Wrexham County Borough Council

Statement of Accounts for the financial year

ended 31 March 2018

M S Owen Head of Finance

CONTENTS

PAGE

Narrative Report 2

Statement of Responsibilities for the Statement of Accounts

Financial Statements

7

Expenditure and Funding Analysis and note 8

Comprehensive Income and Expenditure Statement 10

Movement in Reserves Statement 11

Balance Sheet 12

Cash Flow Statement 13

Notes to the Accounts (including Accounting Policies) 14

Housing Revenue Account and Notes 60

Independent Auditorrsquos Report 64

Annual Governance Statement 66

-1shy

NARRATIVE REPORT

1 Introduction

11 This Narrative report provides a summary of the Councilrsquos financial performance its financial position and key issues affecting the Council and its Statement of Accounts The Accounts and Audit (Wales) Regulations 2014 requires the Council to produce a Statement of Accounts for each financial year The Statements that follow this narrative report are as follows

bull Statement of Responsibilities for the Statement of Accounts sets out the respective responsibilities of the Council and the Head of Finance

bull Expenditure and Funding Analysis shows the net expenditure that is chargeable to taxation and rents and reconciles it to the Comprehensive Income and Expenditure Statement

bull Comprehensive Income and Expenditure 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 council tax Councils raise council tax to cover expenditure in accordance with regulations this may be different from the accounting cost The council tax position is shown in the Movement in Reserves statement

bull Movement in Reserves Statement shows the movement in the year on the different reserves held by the Council analysed into lsquousablersquo reserves (ie those that can be applied to fund expenditure or reduce local taxation) and other reserves

bull Balance Sheet which sets out the financial position of the Council at 31 March 2018 bull Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the

financial year bull Notes to the Accounts including the Councilrsquos Accounting Policies bull Housing Revenue Account (HRA) and notes show in more detail the income and expenditure on

HRA services included in the Comprehensive Income and Expenditure Account bull Independent Auditorrsquos Report gives the auditors opinion of the financial statements

2 The Councilrsquos Corporate Aims and Objectives

21 The Council Plan is the overarching plan that helps the Council to focus its resources and drive improvement W hilst the Council plan sets a vision and framework for a five year period it is also updated in May each year with targets and actions for the next twelve months In October each year the Council publishes its annual performance evaluation report ndash lsquoFocused On Our Performancersquo This sets out the progress that the Council has made towards its objectives whether this has had the desired impact and what outstanding issues remain The 201617 report is available at httpwwwwrexhamgovukassetspdfscouncilplanperformancepdf

22 Key performance information for 201718 which is currently available includes

bull Economy theme the Council has invested in physical regeneration within the County Borough with one key project having been the development of Tŷ Pawb ndash a town centre cultural community resource which brings together arts and markets within the same footprint and will be a focal point for the ongoing regeneration of the town centre

bull People theme Educational attainment at foundation key stage two and key stage three has continued to improve although performance remains below the challenging stretch targets set The proportion of pupils leaving Year 11 and remaining in full time education has improved as has the proportion known not to be in education employment or training

bull Place theme The proportion of Wrexham County Boroughrsquos A and B roads that are in good condition remains higher than most other areas in Wales but although the proportion of C roads in good condition has improved during the year it remains slightly poorer than the Welsh average and

bull Organisation theme The percentage of Council customers who engage with the Council digitally who have signed up to a self-service account and who find it easy to access Council services have all improved during the year

3 Financial Performance

201718 Budget Process

31 When preparing the Councilrsquos Medium Term Financial Strategy (MTFS) the Council makes provisional spending plans for future financial years ensuring these are balanced against the expected funding from W elsh Government and Council Tax payers The MTFS is a three year incremental process that builds on the work and achievements of previous years taking into account demographic legislative and other pressures mitigated by savings proposals to ensure a balanced budget can be achieved in the coming year

-2shy

CONTENTS

PAGE

Narrative Report 2

Statement of Responsibilities for the Statement of Accounts

Financial Statements

7

Expenditure and Funding Analysis and note 8

Comprehensive Income and Expenditure Statement 10

Movement in Reserves Statement 11

Balance Sheet 12

Cash Flow Statement 13

Notes to the Accounts (including Accounting Policies) 14

Housing Revenue Account and Notes 60

Independent Auditorrsquos Report 64

Annual Governance Statement 66

-1shy

NARRATIVE REPORT

1 Introduction

11 This Narrative report provides a summary of the Councilrsquos financial performance its financial position and key issues affecting the Council and its Statement of Accounts The Accounts and Audit (Wales) Regulations 2014 requires the Council to produce a Statement of Accounts for each financial year The Statements that follow this narrative report are as follows

bull Statement of Responsibilities for the Statement of Accounts sets out the respective responsibilities of the Council and the Head of Finance

bull Expenditure and Funding Analysis shows the net expenditure that is chargeable to taxation and rents and reconciles it to the Comprehensive Income and Expenditure Statement

bull Comprehensive Income and Expenditure 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 council tax Councils raise council tax to cover expenditure in accordance with regulations this may be different from the accounting cost The council tax position is shown in the Movement in Reserves statement

bull Movement in Reserves Statement shows the movement in the year on the different reserves held by the Council analysed into lsquousablersquo reserves (ie those that can be applied to fund expenditure or reduce local taxation) and other reserves

bull Balance Sheet which sets out the financial position of the Council at 31 March 2018 bull Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the

financial year bull Notes to the Accounts including the Councilrsquos Accounting Policies bull Housing Revenue Account (HRA) and notes show in more detail the income and expenditure on

HRA services included in the Comprehensive Income and Expenditure Account bull Independent Auditorrsquos Report gives the auditors opinion of the financial statements

2 The Councilrsquos Corporate Aims and Objectives

21 The Council Plan is the overarching plan that helps the Council to focus its resources and drive improvement W hilst the Council plan sets a vision and framework for a five year period it is also updated in May each year with targets and actions for the next twelve months In October each year the Council publishes its annual performance evaluation report ndash lsquoFocused On Our Performancersquo This sets out the progress that the Council has made towards its objectives whether this has had the desired impact and what outstanding issues remain The 201617 report is available at httpwwwwrexhamgovukassetspdfscouncilplanperformancepdf

22 Key performance information for 201718 which is currently available includes

bull Economy theme the Council has invested in physical regeneration within the County Borough with one key project having been the development of Tŷ Pawb ndash a town centre cultural community resource which brings together arts and markets within the same footprint and will be a focal point for the ongoing regeneration of the town centre

bull People theme Educational attainment at foundation key stage two and key stage three has continued to improve although performance remains below the challenging stretch targets set The proportion of pupils leaving Year 11 and remaining in full time education has improved as has the proportion known not to be in education employment or training

bull Place theme The proportion of Wrexham County Boroughrsquos A and B roads that are in good condition remains higher than most other areas in Wales but although the proportion of C roads in good condition has improved during the year it remains slightly poorer than the Welsh average and

bull Organisation theme The percentage of Council customers who engage with the Council digitally who have signed up to a self-service account and who find it easy to access Council services have all improved during the year

3 Financial Performance

201718 Budget Process

31 When preparing the Councilrsquos Medium Term Financial Strategy (MTFS) the Council makes provisional spending plans for future financial years ensuring these are balanced against the expected funding from W elsh Government and Council Tax payers The MTFS is a three year incremental process that builds on the work and achievements of previous years taking into account demographic legislative and other pressures mitigated by savings proposals to ensure a balanced budget can be achieved in the coming year

-2shy

NARRATIVE REPORT

1 Introduction

11 This Narrative report provides a summary of the Councilrsquos financial performance its financial position and key issues affecting the Council and its Statement of Accounts The Accounts and Audit (Wales) Regulations 2014 requires the Council to produce a Statement of Accounts for each financial year The Statements that follow this narrative report are as follows

bull Statement of Responsibilities for the Statement of Accounts sets out the respective responsibilities of the Council and the Head of Finance

bull Expenditure and Funding Analysis shows the net expenditure that is chargeable to taxation and rents and reconciles it to the Comprehensive Income and Expenditure Statement

bull Comprehensive Income and Expenditure 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 council tax Councils raise council tax to cover expenditure in accordance with regulations this may be different from the accounting cost The council tax position is shown in the Movement in Reserves statement

bull Movement in Reserves Statement shows the movement in the year on the different reserves held by the Council analysed into lsquousablersquo reserves (ie those that can be applied to fund expenditure or reduce local taxation) and other reserves

bull Balance Sheet which sets out the financial position of the Council at 31 March 2018 bull Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the

financial year bull Notes to the Accounts including the Councilrsquos Accounting Policies bull Housing Revenue Account (HRA) and notes show in more detail the income and expenditure on

HRA services included in the Comprehensive Income and Expenditure Account bull Independent Auditorrsquos Report gives the auditors opinion of the financial statements

2 The Councilrsquos Corporate Aims and Objectives

21 The Council Plan is the overarching plan that helps the Council to focus its resources and drive improvement W hilst the Council plan sets a vision and framework for a five year period it is also updated in May each year with targets and actions for the next twelve months In October each year the Council publishes its annual performance evaluation report ndash lsquoFocused On Our Performancersquo This sets out the progress that the Council has made towards its objectives whether this has had the desired impact and what outstanding issues remain The 201617 report is available at httpwwwwrexhamgovukassetspdfscouncilplanperformancepdf

22 Key performance information for 201718 which is currently available includes

bull Economy theme the Council has invested in physical regeneration within the County Borough with one key project having been the development of Tŷ Pawb ndash a town centre cultural community resource which brings together arts and markets within the same footprint and will be a focal point for the ongoing regeneration of the town centre

bull People theme Educational attainment at foundation key stage two and key stage three has continued to improve although performance remains below the challenging stretch targets set The proportion of pupils leaving Year 11 and remaining in full time education has improved as has the proportion known not to be in education employment or training

bull Place theme The proportion of Wrexham County Boroughrsquos A and B roads that are in good condition remains higher than most other areas in Wales but although the proportion of C roads in good condition has improved during the year it remains slightly poorer than the Welsh average and

bull Organisation theme The percentage of Council customers who engage with the Council digitally who have signed up to a self-service account and who find it easy to access Council services have all improved during the year

3 Financial Performance

201718 Budget Process

31 When preparing the Councilrsquos Medium Term Financial Strategy (MTFS) the Council makes provisional spending plans for future financial years ensuring these are balanced against the expected funding from W elsh Government and Council Tax payers The MTFS is a three year incremental process that builds on the work and achievements of previous years taking into account demographic legislative and other pressures mitigated by savings proposals to ensure a balanced budget can be achieved in the coming year

-2shy

NARRATIVE REPORT

32 The Councilrsquos MTFS for the period 201617 to 201920 highlighted the need for savings proposals of approximately pound27m to address the budget shortfall over the three year period 201718 to 201920 of which pound78m related to the 201718 financial year During the summer of 2016 it was proposed to develop the Revenue Budget for 201718 on the basis that no general inflation would be allocated to services thus reducing the budget shortfall to around pound5m Between 14 September 2016 and 26 October 2016 the Council consulted on a package of savings amounting to pound337m

33 On 22 February 2017 following recommendation by the Executive Board the Council approved a budget totalling pound225m for the 201718 financial year At that meeting the Council also approved an updated MTFS for the period 201718 to 201920 and the Treasury Management Strategy Statement and Investment Strategy for 201718 The Housing Revenue Account budget and both the Non HRA and HRA Capital Programmes were approved by the Executive Board on 14 February 2017

Projected Level of Balances

34 One significant issue both in relation to the MTFS and also the 201718 budget was the assumption about the level of balances that the Council would require to address any unexpected spending pressures These balances need to reflect spending experience and risks to which the Council might be exposed At the 22 February 2017 meeting the Council approved the Councilrsquos Reserve Strategy and the recommended General Fund balance of pound7018m and HRA balance of around 10 of HRA total expenditure for 201718

Budget Monitoring

35 The Council has well established and robust financial management procedures in place to monitor budgets and mitigate any forecast overspending This has been very successful in acting as an early warning that any approved budget savings are at risk of not being delivered Revenue budget information together with progress against planned savings is provided to all members bi monthly and considered by the Customer Performance Governance and Resources Scrutiny Committee following five eight and twelve months of the year The revenue budget information together with the management of the risks identified as part of the budget setting process is reported to Council following six months of the year The Executive Board considers the final revenue outturn and approves the carry forward arrangements in respect of reserves and balances This process facilitates a good level of challenge including reviewing any potential impacts on service performance

36 The first monitoring report of the financial year to members highlighted a potential overspend for the Environment and Planning department of pound19m primarily due to higher waste collection costs (pound950k) and pressures on the Waste Management PFI contract (pound900k) as a consequence of a fall in recyclate income market prices As the departmentrsquos deficit recovery plan would only achieve savings of approximately pound585k action was taken on a corporate basis and all Heads of Department were requested to make additional savings of pound450k which equated to approximately half of the PFI overspend Following six months of the year the Childrenrsquos Social Care department reported a potential overspend of pound991k due to an increase in out of county residential and foster placements and the overall forecast position was a potential overspend of pound19m On 13 December 2017 Council approved a change to the Minimum Revenue Provision (MRP) policy which would result in savings of approximately pound172m in capital financing costs thus reducing the potential overspend for the financial year to pound191k

