within which the Council’s accounts are prepared and published.

 

REVIEW OF THE YEAR – THE REVENUE BUDGET

 

2.         The 2022/23 budget for South Hams was £10.464 million.  A surplus of £57,000 means that the actual net spend was 0.5% less than the budget. This saving of £57,000 will go into the Council’s Unearmarked Reserves which now stand at £2.11 million. The main components of the General Fund budget for 2022/23 and how these compare with actual income and expenditure are set out below:

 

Budget £000

Actual £000

Difference Cost/ (Saving) £000

Cost of services

(after allowing for income and reserve contributions)

10,588

11,571

983

Parish Precepts

3,134

3,134

-

Interest and Investment income

(123)

(1,146)

(1,023)

Amount to be met from Government grants and taxation including parish precepts

13,599

13,559

(40)

Financed from:

 

 

 

Business Rates (baseline funding level)

(1,928)

(1,928)

-

Business Rates (achieved over baseline funding level)

 

(346)

(346)

-

Business Rates Pooling Gain

(300)

(300)

-

Council Tax (including parish precepts)

(10,196)

(10,196)

-

Surplus on Collection Fund

(181)

(181)

-

Rural Services Delivery Grant

(428)

(428)

-

Lower Tier Services Grant

(87)

(88)

(1)

Services Grant

(133)

(133)

-

Business Rates Levy Surplus Grant

-

(16)

(16)

SURPLUS FOR 2022/23

-

(57)

(57)

3.         The movement in the General Fund Balance is shown in the Movement In Reserves Statement in Section 2B and can be summarised as follows:

 

£000

General Fund Balance (un-earmarked revenue reserve) at 1 April 2022

(2,056)

Surplus for the 2022/23 financial year

(57)

General Fund Balance (un-earmarked revenue reserve) at 31 March 2023

(2,113)

*On including the earmarked reserves, Total General Fund Reserves are £17.5 million.

 

4.         The 2022/23 budget for South Hams was £10.464 million but the actual net spend was 0.5% lower, providing a surplus of £57,000 for the year, as set out within these Accounts.

5.         The table below shows a reconciliation of the position shown on the bottom of the Comprehensive Income and Expenditure Statement and the reported surplus for the 2022/23 financial year.

 

£000

Total Comprehensive Income and Expenditure Statement

(51,742)

Surplus on the revaluation of Property, Plant and Equipment

4,481

Deficit on the revaluation of Financial Instruments

(979)

Remeasurements of the net defined benefit pension liability

54,862

Transfers from earmarked reserves

(5,415)

The detail of the items below are shown in Note 7 ‘Adjustments between Accounting Basis and Funding Basis under Regulations’ in the General Fund Balance column.

 

Adjustments primarily involving the Capital Adjustment Account

(3,250)

Adjustments primarily involving the Capital Grants Unapplied Account

165

Adjustments primarily involving the Capital Receipts Reserve

149

Adjustments primarily involving the Pensions Reserve

(4,432)

Adjustments primarily involving the Council Tax Collection Fund Adjustment Account

11

Adjustments primarily involving the Business Rates Collection Fund Adjustment Account

6,155

Adjustments primarily involving the Accumulated Absences Account

(62)

Surplus for the 2022/23 financial year

(57)

6.         A summary of the main variances to budget in 2022/23 is provided below:

ANALYSIS OF VARIATIONS 2022/23

(% column shows variation against budget)

 

£000

% variation

Reductions in expenditure/additional income

 

 

Treasury Management Income – extra investment income on the Council’s investments following the recent successive increases in interest rates to 4.5% as the Bank of England looks to tackle surging inflation.

(1,023)

831.7%

Car parking pay and display income and fine income – additional net income from extra usage, especially in the coastal car parks and extra fine income of £88,000. This equates to 14.5% of the total income budget of £3.162m.

(460)

14.5%

Employment estates – additional income due to high occupancy rates and regular rent reviews.

(280)

31.6%

Dartmouth Lower Ferry - extra income of £209K (26%) has been achieved against the budgeted income of £0.82m – this has offset additional running costs of the ferry as shown below.

(209)

25.3%

Increases in expenditure/reduction in income

 

 

National pay award – the national employer’s pay offer for 2022/23 of £1,925 on all NJC pay points was significantly higher than the budgeted provision of 3%. The pay award resulted in additional salary costs.

410

221.6%

Planning income shortfall – Planning income is down by £350,000 (32%) against the budgeted income target of £1.08million.

350

32.3%

Additional salary and agency costs (partly in the waste and legal teams). The Council also shares its staffing workforce with West Devon BC. In 2022/23 there was a higher apportionment of staff costs of £86K to South Hams DC due to the Council bringing the waste service back in house from 3 October 2022 (as per the Audit Committee report on 9th March 2023).

220

2.9%

 

Dartmouth Lower Ferry – fleet refurbishment, equipment costs and additional fuel costs – offset by additional ferry income of £0.2m as shown above.

187

166.4%

Waste contract inflation – the actual rate of inflation on the contract was 12.2% and was significantly higher than the budgeted provision of 3%. Contract inflation was based on fuel inflation, wage inflation and consumer price index, all of which were higher than when the budget was set.

180

138.5%

Waste – additional vehicle repairs and maintenance costs due to an ageing fleet (new vehicles are being purchased in 2023/24).

79

31.9%

Higher inflation on utility costs on all Council services – An increase in utility (mainly electricity) prices due to the rise in energy costs and inflationary pressures.

155

54.5%

Additional Insurance costs – higher insurance costs which are inflation linked and a significant amount is linked to bringing the waste service back in house in Oct.

130

41.4%

ICT software and support contracts – additional costs from above inflation increases, increased number of users on the Council’s network, increase in remote working and disability access legislation compliance.

92

16.8%

Homelessness costs – additional expenditure on temporary accommodation over and above what is claimable through the DWP subsidy. This is due to a number of factors beyond the Council’s control such as the housing crisis and a lack of accommodation.

90

37.3%

Other small variances

22

-

TOTAL SURPLUS FOR 2022/23

(57)

(0.5%)

The 2022/23 Budget for South Hams was £10.464 million but the actual net spend was 0.5% lower, providing a surplus of £57,000 as shown above.

 
KEY AREAS TO NOTE FROM THE 2022/23 STATEMENT OF ACCOUNTS

 

Pension Liability

 

7.         International Accounting Standard 19 (IAS19) requires local authorities to recognise pension assets and liabilities within their accounts. The overall impact on the General Fund of the IAS 19 entries is neutral. The Net Cost of Services within the Comprehensive Income and Expenditure Statement includes current service costs and past service costs. Net Operating Expenditure includes the Council’s share of the return on pension’s assets and the net interest cost of the Council’s liability due to under-funding.

8.         During the autumn of 2022 the Actuary undertook the latest 3-yearly review of the Pension scheme and costs; with the next review due in 2025/26. The Local Government Pension Scheme has been reviewed nationally to ensure it meets the objectives of being viable and acceptable to both employees and the employer.                                                                                                  

9.         The draft accounts for 2022/23 included a small net pension asset of £162,000 as at 31 March 2023. However, the actuary’s interpretations of IFRIC 14 evolved after the draft accounts were published following guidance from CIPFA (Chartered Institute of Public Finance and Accountancy) on the treatment of pension assets (IFRIC 14), and a coalescence amongst auditors regarding a preferred approach to asset ceilings.

10.      IFRIC 14 looks at the limit on a defined benefit asset, the minimum funding requirements and their interaction. Consequently, following the revised IAS19 figures from the actuary, the net pension asset of £162,000 in the draft accounts moved to a £2.19 million pension liability as at 31 March 2023 (this compares to a pension liability of £52.62 million at 31 March 2022). This purely recognises the fact that the Council will still need to pay employer’s pension contributions into the pension scheme on an annual basis. The difference between the 2022/23 pension position shown in the draft and audited accounts relates to the application of the asset ceiling of £2.35 million by the actuary as shown in the following table:

 

 

 

 

 

 

 

 

 

Impact of applying the pension asset ceiling to the pension position (IFRIC 14) in 2022/23

31 March 2023

£000

Pension asset – as shown in the 2022/23 draft accounts presented to Audit Committee on 27 July 2023

(162)

Pension asset ceiling – applied to the pension asset position as at 31 March 2023

2,353

Pension liability – as shown in the 2022/23 audited accounts presented to Audit Committee on 28 March 2024 (this equates to the present value of the unfunded obligation of the pension scheme)

2,191

 

11.      The effect of the asset ceiling has been determined by the actuary on the basis of the limitation on the Council’s ability to recover the full economic benefit of its assets through reductions in future employer’s contributions because of the minimum funding requirement imposed on it by the funding strategy for the Scheme. The Council is currently committed to paying contributions into the Pension Fund at a higher rate than that at which future service costs will be accrued. On these projections, the Council will be unable to reduce future contributions to recover the £162,000 net pension asset that would otherwise apply. It is important for Members to note that the adjustment to the pension position is made to better reflect the practical operation of the funding strategy. It does not indicate that the council has paid £162,000 into the pension fund that it will never benefit from.

12.      The pension liability of £2.19 million is a significantly improved position than the previous year (pension liability of £52.62 million). This is as a result of the actuary reducing life expectancy projections and an increase in interest rates affecting the discount rate for liabilities. The IAS19 position is derived by calculating the pension assets and liabilities at 31 March 2023. This large reduction in the pension liability for South Hams is mainly due to a change in financial assumptions (£56.1 million). This relates to an increase in the discount rate from 2.6% at 31 March 2022 to 4.8% at 31 March 2023. Accounting regulations prescribe that accounting valuations of pension liabilities should use a discount rate based on corporate bond yields. As interest rates have gone up, so have corporate bond yields and therefore the discount rate applied to our accounting liabilities.

13.      The Council’s liability relating to the Devon County Council defined benefit pension scheme is included within the Balance Sheet and further details are shown in Note 35. The pension liability is a snap-shot valuation in time, based on assumptions. The true value is assessed on a triennial basis with contribution rates set to recover the balance over the longer-term.

14.      The amount the Council contributes to the Pension Fund is re-assessed every three years; the most recent review was in the autumn of 2022 and took effect from April 2023.  The Council has adjusted its pension contributions in line with the Actuary’s recommendations, which have been factored into the Medium Term Financial Strategy (MTFS).

Business Rates

 

15.      The Local Government Finance Act 2012 introduced a Business Rates Retention Scheme (BRRS) that enabled local authorities to retain a proportion of the business rates generated in their area, with effect from 1 April 2013. There is a risk of volatility in the system because Councils are exposed to any loss of income if businesses go into decline or if a Council’s income from business rates falls due to successful business rates appeals.

16.      Provision is made for likely refunds of business rates as a result of appeals against the rateable value of business properties. The provision is based on the total value of outstanding appeals at the end of the financial year as advised by the Valuation Office Agency. Using this information, an assessment was made about the likely success rate of appeals and their value.

17.      In 2022/23 there has been a £1,485,000 reduction in the provision for appeals within the Collection Fund. The Council’s share of this is 40% (i.e. £594,000). The balance on the Business Rates Collection Fund at 31 March 2023 is a surplus of £5,957,000 (£6,351,000 deficit in 2021/22). South Hams District Council’s share of the surplus is 40% (£2,383,000).

