Primary Statements

Income and Expenditure Account

2005/06			2006/07	2006/07	2006/07
Restated Net Expenditure £000		Note	Gross Expenditure £000	Income £000	Net Expenditure £000

	CONTINUING SERVICES
353,889	Education Services	2	500,132	(441,149)	58,983
119,639	Social Services		190,339	(62,608)	127,731
40,745	Highways, Roads & Transport Services		51,098	(13,848)	37,250
44,176	Cultural, Environmental & Planning Services	3	63,012	(16,922)	46,090
1,234	Central Services to the Public		1,732	(545)	1,187
460	Courts Services		405	(16)	389
89	Housing Services		193	(65)	128
6,234	Corporate and Democratic Core		10,611	(4,345)	6,266
1,043	Non Distributed Cost		3,309	(105)	3,204
567,509	NET COST OF SERVICES		820,831	(539,603	281,228

	OTHER ITEMS
236	Flood defence levies				248
(787)	Net (surplus)/deficit on trading a/c’s	4			(1,110)
18,833	Interest payable				19,806
18,833	Interest payable				19,806
(5,239)	Interest and investment income				(6,989)
2,100	Pensions – Interest cost & expected return on assets	5			(2,400)
(5,545)	Principal & Interest on transferred debt				(5,617)
577,107	NET OPERATING EXPENDITURE				285,166

(191,022)	Precepts on District Councils				(201,048)
(188,473)	Distribution from Non-Domestic Rates				(66,423)
(166,422)	Revenue Support Grant	2			(12,822)
(585)	Surplus on Collection Funds				(738)
(570)	Local Authority Business Growth Incentive Scheme				(2,232)
30,035	DEFICIT FOR THE YEAR (a)				1,903

Statement of Movement on the General County Fund Balance

The Income and Expenditure Account shows the Council’s actual financial performance for the year, measured in terms of the resources consumed and generated over the last twelve months. However, the authority is required to raise council tax on a different accounting basis, the main differences being:

Capital investment is accounted for as it is financed, rather than when the fixed assets are consumed.

Retirement benefits are charged as amounts become payable to pension funds and pensioners, rather than as future benefits are earned.

The General County Fund Balance shows whether the Council has over or under spent against the council tax that it raised for the year, taking into account the use of reserves built up in the past and contributions to reserves earmarked for the future expenditure.

This reconciliation statement summarises the differences between the outturn on the Income and Expenditure Account and the General County Fund Balance.

2005/6 £000		2006/7 £000
30,035	Deficit for the year on the Income and Expenditure Account (a)	1903
(30,628)	Net additional amount required by statute and non-statutory proper practices to be debited or credited to the General Fund Balance for the year (b)	(237)
(593)	(Increase) / Decrease in General County Fund Balance for the year	1,666
(33,762)	General County Fund Balance brought forward	(34,355)
(34,355)	General County Fund Balance carried forward (c)	(32,689)

Analysis of the movement on the General County Fund Balance for the year between the amount generally available to the authority and the net amount held by schools under locally management schemes:

2005/6 £000		2006/7 £000
(20,130)	Amount of General County Fund Balance held by schools under local management schemes	(19,771)
6,800)	Amount of General County Fund set aside for other earmarked sums	(4,439)
(7,425)	Amount of General County Fund generally available for new expenditure	(8,479)
(34,355)	Total General County Fund Balance (c)	(32,689)

Note of reconciling items for the Statement of Movement on General County Fund Balance:

2005/06 £000		Note	2006/07 £000
	Amounts included in the Income and Expenditure Account but required by statute to be excluded when determining the Movement on the General County Fund Balance for the year
(39)	Amortisation of intangible fixed assets	6	(167)
(53,088)	Depreciation and impairment of fixed assets	6	(42,363)
(8,314)	Deferred charges treated as revenue expenditure in accordance with the SORP, but which are classified as capital expenditure by statute	10	(4,429)
17,247	Government Grants Deferred amortisation	13	22,983
0	Net gain / (loss) on sale of fixed assets		0
(6,398)	Net charges made for retirement benefits in accordance with FRS 17		(7,170)
(50,592)			(31,146)
	Amounts not included in the Income and Expenditure Account but required to be included by statute when determining the Movement on the General County Fund Balance for the year
11,798	Statutory provision for repayment of debt		13,399
1,187	Capital expenditure charged in-year to the General Fund Balance		720
12,985			14,119
	Transfers to or from the General County Fund Balance that are required to be taken into account when determining the Movement on the General County Fund Balance for the year
6,979	Net transfer to earmarked reserves		16,790
(30,628)	Net additional amount required to be charged to the General County Fund Balance for the year (b)		(237)