Revenue Outturn for 201718

37 The Councilrsquos 201718 revenue outturn position is shown in a table on page 4 Council Fund services (excluding HRA) spent pound224149k against a budget of pound225324k ie an underspend of pound1175k (line 2 column c) The net yield from council tax was pound105k (line 3 column c) greater than expected for the 201718 financial year thus resulting in an overall Council Fund surplus of pound1280k Schools underspent by pound370k (line 1 column c) The overspend in Environment amp Planning of pound1456k was due to pressures in the waste management PFI contract and also due to the waste collection service operating increased recycling vehicles and staff costs together with reduced Welsh Government funding The overspend in Childrenrsquos Social Care (pound1164k) was due to increased out of county placements and leaving care costs The underspend in Corporate amp Central - Services of pound1187k was primarily due to lower Council Tax Reduction scheme (CTRS) Carbon Insurance and Strategic Management costs and the underspend in Corporate amp Central ndash Financing amp Investment Income amp Expenditure of pound1920k was due to lower capital financing costs following a change to the Councilrsquos MRP policy

38 The Council monitors expenditure (which includes planned contributions to and from service earmarked and grant reserves) against its budget for the year based on its internal management and departmental structure The expenditure and council tax income monitored during the year includes the cost of the CTRS but excludes payments and council tax raised in respect of the Police and Crime Commissioner for North Wales and Community Councils precepts Adjusting for the service earmarked and grant reserves utilised by services

-3shy

NARRATIVE REPORT

during the year of pound301k (line 2 column d) and the CTRS and Police and Community Council precepts of pound5741k (see column e) we arrive at the total expenditure and income chargeable to General Fund Balances (including Earmarked Reserves) of pound230191k (line 2 column f) and pound231170k (line 3 column f) respectively ie a reported overall deficit of pound979k (line 4 column f)

39 The HRA is reported separately during the financial year and is consolidated as part of the production of the year-end accounts HRA expenditure exceeded income by pound971k (see line 5 column f) thus reducing HRA balances by pound971k The overall net expenditure (including the HRA) becomes pound 231162k (line 6 column f) leaving an overall deficit of pound231170k (line 7 column f)

Net Adjust for Ex penditure

Re serves Police amp Chargeable to Utilise d Community the General

201718 Actual In Year Prece pts amp Fund and HRA Budget Outturn Va riance CTRS Balance s pound000 pound000 pound000 pound000 pound000 pound000

a b c d e f=b+d+e Council Fund Services Environment amp Planning 31036 32492 1456 334 0 32826 Housing amp Economy 6347 6364 17 176 0 6540 Adult Social Care 38563 38396 (167) 0 0 38396 Childrens Social Care 13788 14952 1164 90 0 15042 Education 5140 5134 (6) (17) 0 5117 Schools 79976 79606 (370) 119 0 79725 Corporate amp Customer Services

1 7855 7823 (32) 78 0 7901

Finance 5107 4971 (136) (46) 0 4925 Repairs amp Maintenance 1868 1874 6 161 0 2035 Corporate amp Central - Services 18939 17752 (1187) (594) (9879) 7279 Net Service Expenditure 208619 209364 745 301 (9879) 199786 Corporate amp Central

Other Operating Expenditure 6575 6575 0 0 15620 22195 Financing amp Investment Income amp 10130 8210 (1920) 0 0 8210 Expenditure

2 Total Council Fund Services Net 225324 224149 (1175) 301 5741 230191 Expe nditure

Finance d by Government Grants (169447) (169447) 0 0 0 (169447) Council Tax (55877) (55982) (105) 0 (5741) (61723)

3 Total Council Fund Income (225324) (225429) (105) 0 (5741) (231170)

4 Council Fund Reported (Surplus) 0 (1280) (1280) 301 0 (979) Deficit

HRA Expenditure 50899 51002 103 0 0 51002 Income (49920) (50031) (111) 0 0 (50031)

5 Net Expe nditure Reported 979 971 (8) 0 0 971

6 Total Net Ex penditure (including HRA) 226303 225120 (1183) 301 5741 231162

7 Taxa tion and Non Specific Gra nt (225324) (225429) (105) 0 (5741) (231170) Income

8 Overa ll (Surplus) Deficit 979 (309) (1288) 301 0 (8)

The Council Tax Reduction Scheme (CTRS) is included as an expense and the council tax collected is gross of CTRS in the actual outturn An adjustment is made to show council tax collected net of CTRS (pound9879k) and gross of community and police precepts (pound15620k) in the Comprehensive Income and Expenditure Account

4 Financial Position at 31 March 2018

41 The Council has made provision for known liabilities and established reserves for future liabilities or earmarked for future service developments Provisions are amounts included in the accounts as liabilities where there has been a past event which is likely to result in a financial liability but where there is uncertainty over timing and precise value of the liability that has been incurred It is therefore the Councilrsquos best estimate

-4shy

NARRATIVE REPORT

of the financial liability as at 31 March 2018 Provisions are disclosed in note 37 Notes to the Accounts

42 Reserves are amounts set aside in the accounts for purposes falling outside the definition of provisions The information regarding reserves is disclosed in the Movement in Reserves Statement on page 11 and in note 5 Notes to the Accounts The Councilrsquos General Fund balance is a measure of the uncommitted reserves which the Council holds to meet cash flow requirements and unforeseen future events The General Fund balance which was pound7018m at the start of the financial year totalled pound7018m at 31 March 2018 (see Movement in Reserves Statement on page 11)

5 Capital Investment

51 Capital investment (excluding capital accruals) in the year amounted to pound6815m The following tables give an analysis of this expenditure and the way it was financed

Where the capital money was spent

201718 poundrsquo000

School adaptations and improvements Highway improvements Economic Development and Planning Housing Renovation GrantsRenewal Council House improvements Other Finance Leases PFI

4838

2359 3765

1615

49445 5269

858

710

346 553

237

7255 773 126

Total 68149 100

Where the capital 201718 money came from poundrsquo000

Borrowing 35015 5138

Capital Receipts 1709 251

Grants amp Contributions 16927 2484

Revenue 13640 2001

Finance Leases PFI 858 126

Total 68149 100

52 School adaptations and improvements include expenditure of pound1278k for Penycae Primary School and pound1462k for Bryn Alyn High School as part of the 21st Century Schools Band A programme Economic Development and Planning includes pound3523k for the new Arts Cultural Hub and Market space (Tŷ Pawb) and included within Other is pound1892k for improvements to the Councilrsquos leisure facilities

6 Borrowing

61 The Councilrsquos principal loan debt at 31 March 2018 was pound3624m It is the Councilrsquos strategy to maintain the level of external borrowing in line with the Capital Financing Requirement

7 Revaluation and Disposals of Non Current Assets

71 The Council has a rolling programme to revalue all assets within five years During 201718 Housing amp Public Protection Assets Public Offices and Car Parks were revalued The programme for future years is as follows

201819 - Markets Shops and Social Care properties Heritage Assets 201920 ndash Schools Youth Clubs and Waste Disposal PFI facility 202021 - Commercial Estates Environmental and Leisure Properties and Council Dwellings

72 In addition to the rolling programme an annual review is undertaken for impairment and significant changes in the use of property During 201718 upward revaluations of pound9070k were made pound3431k of which related to the rolling programme of asset revaluations There were also downward revaluations impairments to Council Dwellings of pound5502k Other Land and Buildings of pound6871k (of which pound2676k related to the rolling programme of asset revaluations) Surplus Assets of pound48k Assets Held for Sale of pound9k Community Assets of pound695k Vehicles Plant amp Equipment of pound9k and Heritage Assets of pound8k Of the downward revaluations impairments pound8524k was recognised in the Surplus or Deficit on Provision of Services and pound4618k in the Revaluation Reserve

73 During the year the Council sold Council Dwellings of pound2291k and other assets with a carrying value of pound517k which included land east of Conery Lane Bronington (pound210k) land adjacent to Long Lane Cottage Bronington (pound18k) land at Shonersquos Lane Llay (pound63k) Outdoor Education Centre at Nantyr (pound135k) parcel of land in Coedpoeth (pound60k) and woodland at Craig y Pandy wood (previously associated with Nantyr Centre) (pound31k) The Council made a net profit of pound32k

-5shy

NARRATIVE REPORT

8 Pension Liability

81 The Statement of Accounts as presented complies with the requirements of International Accounting Standard 19 (IAS 19) in that the Comprehensive Income and Expenditure Account reflects the current year cost of pension provision to employees as advised by the Councilrsquos actuary Mercers In addition the Balance Sheet contains the actuaryrsquos assessment of the Councilrsquos share of the Pension Fund liability (pound283m) as at 31 March 2018 and the reserve needed to fund that liability The disclosed pension fund liability is the total projected deficit that exists over the expected life of the fund This deficit will change on an annual basis dependent on the performance of investments and the actuarial assumptions that are made in terms of current pensioners deferred pensioners and current employees

9 Interest in Companies and Other Entities

91 Wrexham Commercial Services a wholly owned subsidiary of the Council was incorporated on 1 October 2014 and commenced trading on 1 January 2015 The company has been established to trade in specified council services but initially in cleaning services The Council has not prepared Group Accounts on the grounds that there would be no material difference to the Councilrsquos single entity accounts A copy of Wrexham Commercial Servicesrsquo audited financial statements for the twelve months to 31 March 2018 can be obtained from Wrexham Commercial Services Ltd Council Offices Ruthin Road Wrexham LL13 7TU

10 Changes to the Core Statements

101 Previously the cost of the Council Tax Reduction scheme (CTRS) has been shown in the Comprehensive Income and Expenditure Account Statement (CIampES) and relevant notes to the accounts as an expense and the Council Tax Collected has been shown gross of these reductions The Council has been advised that it is inappropriate to disclose CTRS as an expense in the CIampES and that Council Tax Collected should be shown net of CTRS The 201617 comparative data in the CIampES and the Expenditure amp Funding Analysis and relevant notes have been restated to reflect this change There has been no impact on the Balance Sheet as a result of this change

102 A further change has been made to the CIampES in 201718 for the accounting treatment of care home fees The Council makes payments to residential care homes based on the gross charge less client contributions In previous years the CIampES has shown the gross charge as expenditure and the client contributions as income The Code suggests that the expenditure in the CIampES should include the Councilrsquos contribution only (ie net of client contributions) The 201617 comparative data in the CIampES and note 61 Notes to the Accounts have been restated to reflect this change

11 Financial Outlook for the Council

111 On 21 February 2018 the Council approved a Medium Term Financial Strategy which highlighted a potential revenue shortfall of approximately pound11m for the period 201920 to 202021 The strategy can be accessed by the following link

httpwwwwrexhamgovuktop_navigationsearchindexhtmq=medium20term20financial20strategy

112 It is clear that the financial outlook for the Council in terms of Welsh Government funding and support for both Revenue and Capital expenditure is likely to reduce in the medium term in line with the UK Government austerity measures Whilst precise details of funding available to the Council for 201920 and beyond have not been announced the Council anticipates a funding shortfall of around pound11m over the period 201920 to 202021

12 Further Information

121 Further information about the accounts and budgets of the Council is available from the Head of Finance W rexham County Borough Council Lambpit Street Wrexham This is part of the Councilrsquos policy of providing full information about the Councilrsquos financial affairs In addition members of the public have a statutory right to inspect the accounts before the audit is completed The availability of the accounts for inspection is advertised on the Councilrsquos website and in one conspicuous public place as required by the Accounts and Audit (Wales) (Amendment) Regulations 2018 The Statement of Accounts will also be available on the Authorityrsquos website (wwwwrexhamgovuk)

M S Owen

Head of Finance

-6shy

Statement

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Council is required under the Code to include a Statement of Responsibilities in the Statement of Accounts which sets out the respective responsibilities of the Council and the Head of Finance in respect of these Accounts

The Councils Responsibilities

The Council is required to make arrangements

bull for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs In this Council that officer is the Head of Finance

bull to manage its affairs to secure economic efficient and effective use of resources and safeguard its assets

bull to approve the of Accounts

Chai r

The Responsibility of the Head of Finance

The Head of Finance is responsible for the preparation of the Authoritys Statement of Accounts in accordance with proper practices as set out in the CIPFALASAAC Code of Practice on Local Authority Accounting in the United Kingdom 201718 (the Code)

In preparing this Statement of Accounts the Head of Finance has

bull selected suitable accounting policies and then applied them consistently

bull made judgements and estimates that were reasonable and prudent

bull complied with the local authority Code

The Head of Finance has also

bull kept proper accounting records which were up to date

bull taken reasonable steps for the prevention and detection of fraud and other irregularities

Head of Finances Certificate

The Statement of Accounts has been prepared in accordance with the Code and gives a true and fair view of the financial position of the Council at the accounting date and its income and expenditure for the year ended 31 March 2018

_ 7

MS Owen CPFA

Head of Finance

-7-

EXPENDITURE AND FUNDING ANALYSIS

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax and rent payers how the funding available to the Council (ie government grants rents and council tax) for the year has been used in providing services in comparison with those resources consumed or earned 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 Councils departments Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement

Restated 201617 201718

Net Net Net Net Expenditure Expenditure Expenditure Expenditure Chargeable Adjustments in the Chargeable Adjustments in the to General between Comprehensive to General between Comprehensive Fund and Funding and Income amp Fund and Funding and Income amp

HRA Accounting Statement HRA Accounting Statement Balances basis Balances basis

pound000 pound000 pound000 pound000 pound000 pound000

34796 (3461) 31335 Environment amp Planning 32826 1744 34570

6836 1678 8514 Housing amp Economy 6540 3227 9767

434 (2555) (2121) Housing Revenue Account 971 (10310) (9339)