18.      Monies are set aside in the Business Rates Retention Earmarked Reserve to mitigate the impact of volatility in Business Rates income due to the complex accounting arrangements for Business Rates. In 2022/23 the balance of the Business Rates Retention Scheme (BRRS) earmarked reserve reduced by £2.57m to £1.98m as at 31 March 2023. This included a transfer of £1.45m from the Business Rates Retention Earmarked Reserve to support the costs of bringing the Waste and Recycling Service back in house from October 2022. Some of this additional business rates income is due to timing differences in the way the Collection Fund operates and part of the funding will be needed to meet future years’ budgets for business rates, in particular as business rates baselines are due to be re-set in the future.

 

19.      In addition, a new earmarked reserve was created in 2020/21 called the s31 Compensation Grant (Business Rates) Reserve. This was set up to hold the s31 grant received in 2020/21 and 2021/22 totalling £8.73m to offset the business rate reliefs given to businesses during the pandemic and the 2020/21 Tax Income Guarantee s31 grant for Business Rates (£0.79m). Under current Collection Fund accounting rules, the s31 grants received are not discharged against the Collection Fund deficit until the following year. In 2021/22 £5.25m of s31 grant was discharged to the Business Rates Collection Fund and a further £3.07m in 2022/23. This compensation grant will continue to be applied to the Collection Fund to smooth the impact of the Business Rates deficit. The balance on this reserve as at 31 March 2023 is £1,194,000.

 

Waste, recycling, street and toilet cleaning services

 

20.      Throughout 2022/23, the Council continued to address issues with its Waste and Recycling service, provided by an external contractor, FCC,

 

21.      On 12 July 2022, Executive considered a report, with advice from the Council’s Waste Working Group. The Waste Working Group advised that the Council and FCC Environment have reached a mutual agreement to end their contract for waste, recycling, street and toilet cleaning services.

 

22.      Both parties agree that the past few years have presented a number of extremely challenging circumstances.

 

23.      In the best interests of the residents of the South Hams, it was proposed that the services will be operated by the Council from Monday 3 October 2022. This decision was subsequently approved by Full Council on 14 July 2022. The Council and FCC Environment worked closely together to ensure a smooth transfer of the services. The services returned to the full control of the Council on 3 October 2022.

24.      There were exceptional one-off transitional costs of £1.5m in 2022/23 for bringing the waste and recycling service back in house in October 2022. This was referenced in reports to Council on 12 July and 22 September 2022 and had the support of the cross Party Waste Working Group. A further £1.5m will be spent in 2023/24 on transitional costs. The £3m was funded from the business rates retention reserve which was approved by Council prior to the waste service being brought back in-house in October 2022. In addition a further £0.5m was spent on one-off project implementation costs, with the Council receiving third party funding towards these costs.

25.      Since that point, performance has improved significantly. As reported to the Executive on 13th April 2023, there has been a fundamental improvement in performance and in February 2023, for the first time in over three years, the service has achieved the national industry standard performance target of no more than 80 missed bins per 100,000 collections. The Council also took steps to launch a chargeable garden waste service from March 2023. The focus is now on continuing to improve the service and deliver a Devon Aligned Service for all properties in the district not already on the scheme. It is anticipated that this will start in October 2023.

 

Plymouth and South Devon Freeport

 

26.      The Plymouth and South Devon Freeport is a private company limited by guarantee which was incorporated on 16 May 2022. Plymouth City Council is the accountable body for the Freeport. For the purposes of Group Accounting, the Freeport has been assessed as a joint venture as no single member or two members working together can make decisions. Control can only be exerted by all three members acting jointly. Group accounts are not required to be prepared in 2022/23 on the basis of materiality.

Trading Company

 

27.      South Hams District Council and West Devon Borough Council set up a trading company, Servaco Ltd, on 4th September 2014. This is a company limited by shares. The company has not traded in 2021/22 and a set of statutory dormant Accounts will be filed with Companies House for the period 1 April 2021 to 31 March 2022.  At Council on 15 December 2022 Members approved to close down this dormant company, Servaco Ltd with effect from 31 March 2023.

Sherford Community Land Trust Limited

 

28.      As part of the conditions of the S106 agreement for the new town of Sherford a limited company was created on 13th July 2018 to handle the various requirements of the S106 agreement. The company is limited by guarantee without share capital. It has seven directors, made up of one representative from each of the local authorities (South Hams District Council, Plymouth City Council and Devon County Council) and one representative from each of the developers. Group accounts are not required to be prepared as the Council’s interest is below 20% and therefore it does not have enough influence to be an associate.

Housing

 

29.      For the first time in a generation, South Hams District Council is building its own affordable homes for local people. This is another step in the plan to tackle the housing crisis facing residents in the South Hams. To mark the start of the building works, Councillors attended the official turf cutting event in St Ann’s Chapel, near Bigbury on 3rd May 2022, where 8 affordable homes are being built, with 3 open market units and 2 serviced plots. The severe shortage of affordable rented and shared ownership accommodation, particularly in coastal areas like St Ann’s Chapel, resulted in the Council declaring a housing crisis. They will be high quality, energy efficient homes and will be low cost to heat and run. Air source heat pumps and low water use fittings form part of the design, along with electric car charging points. With the current energy crisis, this will be great news for future tenants to keep their bills low and manageable.

 

30.      The Council's determination to do everything in its power to ease the area's housing crisis is paying off, with new affordable homes being built over the last four years. Since 2019, 619 new affordable homes have been built in the South Hams. These include 39 new homes in Ivybridge and 12 specialist homes at Elmhurst Lodge in Dartington. Elmhurst Lodge offers local people with learning difficulties their very first taste of independent living.

 

31.      The Council is also accessing the Government Local Authority Housing Fund and S106 contributions to purchase up to 7 properties initially to provide temporary accommodation for Ukrainian refugees arriving in the UK under the Homes for Ukraine Scheme. It is anticipated these purchases will be undertaken during 2023/24.

Borrowing

 

32.      In 2022/23 the long term borrowing of the Council reduced from £14,284,000 (21/22) to £13,825,000. Short term borrowing increased from £96,000 to £459,000. This is due to the profiling of the debt repayments where long term borrowing has moved to short term borrowing. Total borrowing as at 31 March 2023 has reduced from £14,380,000 to £14,284,000. No further external borrowing took place during 2022/23.

 

Capital spending

 

33.      The Council spent £9.3m on capital projects in 2022/23. The main areas of expenditure were as follows:

·         Dartmouth Health and Wellbeing Hub (£3.83m)

·         St Ann’s Chapel housing scheme (£1.56m)

·         residential renovation grants including disabled facilities grants (£1.14m)

·         Green Homes grants (£0.91m)

·         Batson Harbour Depot/Commercial Units (£0.78m)

·         Affordable Housing (£0.28m)

The capital programme is funded from capital receipts, capital grants, external contributions and earmarked reserves (please see Note 32).

 

 
 
Financial Instruments – IFRS9 Election to treat Equity Instruments as Fair Value through Other Comprehensive Income

 

34.      At 31 March 2023 the Council had investments of £1.5 million with the CCLA Property Fund and £2 million with the CCLA Diversified Income Fund.

 

35.      Upon transition to IFRS 9 – Financial Instruments on 1 April 2018, and in accordance with paragraphs 5.7.5 and 7.2.8 (b) of IFRS9, South Hams District Council makes an irrevocable election to present in other comprehensive income, changes in the fair values of its equity instruments. These investments are eligible for the election because they meet the definition of equity instruments in paragraph 11 of IAS32 and are neither held for trading (the Council holds these investments as a long term strategic investment) nor contingent consideration recognised by an acquirer in a business combination to which IFRS3 applies. They are not considered to be puttable instruments because the Council does not have a contractual right to put the instrument back to the issuer for cash.

 

36.      A summary of the position of these equity instruments as at 31 March 2023 is shown below:

 

 

Purchase cost

Fair Value at 31 March 2023

Movement in Financial Instruments Revaluation Reserve 2022/23

£000

£000

£000

Equity Instrument

 

 

 

CCLA Local Authorities Property Fund

1,500

1,314

(259)

CCLA Diversified Income Fund*

2,000

1,312

(720)

TOTAL

3,500

2,626

(979)

 

*The CCLA Diversified Income Fund experienced a downward revaluation of £720,000 in 2022/23. The outlook for global economic growth continues to be weaker. Inflation is likely to remain above target rates for some time, interest rates in most areas will still be negative in real terms. This backdrop placed some downward pressure on investments during 2022. However, the CCLA fund continued to outperform the benchmark. CCLA will maintain the portfolio’s emphasis on real assets such as good quality equities and alternatives, adding selectively to fixed income as attractive opportunities are identified to support continued performance for this long term investment.

FINANCIAL NEEDS AND RESOURCES

 

37.      The Council maintains both capital and revenue reserves. The provision of an appropriate level of balances is a fundamental part of prudent financial management, enabling the Council to build up funds to meet known and potential financial commitments. 

38.      General Fund reserves (which include earmarked reserves) have decreased by £5.358m from the preceding year and stand at £17.537 million at 31 March 2023.  This is due to a reduction in Earmarked Reserves of £5.415m. This follows the application of some of the s31 Business Rates compensation grant (£3.07m) received in 2020/21 and 2021/22 which was held in the s31 Compensation Grant Business Rates Reserve.

39.      The total Earmarked Reserves balance at 31 March 2023 of £15.424m includes £1.19m held in the Business Rates s31 Compensation Grant Reserve. This is due to a technical accounting adjustment where Councils were compensated for the business rates holidays that were announced by the Government for the retail, hospitality and leisure sectors in 2020/21 and 2021/22 (this funding is in the s31 Compensation Grant Reserve). This temporary increase in reserves will reverse back out again in the 2023/24 Accounts, to fund the deficit on the Collection Fund. Therefore this is not money which is available for the Council to spend and it is important that this is not misinterpreted in the Accounts, as this is a national issue.

40.      The General Fund Balance (un-earmarked reserve) has increased by £57,000 in 2022/23 and totals £2.113 million following the surplus from 2022/23 of £57,000. Revenue reserves may be used to finance capital or revenue spending plans. The level of Reserves are assessed as adequate for the Council’s operations.

41.      Capital Reserves are represented by capital receipts and capital contributions unapplied. The balance at 31 March 2023 amounts to £3.33 million compared to £3.45 million at the end of the previous year.

42.      There are a number of Unusable Reserves which include the Revaluation Reserve, Capital Adjustment Account, Financial Instruments Revaluation Reserve and Pensions Reserve which are subject to complex accounting arrangements. The Revaluation Reserve and Capital Adjustment Account are used primarily to account for changes in fixed asset values associated with revaluations and new capital expenditure and as such cannot be used to finance capital or revenue expenditure.

 

 

43.      When reviewing the amount of overall reserves held, consideration should be given to the possible implications of the Pension Fund deficiency disclosed within the notes to the balance sheet.  The requirement to recognise the net pension position in the balance sheet has reduced the reported net worth of the Authority by £2.19 million at 31 March 2023. This disclosure follows the implementation of the International Accounting Standards (IAS 19).  This standard requires local authorities and other businesses to disclose pension assets and liabilities within the balance sheet.

44.      It is important to gain an understanding of the accounts to appreciate the nature of this reported position, which is based on a “snapshot” of pension assets and liabilities at the year end.  This is quite different from the valuation basis used for the purposes of establishing the employer’s contribution rate and fund shortfall, which are calculated using actuarial assumptions spread over a number of years.

