Statement of Accounts
The Council's statement of accounts are prepared in accordance with the Chartered Institute of Public Finance and Accountancy's Code of Practice on Local Authority Accounting in the United Kingdom and are based on International Financial Reporting Standards.
From 2010/11 the Statements produced are:
Statement of Responsibilities
The code requires that the chief financial officer should sign and date the Statement of Accounts under a statement that the accounts give a true and fair view of the financial position of the council at the accounting date and its income and expenditure for the year then ended.
Movement in Reserves Statement
The Movement in Reserves Statement (MiRS) is a summary of the changes that have taken place in the bottom half of the Balance Sheet over the financial year. It does this by analysing:
- The increase or decrease in the net worth of the council as a result of incurring expenses and generating income.
- The increase or decrease in the net worth of the council as a result of movements in the fair value of its assets.
- Movements between reserves to increase or reduce the resources available to the council according to statutory provisions.
Comprehensive income and expenditure statement
This statement consolidates all the gains and losses experienced by the council during the financial year. As councils do not have any equity in their Balance Sheets, these gains and losses will reconcile to the overall movement in net worth. The statement has two sections:
- Surplus or Deficit on the Provision of Services - the increase or decrease in the net worth of the council as a result of incurring expenses and generating income.
- Other Comprehensive Income and Expenditure - shows any changes in net worth which have not been reflected in the Surplus or Deficit on the Provision of Services. Examples include the increase or decrease in the net worth of the council as a result of movements in the fair value of its assets and actuarial gains or losses on pension assets and liabilities.
The Balance Sheet summarises the council's financial position at 31 March each year. In its top half it contains the assets and liabilities that it holds or has accrued with other parties. As councils do not have equity, the bottom half is comprised of reserves that show the nature of the council's net worth, falling into two categories
- Usable Reserves - which include the revenue and capital resources available to meet future expenditure
- Unusable Reserves - unrealised gains and losses, particularly the revaluation of property plant and equipment (e.g. the Revaluation Reserve) and adjustment accounts such as the Capital Adjustment Account.
Cash Flow Statement
The Cash Flow Statement summarises the flows of cash that have taken place into and out of the council's bank accounts over the financial year. It separates the flows into:
- Those that have occurred as a result of the council's operations.
- Those arising from the council's investing activities.
- Those attributable to financing decisions
Collection Fund Statement
This reflects the statutory requirement for billing authorities, such as Ribble Valley Borough Council, to maintain a separate fund for the collection and distribution of amounts due in respect of council tax and National Non-Domestic Rates (NNDR).
There is no requirement for a separate Collection Fund Balance Sheet. Instead Collection Fund balances are distributed across the Balance Sheets of the billing authority, the Government and precepting bodies.
Annual Governance Statement
The annual governance statement is a statutory document which explains the processes and procedures in place to enable the council to carry out its functions effectively.
The statement is produced following a review of the council's governance arrangements and includes an action plan to address any significant governance issues identified.
Until 2009/10 we were required to include the annual governance statement within the statement of accounts and it was therefore published as part of that document. From 2010/11 the annual governance statement does not have to be included within the statement of accounts, and is therefore shown as a separate document for download as can be on the right.