38412 222 38634 Adult Social Care 38396 1080 39476

13655 (462) 13193 Childrens Social Care 15042 319 15361

5305 9392 14697 Education 5117 6030 11147

79539 (236) 79303 Schools 79725 (6) 79719

6960 45 7005 Corporate amp Customer Services 7901 535 8436

5199 (281) 4918 Finance 4925 171 5096

1857 (194) 1663 Repair amp Maintenance 2035 (123) 1912

9024 (2115) 6909 Corporate amp Central 7279 (1821) 5458

202017 2033 204050 Cost of Services 200757 846 201603

21504 1181 22685 Other Operating Expenditure 22195 714 22909

9982 16315 26297 Financing and Investment Income and 8210 16788 24998 Expenditure

(229125) (14709) (243834) Taxation and Non Specific Grant Income (231170) (15425) (246595)

4378 4820 9198 (Surplus) Deficit (8) 2923 2915

(35254) Opening General Fund amp HRA (30876)

4378 Add (Surplus) Deficit on General (8) Fund and HRA Balance in Year

(30876) Closing General Fund and (30884) HRA Balance at 31 March

Analysed between General Fund and HRA Balances

General Fund HRA Total General Fund HRA Total pound000 pound000 pound000 pound000 pound000 pound000

(28819) (6435) (35254) Opening General Fund amp HRA Balance (24875) (6001) (30876)

3944 434 4378 Add Surplus (Deficit) on General Fund (979) 971 (8) and HRA Balances in year

(24875) (6001) (30876) Closing General Fund and HRA (25854) (5030) (30884) Balance at 31 March

Income and Expenditure recognised in accordance with generally accepted accounting practices can be seen in the Comprehensive Income and Expenditure Statement on page 10

An analysis of the movements on the HRA balance may be found in the Movement on the Housing Revenue Account Statement on page 61

- 8 shy

NOTE TO THE EXPENDITURE amp FUNDING ANALYSIS

Note to the Expenditure and Funding Analysis

This note provides a reconciliation of the main adjustments to Net Expenditure Chargeable to the General Fund and HRA Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIampES) The relevant transfers between reserves are explained in the Movement in Reserves Statement on page 11

201718 201617

Adjustment from General Fund and Net change for Net change for HRA to arrive at the Comprehensive Adjustment for the Pension Other Total Adjustment for the Pension Other Total Income and Expenditure Statement Capital Purposes Adjustments Differences Adjustments Capital Purposes Adjustments Differences Adjustments amounts (Note a) (Note b) (Note c) (Note a) (Note b) (Note c)

pound000 pound000 pound000 pound000 pound000 pound000 pound000 pound000

Environment amp Planning 1464 346 (66) 1744 (2935) (528) 2 (3461) Housing amp Economy 2909 260 58 3227 2027 (369) 20 1678 Housing Revenue Account (10612) 278 24 (10310) (2401) (179) 25 (2555) Adult Social Care 661 423 (4) 1080 1132 (910) 0 222 Childrens Social Care 35 273 11 319 (7) (456) 1 (462) Education 5851 237 (58) 6030 9816 (472) 48 9392 Schools (81) 699 (624) (6) (136) (491) 391 (236) Corporate amp Customer Services 339 201 (5) 535 289 (249) 5 45 Finance 0 173 (2) 171 5 (285) (1) (281) Repair amp Maintenance (124) 0 1 (123) (194) 0 0 (194) Corporate amp Central - Services 309 (2129) (1) (1821) (48) (2060) (7) (2115) Cost of Services 751 761 (666) 846 7548 (5999) 484 2033

Other Operating Expenditure (32) 746 0 714 447 734 0 1181 Financing and Investment Income and 9821 7100 (133) 16788 7862 8656 (203) 16315 Expenditure Taxation and Non Specific Grant Income (15425) 0 0 (15425) (14709) 0 0 (14709)

General Fund or HRA Balance (4885) 8607 (799) 2923 1148 3391 281 4820 (Surplus) Deficit

a) Adjustments for Capital Purposes (i) Services line - this column adds in depreciation amortisation impairment and revaluation gains and losses (ii) Other Operating Expenditure - adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets (iii) Financing and Investment Income and Expenditure and Services line - the statutory charges for capital financing ie minimum revenue provision and other revenue contributions are deducted as these are not chargeable under general accepted accounting practices (iv) Taxation and Non Specific Grant Income and Expenditure - capital grants are adjusted for income not chargeable under generally accepted accounting practices Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year The Taxation and Non Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year

b) Net change for the removal of pension contributions and the addition of pension (IAS 19) related expenditure and income Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income (i) For services this represents the removal of the employer pension contributions made by the authority as permitted by statute and the replacement with current service costs and past service curtailment costs (ii) For Other Operating Expenditure - this adjustment is for pensions administration costs (iii) For Financing and Investment Income and Expenditure - the net interest on the defined benefit liability is charged to the CIampES

c) Other Differences Other Differences between amounts debitedcredited to the CIampES and amounts payablereceivable to be recognised under statute (i) For Services line - this includes an adjustment for accumulated absences earned but not taken in the year (ii) For Financing and Investment Income and Expenditure the other differences column recognises adjustments to General Fund for the timing differences for premiums and discounts

- 9 shy

COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT STATEMENT

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 and rents Authorities raise taxation and rents to cover expenditure in accordance with statutory requirements this may be different from the accounting cost The taxation position is shown in both the Expenditure and Funding Analysis and the Movement in Reserves Statement The service analysis provides the total direct costs of providing the services

Gross Expenditure

pound000

Restated 201617

Income pound000

Net Expenditure

pound000

Notes Gross Expenditure

pound000

201718

Income pound000

Net Expenditure

pound000

44943 (13608) 31335 Environment amp Planning 47154 (12584) 34570

67848 (59334) 8514 Housing amp Economy 63359 (53592) 9767

47028 (49149) (2121) Housing Revenue Account 41770 (51109) (9339)

49751 (11117) 38634 Adult Social Care 51966 (12490) 39476

19044 (5851) 13193 Childrens Social Care 22326 (6965) 15361

21339 (6642) 14697 Education 18342 (7195) 11147

90155 (10852) 79303 Schools 91354 (11635) 79719

8199 (1194) 7005 Corporate amp Customer Services 9571 (1135) 8436

5805 (887) 4918 Finance 6370 (1274) 5096

1663 0 1663 Repair amp Maintenance 1912 0 1912

13328

369103

(6419)

(165053)

6909

204050

Corporate amp Central

Cost of Services

11148

365272

(5690)

(163669)

5458

201603

22685 0 22685 Other Operating Expenditure 6 22909 0 22909

42498 (16201) 26297 Financing and Investment Income and Expenditure

7 38864 (13866) 24998

0 (243834) (243834) Taxation and Non Specific Grant Income 8 0 (246595) (246595)

434286 (425088) 9198 (Surplus) or Deficit on Provision of Services 427045 (424130) 2915

(27524) (Surplus) or Deficit on revaluation of non-current assets

50 (5656)

3627 Impairment losses on non-current assets charged to the revaluation reserve

50 1962

58288 Remeasurements of the net defined (asset) liability

4344 amp 53

(43498)

34391 Other Comprehensive Income and Expenditure (47192)

43589 Total Comprehensive Income and Expenditure

(44277)

-10shy

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 Council analysed into usable reserves (ie those that can be applied to fund expenditure) and other unusable reserves The movement in Reserves Statement shows how the movements in year of the Councils 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 or rents for the year The net increase decrease line shows the statutory General Fund Balance and Housing Revenue Account (HRA) movements on the year following those adjustments

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital R

ecei

pts

Res

erve

Cap

ital G

rant

sU

napp

lied

Tot

al U

sabl

eR

eser

ves

Unu

sabl

eR

eser

ves

Tot

al C

ounc

ilR

eser

ves

pound000 pound000 pound000 pound000 pound000 pound000 pound000

Balance at 1 April 2016 28819 6435 14468 802 50524 364462 414986

Movement in Reserves during 201617

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9188)

(9188)

(10)

(10)

0

0

0

0

(9198)

0

(9198)

0

(34391)

(34391)

(9198)

(34391)

(43589)

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201617

5244

(3944)

(424)

(434)

(2533)

(2533)

(58)

(58)

2229

(6969)

(2229)

(36620)

0

(43589)

Balance at 31 March 2017 24875 6001 11935 744 43555 327842 371397

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

17857

7018

24875

0

6001

6001

Balance at 1 April 2017 24875 6001 11935 744 43555 327842 371397

Movement in Reserves during 201718

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9877)

0

(9877)

6962

0

6962

0

0

0

0

0

0

(2915)

0

(2915)

0

47192

47192

(2915)

47192

44277

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201718

10856

979

(7933)

(971)

1147

1147

(175)

(175)

3895

980

(3895)

43297

0

44277

Balance at 31 March 2018 25854 5030 13082 569 44535 371139 415674

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

18836

7018

25854

0

5030

5030

-11shy

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council Reserves are reported in two categories The first category of reserves are usable reserves ie those reserves that the Council 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 Council 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 fund services if the assets are 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 2017 Notes 31 March 2018 pound000 pound000

1036752 Property Plant amp Equipment 19 1067219

506 Heritage Assets 25 507 28 Intangible Assets 28 38

114 Long-term Debtors 30 9966

1037400 Long Term Assets 1077730

2002 Short-term Investments 33 2 20 Assets Held For Sale 31 1144

620 Inventories 614 27299 Short-term Debtors 30 34708

296 Intangible Assets 29 316 2786 Cash and Cash Equivalents 34 7444

33023 Current Assets 44228

(19398) Short-term Creditors 36 (17292) (23467) Short-term Borrowing 38 (69817)

(32) Grants Receipts in Advance - Capital 60 (1524) (160) Grants Receipts in Advance - Revenue 60 (37)

(1324) Provisions 37 (1146)

(44381) Current Liabilities (89816)

(2441) Provisions 37 (2383) (7020) Long-term Creditors 36 (6575)

(298314) Long-term Borrowing 38 (296318) (28473) Other Long-term Liabilities 39 amp 40 (27686)

(318397) Net Pension Liability 44 (283506)

(654645) Long Term Liabilities (616468)

371397 Net Assets 415674

43555 Usable Reserves 47 44535 327842 Unusable Reserves 48 371139

371397 Total Reserves 415674

-12shy

CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period The statement shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Councils future service delivery Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (ie borrowing) to the Council

201617 pound000

9198 Net (surplus) deficit on the provision of services

Notes 201718 pound000

2915

(53632) Adjustment to net surplus deficit on the provision of services for non cash movements

55 (24136)

18017 Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities

56 16790

(26417) Net cash flows from Operating Activities (4431)

56733 Investing Activities 58 43298

(28255) Financing Activities 59 (43525)

2061 Net increase or decrease in cash and cash equivalents (4658)

(4847) Cash and cash equivalents at the beginning of the reporting period

(2786)

(2786) Cash and cash equivalents at the end of the reporting period 34 (7444)

-13shy

NOTES TO THE ACCOUNTS

1 Accounting Standards that have been issued but have not yet been adopted

The CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted by the Code for the relevant financial year This applies to the adoption of the following new or amended standards within the 201819 Code and require implementation from 1 April 2018

IFRS9 Financial Instruments - The main changes include the reclassification of financial assets and the earlier recognition of the impairment of financial assets The Council does not expect the reclassification changes to have a material impact upon the financial statements because the majority of its financial assets will retain the same measurement basis Furthermore the Council does not expect the impairment changes to have a material impact because the charge will be immaterial for its treasury management assets and it already makes a provision for doubtful debts on its service assets

IFRS15 Revenue from Contracts with customers - The standard will require the Council to recognise revenue in such a way that it represents the transfer of promised goods or services to the service recipient (customer) in an amount that reflects the consideration to which the Council expects to be entitled in exchange for those goods or services It is unlikely that this will have a significant impact upon the financial statements However additional disclosures may be required

The other minor changes relating to IAS7 Amendment to Statement of Cash Flows Disclosure Information and IAS12 Amendment to Income Taxes and specifically the Recognition of Deferred Tax Assets for Unrealised Losses are not expected to have a material effect on the Councils Statement of Accounts

2 Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 62 Notes to the Accounts the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events The critical judgements made in the Statement of Accounts are

a) There is some uncertainty about future levels of funding from the W elsh Government and in particular the receipt of specific revenue and capital grants The Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and significantly reduce levels of service provision The Council has a Medium Term Financial Strategy which is reviewed on a periodic basis and is available on the Councils website

b) As at 31 March 2018 there is one outstanding claim for compensation from a landowner affected by a W elsh Government grant funded road scheme No provision has been made for such payments as they would ordinarily be met by the W elsh Government as part of the scheme

c) A review of assets in particular those held for economic development purposes concluded that the Council has no assets which are held solely for the purpose of income generation or capital appreciation and therefore the Council has no investment properties

3 Assumptions made about the future and other sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Council 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 Councils Balance Sheet at 31 March 2018 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows

Item Uncertainties Effect if Actual Results Differ from Assumptions

Property Plant amp Assets are depreciated over useful lives that are dependant on If the useful life of assets is reduced depreciation increases Equipment 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 Council will be able to sustain its current spending on repairs and maintenance bringing into doubt the useful lives assigned to assets

and the carrying amount of the assets falls It is estimated that the annual depreciation charge for buildings would increase by pound122m if the useful lives were reduced by one year and pound324m if reduced by two years