 

Annual Governance Statement (AGS)

 

45.      The Council’s Annual Governance Statement sets out the arrangements for governance which the Council has in place. The AGS is published alongside the Accounts for 2022/23.

 

Cost of Living Response

 

46.      During 2022/23, the increasing cost of living has remained a real issue for South Hams communities.

 

47.      In October 2022, the Council adopted an action plan for supporting residents which included:-

a.    Promoting support and advice available through online and printed media campaigns with partners such as Citizens Advice and local community energy groups

b.    Launching grant fund schemes to enable local community groups to provide direct support for the health and wellbeing of residents

c.    Ensuring that all Government funding was quickly processed to those who needed it

d.    Extending the financial support for Citizens Advice to support an increase in capacity to support more residents.

 

Corporate Strategy – Better Lives for All

 

48.      During the year we continued to deliver against Council agreed priorities as set out in our Corporate Strategy, Better Lives for All.  

 

49.      Good progress was made and the year 3 delivery plans adopted by Council in March 2023.

 

Title: Achieving our vision - Description: Timeline  Description automatically generated

 

 

 

 

50.      Following elections in May 2023 and the formation of the new Council, work has already commenced to begin to develop our next corporate strategy, responding to the changing needs of our residents and communities. It is anticipated that this will be adopted in Autumn 2023.
 
Organisational Development Plan

 

51.      To ensure that the Council continues to have sufficient, and aligned resources to deliver on its corporate priorities, during 2022/23 we developed and began to implement an Organisational Development Plan. This plan focuses on three core strands of activity:-

 

Title: Organisational and Development Plan - Description: A close-up of a logo  Description automatically generated with low confidence

 

52.      The plan has a number of specific and measurable actions and will be a significant focus for delivery over the coming two years.

 

 

 

LOOKING FORWARD TO THE FUTURE AND NEXT STEPS

 

Continuing to respond to the housing crisis

 

53.      The Council has set out its priorities for this next four year term with a particular focus on ensuring housing that meets the needs of local residents.

 

54.      On 28 June 2023, the Executive considered and agreed a report that updates on steps the Council proposes to take to support social housing residents take action against their landlord where they have highlighted significant issues but there has been no progress to resolve.

 

55.      We will finalise the development of the affordable housing in St Ann’s Chapel and progress plans to purchase properties under the Local Authority Housing Fund, initially as temporary accommodation for Ukrainian refugees arriving in the UK under the Homes for Ukraine Scheme.

 

 

Climate Emergency Response

 

56.      This year we will be in the fourth year of delivering our Climate and Biodiversity Emergency Action Plan. We will be continuing to deliver on those actions including ensuring the Council delivers on commitments including progressing plans for an electric vehicle fleet and continuing with our wild flowering on Council land. We will also take steps to form a Climate and Biodiversity Advisory Panel, working closely with our key partner, Sustainable South Hams.

 

 

Developing our Corporate Priorities

 

57.      Discussions are already underway between the Senior Leadership Team and Executive Lead Members to develop the next iteration of the Council’s Corporate Strategy.

 

58.      The development of the new strategy will be undertaken throughout the summer and into the Autumn, ensuring that it aligns to our 2024/25 budget setting process and Medium Term Financial Strategy updates.

 

Our financial future

 

59.      The financial standing of the Council is secure in the immediate future, but there is still much work to do to ensure the long term financial sustainability of the Council.  The Fair Funding Review, business rates baseline reset, and other funding reforms now look set to be pushed back to 2025/26 at the earliest. In addition the timing of the cessation of the current New Homes Bonus scheme is not clear, but if it does continue, it will be smaller in value with no historic legacy payments.

 

60.      Pushing these major changes back to 2025/26 means that they can be aligned with the next spending review period (the current spending review runs to 2024/25). 2025/26 now looks like it is shaping up to be a very significant financial year for local government, incorporating a new spending review and funding reforms. 

 

Going Concern

 

61.      As highlighted above there is a high degree of uncertainty about future levels of funding for local government. However, the S151 Officer is keeping a close watch on developments and planning for this longer-term uncertainty. The Council has a strong track record of financial prudence and as a result has set aside Reserves.

 

62.      For example, at Council on 10 February 2022 Members approved the creation of a new earmarked reserve, the Financial Stability reserve. It was resolved that £280,000 be transferred from Unearmarked Reserves to a Financial Stability Earmarked Reserve as part of the process of closing the 2021/22 Accounts, to be available for any future financial pressures from future local government funding reforms and any other budget pressures.  

 

63.      Based on the S151 Officer’s management assessment (which has included consideration of the Government support available, the Council’s current level of reserves, the level of working capital including cash and investments, a sensitivity analysis on forecast cashflows, income from local taxation and borrowing headroom etc.), there is no material uncertainty and as a result the Accounts for 2022/23 are prepared on a going concern basis.

 

Issue of the Accounts

 

64.      The Corporate Director for Strategic Finance authorised the audited Statement of Accounts 2022/23 for issue on 28 March 2024. Events taking place after this date are not reflected in the financial statements or notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

CORPORATE PERFORMANCE FOR 2022/23

The Council adopted its ‘Better Lives for All’ strategy in September 2021 and regularly reports on the performance of the delivery plan to both Overview and Scrutiny and the Executive. At the end of the year, the performance for the priorities within the strategy is as set out below. Overall, positive progress has been made across all themes. Each theme has a lead officer and lead Executive Member who meet regularly to monitor progress.

 

Title: Performance Management - the golden thread - Description: Diagram  Description automatically generated with medium confidence

 

 

Highlights of activities delivered under each theme during the year are set out below.

 

Adapting and Mitigating Climate Change

In 2019, we declared a Climate and Biodiversity Crisis in response to global warming and a decline in biodiversity. During the past year we have continued to make good progress in delivering against our climate and biodiversity action plan including:-

·         Carrying out a public consultation which informed the development of  our Electric Vehicle Charging strategy.

·         Worked with other organisations in Devon to contribute to the development of the Devon Carbon Plan – endorsing it at Council in December 2022.

·         Secured funding through the Public Sector Low Carbon Skills fund to produce a fully costed decarbonisation plan for our Leisure Centres.

·         Awarded over £55,000 to groups working with hard to reach and disengaged groups through our climate engagement fund, with a further £100,000 awarded to support infrastructure projects such as e-bikes in Totnes and Dartmouth.

·         Utilising Green Homes Grants, installed 16 air source heat pumps, 63 solar panels, 8 storage heaters and 10 property insulations all to increase energy efficiency of properties in the District.

 

 

Strengthening Community Wellbeing

There is no doubt that this year has been another challenging year for our residents, as we’ve emerged from two years of varying restrictions from the Global Pandemic,  we’re now all facing continuing increase in the cost of living. Many residents have also stepped up this year to support Ukrainians fleeing war. Specific actions delivered this year include:-

Title: Cost of living response plan

·         Quickly acting to process £4.2m of Government energy support payments of £150 to 28,175 households in response to the Cost of Living crisis.

·         Awarding £40,000 to community groups delivering projects through the winter focused on the health and wellbeing of residents.

·         Delivered 52 disabled facilities grant projects enabling residents to stay in their own homes.

·         Allocated £475,000 of S106 contributions to community facilities projects.

 

 

Improving Homes

Title: Housing construction works photo - Description: A building under construction with scaffolding  Description automatically generated with medium confidence In September 2021, the Council declared a housing crisis. South Hams has seen over the past few years, issues with affordability, availability of properties and a huge increase in short term holiday lets. The level of second home ownership in South Hams means that house prices have been pushed upwards, hugely problematic for our younger generation and first-time buyers. The Council’s 12-point action plan to tackle the crisis has helped see a significant improvement in addressing these issues. From 2019 to date, 619 new affordable homes have been delivered in South Hams. This is thanks to the great working relationships we have with our registered provider partners. More new homes are due to be completed at Sherford and Ivybridge at the end of March and work continues to offer even more new homes in the future.

 

Specific achievements during the year include:

 

·         Progressing build of 8 affordable homes at St Ann’s.

·         15 Housing Association tenants being supported in to smaller properties as part of our ‘downsize’ scheme.

·         Purchased two properties for housing first to support rough sleepers into temporary accommodation.

·         Agreed an updated homelessness strategy setting out how we will reduce homelessness in the district.

 

 

 

 

Thriving Economy

During this year we have taken steps to secure funding through the UK Shared Prosperity Fund to support businesses with a number of projects focused on supporting them to decarbonise their activities – particularly in the marine and construction sectors. This year we also:-

Title: Calculator photo

·         Progressed plans for a Freeport for South West Devon and Plymouth.

·         Agreed a new business rates relief scheme which will provide vital support to a further 1,200 businesses in the retail, leisure and hospitality sectors which will be implemented on 1st April 2023.

 

 

 

Protecting, conserving and enhancing our built and natural environment

During the year we have taken many steps to ensure that our built and natural environment is protected, conserved and enhanced. We’ve simplified our planning process and supported neighbourhoods to shape their own futures through neighbourhood plans. Specific actions during this year include:-

 

·         Supported the making of neighbourhood plans for Frogmore & Sherford, Modbury, Kingsbridge, West Alvington and Churchstow & Dartmouth.

·         Secured £485,000 of Government funding to help develop a more accessible and integrated Joint Local Plan using technology for better engagement

·         Title: Harbour photoAdopted the Plymouth and South West Devon Climate Emergency Planning statement – setting out new planning requirements for developments to minimise carbon emissions.

·         Progressed with a new harbour office and marine business units at Batson Creek.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quality Council Services

Title: Boat photoThis year has again seen the council and its services adapt quickly to ensure that the district was supported to meet challenges, in particular the significant increases in the cost of living and bringing our waste service back under the direct control of the council. Other activities during the year include:

 

·         Carrying out a refit of our Dartmouth Lower Ferry – a vital part of ensuring we’re ready for a busy Summer 2023.

·         Increased how much a residents can earn while still accessing Council Tax reduction – during the year we supported 4,999 working age and pensioners with CT reduction.

·         Extended funding for our key partners such as Citizens Advice and Community Transport schemes for a further two years in recognition of the key role they play in supporting our residents in particular in respect of support for Cost of Living.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRINCIPAL RISKS AND UNCERTAINTIES

 

A risk and opportunity management strategy is in place to identify and evaluate risks. There are clearly defined steps to support better decision making through the understanding of risks, whether a positive opportunity or a threat and the likely impact. The latest update was presented to the Audit & Governance Committee on 9th March 2023 and a high-level summary considered by Executive as part of the quarterly Integrated Performance Management Reports.

 

 

Title: PRINCIPAL RISKS AND UNCERTAINTIES - Description: Graphical user interface  Description automatically generated

 

 

 

The following sets out the key strategic risks for the Council as at the last report to Audit Committee in March 2023:

 

 

 

 

 

 

Risk Title:

Adherence to Medium Term Financial Strategy

What is the risk?

Failure to sustain a robust on-going medium term financial strategy in SHDC with adequate reserves to meet unforeseen circumstances, due to cost pressures and reduced income targets, council decisions, changes in Government policy with regard to business rates and affordable housing; Potential impact on delivering the MTFS, particularly if national/regional businesses successfully appeal against business rate valuations or litigation proceedings/legal challenges/planning appeals, etc.

What could cause the risk to occur?