Statement of Total Recognised Gains and Losses

2005/6 £000		Note	2006/7 £000

30,035	(Surplus) / Deficit for the year on the Income and Expenditure Account (a)		1,903
(56,255)	Surplus arising on revaluation of fixed assets	6	(42,628)
4,602	Actuarial (gains) / losses on the pension fund assets and liabilities	5	(64,170)
(4,447)	Other (gains) / losses required to be included in the STRGL		1,963
(26,065)	Total recognised (gains) / losses for the year		(102,932)

Balance Sheet as at 31 March 2007

31 March 2006 £000		Note	31 March 2007 £000	31 March 2007 £000
	FIXED ASSETS	6-12
798	Intangible Assets			631

	Tangible Assets
596,899	Land and buildings		632,784
3,609	Vehicles, plant & equipment		3,910
155,856	Infrastructure		171,139
9,966	Community assets		11,231
766,330				819,064
	Non-Operational Assets
3,301	Investment properties		3,101
5,704	Assets under construction		18,751
3,016	Surplus assets, held for disposal		3,131
12,021				24,983
40,000	Long term investments	22		65,000
59,138	Long term debtors	23		59,957
6,086	Deferred premiums on early repayment of debt	24		7,447
884,373	Total Long Term Assets			977,082
	CURRENT ASSETS
3,738	Landfill Allowances		3,892
777	Stocks and work in progress	25	998
38,060	Debtors	23	34,269
4,248	Payments in advance		8,024
106,995	Short term investments	22	76,615
153,818				123,798
	CURRENT LIABILITIES
	Borrowing repayable on demand or
(650)	within 12 months	28	(650)
(74,144)	Creditors	27	(77,859)
(1,323)	Cash overdrawn	26	(5,462)
(12,363)	Receipts in advance		(12,258)
(88,480)				(96,229)
65,338	Net current Assets			27,569
949,711				1,004,651
	LONG TERM LIABILITIES
(361,729)	Long term borrowing	28	(361,144)
(387)	Deferred liabilities	32	(336)
(12,532)	Provisions	29	(7,236)
(209,700)	Defined benefit pension scheme	5	(152,700)
(7,660)	Capital contributions unapplied	30	(10,575)
(173)	Deferred discounts on early repayment of debt	24	(3,573)
(644,376)				(596,384)
305,335	Net Assets			408,267
	FINANCED BY
334,087	Fixed asset restatement account	31		371,028
124,864	Capital financing account	31		118,497
(209,700)	Pension reserve	31		(152,700)
142	Other capital reserves			142
2,358	Capital receipts unapplied	31		2,078
19,229	Revenue reserves	31		36,533
26,930	County fund: Earmarked sums	31	24,210
7,425	Uncommitted balance	31	8,479	32,689
305,335				408,267

The net worth of the authority as at 31st March 2006 has been amended from £359.089m to £305.335m to comply with SORP 2006. Capital Contributions Unapplied has now moved to Long Term Liabilities in the top half of the balance sheet. In addition the opening balance has been restated to incorporate the inclusion of East Midlands Regional Assembly.

Cash Flow Statement

2005/06			2006/07	2006/07	2006/07
£000		Note	£000	£000	£000
	Revenue Activities
	Cash outflows:
439,914	Cash paid to and on behalf of employees		459,865
290,457	Other operating costs		276,659
730,371				736,524
	Cash inflows:
(191,022)	Precepts on district councils		(201,048)
(188,473)	Non-domestic rate income		(66,423)
(165,299)	Revenue support grant		(12,822)
(115,917)	Other government grants	38	(424,068)
(101,853)	Cash received for goods and services		(64,243)
(3,825)	Other revenue cash income		(4,091)
(766,389)				(772,695)
(36,018)	Revenue activities cash inflow	39			(36,171)
	Return on Investments and Servicing of FinanceFinance
	Cash outflows:
19,641	Interest paid		21,606
(479)	Premiums paid/discounts received		(1,918)
131	Lease rentals		134
19,293				19,822
	Cash inflows:
(9,721)	Interest received			(9,571)
9,572					10,251
	Capital Activities
	Cash outflows:
81,486	Purchase of fixed assets		71,263
8,889	Other capital cash payments		5,878
90,375				77,141
	Cash inflows:
(3,813)	Sale of fixed assets		(4,640)
(19,909)	Capital grants received		(29,735)
(6,893)	Other capital contributions		(7,912)
(30,615)				(42,287)
59,760					34,854
33,314	Net cash (inflow)/ outflow before Financing				8,934
	Management of Liquid Resources
40,991	Net change in investments	40			*(5,380)*

	Financing
	Cash outflows:
36,024	Repayments of amounts borrowed			100,185
	Cash inflows:
(108,142)	New loans raised			(99,600)
(72,118)					*585*

2,187	(Increase)/Decrease in Cash	40			4,139