PFI and Similar PFI and similar arrangements have been considered to have an A 1 increase in the RPI will increase the unitary payments Arrangements implied finance lease within the leases to calculate interest and

principal payments In addition the future RPI increase within the contracts has been estimated as remaining constant throughout the remaining period of the contract

over the next twenty years by pound285m

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 Council with expert advice about the assumptions to be applied

The effects on the net pension liability of changes in individual assumptions can be measured For instance a 01 increase in the discount rate assumption would result in a decrease in the pension liability of pound14879k However the assumptions interact in complex ways During 201718 the Councils actuaries advised that the net pensions liability had decreased by pound43498k attributable to updating of the assumptions

Arrears At 31 March 2018 the Council had a balance of sundry debtors of pound49m A review of significant balances suggested that an impairment of doubtful debts of 32 (pound158k) was appropriate However in the current economic climate it is not certain that such an allowance would be sufficient

If collection rates were to deteriorate a doubling of the amount of the impairment of doubtful debts would require an additional pound158k to be set aside as an allowance

-14shy

NOTES TO THE ACCOUNTS

4 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 Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure

Usable Reserves

201718

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES

Charges for depreciation impairment and revaluation losses of 17904 17102 0 0 (35006) non current assets

Amortisation of intangible assets 13 0 0 0 (13)

Capital grants and contributions applied (7581) (7843) 0 0 15424

Revenue expenditure funded from capital under statute 1538 5 0 0 (1543)

Amounts of non current assets written off on disposal or sale as 517 2291 0 0 (2808) part of the gain loss on disposal to the CIampES

Income in relation to donated assets (1) 0 0 0 1

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (5737) (6545) 0 0 12282

Capital Expenditure charged against the General Fund and HRA balances (1790) (11850) 0 0 13640

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES (68) 0 0 68 0

Application of grants to capital financing transferred to the Capital Adjustment Account 0 0 0 (243) 243

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gain loss on (549) (2291) 2840 0 0 disposal to the CIampES

Revenue Income defined as capital under statute 0 0 0 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (1709) 0 1709

Transfer (to) from Capital Adjustment account - set aside

- Repayments of loans to voluntary bodies 0 0 15 0 (15)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 1 0 (1)

Total Adjustments for Capital Purposes (see page 9) 4246 (9131) 1147 (175) 3913

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the 26793 3516 0 0 (30309) CIampES - see note 43 amp 53

Employers pension contributions payable in the year (19360) (2342) 0 0 21702

Net Change for Pensions Adjustments (see page 9) 7433 1174 0 0 (8607)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from (109) 5 0 0 104 finance costs chargeable in the year in accordance with statutory requirements

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES on an (714) 19 0 0 695 accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

Total Other Differences (see page 9) (823) 24 0 0 799

Total Adjustments 10856 (7933) 1147 (175) (3895)

-15shy

NOTES TO THE ACCOUNTS

4 Adjustments between Accounting Basis and Funding Basis Under Regulations contd

Usable Reserves

201617 Comparative figures

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES Statement

Charges for depreciation impairment and revaluation losses of non current assets

19500 24828 0 0 (44328)

Amortisation of intangible assets 16 0 0 0 (16)

Capital grants and contributions applied (6827) (7880) 0 0 14707

Revenue expenditure funded from capital under statute 819 5 0 0 (824)

Amounts of non current assets written off on disposal or sale as part of the gainloss on disposal to the CIampES

2625 1870 0 0 (4495)

Income in relation to donated assets (2) 0 0 0 2

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (7306) (5348) 0 0 12654

Capital Expenditure charged against the General Fund and HRA balances (3995) (12900) 0 0 16895

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES

(86) 0 0 86 0

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

0 0 0 (144) 144

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gainloss on disposal to the CIampES

(2190) (1858) 4048 0 0

Revenue Income defined as capital under statute (118) (5) 123 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (6724) 0 6724

Transfer (to) from Capital Adjustment account - set aside 0 0 0 0 0

- Repayments of loans to voluntary bodies 0 0 18 0 (18)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 2 0 (2)

Total Adjustments for Capital Purposes (see page 9) 2436 (1288) (2533) (58) 1443

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the CIampES - see note 43 amp 53

22134 2857 0 0 (24991)

Employers pension contributions payable in the year (19582) (2018) 0 0 21600

Net Change for Pensions Adjustments (see page 9) 2552 839 0 0 (3391)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from finance costs chargeable in the year in accordance with statutory requirements

(194) 8 0 0 186

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

450 17 0 0 (467)

Total Other Differences (see page 9) 256 25 0 0 (281)

Total Adjustments 5244 (424) (2533) (58) (2229)

-16shy

NOTES TO THE ACCOUNTS

5 Transfers to (from) Earmarked Reserves

This note sets out the amounts set aside from the General Fund and HRA balances in earmarked reserves to provide financing for future expenditure plans and also the amounts posted back from earmarked reserves to meet General Fund and HRA expenditure in 201718

201617 201718 Balance at Transfers Transfers Balance at Transfers Transfers Balance at 0142016 Out In 31032017 Out In 31032018

pound000 pound000 pound000 pound000 pound000 pound000 pound000

General Fund Balances held by schools 2580 (1297) 359 1642 (653) 1023 2012 Service Reserves 710 (184) 609 1135 (357) 276 1054 Insurance Reserve 2402 0 17 2419 0 220 2639 Legal Liabilities Reserve 485 (34) 800 1251 (178) 0 1073 Winter Maintenance Reserve 300 0 0 300 (295) 345 350 Early Voluntary Retirement Reserve (EVR) 94 0 0 94 0 0 94 Transitional EVR Reserve 1495 (146) 0 1349 0 0 1349 Reshaping Services Reserve 2062 (1247) 0 815 (29) 0 786 Invest To Save Reserve 61 0 75 136 0 259 395 Capital Reserve 4003 (2251) 885 2637 (103) 183 2717 Repairs and Maintenance Reserve 250 (100) 0 150 (50) 0 100 ITeC Reserve 510 (150) 0 360 (154) 0 206 IT Development 42 0 0 42 0 0 42 Customer Access 15 0 0 15 0 0 15 Local Development Plan Reserve 203 0 0 203 (29) 0 174 Waste Strategy Reserve 95 (95) 0 0 0 0 0 Carbon Emission Reserve 545 (468) 225 302 (5) 296 593 Cremation Plant Replacement Reserve 23 0 0 23 0 0 23 Section 106278 Reserve 514 (186) 0 328 0 0 328 North Wales Regional Transformation 0 0 109 109 (109) 0 0 Miscellaneous 53 (13) 5 45 0 1 46 Grant Reserves 5359 (1467) 610 4502 (548) 886 4840

Total 21801 (7638) 3694 17857 (2510) 3489 18836

Service Reserves - represents service underspends as part of the Councils carry forward arrangements for use in subsequent years

Insurance Reserve - the reserve is held to fund any future liabilities such as MMI ( note 41 ) and claims that exceed budget

Legal Liabilities Reserve - amount set aside to provide for any future legal liabilities

Winter Maintenance Reserve - amount set aside to cover costs due to unforeseen adverse weather conditions

Early Voluntary Retirement amp Transitional EVR Reserve - to fund early retirements and redundancy costs following reshaping services

Reshaping Services Reserve - an amount set aside to aid the transformation process to realise future savings for the Council

Invest To Save Reserve - provision for the investment in various plans to realise permanent financial savings

Capital Reserve - represents resources already committed to finance part of the Councils five year Non-HRA Capital Programme

Repairs and Maintenance Reserve - to respond to future uneven expenditure patterns

ITeC Reserve - ITeC provides information technology training for the benefit of the local economy and the reserve has been established to respond to future uneven expenditure patterns

IT Development amp Customer Access - to fund various IT enhancements and Self Service ICT development

Local Development Plan (LDP) Reserve - to fund costs associated with the adoption of the LDP

Waste Strategy Reserve - amount set aside to mitigate the impact of proposed reduction in the Waste Management grant

Carbon Emission Reserve - to partly fund the carbon reduction plan programme of works to reduce carbon emissions

Cremation Plant Replacement Reserve - to partly fund the cost of mercury abatement

Section 106278 Reserve - represents income from contractors which have no conditions attached but which have been set aside to fund various infrastructure projects

North Wales Regional Transformation - represents underspend on contribution made to fund North Wales Regional projects carried forward for use in subsequent years

Miscellaneous - to meet a variety of other commitments including crematorium donations and school brass band

Grant Reserves - represent income from Government grants received which have no conditions attached but which have been set aside for use in the provision of specific services

- 17 shy

NOTES TO THE ACCOUNTS

6 Other Operating Expenditure

201617 201718 pound000 pound000

2355 Community Council Precepts 2383 12716 Police and Crime Commissioner for North Wales Precept 13237

6433 North Wales Fire Authority levy 6575 734 Pensions Administration Costs 746 447 Losses (Gains) on the disposal of non current assets (32)

22685 Total 22909

7 Financing and Investment Income and Expenditure

201617 201718 pound000 pound000

17699 Interest payable and similar charges 17931 8656 Pensions Net Interest 7100

(58) Interest receivable and similar income (33)

26297 Total 24998

8 Taxation and Non Specific Grant Income

Restated 201617 201718

pound000 pound000

(59357) Council tax income (61723) (40435) Non-domestic rates (43628)

(129333) Non-ringfenced government grants (125819) (14709) Capital grants and contributions (15425)

(243834) Total (246595)

9 Audit Costs

In 201718 the Council incurred the following fees relating to external audit and inspection

201617 201718 pound000 pound000

176 Fees payable to the Wales Audit Office with regard to external audit services 176 86 Fees payable to the Wales Audit Office for the Local Government measure 85 90 Fees payable to the Wales Audit Office for the certification of grant claims and returns 80

352 341

10 Members Allowances

In 201718 allowances totalling pound955k (pound951k 201617) were paid directly to Elected Members and in addition allowances totalling pound9k (pound5k in 201617) were paid to co-opted Members inclusive of an element of expenses Further information is available on the Councils website

httpwwwwrexhamgovukenglishcouncilfinancialmembers_remunerationhtm

11 Minimum Revenue Provision

This is a statutory provision for the repayment of debt as required by the Local Authority (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 The minimum revenue provision is calculated by reference to the overall indebtedness of the Council

201617 201718 pound000 pound000

5343 Housing amount 6539 5720 Non-housing amount 4046

870 Charge for the principal part of the finance lease rentals payable 932 721 PFI - repayment of liability 765

12654 Minimum Revenue Provision 12282

-18shy

NARRATIVE REPORT

during the year of pound301k (line 2 column d) and the CTRS and Police and Community Council precepts of pound5741k (see column e) we arrive at the total expenditure and income chargeable to General Fund Balances (including Earmarked Reserves) of pound230191k (line 2 column f) and pound231170k (line 3 column f) respectively ie a reported overall deficit of pound979k (line 4 column f)

39 The HRA is reported separately during the financial year and is consolidated as part of the production of the year-end accounts HRA expenditure exceeded income by pound971k (see line 5 column f) thus reducing HRA balances by pound971k The overall net expenditure (including the HRA) becomes pound 231162k (line 6 column f) leaving an overall deficit of pound231170k (line 7 column f)

Net Adjust for Ex penditure

Re serves Police amp Chargeable to Utilise d Community the General

201718 Actual In Year Prece pts amp Fund and HRA Budget Outturn Va riance CTRS Balance s pound000 pound000 pound000 pound000 pound000 pound000

a b c d e f=b+d+e Council Fund Services Environment amp Planning 31036 32492 1456 334 0 32826 Housing amp Economy 6347 6364 17 176 0 6540 Adult Social Care 38563 38396 (167) 0 0 38396 Childrens Social Care 13788 14952 1164 90 0 15042 Education 5140 5134 (6) (17) 0 5117 Schools 79976 79606 (370) 119 0 79725 Corporate amp Customer Services

1 7855 7823 (32) 78 0 7901

Finance 5107 4971 (136) (46) 0 4925 Repairs amp Maintenance 1868 1874 6 161 0 2035 Corporate amp Central - Services 18939 17752 (1187) (594) (9879) 7279 Net Service Expenditure 208619 209364 745 301 (9879) 199786 Corporate amp Central

Other Operating Expenditure 6575 6575 0 0 15620 22195 Financing amp Investment Income amp 10130 8210 (1920) 0 0 8210 Expenditure

2 Total Council Fund Services Net 225324 224149 (1175) 301 5741 230191 Expe nditure

Finance d by Government Grants (169447) (169447) 0 0 0 (169447) Council Tax (55877) (55982) (105) 0 (5741) (61723)

3 Total Council Fund Income (225324) (225429) (105) 0 (5741) (231170)

4 Council Fund Reported (Surplus) 0 (1280) (1280) 301 0 (979) Deficit

HRA Expenditure 50899 51002 103 0 0 51002 Income (49920) (50031) (111) 0 0 (50031)

5 Net Expe nditure Reported 979 971 (8) 0 0 971

6 Total Net Ex penditure (including HRA) 226303 225120 (1183) 301 5741 231162

7 Taxa tion and Non Specific Gra nt (225324) (225429) (105) 0 (5741) (231170) Income

8 Overa ll (Surplus) Deficit 979 (309) (1288) 301 0 (8)

The Council Tax Reduction Scheme (CTRS) is included as an expense and the council tax collected is gross of CTRS in the actual outturn An adjustment is made to show council tax collected net of CTRS (pound9879k) and gross of community and police precepts (pound15620k) in the Comprehensive Income and Expenditure Account