Reduction in Government grant, increasing demand for services and other cost pressures and increased risks associated with localised business rates and council tax support. Additionally, income from activities may not materialise or may be reduced, e.g. a reduction in sales, fees and charges income or business rate appeals. The amount of income received can be adversely affected by a fall in collection rates due to economic downturn, the effects of the pandemic and other factors such as the bankruptcy/liquidation of large ratepayers or any sizeable rateable value reductions achieved by business rated properties in the area.

Risk Scoring

Likelihood of risk occurring

 3 (Possible)

What are we doing to reduce the risk?

1.     Robust horizon scanning to monitor changes in Government policy. SLT awareness of the risks, cautious approach to budgeting and robust systems of financial control. The Council is not intending to rely heavily on sources of income which may not be sustainable e.g. New Homes Bonus.

2.     SLT actively participate in Government consultations, MP discussions and keep aware of changes and the response by peer group, ensuring where appropriate the learning from this is incorporated into strategic plans.

3.      SLT engaged in the development of the MTFS.

Impact

Financial

4  (Major)

Service Quality

4  (Major)

Reputation

4  (Major)

Legal/Regulatory

4  (Major)

Health and Safety

2   (Minor)

Morale/Staffing

2   (Minor)

Current Update (March 2023)

The Executive considered the Medium Term Financial Strategy for the Council in September 2022.  The Council has continued to work in partnership with West Devon Borough Council which has allowed South Hams to achieve annual savings of £3.9 million and more importantly protect all statutory front line services. Between both Councils the annual shared services savings being achieved are over £6 million per annum. However, the Councils continue to face considerable financial challenges as a result of uncertainty in the wider economy and constraints on public sector spending.

We had expected a longer term financial settlement to be made in December 2022 however Government again made only a single year settlement but with a commitment for consultation on further funding reforms to come forward during 2023. 

As at the update to Executive in March 2023, the Council is forecasting a budget surplus for the current (22/23) financial year of £127,000 – or 1.2% of our annual budget.

In February 2023, Full Council considered the proposals for a balanced budget for 2023/24.

 

 

Risk Title:

Inadequate Staffing Resource

What is the risk?

The risk is that the Council fails to have the right culture, organisational conditions or resources to deliver our priorities for our communities. Insufficient staffing arrangement resulting in a loss of staff morale, and inadequate resources for training and re-skilling in an ongoing period of change. Failure to engage staff resulting in uncertainty regarding changes in working practices and job security. Particular risk in relation to future terms and conditions. Cost and time of retraining/up-skilling staff. Unrealistic expectations in relation to staffing capacity.

What could cause the risk to occur?

The last few years have seen Local Government stepping up to provide significant and varied support to our residents, communities and businesses in addition to maintaining our core service delivery. This has been a sustained period of the council delivering additional support and services and is likely to continue in to the short-medium term.

Risk Scoring

Likelihood of risk occurring

5 (Almost Certain)

What are we doing to reduce the risk?

1.     Continuing to review services and update service plans to ensure that we can meet future demand

2.     Reviewing our recruitment campaigns – ensuring that they are effective and targeted

3.     Filling key roles with temporary resource to ensure services can continue to be delivered effectively while we progress with the recruitment of permanent employees

4.     Developing plans for ‘grow our own’ talent

5.     Identifying local recruitment events with a view to attending and highlighting roles available within the Council

6.     Assessing the ‘offer’ to employees with other similar organisations

Impact

Financial

4 (Major)

Service Quality

4 (Major)

Reputation

4 (Major)

Legal / Regulatory

4 (Major)

Health and Safety

2 (Minor)

Morale / Staffing

4 (Major)

Current Update (March 2023)

The Council currently continues to experience recruitment and retention challenges. In February 2022, the Council introduced a market supplement policy that enables an enhancement to be made to the salary of certain roles in accordance with specified qualifying criteria. All enhancements are initially for a period of 2 years and are kept under review. The Council also undertook a job evaluation exercise on all principal professional and technical roles (level 4) and, with a new criterion that looked at the difficulty in attracting candidates for vacant roles and retaining existing employees. As a result, it is proposed to implement a new pay band for senior, professional and technical roles (level 4B) and slight changes at the top of the salary range for senior and principal officers at Levels 5 and above. A report on this matter will be considered by Executive on 2nd March 2023.

The recent staff survey, while reasonably positive, highlighted employees had particular concerns around pay. The changes to pay and grading identified above are also intended to demonstrate a positive response to the genuine concerns of staff facing cost of living pressures. Alongside this a comprehensive organisational development plan has been developed to ensure that the Council makes the best ‘employment offer’, with an end-to-end approach covering recruitment, training and development, talent management and progression, to make us an employer of choice.

 

 

 

 

 

Risk Title:

Health and Wellbeing Service Provision

What is the risk?

The risk is that following the negative impacts to leisure centres as a result of Covid-19, leisure centres may now face further pressures due to the increased cost of living including through loss of revenue as residents consider where they can save money and through increased cost of operating the centres given the energy price increases and increasing inflation.

What could cause the risk to occur?

This risk original escalated to the Strategic Risk register as a result of the Covid-19 pandemic forcing the closure of leisure centres, meaning a loss of income. The risk has now changed slightly and the main cause for it to remain on the strategic risk register is the risk that revenues reduce as the cost-of-living crisis deepens.

Risk Scoring

Likelihood of risk occurring

5 (Almost Certain)

What are we doing to reduce the risk?

1.     Worked with Fusion Leisure to revise the management fee profile in response to the reductions in income seen through Covid-19 (agreed by Council in Feb 2022)

2.     Continue to engage with Fusion to understand issues and support where possible

3.     Continue to monitor local and national position (given that all leisure providers will be In the same position)

4.     Promote active participation in sport and leisure through Council communication channels

Impact

Financial

4 (Major)

Service Quality

2 (Minor)

Reputation

2 (Minor)

Legal/Regulatory

2 (Minor)

Health and Safety

4 (Major)

Morale/Staffing

2 (Minor)

Current Update (March 2023)

The likelihood of this risk occurring has now increased to ‘5’ as leisure Services nationally are now being significantly impacted by the increases to energy costs and other supplies and services, with the issue being further compounded as individuals consider their own levels of expenditure and focus on essential spending – with discretionary spending on items such as leisure being areas where individuals consider making savings.

The Council continues to regularly meet with the Chief Executive of Fusion Leisure to understand the impacts. We are actively taking steps to support fusion progress plan for the decarbonisation of its sites which will, longer term, result in a reduction of energy costs – although does not address the immediate impacts.

 

 

 

Risk Title:

Business Continuity

What is the risk?

The risk is that we do not develop and keep maintained robust processes to ensure business continuity in the event of a significant event occurring, e.g. Failure to ensure the continuous availability of critical IT systems leading to inability to deliver key council services.

What could cause the risk to occur?

Developing and maintaining robust Business Continuity Plans requires significant and sustained focus. During Covid-19 response, the Councils risk profile has changed as we have relied much heavier on working in different ways (for example more staff working from home the majority of time) and with significant pressures being placed on some of our key delivery partners/contractors. Work is required to update our BCPs to the changing environment that we are operating in.  We are also entering a period where extreme weather events increase the risk of a business continuity event triggering.

Risk Scoring

Likelihood of risk occurring

3  (Possible)

What are we doing to reduce the risk?

Having two HQ locations is main mitigating factor - however an outage of power/ICT at either location would lead to a serious disruption of service.

Agile working further reduces reliance on two office buildings.

Locality workers can be despatched more easily to ensure customer engagement can be maintained during any incident.

Business Continuity plans have been updated - priority areas - ICT Networking - Payroll & Creditors Payments; other plans need to be made more robust – further work underway for the new year

Impact

Financial

5 (Catastrophic)

Service Quality

5 (Catastrophic)

Reputation

4 (Major)

Legal/ Regulatory

2 (Minor)

Health and Safety

3 (Moderate)

Morale/ Staffing

3 (Moderate)

Current update (March 2023)

Positive progress has been made and we have increased the resilience of our business continuity arrangements with new hardware in place to enable a more stable IT environment and more frequent off-site backups.

Cyber-security training has been rolled out to all employees and members so that everyone is better able to identify potential threats to our IT operating environment. Significant progress has also been made in updating our Business Continuity and recovery plan for our IT service, working with sector experts to ensure they are as robust as possible.

An officer planning day was held in January to develop an update business continuity planning framework and to lead business continuity planning moving forward.  We have also undertaken a successful power-cut test of our IT systems. This was successful and saw back-up systems operate as expected.

 

 

 

 

 

 

 

 

 

 

 

 

Risk Title:

Delivery of Waste and Recycling Service

What is the risk?

The risk is that the Council fails to adequately plan and deliver its Waste and Recycling service following the return to its control from the previous contractor.

What could cause the risk to occur?

There are a number of issues that could result in issues to delivering the Waste and Recycling service including:-

- Insufficient staff resource

- Incorrect rounds planning

Risk Scoring

Likelihood of risk occurring

 2 (Unlikely)

What are we doing to reduce the risk?

1.     Appointed a dedicated project manager to support the Head of Service with the co-ordination and management of the transfer of services back to the Council.

2.     Developed a detailed project and resourcing plan with weekly project team meetings monitoring and managing progress

3.     Continuing to engage with the existing contractor to ensure relevant and timely transfers of data and knowledge to enable a successful transfer

4.     Developing a comprehensive Communication Plan to manage expectations of Day one service

Impact

Financial

4 (Major)

Service Quality

5(Catastrophic)

Reputation

5 (Catastrophic)

Legal/ Regulatory

4 (Major)

Health and Safety

3 (Moderate)

Morale/ Staffing

4 (Major)

Current Update (March 2023)

Since the service has been returned to the control of the Council, service performance has stabilised and improved significantly. We have taken steps to reduce the amount of agency resources to provide further resource stability. Officers continue to manage the service provision closely

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 2

 

 

Core Financial Statements

 

 

 

 


This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. Authorities raise taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in both the Expenditure and Funding Analysis (Note 4) and the Movement in Reserves Statement (Section 2B).

 

2021/22 Restated*                                                                                      2022/23

Gross

Expenditure

Gross

Income

Net

Expenditure

 

Segment

Gross

Expenditure

Gross

Income

Net

Expenditure

£000

£000

£000

 

£000

£000

£000

26,171

(18,740)

7,431

Customer Service & Delivery**

30,875

(18,826)

12,049

5,412

(4,026)

1,386

Strategic Finance***

2,842

(956)

1,886

14,111

(11,202)

2,909

Place & Enterprise****

17,217

(12,515)

4,702

5,150

(2,518)

2,632

Governance & Assurance

6,200

(3,145)

3,055

50,844

(36,486)

14,358

Cost of Services

57,134

(35,442)

21,692

 

 

3,023

Other operating expenditure (Note 9)

 

 

3,166

 

 

61

Financing & investment income and expenditure (Note 10)

 

 

1,271

 

 

(17,033)

Taxation and non-specific grant income (Note 11)

 

 

(19,507)

 

 

409

(Surplus) or Deficit on Provision of Services

 

 

6,622

 

 

(1,418)

(Surplus) or deficit on revaluation of Property, Plant and Equipment

 

 

(4,481)

 

 

(12,608)

Remeasurements of the net defined benefit liability

 

 

(54,862)

 

 

(325)

(Surplus) or deficit from investments in equity instruments designated at fair value through other comprehensive income

 

 

979

 

 

(14,351)

Other Comprehensive Income and Expenditure

 

 

(58,364)

 

 

(13,942)

Total Comprehensive Income and Expenditure

 

 

(51,742)

*The 2021/22 Cost of Services has been restated in 2022/23 following a review of the Organisational Structure. The total cost of services figures remain the same, only the presentation of the individual service groups has changed.

