HERTFORDSHIRE COUNTY COUNCIL
AUDIT COMMITTEE
THURSDAY 25 NOVEMBER 2010 AT 10.00AM / Agenda Item No:
2A
ADDENDUM
ADDENDUM TO FINAL ANNUAL STATEMENT OF ACCOUNTS (AGENDA ITEM 2A)

Report of the Director of Resources and Performance

[Author: Claire Cook, Assistant Director Strategic & Specialist Services

Tel: 01992 555737]

Executive Member: David Lloyd (Resources and Economic Wellbeing)

1. Purpose of the Report

1.1 To provide the Committee with an update to the key changes to the notes to the statement of accounts.

2. Summary

2.1 A number of changes to the notes to the accounts have been required following the issue of the Statement of Accounts (attached as Item 2B) following final review by the District Auditor. Details of these amendments are outlined in Appendix A.

2.2 These amendments do not have any impact on the Income and Expenditure Account or the Balance Sheet.

2.3 Appendix A1 of agenda item 2A contains a typing error. The ‘total assets less current liabilities’ figure under ‘November 2010 Version’ should read £2,833,212 and not £3,719,840. All other figures are correct and correspond to the Balance Sheet in the Statement of Accounts.

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Item 2A Addendum

Schedule of corrections to the Notes to the Accounts Appendix A

Page No / Details / Currently
£’000 / Amendment
£’000 / Details
48 / Note 1 - Restatement of Previous Year’s Accounts . / 2,701
PFI
(535)
Fixed Asset Verification / (650)
PFI
2,816
Fixed asset Verification / Surplus land and buildings held for disposal line – the correction of double counting of the land values in 2008/09 was not followed through on the table for non-operational land and buildings. Now amended.
51 / Note 3 – Exceptional Items / 138,544 / 136,233 / The impairment figure for 2009/10 had not been updated to correspond to Note 40.
73 / Note 23 - Tangible Fixed Assets / 2,701
PFI
(592)
Fixed Asset Verification
56
Depreciation / (650)
PFI
2,759
Fixed Asset Verification
56 Depreciation / As per Note 1 (page 48) above – the correction of double counting of the land values was not followed through on the table for non-operational land and buildings for 2008/09 and 2009/10. Now amended.
75 / Note 23 - Tangible Fixed Assets / 92,362 / 91,786 / Valuation Table corrected (for 2009/10) for the PFI changes to the closing non-operational land and buildings asset values which were not followed through (and therefore did not reconcile to the Balance Sheet).
75 / Note 23 - Net Assets Employed / 2,728
General Fund
104
Trading Accounts / 2,748
General Fund
84
Trading Accounts / The split between general fund and trading accounts in 2009/10 was not fully revised for the various changes made to the accounts. Now revised.

Schedule of corrections to the Notes to the Accounts (cont) Appendix A

76 / Note 24 - Summary of Capital Expenditure and Sources of Finance / This 2008/09 ‘Increase in underlying need to borrow’ line has been shown on the basis of the 2008/09 accounts rather than on a Prior Period Adjustment (PPA) basis.
The 2009/10 totals in relation to ‘Sources of Finance’ were not updated to reflect the adjustment for deferred grant and revenue expenditure funded from capital.
These have now been amended. See revised Note 24 below.
85 / Note 26 – Financial Instruments / Nil / 11,200 / Other Counterparties – As advised by District Audit (DA), this table had been updated to remove lines that had a nil credit risk (in 2009/10). This meant that the table did not reconcile with the overall amounts of deposits held with banks and institutions. Therefore on advice from DA, £11,200k was included under ‘other counterparties’ and it is correctly shown as nil risk.
109 / Note 40- Capital Adjustment Account (CAA) / 2,495 / 2,495 / CAA adjustment was shown as a re-statement at 1 April 2009 (2009/10) and not as a prior year adjustment. Now amended to show as a PPA adjustment in 2008/09.
116 / Note 49 - Movements on Reserves / 2,085,693 / 2,085,117 / Note not amended for the CAA adjustment related to no-operational land and buildings (in 2008/09 and 2009/10) as referred to in Note 23 on Tangible Fixed Assets (page 75)
117 / Note 50 – Contingent Liabilities / The note reference under Equal Pay Claims should be 35 and not 49.


Schedule of corrections to the Notes to the Accounts (cont) Appendix A

Note 24 – Amended numbers highlighted in bold

Restated / Restated
2008/09 / 2008/09 / 2009/10 / 2009/10
£000 / £000 / £000 / £000
450,968 / Opening Capital Financing Requirement / 516,724
Capital Investment
1,678 / Intangible assets / 1,287
85,754 / Operational assets / 172,157
62,311 / Non-operational assets (including assets under construction) / 11,860
9,818 / Revenue expenditure funded from capital / 15,880
159,561 / 201,184
Sources of Finance
(12,273) / Capital receipts / (3,570)
(56,760) / Deferred Grants and contributions / (51,103)
(5,689) / Revenue expenditure funded from capital / (7,420)
(31,343) / Revenue provision (including Minimum Revenue Provision) / (36,053)
12,260 / Restatement at 1 April / -
516,724 / Closing Capital Financing Requirement / 619,762
Explanation of movements in the year
83,795 / Increase in underlying need to borrow / 123,890
(18,039) / Minimum Revenue Provision / (20,852)
65,756 / Increase in Capital Financing Requirement / 103,038

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Item 2A Addendum