4 Financial Position at 31 March 2018

41 The Council has made provision for known liabilities and established reserves for future liabilities or earmarked for future service developments Provisions are amounts included in the accounts as liabilities where there has been a past event which is likely to result in a financial liability but where there is uncertainty over timing and precise value of the liability that has been incurred It is therefore the Councilrsquos best estimate

-4shy

NARRATIVE REPORT

of the financial liability as at 31 March 2018 Provisions are disclosed in note 37 Notes to the Accounts

42 Reserves are amounts set aside in the accounts for purposes falling outside the definition of provisions The information regarding reserves is disclosed in the Movement in Reserves Statement on page 11 and in note 5 Notes to the Accounts The Councilrsquos General Fund balance is a measure of the uncommitted reserves which the Council holds to meet cash flow requirements and unforeseen future events The General Fund balance which was pound7018m at the start of the financial year totalled pound7018m at 31 March 2018 (see Movement in Reserves Statement on page 11)

5 Capital Investment

51 Capital investment (excluding capital accruals) in the year amounted to pound6815m The following tables give an analysis of this expenditure and the way it was financed

Where the capital money was spent

201718 poundrsquo000

School adaptations and improvements Highway improvements Economic Development and Planning Housing Renovation GrantsRenewal Council House improvements Other Finance Leases PFI

4838

2359 3765

1615

49445 5269

858

710

346 553

237

7255 773 126

Total 68149 100

Where the capital 201718 money came from poundrsquo000

Borrowing 35015 5138

Capital Receipts 1709 251

Grants amp Contributions 16927 2484

Revenue 13640 2001

Finance Leases PFI 858 126

Total 68149 100

52 School adaptations and improvements include expenditure of pound1278k for Penycae Primary School and pound1462k for Bryn Alyn High School as part of the 21st Century Schools Band A programme Economic Development and Planning includes pound3523k for the new Arts Cultural Hub and Market space (Tŷ Pawb) and included within Other is pound1892k for improvements to the Councilrsquos leisure facilities

6 Borrowing

61 The Councilrsquos principal loan debt at 31 March 2018 was pound3624m It is the Councilrsquos strategy to maintain the level of external borrowing in line with the Capital Financing Requirement

7 Revaluation and Disposals of Non Current Assets

71 The Council has a rolling programme to revalue all assets within five years During 201718 Housing amp Public Protection Assets Public Offices and Car Parks were revalued The programme for future years is as follows

201819 - Markets Shops and Social Care properties Heritage Assets 201920 ndash Schools Youth Clubs and Waste Disposal PFI facility 202021 - Commercial Estates Environmental and Leisure Properties and Council Dwellings

72 In addition to the rolling programme an annual review is undertaken for impairment and significant changes in the use of property During 201718 upward revaluations of pound9070k were made pound3431k of which related to the rolling programme of asset revaluations There were also downward revaluations impairments to Council Dwellings of pound5502k Other Land and Buildings of pound6871k (of which pound2676k related to the rolling programme of asset revaluations) Surplus Assets of pound48k Assets Held for Sale of pound9k Community Assets of pound695k Vehicles Plant amp Equipment of pound9k and Heritage Assets of pound8k Of the downward revaluations impairments pound8524k was recognised in the Surplus or Deficit on Provision of Services and pound4618k in the Revaluation Reserve

73 During the year the Council sold Council Dwellings of pound2291k and other assets with a carrying value of pound517k which included land east of Conery Lane Bronington (pound210k) land adjacent to Long Lane Cottage Bronington (pound18k) land at Shonersquos Lane Llay (pound63k) Outdoor Education Centre at Nantyr (pound135k) parcel of land in Coedpoeth (pound60k) and woodland at Craig y Pandy wood (previously associated with Nantyr Centre) (pound31k) The Council made a net profit of pound32k

-5shy

NARRATIVE REPORT

8 Pension Liability

81 The Statement of Accounts as presented complies with the requirements of International Accounting Standard 19 (IAS 19) in that the Comprehensive Income and Expenditure Account reflects the current year cost of pension provision to employees as advised by the Councilrsquos actuary Mercers In addition the Balance Sheet contains the actuaryrsquos assessment of the Councilrsquos share of the Pension Fund liability (pound283m) as at 31 March 2018 and the reserve needed to fund that liability The disclosed pension fund liability is the total projected deficit that exists over the expected life of the fund This deficit will change on an annual basis dependent on the performance of investments and the actuarial assumptions that are made in terms of current pensioners deferred pensioners and current employees

9 Interest in Companies and Other Entities

91 Wrexham Commercial Services a wholly owned subsidiary of the Council was incorporated on 1 October 2014 and commenced trading on 1 January 2015 The company has been established to trade in specified council services but initially in cleaning services The Council has not prepared Group Accounts on the grounds that there would be no material difference to the Councilrsquos single entity accounts A copy of Wrexham Commercial Servicesrsquo audited financial statements for the twelve months to 31 March 2018 can be obtained from Wrexham Commercial Services Ltd Council Offices Ruthin Road Wrexham LL13 7TU

10 Changes to the Core Statements

101 Previously the cost of the Council Tax Reduction scheme (CTRS) has been shown in the Comprehensive Income and Expenditure Account Statement (CIampES) and relevant notes to the accounts as an expense and the Council Tax Collected has been shown gross of these reductions The Council has been advised that it is inappropriate to disclose CTRS as an expense in the CIampES and that Council Tax Collected should be shown net of CTRS The 201617 comparative data in the CIampES and the Expenditure amp Funding Analysis and relevant notes have been restated to reflect this change There has been no impact on the Balance Sheet as a result of this change

102 A further change has been made to the CIampES in 201718 for the accounting treatment of care home fees The Council makes payments to residential care homes based on the gross charge less client contributions In previous years the CIampES has shown the gross charge as expenditure and the client contributions as income The Code suggests that the expenditure in the CIampES should include the Councilrsquos contribution only (ie net of client contributions) The 201617 comparative data in the CIampES and note 61 Notes to the Accounts have been restated to reflect this change

11 Financial Outlook for the Council

111 On 21 February 2018 the Council approved a Medium Term Financial Strategy which highlighted a potential revenue shortfall of approximately pound11m for the period 201920 to 202021 The strategy can be accessed by the following link

httpwwwwrexhamgovuktop_navigationsearchindexhtmq=medium20term20financial20strategy

112 It is clear that the financial outlook for the Council in terms of Welsh Government funding and support for both Revenue and Capital expenditure is likely to reduce in the medium term in line with the UK Government austerity measures Whilst precise details of funding available to the Council for 201920 and beyond have not been announced the Council anticipates a funding shortfall of around pound11m over the period 201920 to 202021

12 Further Information

121 Further information about the accounts and budgets of the Council is available from the Head of Finance W rexham County Borough Council Lambpit Street Wrexham This is part of the Councilrsquos policy of providing full information about the Councilrsquos financial affairs In addition members of the public have a statutory right to inspect the accounts before the audit is completed The availability of the accounts for inspection is advertised on the Councilrsquos website and in one conspicuous public place as required by the Accounts and Audit (Wales) (Amendment) Regulations 2018 The Statement of Accounts will also be available on the Authorityrsquos website (wwwwrexhamgovuk)

M S Owen

Head of Finance

-6shy

Statement

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Council is required under the Code to include a Statement of Responsibilities in the Statement of Accounts which sets out the respective responsibilities of the Council and the Head of Finance in respect of these Accounts

The Councils Responsibilities

The Council is required to make arrangements

bull for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs In this Council that officer is the Head of Finance

bull to manage its affairs to secure economic efficient and effective use of resources and safeguard its assets

bull to approve the of Accounts

Chai r

The Responsibility of the Head of Finance

The Head of Finance is responsible for the preparation of the Authoritys Statement of Accounts in accordance with proper practices as set out in the CIPFALASAAC Code of Practice on Local Authority Accounting in the United Kingdom 201718 (the Code)

In preparing this Statement of Accounts the Head of Finance has

bull selected suitable accounting policies and then applied them consistently

bull made judgements and estimates that were reasonable and prudent

bull complied with the local authority Code

The Head of Finance has also

bull kept proper accounting records which were up to date

bull taken reasonable steps for the prevention and detection of fraud and other irregularities

Head of Finances Certificate

The Statement of Accounts has been prepared in accordance with the Code and gives a true and fair view of the financial position of the Council at the accounting date and its income and expenditure for the year ended 31 March 2018

_ 7

MS Owen CPFA

Head of Finance

-7-

EXPENDITURE AND FUNDING ANALYSIS

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax and rent payers how the funding available to the Council (ie government grants rents and council tax) for the year has been used in providing services in comparison with those resources consumed or earned 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 Councils departments Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement

Restated 201617 201718

Net Net Net Net Expenditure Expenditure Expenditure Expenditure Chargeable Adjustments in the Chargeable Adjustments in the to General between Comprehensive to General between Comprehensive Fund and Funding and Income amp Fund and Funding and Income amp

HRA Accounting Statement HRA Accounting Statement Balances basis Balances basis

pound000 pound000 pound000 pound000 pound000 pound000

34796 (3461) 31335 Environment amp Planning 32826 1744 34570

6836 1678 8514 Housing amp Economy 6540 3227 9767

434 (2555) (2121) Housing Revenue Account 971 (10310) (9339)

38412 222 38634 Adult Social Care 38396 1080 39476

13655 (462) 13193 Childrens Social Care 15042 319 15361

5305 9392 14697 Education 5117 6030 11147

79539 (236) 79303 Schools 79725 (6) 79719

6960 45 7005 Corporate amp Customer Services 7901 535 8436

5199 (281) 4918 Finance 4925 171 5096

1857 (194) 1663 Repair amp Maintenance 2035 (123) 1912

9024 (2115) 6909 Corporate amp Central 7279 (1821) 5458

202017 2033 204050 Cost of Services 200757 846 201603

21504 1181 22685 Other Operating Expenditure 22195 714 22909

9982 16315 26297 Financing and Investment Income and 8210 16788 24998 Expenditure

(229125) (14709) (243834) Taxation and Non Specific Grant Income (231170) (15425) (246595)

4378 4820 9198 (Surplus) Deficit (8) 2923 2915

(35254) Opening General Fund amp HRA (30876)

4378 Add (Surplus) Deficit on General (8) Fund and HRA Balance in Year

(30876) Closing General Fund and (30884) HRA Balance at 31 March

Analysed between General Fund and HRA Balances

General Fund HRA Total General Fund HRA Total pound000 pound000 pound000 pound000 pound000 pound000

(28819) (6435) (35254) Opening General Fund amp HRA Balance (24875) (6001) (30876)

3944 434 4378 Add Surplus (Deficit) on General Fund (979) 971 (8) and HRA Balances in year

(24875) (6001) (30876) Closing General Fund and HRA (25854) (5030) (30884) Balance at 31 March

Income and Expenditure recognised in accordance with generally accepted accounting practices can be seen in the Comprehensive Income and Expenditure Statement on page 10

An analysis of the movements on the HRA balance may be found in the Movement on the Housing Revenue Account Statement on page 61

- 8 shy

NOTE TO THE EXPENDITURE amp FUNDING ANALYSIS

Note to the Expenditure and Funding Analysis

This note provides a reconciliation of the main adjustments to Net Expenditure Chargeable to the General Fund and HRA Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIampES) The relevant transfers between reserves are explained in the Movement in Reserves Statement on page 11

201718 201617

Adjustment from General Fund and Net change for Net change for HRA to arrive at the Comprehensive Adjustment for the Pension Other Total Adjustment for the Pension Other Total Income and Expenditure Statement Capital Purposes Adjustments Differences Adjustments Capital Purposes Adjustments Differences Adjustments amounts (Note a) (Note b) (Note c) (Note a) (Note b) (Note c)

pound000 pound000 pound000 pound000 pound000 pound000 pound000 pound000

Environment amp Planning 1464 346 (66) 1744 (2935) (528) 2 (3461) Housing amp Economy 2909 260 58 3227 2027 (369) 20 1678 Housing Revenue Account (10612) 278 24 (10310) (2401) (179) 25 (2555) Adult Social Care 661 423 (4) 1080 1132 (910) 0 222 Childrens Social Care 35 273 11 319 (7) (456) 1 (462) Education 5851 237 (58) 6030 9816 (472) 48 9392 Schools (81) 699 (624) (6) (136) (491) 391 (236) Corporate amp Customer Services 339 201 (5) 535 289 (249) 5 45 Finance 0 173 (2) 171 5 (285) (1) (281) Repair amp Maintenance (124) 0 1 (123) (194) 0 0 (194) Corporate amp Central - Services 309 (2129) (1) (1821) (48) (2060) (7) (2115) Cost of Services 751 761 (666) 846 7548 (5999) 484 2033

Other Operating Expenditure (32) 746 0 714 447 734 0 1181 Financing and Investment Income and 9821 7100 (133) 16788 7862 8656 (203) 16315 Expenditure Taxation and Non Specific Grant Income (15425) 0 0 (15425) (14709) 0 0 (14709)