**The increase in Customer Service and Delivery gross expenditure in 2022/23 of £4.7m is mainly due to the return of the Waste & Recycling Service in house from October 2022

***The reduction in Strategic Finance gross expenditure and gross income relates to the payment and receipt of Covid Business Grants respectively in 2021/22.

**** The increase in Place & Enterprise gross expenditure mainly relates to payment of the Green Homes grant of £0.9m, payment of District Household Support Grants of £0.4m in 2022/23, additional notional capital charges and the 2022/23 pay award.



Movement in Reserves Statement

 

This statement shows the movement from the start of the year to the end on the different reserves held by the Authority, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other ‘unusable reserves’. The Movement in Reserves statement shows how the movements in year of the Authority’s reserves are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return to the amounts chargeable to council tax for the year. The ‘Increase/Decrease in Year’ line shows the statutory general fund balance movements in the year following these adjustments.

 

 

 

2022/23

General Fund Balance

 

£000

Earmarked

General Fund Reserves

£000

Total General Fund Reserves

£000

Capital Receipts Reserve

 

£000

Capital Grants Unapplied

 

£000

Total Usable Reserves

 

£000

Unusable Reserves

 

 

£000

Total Authority Reserves

2022/23

£000

Balance at 31 March 2022 carried forward

2,056

20,839

22,895

2,950

504

26,349

30,723

57,072

Movement in Reserves during

2022/23

 

 

 

 

 

 

 

 

Total Comprehensive Income and Expenditure

(6,622)

-

(6,622)

-

-

(6,622)

58,364

51,742

Adjustments between accounting

basis and funding basis under

regulations (Note 7)

1,264

-

1,264

(30)

(95)

1,139

(1,139)

-

Transfers to/from Earmarked

Reserves (Note 8)

5,415

(5,415)

-

-

-

-

-

-

Increase/ (Decrease) in Year

57

(5,415)

(5,358)

(30)

(95)

(5,483)

57,225

51,742

Balance at 31 March 2023 carried forward

2,113

15,424

17,537

2,920

409

20,866

87,948

108,814

 

 

 

 

 

 

 

 

 

 

 

2021/22

Comparative

General Fund Balance

 

£000

Earmarked

General Fund Reserves

£000

Total General Fund Reserves

£000

Capital Receipts Reserve

 

£000

Capital Grants Unapplied

 

£000

Total Usable Reserves

 

£000

Unusable Reserves

 

 

£000

Total Authority Reserves

2021/22

£000

Balance at 31 March 2021 carried forward

2,122

21,494

23,616

2,848

423

26,887

16,243

43,130

Movement in Reserves during

2021/22

 

 

 

 

 

 

 

 

Total Comprehensive Income and Expenditure

(409)

-

(409)

-

-

(409)

14,351

13,942

Adjustments between accounting

basis and funding basis under

regulations (Note 7)

(312)

-

(312)

102

81

(129)

129

-

Transfers to/from Earmarked

Reserves (Note 8)

655

(655)

-

-

-

-

-

-

Increase/ (Decrease) in Year

(66)

(655)

(721)

102

81

(538)

14,480

13,942

Balance at 31 March 2022 carried forward

2,056

20,839

22,895

2,950

504

26,349

30,723

57,072


The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Authority. The net assets of the Authority (assets less liabilities) are matched by the reserves held by the Authority. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Authority may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves is those that the Authority is not able to use to provide services. This category of reserves includes reserves that hold unrealised gains and losses (for example the Revaluation Reserve), where amounts would only become available to provide services if the assets were sold, and reserves that hold timing differences shown in the Movement in Reserves Statement line ‘Adjustments between accounting basis and funding basis under regulations’.

31 March

2022

£000

 

Notes

31 March

2023

£000

80,245

Property, Plant and Equipment

12

88,658

18,610

Investment Properties

13

16,890

285

Intangible Assets

 

245

3,605

Long Term Investments

14

2,626

102,745

Long Term Assets

 

108,419

30,500

Short Term Investments

14

17,900

79

Inventories

12

717

8,862

Short Term Debtors

15

8,378

22,981

Cash and Cash Equivalents

17

14,709

62,422

Current Assets

 

41,704

(32,532)

Short Term Creditors

18

(16,662)

(96)

Short Term Borrowing

14

(459)

(188)

Revenue Grants in Advance

30

(165)

(1,494)

Provisions

19

(901)

(34,310)

Current Liabilities

 

(18,187)

(92)

Long Term Creditors

18

(98)

(5,717)

Long Term Revenue Grants in Advance - Section 106 Deposits

30

(6,643)

(14,284)

Long Term Borrowing

14

(13,825)

(52,621)

Pensions Liability

35

(2,191)

(1,071)

Capital Grants - Receipts in Advance

30

(365)

(73,785)

Long Term Liabilities

 

(23,122)

57,072

Net Assets

 

108,814

26,349

Usable Reserves

20

20,866

30,723

Unusable Reserves

21

87,948

57,072

Total Reserves

 

108,814

 

The notes on pages 37 to 123 form part of these financial statements. The unaudited accounts were issued on 30 June 2023. The audited accounts were issued on 28 March 2024.

 

Lisa Buckle BSc (Hons), ACA

Corporate Director of Strategic Finance (Section 151 Officer)


The Cash Flow Statement shows the changes in cash and cash equivalents of the Authority during the reporting period. The statement shows how the Authority generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Authority are funded by way of taxation and grant income, or from the recipients of services provided by the Authority. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Authority’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Authority.

 

 

2021/22

£000

 

 

2022/23

£000

409

Net (surplus) or deficit on the provision of services

6,622

(9,385)

Adjustments to net surplus or deficit on the provision of services for non-cash movements (Note 22)

7,430

2,012

Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities (Note 23)

2,650

(6,964)

Net cash outflows/(inflow) from Operating Activities

16,702

15,649

Net increase/(decrease) in Investing Activities (Note 24)

(7,309)

(7,828)

Net cash outflow/(inflow) from Financing Activities (Note 25)

(1,121)

857

Net (increase) or decrease in cash and cash equivalents

8,272

23,838

 

Cash and cash equivalents at the beginning of the reporting period

22,981

22,981

 

Cash and cash equivalents at the end of the reporting period (Note 17)

14,709

 

 

 


 

 

 

 

 

 

 

 

 

Section 3

 

 

Notes to the

 

Financial Statements

 

 


CONTENTS

 

 

1.    Assumptions Made about the Future and Other Major Sources of Estimation Uncertainty

2.    Material Items of Income and Expense

3.    Events After the Reporting Period

4.    Expenditure and Funding Analysis

5.    Note to the Expenditure and Funding Analysis

6.    Expenditure and Income Analysed by Nature

7.    Adjustments between Accounting Basis and Funding Basis under    Regulations

8.    Transfers to/from Earmarked Reserves

9.    Other Operating Expenditure

10. Financing and Investment Income and Expenditure

11. Taxation and Non-Specific Grant Income

12. Property, Plant and Equipment

13. Investment Properties

14. Financial Instruments

15. Debtors

16. Debtors for Local Taxation

17. Cash and Cash Equivalents

18. Creditors

19. Provisions

20. Usable Reserves

21. Unusable Reserves

22.Cash Flow Statement – Adjustments to Net Surplus or Deficit on the Provision of Services for Non-Cash Movements

23. Cash Flow Statement – Adjustments to Net Surplus or Deficit on the Provision of Services that are Investing and Financing Activities

24.Cash Flow Statement - Investing Activities

25.Cash Flow Statement - Financing Activities

26.Trading Operations – Building Control

27.Members’ Allowances

28.Officers’ Remuneration

29.Payments to External Auditors

30.Grant Income

31.Related Parties

32.Capital Expenditure and Capital Financing

33.Leases

34.Exit Packages and Termination Benefits

35.Defined Benefit Pension Schemes

36.Contingent Liabilities

37. Nature and Extent of Risks Arising from Financial Instruments

38. Accounting Policies

39. Accounting Standards that have been Issued but have not yet been Adopted

40. Critical Judgements in Applying Accounting Policies

 

 

1. ASSUMPTIONS MADE ABOUT THE FUTURE AND OTHER MAJOR
SOURCES OF ESTIMATION UNCERTAINTY  

 

The Statement of Accounts contains estimated figures that are based on assumptions made by the Authority about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates.

 

The items in the Authority’s Balance Sheet at 31 March 2023 for which there are significant risks of material adjustment in the forthcoming financial year are as follows:

 

Item

Uncertainties

Effect if Actual Results Differ from Assumptions

Property, Plant and Equipment

Asset valuations are based on market prices and are periodically reviewed to ensure that the Council does not materially misstate its non-current assets.

 

 

Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets.  The current economic climate makes it uncertain that the Authority will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets.

 

The carrying value of Property, Plant and Equipment as at 31 March 2023 is £88.3 million.

A reduction in the estimated valuations would result in reductions to the Revaluation Reserve and/or a loss recorded as appropriate in the Comprehensive Income and Expenditure Statement. If the value of the Council’s operational properties were to reduce by 10%, this would result in an impact on the financial statements of approximately £8.8m.

 

An increase in estimated valuations would result in increases to the Revaluation Reserve and/or reversals of previous negative revaluations to the Comprehensive Income and Expenditure Statement and/or gains being recorded as appropriate in the Comprehensive Income and Expenditure Statement.

 

If the useful life of assets is reduced, depreciation increases and the carrying amount of the asset falls. If the depreciation lives of the assets were to reduce by 1 year across all assets, this would have an impact of approximately £251,000 on the Council’s finances.

Pensions Liability

Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets.  A firm of consulting actuaries is engaged to provide the Authority with expert advice about the assumptions to be applied.

 

The value of pension assets is estimated based upon information available at the Balance Sheet date, although these valuations could be earlier. The actual valuations at the Balance Sheet date, which may not be available until sometime later, may give a different value of pension assets, but this difference is not considered to be material.

The Pension Fund’s Actuary has provided updated figures for the year based on the last valuation in 2022. This valuation is based upon cash flow and assets values as at 31 March 2023.

Contributions are set every 3 years as a result of the actuarial valuation of the fund required by the regulations. The next actuarial valuation of the fund will be carried out during 2025/26 (as at 31 March 2025) and will set contributions for the period from 1 April 2026 to 31 March 2029.

 

The carrying value of the pensions liability as at 31 March 2023 is £2.19 million. See further information on the Pensions Liability in the Narrative Statement.

 

Movements in the value of investments due to current economic uncertainty will affect the valuation of the pension liability. This will include the impact on the value of Investment Properties held by the Local Government Pension Scheme on behalf of South Hams District Council.

The effects on the gross pension liability of changes in individual assumptions can be measured.  For example, a 0.1% increase in the discount rate assumption would result in a decrease in the pension liability of £1.5 million. However, due to the complexities in interactions with the asset ceiling this does not guarantee an equivalent change in the net position.

 

The assumptions interact in complex ways. For example, in 2022/23, the Authority’s actuaries advised that the pension liability as at 31 March 2022 has decreased by £56 million as a result of a change in “financial assumptions” and it has decreased by £10 million as a result of a change in "demographic assumptions".                                                        

                                                

Please refer to Note 35 for further information about the assumptions used by the actuaries.