General Fund or HRA Balance (4885) 8607 (799) 2923 1148 3391 281 4820 (Surplus) Deficit

a) Adjustments for Capital Purposes (i) Services line - this column adds in depreciation amortisation impairment and revaluation gains and losses (ii) Other Operating Expenditure - adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets (iii) Financing and Investment Income and Expenditure and Services line - the statutory charges for capital financing ie minimum revenue provision and other revenue contributions are deducted as these are not chargeable under general accepted accounting practices (iv) Taxation and Non Specific Grant Income and Expenditure - capital grants are adjusted for income not chargeable under generally accepted accounting practices Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year The Taxation and Non Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year

b) Net change for the removal of pension contributions and the addition of pension (IAS 19) related expenditure and income Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income (i) For services this represents the removal of the employer pension contributions made by the authority as permitted by statute and the replacement with current service costs and past service curtailment costs (ii) For Other Operating Expenditure - this adjustment is for pensions administration costs (iii) For Financing and Investment Income and Expenditure - the net interest on the defined benefit liability is charged to the CIampES

c) Other Differences Other Differences between amounts debitedcredited to the CIampES and amounts payablereceivable to be recognised under statute (i) For Services line - this includes an adjustment for accumulated absences earned but not taken in the year (ii) For Financing and Investment Income and Expenditure the other differences column recognises adjustments to General Fund for the timing differences for premiums and discounts

- 9 shy

COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT STATEMENT

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 and rents Authorities raise taxation and rents to cover expenditure in accordance with statutory requirements this may be different from the accounting cost The taxation position is shown in both the Expenditure and Funding Analysis and the Movement in Reserves Statement The service analysis provides the total direct costs of providing the services

Gross Expenditure

pound000

Restated 201617

Income pound000

Net Expenditure

pound000

Notes Gross Expenditure

pound000

201718

Income pound000

Net Expenditure

pound000

44943 (13608) 31335 Environment amp Planning 47154 (12584) 34570

67848 (59334) 8514 Housing amp Economy 63359 (53592) 9767

47028 (49149) (2121) Housing Revenue Account 41770 (51109) (9339)

49751 (11117) 38634 Adult Social Care 51966 (12490) 39476

19044 (5851) 13193 Childrens Social Care 22326 (6965) 15361

21339 (6642) 14697 Education 18342 (7195) 11147

90155 (10852) 79303 Schools 91354 (11635) 79719

8199 (1194) 7005 Corporate amp Customer Services 9571 (1135) 8436

5805 (887) 4918 Finance 6370 (1274) 5096

1663 0 1663 Repair amp Maintenance 1912 0 1912

13328

369103

(6419)

(165053)

6909

204050

Corporate amp Central

Cost of Services

11148

365272

(5690)

(163669)

5458

201603

22685 0 22685 Other Operating Expenditure 6 22909 0 22909

42498 (16201) 26297 Financing and Investment Income and Expenditure

7 38864 (13866) 24998

0 (243834) (243834) Taxation and Non Specific Grant Income 8 0 (246595) (246595)

434286 (425088) 9198 (Surplus) or Deficit on Provision of Services 427045 (424130) 2915

(27524) (Surplus) or Deficit on revaluation of non-current assets

50 (5656)

3627 Impairment losses on non-current assets charged to the revaluation reserve

50 1962

58288 Remeasurements of the net defined (asset) liability

4344 amp 53

(43498)

34391 Other Comprehensive Income and Expenditure (47192)

43589 Total Comprehensive Income and Expenditure

(44277)

-10shy

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 Council analysed into usable reserves (ie those that can be applied to fund expenditure) and other unusable reserves The movement in Reserves Statement shows how the movements in year of the Councils 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 or rents for the year The net increase decrease line shows the statutory General Fund Balance and Housing Revenue Account (HRA) movements on the year following those adjustments

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital R

ecei

pts

Res

erve

Cap

ital G

rant

sU

napp

lied

Tot

al U

sabl

eR

eser

ves

Unu

sabl

eR

eser

ves

Tot

al C

ounc

ilR

eser

ves

pound000 pound000 pound000 pound000 pound000 pound000 pound000

Balance at 1 April 2016 28819 6435 14468 802 50524 364462 414986

Movement in Reserves during 201617

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9188)

(9188)

(10)

(10)

0

0

0

0

(9198)

0

(9198)

0

(34391)

(34391)

(9198)

(34391)

(43589)

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201617

5244

(3944)

(424)

(434)

(2533)

(2533)

(58)

(58)

2229

(6969)

(2229)

(36620)

0

(43589)

Balance at 31 March 2017 24875 6001 11935 744 43555 327842 371397

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

17857

7018

24875

0

6001

6001

Balance at 1 April 2017 24875 6001 11935 744 43555 327842 371397

Movement in Reserves during 201718

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9877)

0

(9877)

6962

0

6962

0

0

0

0

0

0

(2915)

0

(2915)

0

47192

47192

(2915)

47192

44277

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201718

10856

979

(7933)

(971)

1147

1147

(175)

(175)

3895

980

(3895)

43297

0

44277

Balance at 31 March 2018 25854 5030 13082 569 44535 371139 415674

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

18836

7018

25854

0

5030

5030

-11shy

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council Reserves are reported in two categories The first category of reserves are usable reserves ie those reserves that the Council 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 Council 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 fund services if the assets are 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 2017 Notes 31 March 2018 pound000 pound000

1036752 Property Plant amp Equipment 19 1067219

506 Heritage Assets 25 507 28 Intangible Assets 28 38

114 Long-term Debtors 30 9966

1037400 Long Term Assets 1077730

2002 Short-term Investments 33 2 20 Assets Held For Sale 31 1144

620 Inventories 614 27299 Short-term Debtors 30 34708

296 Intangible Assets 29 316 2786 Cash and Cash Equivalents 34 7444

33023 Current Assets 44228

(19398) Short-term Creditors 36 (17292) (23467) Short-term Borrowing 38 (69817)

(32) Grants Receipts in Advance - Capital 60 (1524) (160) Grants Receipts in Advance - Revenue 60 (37)

(1324) Provisions 37 (1146)

(44381) Current Liabilities (89816)

(2441) Provisions 37 (2383) (7020) Long-term Creditors 36 (6575)

(298314) Long-term Borrowing 38 (296318) (28473) Other Long-term Liabilities 39 amp 40 (27686)

(318397) Net Pension Liability 44 (283506)

(654645) Long Term Liabilities (616468)

371397 Net Assets 415674

43555 Usable Reserves 47 44535 327842 Unusable Reserves 48 371139

371397 Total Reserves 415674

-12shy

CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period The statement shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Councils future service delivery Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (ie borrowing) to the Council

201617 pound000

9198 Net (surplus) deficit on the provision of services

Notes 201718 pound000

2915

(53632) Adjustment to net surplus deficit on the provision of services for non cash movements

55 (24136)

18017 Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities

56 16790

(26417) Net cash flows from Operating Activities (4431)

56733 Investing Activities 58 43298

(28255) Financing Activities 59 (43525)

2061 Net increase or decrease in cash and cash equivalents (4658)

(4847) Cash and cash equivalents at the beginning of the reporting period

(2786)

(2786) Cash and cash equivalents at the end of the reporting period 34 (7444)

-13shy

NOTES TO THE ACCOUNTS

1 Accounting Standards that have been issued but have not yet been adopted

The CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted by the Code for the relevant financial year This applies to the adoption of the following new or amended standards within the 201819 Code and require implementation from 1 April 2018

IFRS9 Financial Instruments - The main changes include the reclassification of financial assets and the earlier recognition of the impairment of financial assets The Council does not expect the reclassification changes to have a material impact upon the financial statements because the majority of its financial assets will retain the same measurement basis Furthermore the Council does not expect the impairment changes to have a material impact because the charge will be immaterial for its treasury management assets and it already makes a provision for doubtful debts on its service assets

IFRS15 Revenue from Contracts with customers - The standard will require the Council to recognise revenue in such a way that it represents the transfer of promised goods or services to the service recipient (customer) in an amount that reflects the consideration to which the Council expects to be entitled in exchange for those goods or services It is unlikely that this will have a significant impact upon the financial statements However additional disclosures may be required

The other minor changes relating to IAS7 Amendment to Statement of Cash Flows Disclosure Information and IAS12 Amendment to Income Taxes and specifically the Recognition of Deferred Tax Assets for Unrealised Losses are not expected to have a material effect on the Councils Statement of Accounts

2 Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 62 Notes to the Accounts the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events The critical judgements made in the Statement of Accounts are

a) There is some uncertainty about future levels of funding from the W elsh Government and in particular the receipt of specific revenue and capital grants The Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and significantly reduce levels of service provision The Council has a Medium Term Financial Strategy which is reviewed on a periodic basis and is available on the Councils website

b) As at 31 March 2018 there is one outstanding claim for compensation from a landowner affected by a W elsh Government grant funded road scheme No provision has been made for such payments as they would ordinarily be met by the W elsh Government as part of the scheme

c) A review of assets in particular those held for economic development purposes concluded that the Council has no assets which are held solely for the purpose of income generation or capital appreciation and therefore the Council has no investment properties

3 Assumptions made about the future and other sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Council 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 Councils Balance Sheet at 31 March 2018 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows

Item Uncertainties Effect if Actual Results Differ from Assumptions

Property Plant amp Assets are depreciated over useful lives that are dependant on If the useful life of assets is reduced depreciation increases Equipment 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 Council will be able to sustain its current spending on repairs and maintenance bringing into doubt the useful lives assigned to assets

and the carrying amount of the assets falls It is estimated that the annual depreciation charge for buildings would increase by pound122m if the useful lives were reduced by one year and pound324m if reduced by two years

PFI and Similar PFI and similar arrangements have been considered to have an A 1 increase in the RPI will increase the unitary payments Arrangements implied finance lease within the leases to calculate interest and

principal payments In addition the future RPI increase within the contracts has been estimated as remaining constant throughout the remaining period of the contract

over the next twenty years by pound285m

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 Council with expert advice about the assumptions to be applied

The effects on the net pension liability of changes in individual assumptions can be measured For instance a 01 increase in the discount rate assumption would result in a decrease in the pension liability of pound14879k However the assumptions interact in complex ways During 201718 the Councils actuaries advised that the net pensions liability had decreased by pound43498k attributable to updating of the assumptions

Arrears At 31 March 2018 the Council had a balance of sundry debtors of pound49m A review of significant balances suggested that an impairment of doubtful debts of 32 (pound158k) was appropriate However in the current economic climate it is not certain that such an allowance would be sufficient

If collection rates were to deteriorate a doubling of the amount of the impairment of doubtful debts would require an additional pound158k to be set aside as an allowance

-14shy

NOTES TO THE ACCOUNTS

4 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 Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure

Usable Reserves

201718

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES

Charges for depreciation impairment and revaluation losses of 17904 17102 0 0 (35006) non current assets

Amortisation of intangible assets 13 0 0 0 (13)

Capital grants and contributions applied (7581) (7843) 0 0 15424

Revenue expenditure funded from capital under statute 1538 5 0 0 (1543)

Amounts of non current assets written off on disposal or sale as 517 2291 0 0 (2808) part of the gain loss on disposal to the CIampES

Income in relation to donated assets (1) 0 0 0 1

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (5737) (6545) 0 0 12282

Capital Expenditure charged against the General Fund and HRA balances (1790) (11850) 0 0 13640

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES (68) 0 0 68 0

Application of grants to capital financing transferred to the Capital Adjustment Account 0 0 0 (243) 243

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gain loss on (549) (2291) 2840 0 0 disposal to the CIampES

Revenue Income defined as capital under statute 0 0 0 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (1709) 0 1709

Transfer (to) from Capital Adjustment account - set aside

- Repayments of loans to voluntary bodies 0 0 15 0 (15)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 1 0 (1)

Total Adjustments for Capital Purposes (see page 9) 4246 (9131) 1147 (175) 3913

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the 26793 3516 0 0 (30309) CIampES - see note 43 amp 53

Employers pension contributions payable in the year (19360) (2342) 0 0 21702

Net Change for Pensions Adjustments (see page 9) 7433 1174 0 0 (8607)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from (109) 5 0 0 104 finance costs chargeable in the year in accordance with statutory requirements

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES on an (714) 19 0 0 695 accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

Total Other Differences (see page 9) (823) 24 0 0 799

Total Adjustments 10856 (7933) 1147 (175) (3895)

-15shy

NOTES TO THE ACCOUNTS

4 Adjustments between Accounting Basis and Funding Basis Under Regulations contd

Usable Reserves

201617 Comparative figures

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES Statement

Charges for depreciation impairment and revaluation losses of non current assets

19500 24828 0 0 (44328)

Amortisation of intangible assets 16 0 0 0 (16)

Capital grants and contributions applied (6827) (7880) 0 0 14707

Revenue expenditure funded from capital under statute 819 5 0 0 (824)

Amounts of non current assets written off on disposal or sale as part of the gainloss on disposal to the CIampES

2625 1870 0 0 (4495)

Income in relation to donated assets (2) 0 0 0 2

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (7306) (5348) 0 0 12654

Capital Expenditure charged against the General Fund and HRA balances (3995) (12900) 0 0 16895

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES

(86) 0 0 86 0

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

0 0 0 (144) 144

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gainloss on disposal to the CIampES

(2190) (1858) 4048 0 0

Revenue Income defined as capital under statute (118) (5) 123 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (6724) 0 6724

Transfer (to) from Capital Adjustment account - set aside 0 0 0 0 0

- Repayments of loans to voluntary bodies 0 0 18 0 (18)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 2 0 (2)

Total Adjustments for Capital Purposes (see page 9) 2436 (1288) (2533) (58) 1443

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the CIampES - see note 43 amp 53

22134 2857 0 0 (24991)

Employers pension contributions payable in the year (19582) (2018) 0 0 21600

Net Change for Pensions Adjustments (see page 9) 2552 839 0 0 (3391)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from finance costs chargeable in the year in accordance with statutory requirements

(194) 8 0 0 186

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

450 17 0 0 (467)

Total Other Differences (see page 9) 256 25 0 0 (281)

Total Adjustments 5244 (424) (2533) (58) (2229)

-16shy

NOTES TO THE ACCOUNTS

5 Transfers to (from) Earmarked Reserves

This note sets out the amounts set aside from the General Fund and HRA balances in earmarked reserves to provide financing for future expenditure plans and also the amounts posted back from earmarked reserves to meet General Fund and HRA expenditure in 201718

201617 201718 Balance at Transfers Transfers Balance at Transfers Transfers Balance at 0142016 Out In 31032017 Out In 31032018

pound000 pound000 pound000 pound000 pound000 pound000 pound000

General Fund Balances held by schools 2580 (1297) 359 1642 (653) 1023 2012 Service Reserves 710 (184) 609 1135 (357) 276 1054 Insurance Reserve 2402 0 17 2419 0 220 2639 Legal Liabilities Reserve 485 (34) 800 1251 (178) 0 1073 Winter Maintenance Reserve 300 0 0 300 (295) 345 350 Early Voluntary Retirement Reserve (EVR) 94 0 0 94 0 0 94 Transitional EVR Reserve 1495 (146) 0 1349 0 0 1349 Reshaping Services Reserve 2062 (1247) 0 815 (29) 0 786 Invest To Save Reserve 61 0 75 136 0 259 395 Capital Reserve 4003 (2251) 885 2637 (103) 183 2717 Repairs and Maintenance Reserve 250 (100) 0 150 (50) 0 100 ITeC Reserve 510 (150) 0 360 (154) 0 206 IT Development 42 0 0 42 0 0 42 Customer Access 15 0 0 15 0 0 15 Local Development Plan Reserve 203 0 0 203 (29) 0 174 Waste Strategy Reserve 95 (95) 0 0 0 0 0 Carbon Emission Reserve 545 (468) 225 302 (5) 296 593 Cremation Plant Replacement Reserve 23 0 0 23 0 0 23 Section 106278 Reserve 514 (186) 0 328 0 0 328 North Wales Regional Transformation 0 0 109 109 (109) 0 0 Miscellaneous 53 (13) 5 45 0 1 46 Grant Reserves 5359 (1467) 610 4502 (548) 886 4840

Total 21801 (7638) 3694 17857 (2510) 3489 18836

Service Reserves - represents service underspends as part of the Councils carry forward arrangements for use in subsequent years

Insurance Reserve - the reserve is held to fund any future liabilities such as MMI ( note 41 ) and claims that exceed budget

Legal Liabilities Reserve - amount set aside to provide for any future legal liabilities

Winter Maintenance Reserve - amount set aside to cover costs due to unforeseen adverse weather conditions

Early Voluntary Retirement amp Transitional EVR Reserve - to fund early retirements and redundancy costs following reshaping services

Reshaping Services Reserve - an amount set aside to aid the transformation process to realise future savings for the Council

Invest To Save Reserve - provision for the investment in various plans to realise permanent financial savings

Capital Reserve - represents resources already committed to finance part of the Councils five year Non-HRA Capital Programme

Repairs and Maintenance Reserve - to respond to future uneven expenditure patterns

ITeC Reserve - ITeC provides information technology training for the benefit of the local economy and the reserve has been established to respond to future uneven expenditure patterns

IT Development amp Customer Access - to fund various IT enhancements and Self Service ICT development

Local Development Plan (LDP) Reserve - to fund costs associated with the adoption of the LDP

Waste Strategy Reserve - amount set aside to mitigate the impact of proposed reduction in the Waste Management grant

Carbon Emission Reserve - to partly fund the carbon reduction plan programme of works to reduce carbon emissions

Cremation Plant Replacement Reserve - to partly fund the cost of mercury abatement

Section 106278 Reserve - represents income from contractors which have no conditions attached but which have been set aside to fund various infrastructure projects

North Wales Regional Transformation - represents underspend on contribution made to fund North Wales Regional projects carried forward for use in subsequent years

Miscellaneous - to meet a variety of other commitments including crematorium donations and school brass band

Grant Reserves - represent income from Government grants received which have no conditions attached but which have been set aside for use in the provision of specific services

- 17 shy

NOTES TO THE ACCOUNTS

6 Other Operating Expenditure

201617 201718 pound000 pound000

2355 Community Council Precepts 2383 12716 Police and Crime Commissioner for North Wales Precept 13237

6433 North Wales Fire Authority levy 6575 734 Pensions Administration Costs 746 447 Losses (Gains) on the disposal of non current assets (32)

22685 Total 22909

7 Financing and Investment Income and Expenditure

201617 201718 pound000 pound000

17699 Interest payable and similar charges 17931 8656 Pensions Net Interest 7100

(58) Interest receivable and similar income (33)

26297 Total 24998

8 Taxation and Non Specific Grant Income

Restated 201617 201718

pound000 pound000

(59357) Council tax income (61723) (40435) Non-domestic rates (43628)

(129333) Non-ringfenced government grants (125819) (14709) Capital grants and contributions (15425)

(243834) Total (246595)

9 Audit Costs

In 201718 the Council incurred the following fees relating to external audit and inspection

201617 201718 pound000 pound000

176 Fees payable to the Wales Audit Office with regard to external audit services 176 86 Fees payable to the Wales Audit Office for the Local Government measure 85 90 Fees payable to the Wales Audit Office for the certification of grant claims and returns 80

352 341

10 Members Allowances

In 201718 allowances totalling pound955k (pound951k 201617) were paid directly to Elected Members and in addition allowances totalling pound9k (pound5k in 201617) were paid to co-opted Members inclusive of an element of expenses Further information is available on the Councils website

httpwwwwrexhamgovukenglishcouncilfinancialmembers_remunerationhtm

11 Minimum Revenue Provision

This is a statutory provision for the repayment of debt as required by the Local Authority (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 The minimum revenue provision is calculated by reference to the overall indebtedness of the Council

201617 201718 pound000 pound000

5343 Housing amount 6539 5720 Non-housing amount 4046

870 Charge for the principal part of the finance lease rentals payable 932 721 PFI - repayment of liability 765

12654 Minimum Revenue Provision 12282

-18shy

NARRATIVE REPORT

of the financial liability as at 31 March 2018 Provisions are disclosed in note 37 Notes to the Accounts

42 Reserves are amounts set aside in the accounts for purposes falling outside the definition of provisions The information regarding reserves is disclosed in the Movement in Reserves Statement on page 11 and in note 5 Notes to the Accounts The Councilrsquos General Fund balance is a measure of the uncommitted reserves which the Council holds to meet cash flow requirements and unforeseen future events The General Fund balance which was pound7018m at the start of the financial year totalled pound7018m at 31 March 2018 (see Movement in Reserves Statement on page 11)

5 Capital Investment

51 Capital investment (excluding capital accruals) in the year amounted to pound6815m The following tables give an analysis of this expenditure and the way it was financed

Where the capital money was spent

201718 poundrsquo000

School adaptations and improvements Highway improvements Economic Development and Planning Housing Renovation GrantsRenewal Council House improvements Other Finance Leases PFI

4838

2359 3765

1615

49445 5269

858

710

346 553

237

7255 773 126

Total 68149 100

Where the capital 201718 money came from poundrsquo000

Borrowing 35015 5138

Capital Receipts 1709 251

Grants amp Contributions 16927 2484

Revenue 13640 2001

Finance Leases PFI 858 126

Total 68149 100

52 School adaptations and improvements include expenditure of pound1278k for Penycae Primary School and pound1462k for Bryn Alyn High School as part of the 21st Century Schools Band A programme Economic Development and Planning includes pound3523k for the new Arts Cultural Hub and Market space (Tŷ Pawb) and included within Other is pound1892k for improvements to the Councilrsquos leisure facilities

6 Borrowing

61 The Councilrsquos principal loan debt at 31 March 2018 was pound3624m It is the Councilrsquos strategy to maintain the level of external borrowing in line with the Capital Financing Requirement

7 Revaluation and Disposals of Non Current Assets

71 The Council has a rolling programme to revalue all assets within five years During 201718 Housing amp Public Protection Assets Public Offices and Car Parks were revalued The programme for future years is as follows

201819 - Markets Shops and Social Care properties Heritage Assets 201920 ndash Schools Youth Clubs and Waste Disposal PFI facility 202021 - Commercial Estates Environmental and Leisure Properties and Council Dwellings

72 In addition to the rolling programme an annual review is undertaken for impairment and significant changes in the use of property During 201718 upward revaluations of pound9070k were made pound3431k of which related to the rolling programme of asset revaluations There were also downward revaluations impairments to Council Dwellings of pound5502k Other Land and Buildings of pound6871k (of which pound2676k related to the rolling programme of asset revaluations) Surplus Assets of pound48k Assets Held for Sale of pound9k Community Assets of pound695k Vehicles Plant amp Equipment of pound9k and Heritage Assets of pound8k Of the downward revaluations impairments pound8524k was recognised in the Surplus or Deficit on Provision of Services and pound4618k in the Revaluation Reserve

73 During the year the Council sold Council Dwellings of pound2291k and other assets with a carrying value of pound517k which included land east of Conery Lane Bronington (pound210k) land adjacent to Long Lane Cottage Bronington (pound18k) land at Shonersquos Lane Llay (pound63k) Outdoor Education Centre at Nantyr (pound135k) parcel of land in Coedpoeth (pound60k) and woodland at Craig y Pandy wood (previously associated with Nantyr Centre) (pound31k) The Council made a net profit of pound32k

-5shy

NARRATIVE REPORT

8 Pension Liability

81 The Statement of Accounts as presented complies with the requirements of International Accounting Standard 19 (IAS 19) in that the Comprehensive Income and Expenditure Account reflects the current year cost of pension provision to employees as advised by the Councilrsquos actuary Mercers In addition the Balance Sheet contains the actuaryrsquos assessment of the Councilrsquos share of the Pension Fund liability (pound283m) as at 31 March 2018 and the reserve needed to fund that liability The disclosed pension fund liability is the total projected deficit that exists over the expected life of the fund This deficit will change on an annual basis dependent on the performance of investments and the actuarial assumptions that are made in terms of current pensioners deferred pensioners and current employees

9 Interest in Companies and Other Entities

91 Wrexham Commercial Services a wholly owned subsidiary of the Council was incorporated on 1 October 2014 and commenced trading on 1 January 2015 The company has been established to trade in specified council services but initially in cleaning services The Council has not prepared Group Accounts on the grounds that there would be no material difference to the Councilrsquos single entity accounts A copy of Wrexham Commercial Servicesrsquo audited financial statements for the twelve months to 31 March 2018 can be obtained from Wrexham Commercial Services Ltd Council Offices Ruthin Road Wrexham LL13 7TU

10 Changes to the Core Statements

101 Previously the cost of the Council Tax Reduction scheme (CTRS) has been shown in the Comprehensive Income and Expenditure Account Statement (CIampES) and relevant notes to the accounts as an expense and the Council Tax Collected has been shown gross of these reductions The Council has been advised that it is inappropriate to disclose CTRS as an expense in the CIampES and that Council Tax Collected should be shown net of CTRS The 201617 comparative data in the CIampES and the Expenditure amp Funding Analysis and relevant notes have been restated to reflect this change There has been no impact on the Balance Sheet as a result of this change

102 A further change has been made to the CIampES in 201718 for the accounting treatment of care home fees The Council makes payments to residential care homes based on the gross charge less client contributions In previous years the CIampES has shown the gross charge as expenditure and the client contributions as income The Code suggests that the expenditure in the CIampES should include the Councilrsquos contribution only (ie net of client contributions) The 201617 comparative data in the CIampES and note 61 Notes to the Accounts have been restated to reflect this change

11 Financial Outlook for the Council

111 On 21 February 2018 the Council approved a Medium Term Financial Strategy which highlighted a potential revenue shortfall of approximately pound11m for the period 201920 to 202021 The strategy can be accessed by the following link

httpwwwwrexhamgovuktop_navigationsearchindexhtmq=medium20term20financial20strategy

112 It is clear that the financial outlook for the Council in terms of Welsh Government funding and support for both Revenue and Capital expenditure is likely to reduce in the medium term in line with the UK Government austerity measures Whilst precise details of funding available to the Council for 201920 and beyond have not been announced the Council anticipates a funding shortfall of around pound11m over the period 201920 to 202021

12 Further Information

121 Further information about the accounts and budgets of the Council is available from the Head of Finance W rexham County Borough Council Lambpit Street Wrexham This is part of the Councilrsquos policy of providing full information about the Councilrsquos financial affairs In addition members of the public have a statutory right to inspect the accounts before the audit is completed The availability of the accounts for inspection is advertised on the Councilrsquos website and in one conspicuous public place as required by the Accounts and Audit (Wales) (Amendment) Regulations 2018 The Statement of Accounts will also be available on the Authorityrsquos website (wwwwrexhamgovuk)

M S Owen

Head of Finance

-6shy

Statement

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Council is required under the Code to include a Statement of Responsibilities in the Statement of Accounts which sets out the respective responsibilities of the Council and the Head of Finance in respect of these Accounts