 

If the value of investments is found to have changed from the estimates used by the actuaries, this may impact the overall value of the pension liability. However, as the recognisable value of assets has been restricted to the level of the funded pension obligation we would not expect this to impact the financial statements. For instance, a 2% decrease in the value of investments would have no impact on the net pension liability.

 

The Council’s share of these Pension Fund property investments would be material to the Council’s net liability, this would also present a material uncertainty on the valuation of the Council’s pension assets and liabilities as at 31 March 2023.

 

 

2. MATERIAL ITEMS OF INCOME AND EXPENSE

 

There are no material items of income and expense in 2021/22 or 2022/23.

 

 

3. EVENTS AFTER THE REPORTING PERIOD

 

The draft Statement of Accounts (SOA) for 2022/23 was approved for issue by the Section 151 Officer & Corporate Director for Strategic Finance on 30 June 2023. The draft accounts were reviewed by the Audit and Governance Committee on 27 July 2023 and the audited accounts were authorised for issue on 28 March 2024. This is also the date up to which events after the reporting period have been considered. There are no events which took place after 31 March 2023 which require disclosure.

 

 

4. EXPENDITURE AND FUNDING ANALYSIS

 

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax payers how the funding available to the Authority (i.e. government grants, council tax and business rates) for the year has been used in providing services in comparison with those resources consumed or earned by the Authority in accordance with generally accepted accounting practices. The Expenditure and Funding Analysis also shows how this expenditure is allocated for decision making purposes between the Authority’s service areas. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement in Section 2A. The Expenditure and Funding Analysis also fulfils the requirement to report by segments.

 

 

 

2022/23 – Expenditure and Funding Analysis

Net Expenditure Chargeable to the General Fund

 

£000

Adjustments between Funding and Accounting Basis (Note 5)

 

£000

Net Expenditure in the Comprehensive Income and Expenditure Statement

£000

Customer Service & Delivery

10,182

1,867

12,049

Strategic Finance

1,790

96

1,886

Place & Enterprise

(1,028)

5,730

4,702

Governance & Assurance

2,185

870

3,055

Net Cost of Services

13,129

8,563

21,692

Other income and expenditure

(7,771)

(7,299)

(15,070)

(Surplus)/Deficit on Provision of Services

5,358

1,264

6,622

 

 

 

General Fund Balance

£000

Earmarked Reserves

£000

Total General Fund Reserves

£000

Opening Balance at 31 March 2022

(2,056)

(20,839)

(22,895)

(Increase)/decrease in year

(57)

5,415

5,358

Closing Balance at 31 March 2023

(2,113)

(15,424)

(17,537)

 

 

 

 

2021/22 Comparatives – Expenditure and Funding Analysis (Restated)*

Net Expenditure Chargeable to the General Fund

 

£000

Adjustments between Funding and Accounting Basis (Note 5)

 

£000

Net Expenditure in the Comprehensive Income and Expenditure Statement

£000

Customer Service & Delivery

5,865

1,566

7,431

Strategic Finance

1,326

60

1,386

Place & Enterprise

(1,490)

4,399

2,909

Governance & Assurance

1,881

751

2,632

Net Cost of Services

7,582

6,776

14,358

Other income and expenditure

(6,861)

(7,088)

(13,949)

(Surplus)/Deficit on Provision of Services

721

(312)

409

 

 

 

General Fund Balance

£000

Earmarked Reserves

£000

Total General Fund Reserves

£000

Opening Balance at 31 March 2021

(2,122)

(21,494)

(23,616)

(Increase)/decrease in year

66

655

721

Closing Balance at 31 March 2022

(2,056)

(20,839)

(22,895)

 
 

 

 

 

 

 

 

 

 

 

 
5. NOTE TO THE EXPENDITURE AND FUNDING ANALYSIS

 

This note explains the main adjustments from the net expenditure chargeable to the general fund balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIES).

 

Adjustments between Funding and Accounting Basis

 

2022/23

Adjustments for capital purposes

 

(Note A)

£000

Net change for the pensions adjustments

(Note B)

£000

Other Differences

 

 

(Note C)

£000

Total adjustments

 

 

 

£000

Customer Service & Delivery

1,039

767

61

1,867

Strategic Finance

83

13

-

96

Place & Enterprise

4,355

1,375

-

5,730

Governance & Assurance

-

870

-

870

Net Cost of Services

5,477

3,025

61

8,563

Other income and expenditure from the Expenditure & Funding Analysis

(2,541)

1,407

(6,165)

(7,299)

Difference between the General Fund surplus or deficit, and the surplus or deficit on the provision of services in the CIES

2,936

4,432

(6,104)

1,264

 

 

Adjustments between Funding and Accounting Basis

 

2021/22 Comparatives (Restated)*

Adjustments for capital purposes

 

(Note A)

£000

Net change for the pensions adjustments

(Note B)

£000

Other Differences

 

 

(Note C)

£000

Total adjustments

 

 

 

£000

Customer Service & Delivery

1,076

483

7

1,566

Strategic Finance

2

58

-

60

Place & Enterprise

3,088

1,311

-

4,399

Governance & Assurance

-

751

-

751

Net Cost of Services

4,166

2,603

7

6,776

Other income and expenditure from the Expenditure & Funding Analysis

(3,333)

1,275

(5,030)

(7,088)

Difference between the General Fund surplus or deficit, and the surplus or deficit on the provision of services in the CIES

833

3,878

(5,023)

(312)

 

*The 2021/22 Net Cost of Services has been restated in 2022/23 following a review of the Organisational Structure. The total net cost of services figures remain the same, only the presentation of the individual service groups has changed.

 

Note A: Adjustments for Capital Purposes

Adjustments for capital purposes reflect:

For services this column adds in depreciation and impairment and adjusts for revenue expenditure funded from capital under statute.

Other income and expenditure from the Expenditure and Funding Analysis – this adjusts for statutory charges for capital financing and other capital contributions are deducted. It also adjusts for capital disposals with a transfer of the income on the disposal and the amounts written-off.

 

Note B: Net Change for the Pensions Adjustments

Net changes for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income:

For services this represents the removal of the employer pension contributions made by the Authority as allowed by statute and the replacement with current service costs and past service costs.

For other income and expenditure from the Expenditure and Funding Analysis – the net interest on the defined benefit liability is charged to the CIES.

 

Note C: Other Differences

Other differences between amounts debited/credited to the Comprehensive Income and Expenditure Statement and amounts payable/receivable to be recognised under statute:

For services reflects the change in the annual leave accrual when compared with the previous year.

For other income and expenditure from the Expenditure and Funding Analysis represents the timing difference between what is chargeable under statutory regulations for Council Tax and Business Rates that was projected to be received at the start of the financial year, and the income recognised under generally accepted accounting practices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6. EXPENDITURE AND INCOME ANALYSED BY NATURE

 

The Expenditure and Income Analysed by Nature note shows the amounts that make up the surplus or deficit on the provision of services on the CIES, but here they are categorised by nature instead of by service segment.

 

Expenditure and Income Analysed by Nature

 

2021/22

 

£000

 

2022/23

 

£000

Employee Benefits Expenses*

17,009

21,763

Other Service Expenses

29,677

29,899

Depreciation, Amortisation and Impairment**

4,116

7,198

Interest Payments

366

372

Pension Fund Administration Expenses

63

65

Net Interest on the net defined benefit liability

1,212

1,342

Losses/(Gains) on disposal of non current assets

-

(33)

Total Expenditure

52,443

60,606

 

 

 

Fees, Charges and Other Service Income

(17,002)

(17,756)

Interest and Investment Income***

(153)

(1,169)

Income from Council Tax and Business Rates****

(4,744)

(6,490)

Revenue Grants and Contributions*****

(28,481)

(25,963)

Capital Grants and Contributions******

(1,237)

(2,501)

Other Income

(417)

(105)

Total Income

(52,034)

(53,984)

 

 

 

 

(Surplus) or Deficit on Provision of Services

409

6,622

 

* Employee Benefits Expenses

The increase in Employee Benefit Expenses is mainly due to additional salary costs following the return of the Waste & Recycling Service in house from October 2022 (£2.2m) plus the 2022/23 pay award and an increase in the accounting adjustment for pensions (IAS19) of £0.4m.

 

** Depreciation, Amortisation and Impairment

The increase in this notional cost relates to impairment on Investment Properties and Leisure Centres.

 

*** Interest and Investment Income

The additional investment income follows the increase in interest rates in 2022/23.

 

 

**** Income from Council Tax and Business Rates

The increase in this income stream is mainly from Retained Business Rates in respect of Renewable Energy Schemes (£1.23m). During 2022/23 the Council identified Renewable Energy projects that the billing authority should retain the Business Rates for.The 2022/23 figure also includes the backdated Business Rates retained from these properties. Under current Collection Fund accounting rules, this income will be discharged against the Collection Fund position in future years.

 

The figure for Council Tax and Business Rates in this statement is shown net of expenditure (precepts to other bodies).

 

*****Revenue Grants and Contributions

The reduction in revenue grants in 2022/23 mainly relates to the Covid Business Grants received in 2021/22 (£2.9m).

 

******Capital Grants and Contributions

This increase in capital grants mainly relates to the Green Homes Grant scheme which predominantly took place in 2022/23.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. ADJUSTMENTS BETWEEN ACCOUNTING BASIS AND FUNDING BASIS UNDER REGULATIONS

 

This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the Authority in the year, in accordance with proper accounting practice, to the resources that are specified by statutory provisions as being available to the Authority to meet future capital and revenue expenditure.

 

Usable Reserves

 

 

2022/23

 

General Fund Balance

 

£000

Capital Receipts Reserve

 

 £000

Capital Grants

Unapplied

 

£000

Movement in Unusable Reserves £000

Adjustments primarily involving the Capital Adjustment Account (CAA):

 

 

 

 

Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES):

 

 

 

 

Charges for depreciation and impairment of non-current assets

3,042

 

 

(3,042)

Revaluation losses/(gains) on Property, Plant and Equipment

156

 

 

(156)

Movements in the market value of Investment Properties

1,720

 

 

(1,720)

Amortisation of Intangible Assets

135

 

 

(135)

Capital grants and contributions applied

(2,336)

 

 

2,336

Revenue expenditure funded from capital under statute (REFCUS)

2,144

 

 

(2,144)

Amounts of non-current assets written off

on disposal or sale as part of the gain/loss on disposal to the CIES

10

 

 

(10)

Insertion of items not debited or credited to the CIES:

 

 

 

 

Statutory provision for the financing of capital investment

(488)

 

 

488

Capital expenditure charged against the

General Fund

(1,083)

 

 

1,083

Revenue contribution to Capital Outlay – RCCO

(50)

 

 

50

Adjustments primarily involving the Capital Grants Unapplied Account:

 

 

 

 

Capital grants and contributions unapplied credited to the CIES

(165)

 

165

-

Application of grants to capital financing transferred to the Capital Adjustment Account

 

 

(260)

260

Adjustments primarily involving the Capital Receipts Reserve:

 

 

 

 

Transfer of cash sale proceeds credited as part of the gain/loss on disposal to the CIES

(43)

43

 

-

Costs of disposal funded from capital receipts

 

 

 

 

 

Usable Reserves

 

 

2022/23

 

General Fund Balance

 

£000

Capital Receipts Reserve

 

 £000

Capital Grants

Unapplied

 

£000

Movement in Unusable Reserves £000

Adjustments primarily involving the Capital Receipts Reserve:

 

 

 

 

Transfer of unattached capital receipts

(106)

106

 

-

Use of the Capital Receipts Reserve to finance new capital expenditure

 

(179)

 

179

Adjustments primarily involving the Pensions Reserve:

 

 

 

 

Reversal of items relating to retirement benefits debited or credited to the CIES (see Note 35)

6,419

 

 

(6,419)

Employer’s pensions contributions and direct payments to pensioners payable in the year

(1,987)

 

 

1,987

Adjustments primarily involving the Council Tax Collection Fund Adjustment Account:

 

 

 

 

Amount by which Council Tax income credited to the CIES is different from Council Tax income calculated for the year in accordance with statutory requirements

(11)

 

 

11

Adjustments primarily involving the Business Rates Collection Fund Adjustment Account:

 

 

 

 

Amount by which Business Rates income credited to the CIES is different from Business Rates income calculated for the year in accordance with statutory requirements*

(6,155)

 

 

6,155

Adjustments primarily involving the Accumulated Absences Account:

 

 

 

 

Amount by which officer remuneration charged to the CIES on an accrual basis is different from remuneration chargeable in the year in accordance with statutory requirements

62

 

 

(62)

Total Adjustments between the Accounting Basis and Funding Basis under regulations in 2022/23

1,264

(30)

(95)

(1,139)

 

*The large adjustment in 2022/23 regarding the Business Rates Collection Fund Adjustment Account reflects the movement on the Business Rates Collection Fund balance at 31 March 2023 (£5.96m surplus compared to £6.35m deficit at 31 March 2022). During 2021/22 local authorities received further s31 grants to offset the business rate reliefs given to businesses during the pandemic. Under current Collection Fund accounting rules, the s31 grants received in 2021/22 are being discharged against the Collection Fund deficit in 2022/23 onwards.

 

Usable Reserves

 

 

2021/22 Comparatives

 

General Fund Balance

 

£000

Capital Receipts Reserve

 

 £000

Capital Grants

Unapplied

 

£000

Movement in Unusable Reserves £000

Adjustments primarily involving the Capital Adjustment Account (CAA):

 

 

 

 

Reversal of items debited or credited to the Comprehensive Income and Expenditure Statement (CIES):

 

 

 

 

Charges for depreciation and impairment of non-current assets

3,100

 

 

(3,100)

Revaluation losses/(gains) on Property, Plant and Equipment

(217)

 

 

217

Movements in the market value of Investment Properties

(50)

 

 

50

Amortisation of Intangible Assets

82

 

 

(82)

Capital grants and contributions applied

(977)

 

 

977

Revenue expenditure funded from capital under statute (REFCUS)

1,201

 

 

(1,201)

Amounts of non-current assets written off

on disposal or sale as part of the gain/loss on disposal to the CIES

357

 

 

(357)

Insertion of items not debited or credited to the CIES:

 

 

 

 

Statutory provision for the financing of capital investment

(486)

 

 

486

Capital expenditure charged against the

General Fund

(1,019)

 

 

1,019

Revenue contribution to Capital Outlay – RCCO

(123)

 

 

123

Adjustments primarily involving the Capital Grants Unapplied Account:

 

 

 

 

Capital grants and contributions unapplied credited to the CIES

(260)

 

260

-

Application of grants to capital financing transferred to the Capital Adjustment Account

 

 

(179)

179

Adjustments primarily involving the Capital Receipts Reserve:

 

 

 

 

Transfer of cash sale proceeds credited as part of the gain/loss on disposal to the CIES

(360)

360

 

-

Costs of disposal funded from capital receipts

3

(3)

 

-

 

Usable Reserves

 

 

2021/22 Comparatives

 

General Fund Balance

 

£000

Capital Receipts Reserve

 

 £000

Capital Grants

Unapplied

 

£000

Movement in Unusable Reserves £000

Adjustments primarily involving the Capital Receipts Reserve:

 

 

 

 

Transfer of unattached capital receipts

(418)

418

 

-

Use of the Capital Receipts Reserve to finance new capital expenditure

 

(673)

 

673

Adjustments primarily involving the Pensions Reserve:

 

 

 

 

Reversal of items relating to retirement benefits debited or credited to the CIES (see Note 35)

5,370

 

 

(5,370)

Employer’s pensions contributions and direct payments to pensioners payable in the year

(1,492)

 

 

1,492

Adjustments primarily involving the Council Tax Collection Fund Adjustment Account:

 

 

 

 

Amount by which Council Tax income credited to the CIES is different from Council Tax income calculated for the year in accordance with statutory requirements

(328)

 

 

328

Adjustments primarily involving the Business Rates Collection Fund Adjustment Account*:

 

 

 

 

Amount by which Business Rates income credited to the CIES is different from Business Rates income calculated for the year in accordance with statutory requirements

(4,702)

 

 

4,702

Adjustments primarily involving the Accumulated Absences Account:

 

 

 

 

Amount by which Business Rates income credited to the CIES is different from Business Rates income calculated for the year in accordance with statutory requirements

7

 

 

(7)

Total Adjustments between the Accounting Basis and Funding Basis under regulations in 2021/22

(312)

102

81

129

 

*The large adjustment in 2021/22 regarding the Business Rates Collection Fund Adjustment Account reflects the reduced deficit on the Business Rates Collection Fund at 31 March 2022 (£6.4m compared to £18.1m at 31 March 2021). During 2020/21 local authorities received s31 grants to offset the business rate reliefs given to businesses during lockdown. Under current Collection Fund accounting rules, the s31 grants received in 2020/21 are being discharged against the Collection Fund deficit in 2021/22 onwards.

8. TRANSFERS TO/FROM EARMARKED RESERVES

 

This note details the amounts set aside from the General Fund balances in earmarked reserves to provide financing for future expenditure plans and the amounts posted back from earmarked reserves to meet General Fund expenditure in 2022/23. The purpose of some of the more significant earmarked reserves are shown below:

 

Vehicles and Plant Renewals - This reserve is used to purchase vehicles and heavy plant to maintain a modern and efficient Council vehicle fleet. The funding in this reserve is being used to purchase end of life fleet replacements and the fleet required for the roll out of the remaining properties onto the Devon Aligned Service (DAS) in October 2023 (Council report 13th April 2023).

 

Ferry Repairs and Renewals – This reserve allows for the financing of major repairs required to the tugs and floats used in the Council’s ferry operation and the renewal of those assets.

 

Planning Policy and Major Developments – This reserve originated to help smooth out annual expenditure on the review and preparation of the Local Plan. In addition it is used to fund one off planning costs and to manage future fluctuations in planning income.

 

Sustainable Waste Management - This reserve makes some provision to enable the Council to develop sustainable waste initiatives in line with the Government's National Waste Strategy. It is also used to support any unforeseen future waste cost pressures relating to market changes.  This reserve also held the value of the 2021/22 contractual performance deductions. Funding has been spent from this reserve in 2022/23 on the one-off set up and implementation costs of bringing the waste and recycling service back in house in October 2022.             

           

New Homes Bonus - This reserve was established to show how New Homes Bonus funding has been used on an annual basis.

 

Business Rates Retention Scheme - The Business Rates Retention Earmarked reserve covers any possible funding issues from the new accounting arrangements and to smooth the volatility from business rates income over a period of years.

 

Affordable Housing (Capital) – This reserve was set up to support capital funding of affordable housing.

 

Emergency Climate Change Projects - This reserve was set up in 2020/21 for Emergency Climate Change projects in order to give effect to the Council’s Climate Change Action Plan.

 

Revenue Grants Reserve – This reserve holds revenue grants with no repayment conditions that have not been used during the year.

 

S31 Compensation Grant (Business Rates) Reserve - This reserve was set up to hold the business rates s31 grants received in 2020/21 and 2021/22 to offset the business rate reliefs given to businesses during lockdown. Under current Collection Fund accounting rules, the s31 grants received are not discharged against the Collection Fund deficit until the following year.

 

Recovery and Renewal Plan – This is a new reserve set up as part of the 2021/22 Budget process to support the costs of the Recovery and Renewal Plan and the Council’s 20 year vision ‘Better Lives for All’.

 

Affordable Housing (Revenue) – This is a new reserve set up as part of the 2022/23 Budget process to support the revenue funding of affordable housing. This was a one-off contribution into this reserve from New Homes Bonus funding in 2022/23.

 

Ukraine Humanitarian Crisis Reserve – This reserve was set up in 2022/23 to hold funding received to support the Ukraine Humanitarian Crisis which will be spent in 2023/24.

 

The total Earmarked Reserves balance at 31 March 2023 of £15.424m includes £1.19m held in the Business Rates s31 Compensation Grant Reserve. This is due to a technical accounting adjustment where Councils were compensated for the business rates holidays that were announced by the Government for the retail, hospitality and leisure sectors in 2020/21 and 2021/22 (this funding is in the s31 Compensation Grant Reserve). This temporary increase in reserves will reverse back out again in the 2023/24 Accounts, to fund the deficit on the Collection Fund. Therefore this is not money which is available for the Council to spend and it is important that this is not misinterpreted in the Accounts, as this is a national issue.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The table below shows the earmarked reserve balances at 31 March 2023 and the movement during 2022/23.

 

2022/23

EARMARKED RESERVES

Balance at

31.3.2022

Transfers

Out

Transfers

In

Balance at

31.3.2023

 

£000

£000

£000

£000

General Fund

 

 

 

 

Affordable Housing (Capital)

544

(422)

-

122

Community Parks and Open Spaces

46

(10)

22

58

Grounds Maintenance

149

(77)

14

86

Pension Fund Strain

208

(99)

99

208

Repairs and Maintenance

374

(216)

173

331

Marine Infrastructure

184

-

58

242

Land and Development

72

(16)

7

63

Ferry Repairs and Renewals

530

(41)

117

606

Emergency Climate Change Projects

553

(222)

1

332

Vehicles & Plant Renewals

276

(5)

550

821

COVID-19

209

(175)

-

34

Pay and Display Equipment

186

(32)

21

175

On-Street Parking

44

-

-

44

ICT Development

89

(71)

57

75

Sustainable Waste Management

1,065

(464)

61

662

District Elections

20

(37)

46

29

Planning Policy & Major Developments 

531

(82)

50

499

Section106 Agreements (no conditions)

38

(23)

-

15

Revenue Grants

1,725

(638)

437

1,524

Capital Programme

249

(239)

181

191

New Homes Bonus

1,917

(1,092)

1,008

1,833

Business Rates Retention

4,546

(2,570)

-

1,976

Homelessness Prevention

234

(91)

-

143

Housing Capital Projects

408

(45)

-

363

Leisure Services

41

(2)

-

39

Organisational Development

75

(39)

5

41

Environmental Health Initiatives

20

-

68

88

S106 Monitoring

158

(24)

63

197

S106 Technical Support

14

(21)

29

22

Maintenance, Management & Risk

66

-

29

95

Recovery and Renewal Plan

500

(37)

10

473

Financial Stability

280

-

-

280

Maintenance Fund

78

(50)

-

28

Community Composting

200

(13)

-

187

Tree Maintenance

60

(12)

-

48

Joint Local Plan Reserve

-

-

25

25

Affordable Housing (Revenue)

-

-

408

408

Ukraine Humanitarian Crisis

-

-

875

875

Reserves with balances £10k or under (Grouped)

 

110

(106)

-

4

Sub Total General Fund Reserves

15,799

(6,971)

4,414

13,242

2022/23

EARMARKED RESERVES

Balance at

31.3.2022

Transfers

Out

Transfers

In

Balance at

31.3.2023

 

£000

£000

£000

£000

Business Rates s31 Compensation Grant*

4,260

(3,066)

-

1,194

Sub Total Specific Reserves Business Rates S31 Grant

4,260

(3,066)

-

1,194

Specific Reserves – Salcombe Harbour

 

 

 

 

Pontoons

292

-

71

363

Harbour Renewals

192

(13)

44

223

General Reserve

296

(51)

157

402

Sub Total Specific Reserves Salcombe Harbour

780

(64)

272

988

 

 

 

 

 

TOTAL EARMARKED

REVENUE RESERVES*

(See Note on the Business Rates s31

Compensation Grant above)

20,839

(10,101)

4,686

15,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021/22 Comparatives

EARMARKED RESERVES

Balance at

31.3.2021

Transfers

Out

Transfers

In

Balance at

31.3.2022

 

£000

£000

£000

£000

General Fund

 

 

 

 

Affordable Housing (Capital)

668

(124)

-

544

Community Parks and Open Spaces

49

(20)

17

46

Grounds Maintenance

104

(30)

75

149

Pension Fund Strain

109

-

99

208

Repairs and Maintenance

231

(30)

173

374

Members Sustainable Community

35

-

14

49

Marine Infrastructure

326

(200)

58

184

Land and Development

104

(69)

37

72

Ferry Repairs and Renewals

428

(15)

117

530

Economic Initiatives

23

-

-

23

Emergency Climate Change Projects

400

(47)

200

553

Vehicles and Plant Renewals

143

(417)

550

276

COVID-19

100

(272)

381

209

Pay and Display Equipment

165

-

21

186

On-Street Parking

44

-

-

44

ICT Development

82

(43)

50

89

Sustainable Waste Management

246

(80)

899

1,065

District Elections

10

-

10

20

Beach Safety

14

-

-

14

Planning Policy & Major Developments 

217

(56)

370

531

Section106 Agreements (no conditions)

38

-

-

38

Revenue Grants

1,101

(270)

894

1,725

Capital Programme

181

(143)

211

249

New Homes Bonus

1,803

(954)

1,068

1,917

Business Rates Retention

7,103

(2,557)

-

4,546

Homelessness Prevention

166

(22)

90

234

Housing Capital Projects

194

(117)

331

408

Leisure Services

51

(10)

-

41

Support Services Trading

72

(27)

30

75

Environmental Health Initiatives

20

-

-

20

S106 Monitoring

149

(20)

29

158

Economic Regeneration

49

(25)

-

24

S106 Technical Support

34

(20)

-

14

Maintenance, Management & Risk

37

-

29

66

Recovery and Renewal Plan

-

-

500

500

Financial Stability

-

-

280

280

Maintenance Fund

-

-

78

78

Community Composting

-

-

200

200

Tree Maintenance

-

-

60

60

Reserves with balances £10k or under (Grouped)

 

120

(120)

-

-

Sub Total General Fund Reserves

14,616

(5,688)

6,871

15,799

2021/22 Comparatives

EARMARKED RESERVES

Balance at

31.3.2021

Transfers

Out

Transfers

In

Balance at

31.3.2022

 

£000

£000

£000

£000

Business Rates s31 Compensation Grant*

6,283

(2,023)

-

4,260

Sub Total Specific Reserves Business Rates

6,283

(2,023)

-

4,260

Specific Reserves – Salcombe Harbour

 

 

 

 

Pontoons

227

-

65

292

Harbour Renewals

169

(17)

40

192

General Reserve

199

(23)

120

296

Sub Total Specific Reserves Salcombe Harbour

595

(40)

225

780

 

 

 

 

 

TOTAL EARMARKED

REVENUE RESERVES

(See Note on the Business Rates s31

Compensation Grant below)

21,494

(7,751)

7,096

20,839

 

Note* - Business Rates s31 Compensation Grant Earmarked Reserve

The total Earmarked Reserves balance at 31 March 2022 of £20.84m includes £4.26m held in the Business Rates s31 Compensation Grant Reserve. This is due to a technical accounting adjustment where Councils were compensated for the business rates holidays that were announced by the Government for the retail, hospitality and leisure sectors in 2020/21 and 2021/22 (this funding is in the s31 Compensation Grant Reserve). This temporary increase in reserves will reverse back out again in the 2022/23 Accounts, to fund the deficit on the Collection Fund. Therefore this is not money which is available for the Council to spend and it is important that this is not misinterpreted in the Accounts, as this is a national issue.

 

 
9. OTHER OPERATING EXPENDITURE

 

2021/22

 

 

 

2022/23

£000

 

 

 

£000

2,960

 

Parish council precepts

3,134

-

 

(Gains)/losses on the disposal of non-current assets

(33)

63

 

Pension administration expenses

65

3,023

 

Total

3,166

 

 

 

 

 

 

10. FINANCING AND INVESTMENT INCOME AND EXPENDITURE

 

2021/22

 

 

 

2022/23

£000

 

 

 

£000

366

 

Interest payable and similar charges

372

(140)

 

Interest receivable and similar income

(1,147)

(417)

 

Other investment income

(105)

1,212

 

Net interest on the net defined benefit liability

1,342

(960)

 

Investment properties (Note 13)

809

61

 

Total

1,271

 

 
11. TAXATION AND NON-SPECIFIC GRANT INCOME

 

2021/22

 

 

 

2022/23

£000

 

 

 

£000

 

 

Council Tax

 

(9,679)

 

·         Income

(10,196)

(328)

 

·         Collection Fund adjustment

(11)

30

 

·         Collection Fund - distribution of deficit/(surplus)

(181)

 

 

Business Rates

 

(11,375)

 

·         Income*

(9,167)

11,464

 

·         Tariff

11,464

1,109

 

·         Levy payment

868

2

 

·         Pooling administration costs

2

(299)

 

·         Pooling benefit

(360)

-

 

·         Disregarded Amounts**

(1,232)

1,372

 

·         Transfer of Collection Fund deficit/(surplus)

(812)

 

 

Non ring - fenced Government Grants:

 

(5,789)

 

  • S.31 Business Rate Relief Grants

(5,642)

(1,068)

 

  • New Homes Bonus Grant

(1,008)

-

 

  • Levy Support Grant

(16)

(428)

 

  • Rural Services Delivery Grant

(428)

(82)

 

  • Lower Tier Services Grant

(88)

-

 

·         Services Grant

(133)

(381)

 

·         COVID-19 LA Response Grant

-

(108)

 

·         COVID-19 Sales, Fees & Charges Compensation

-

(236)

 

·         COVID-19 New Burdens Admin Support Grant

(66)

(1,237)

 

Capital grants and contributions

(2,501)

(17,033)

 

Total

(19,507)

 

*Income from Business Rates in the Comprehensive Income and Expenditure Statement is based on the Government NNDR1 return. The reduction in Business Rates income during 2022/23 of £2.21m relates to the allowance for the Retail, Hospitality and Leisure Relief. However, there was no equivalent adjustment for this Business Rates Relief in the 2021/22 NNDR1 return. For South Hams this reduced the net rates payable in 2022/23 by £2.29m (40% share of total net Rates payable of £5.72m). 

 

**During 2022/23 the Council identified Renewable Energy projects that the billing authority should retain the Business Rates for. The 2022/23 figure of £1.23m also includes the backdated Business Rates retained from these properties. Under current Collection Fund accounting rules, this income will be discharged against the Collection Fund position in future years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12.  PROPERTY, PLANT AND EQUIPMENT

 

 

Movements in 2022/23

Land and Buildings

 

 

 

 

 

£000

Vehicles, Plant, Furniture &

Equipment

 

 

£000

Community Assets

 

 

 

 

 

£000

Assets Under Construction

 

 

 

 

 

£000

Total Property, Plant &

Equipment

 

 

 

£000

Cost or Valuation

 

 

 

 

 

At 1 April 2022

68,692

11,435

516

2,183

82,826

Additions

423

358

63

6,165

7,009

Revaluation increases/

(decreases) recognised in the Revaluation Reserve

3,111

 

 

 

3,111

Revaluation increases/

(decreases) recognised in the Surplus/Deficit on the Provision of Services

(630)

 

 

 

(630)

Derecognition – disposals

 

(773)

 

 

(773)

Other movements in cost/valuation -reclassification

21

 

 

(21)

-

At 31 March 2023

71,617

11,020

579

8,327

91,543

+

 

 

 

 

 

Accumulated Depreciation & Impairment at 1 April 2022

2,153

7,000

-

-

9,153

Charge for 2022/23

1,463

1,117

-

-

2,580

Depreciation written out to the Revaluation Reserve

(1,370)

 

 

 

(1,370)

Depreciation written out to the Surplus/Deficit on the Provision of Services

(474)

 

 

 

(474)

Derecognition – disposals

 

(763)

 

 

(763)

At 31 March 2023

1,772

7,354

-

-

9,126

 

 

 

 

 

 

Balance Sheet amount at

31 March 2023

69,845

3,666

579

8,327

82,417

Balance Sheet amount at

31 March 2022

66,539

4,435

516

2,183

73,673

 

 

Comparative Movements in 2021/22

Land and Buildings

 

 

 

£000

Vehicles, Plant, Furniture &

Equipment

£000

Community Assets

 

 

 

£000

Assets Under Construction

 

 

 

£000

Total Property, Plant &

Equipment

 

£000

Cost or Valuation

 

 

 

 

 

At 1 April 2021

68,313

10,756

454

441

79,964

Additions

14

731

62

1,742

2,549

Revaluation increases/

(decreases) recognised in the Revaluation Reserve

365

 

 

 

365

Revaluation increases/

(decreases) recognised in the Surplus/Deficit on the Provision of Services

65

 

 

 

65

Derecognition – disposals

(65)

(52)

 

 

(117)

At 31 March 2022

68,692

11,435

516

2,183

82,826

 

 

 

 

 

 

Accumulated Depreciation & Impairment at 1 April 2021

1,731

6,038

-

-

7,769

Charge for 2021/22

1,629

1,014

-

-

2,643

Depreciation written out to the Revaluation Reserve

(1,053)

 

 

 

(1,053)

Depreciation written out to the Surplus/Deficit on the Provision of Services

(154)

 

 

 

(154)

Derecognition – disposals

 

(52)

 

 

(52)

At 31 March 2022

2,153

7,000

-

-

9,153

 

 

 

 

 

 

Balance Sheet amount at

31 March 2022

66,539

4,435

516

2,183

73,673

Balance Sheet amount at

31 March 2021

66,582

4,718

454

441

72,195

 

 

In accordance with the Temporary Relief offered by the update to the code on infrastructure assets, this note does not include disclosure of gross cost and accumulated depreciation for infrastructure assets because historical reporting practices and resultant information deficits mean that this would not represent a true and fair view of the asset position to the users of the financial statements.

 

 

 

 

 

 

 

Infrastructure Assets

 

 

2021/22

£000

2022/23

£000

Balance at start of year

6,954

6,572

Additions

75

131

Depreciation charge for year

(457)

(462)

Balance at end of year

6,572

6,241

 

 

 

2021/22

£000

2022/23

£000

Infrastructure Assets

6,572

6,241

Other Property Plant and Equipment Assets

73,673

82,417

Total Property Plant and Equipment Assets

80,245