The Councils Responsibilities

The Council is required to make arrangements

bull for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs In this Council that officer is the Head of Finance

bull to manage its affairs to secure economic efficient and effective use of resources and safeguard its assets

bull to approve the of Accounts

Chai r

The Responsibility of the Head of Finance

The Head of Finance is responsible for the preparation of the Authoritys Statement of Accounts in accordance with proper practices as set out in the CIPFALASAAC Code of Practice on Local Authority Accounting in the United Kingdom 201718 (the Code)

In preparing this Statement of Accounts the Head of Finance has

bull selected suitable accounting policies and then applied them consistently

bull made judgements and estimates that were reasonable and prudent

bull complied with the local authority Code

The Head of Finance has also

bull kept proper accounting records which were up to date

bull taken reasonable steps for the prevention and detection of fraud and other irregularities

Head of Finances Certificate

The Statement of Accounts has been prepared in accordance with the Code and gives a true and fair view of the financial position of the Council at the accounting date and its income and expenditure for the year ended 31 March 2018

_ 7

MS Owen CPFA

Head of Finance

-7-

EXPENDITURE AND FUNDING ANALYSIS

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax and rent payers how the funding available to the Council (ie government grants rents and council tax) for the year has been used in providing services in comparison with those resources consumed or earned 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 Councils departments Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement

Restated 201617 201718

Net Net Net Net Expenditure Expenditure Expenditure Expenditure Chargeable Adjustments in the Chargeable Adjustments in the to General between Comprehensive to General between Comprehensive Fund and Funding and Income amp Fund and Funding and Income amp

HRA Accounting Statement HRA Accounting Statement Balances basis Balances basis

pound000 pound000 pound000 pound000 pound000 pound000

34796 (3461) 31335 Environment amp Planning 32826 1744 34570

6836 1678 8514 Housing amp Economy 6540 3227 9767

434 (2555) (2121) Housing Revenue Account 971 (10310) (9339)

38412 222 38634 Adult Social Care 38396 1080 39476

13655 (462) 13193 Childrens Social Care 15042 319 15361

5305 9392 14697 Education 5117 6030 11147

79539 (236) 79303 Schools 79725 (6) 79719

6960 45 7005 Corporate amp Customer Services 7901 535 8436

5199 (281) 4918 Finance 4925 171 5096

1857 (194) 1663 Repair amp Maintenance 2035 (123) 1912

9024 (2115) 6909 Corporate amp Central 7279 (1821) 5458

202017 2033 204050 Cost of Services 200757 846 201603

21504 1181 22685 Other Operating Expenditure 22195 714 22909

9982 16315 26297 Financing and Investment Income and 8210 16788 24998 Expenditure

(229125) (14709) (243834) Taxation and Non Specific Grant Income (231170) (15425) (246595)

4378 4820 9198 (Surplus) Deficit (8) 2923 2915

(35254) Opening General Fund amp HRA (30876)

4378 Add (Surplus) Deficit on General (8) Fund and HRA Balance in Year

(30876) Closing General Fund and (30884) HRA Balance at 31 March

Analysed between General Fund and HRA Balances

General Fund HRA Total General Fund HRA Total pound000 pound000 pound000 pound000 pound000 pound000

(28819) (6435) (35254) Opening General Fund amp HRA Balance (24875) (6001) (30876)

3944 434 4378 Add Surplus (Deficit) on General Fund (979) 971 (8) and HRA Balances in year

(24875) (6001) (30876) Closing General Fund and HRA (25854) (5030) (30884) Balance at 31 March

Income and Expenditure recognised in accordance with generally accepted accounting practices can be seen in the Comprehensive Income and Expenditure Statement on page 10

An analysis of the movements on the HRA balance may be found in the Movement on the Housing Revenue Account Statement on page 61

- 8 shy

NOTE TO THE EXPENDITURE amp FUNDING ANALYSIS

Note to the Expenditure and Funding Analysis

This note provides a reconciliation of the main adjustments to Net Expenditure Chargeable to the General Fund and HRA Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIampES) The relevant transfers between reserves are explained in the Movement in Reserves Statement on page 11

201718 201617

Adjustment from General Fund and Net change for Net change for HRA to arrive at the Comprehensive Adjustment for the Pension Other Total Adjustment for the Pension Other Total Income and Expenditure Statement Capital Purposes Adjustments Differences Adjustments Capital Purposes Adjustments Differences Adjustments amounts (Note a) (Note b) (Note c) (Note a) (Note b) (Note c)

pound000 pound000 pound000 pound000 pound000 pound000 pound000 pound000

Environment amp Planning 1464 346 (66) 1744 (2935) (528) 2 (3461) Housing amp Economy 2909 260 58 3227 2027 (369) 20 1678 Housing Revenue Account (10612) 278 24 (10310) (2401) (179) 25 (2555) Adult Social Care 661 423 (4) 1080 1132 (910) 0 222 Childrens Social Care 35 273 11 319 (7) (456) 1 (462) Education 5851 237 (58) 6030 9816 (472) 48 9392 Schools (81) 699 (624) (6) (136) (491) 391 (236) Corporate amp Customer Services 339 201 (5) 535 289 (249) 5 45 Finance 0 173 (2) 171 5 (285) (1) (281) Repair amp Maintenance (124) 0 1 (123) (194) 0 0 (194) Corporate amp Central - Services 309 (2129) (1) (1821) (48) (2060) (7) (2115) Cost of Services 751 761 (666) 846 7548 (5999) 484 2033

Other Operating Expenditure (32) 746 0 714 447 734 0 1181 Financing and Investment Income and 9821 7100 (133) 16788 7862 8656 (203) 16315 Expenditure Taxation and Non Specific Grant Income (15425) 0 0 (15425) (14709) 0 0 (14709)

General Fund or HRA Balance (4885) 8607 (799) 2923 1148 3391 281 4820 (Surplus) Deficit

a) Adjustments for Capital Purposes (i) Services line - this column adds in depreciation amortisation impairment and revaluation gains and losses (ii) Other Operating Expenditure - adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets (iii) Financing and Investment Income and Expenditure and Services line - the statutory charges for capital financing ie minimum revenue provision and other revenue contributions are deducted as these are not chargeable under general accepted accounting practices (iv) Taxation and Non Specific Grant Income and Expenditure - capital grants are adjusted for income not chargeable under generally accepted accounting practices Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year The Taxation and Non Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year

b) Net change for the removal of pension contributions and the addition of pension (IAS 19) related expenditure and income Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income (i) For services this represents the removal of the employer pension contributions made by the authority as permitted by statute and the replacement with current service costs and past service curtailment costs (ii) For Other Operating Expenditure - this adjustment is for pensions administration costs (iii) For Financing and Investment Income and Expenditure - the net interest on the defined benefit liability is charged to the CIampES

c) Other Differences Other Differences between amounts debitedcredited to the CIampES and amounts payablereceivable to be recognised under statute (i) For Services line - this includes an adjustment for accumulated absences earned but not taken in the year (ii) For Financing and Investment Income and Expenditure the other differences column recognises adjustments to General Fund for the timing differences for premiums and discounts

- 9 shy

COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT STATEMENT

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 and rents Authorities raise taxation and rents to cover expenditure in accordance with statutory requirements this may be different from the accounting cost The taxation position is shown in both the Expenditure and Funding Analysis and the Movement in Reserves Statement The service analysis provides the total direct costs of providing the services

Gross Expenditure

pound000

Restated 201617

Income pound000

Net Expenditure

pound000

Notes Gross Expenditure

pound000

201718

Income pound000

Net Expenditure

pound000

44943 (13608) 31335 Environment amp Planning 47154 (12584) 34570

67848 (59334) 8514 Housing amp Economy 63359 (53592) 9767

47028 (49149) (2121) Housing Revenue Account 41770 (51109) (9339)

49751 (11117) 38634 Adult Social Care 51966 (12490) 39476

19044 (5851) 13193 Childrens Social Care 22326 (6965) 15361

21339 (6642) 14697 Education 18342 (7195) 11147

90155 (10852) 79303 Schools 91354 (11635) 79719

8199 (1194) 7005 Corporate amp Customer Services 9571 (1135) 8436

5805 (887) 4918 Finance 6370 (1274) 5096

1663 0 1663 Repair amp Maintenance 1912 0 1912

13328

369103

(6419)

(165053)

6909

204050

Corporate amp Central

Cost of Services

11148

365272

(5690)

(163669)

5458

201603

22685 0 22685 Other Operating Expenditure 6 22909 0 22909

42498 (16201) 26297 Financing and Investment Income and Expenditure

7 38864 (13866) 24998

0 (243834) (243834) Taxation and Non Specific Grant Income 8 0 (246595) (246595)

434286 (425088) 9198 (Surplus) or Deficit on Provision of Services 427045 (424130) 2915

(27524) (Surplus) or Deficit on revaluation of non-current assets

50 (5656)

3627 Impairment losses on non-current assets charged to the revaluation reserve

50 1962

58288 Remeasurements of the net defined (asset) liability

4344 amp 53

(43498)

34391 Other Comprehensive Income and Expenditure (47192)

43589 Total Comprehensive Income and Expenditure

(44277)

-10shy

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 Council analysed into usable reserves (ie those that can be applied to fund expenditure) and other unusable reserves The movement in Reserves Statement shows how the movements in year of the Councils 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 or rents for the year The net increase decrease line shows the statutory General Fund Balance and Housing Revenue Account (HRA) movements on the year following those adjustments

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital R

ecei

pts

Res

erve

Cap

ital G

rant

sU

napp

lied

Tot

al U

sabl

eR

eser

ves

Unu

sabl

eR

eser

ves

Tot

al C

ounc

ilR

eser

ves

pound000 pound000 pound000 pound000 pound000 pound000 pound000

Balance at 1 April 2016 28819 6435 14468 802 50524 364462 414986

Movement in Reserves during 201617

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9188)

(9188)

(10)

(10)

0

0

0

0

(9198)

0

(9198)

0

(34391)

(34391)

(9198)

(34391)

(43589)

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201617

5244

(3944)

(424)

(434)

(2533)

(2533)

(58)

(58)

2229

(6969)

(2229)

(36620)

0

(43589)

Balance at 31 March 2017 24875 6001 11935 744 43555 327842 371397

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

17857

7018

24875

0

6001

6001

Balance at 1 April 2017 24875 6001 11935 744 43555 327842 371397

Movement in Reserves during 201718

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9877)

0

(9877)

6962

0

6962

0

0

0

0

0

0

(2915)

0

(2915)

0

47192

47192

(2915)

47192

44277

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201718

10856

979

(7933)

(971)

1147

1147

(175)

(175)

3895

980

(3895)

43297

0

44277

Balance at 31 March 2018 25854 5030 13082 569 44535 371139 415674

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

18836

7018

25854

0

5030

5030

-11shy

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council Reserves are reported in two categories The first category of reserves are usable reserves ie those reserves that the Council 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 Council 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 fund services if the assets are 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 2017 Notes 31 March 2018 pound000 pound000

1036752 Property Plant amp Equipment 19 1067219

506 Heritage Assets 25 507 28 Intangible Assets 28 38

114 Long-term Debtors 30 9966

1037400 Long Term Assets 1077730

2002 Short-term Investments 33 2 20 Assets Held For Sale 31 1144

620 Inventories 614 27299 Short-term Debtors 30 34708

296 Intangible Assets 29 316 2786 Cash and Cash Equivalents 34 7444

33023 Current Assets 44228

(19398) Short-term Creditors 36 (17292) (23467) Short-term Borrowing 38 (69817)

(32) Grants Receipts in Advance - Capital 60 (1524) (160) Grants Receipts in Advance - Revenue 60 (37)

(1324) Provisions 37 (1146)

(44381) Current Liabilities (89816)

(2441) Provisions 37 (2383) (7020) Long-term Creditors 36 (6575)

(298314) Long-term Borrowing 38 (296318) (28473) Other Long-term Liabilities 39 amp 40 (27686)

(318397) Net Pension Liability 44 (283506)

(654645) Long Term Liabilities (616468)

371397 Net Assets 415674

43555 Usable Reserves 47 44535 327842 Unusable Reserves 48 371139

371397 Total Reserves 415674

-12shy

CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period The statement shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Councils future service delivery Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (ie borrowing) to the Council

201617 pound000

9198 Net (surplus) deficit on the provision of services

Notes 201718 pound000

2915

(53632) Adjustment to net surplus deficit on the provision of services for non cash movements

55 (24136)

18017 Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities

56 16790

(26417) Net cash flows from Operating Activities (4431)

56733 Investing Activities 58 43298

(28255) Financing Activities 59 (43525)

2061 Net increase or decrease in cash and cash equivalents (4658)

(4847) Cash and cash equivalents at the beginning of the reporting period

(2786)

(2786) Cash and cash equivalents at the end of the reporting period 34 (7444)

-13shy

NOTES TO THE ACCOUNTS

1 Accounting Standards that have been issued but have not yet been adopted

The CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted by the Code for the relevant financial year This applies to the adoption of the following new or amended standards within the 201819 Code and require implementation from 1 April 2018

IFRS9 Financial Instruments - The main changes include the reclassification of financial assets and the earlier recognition of the impairment of financial assets The Council does not expect the reclassification changes to have a material impact upon the financial statements because the majority of its financial assets will retain the same measurement basis Furthermore the Council does not expect the impairment changes to have a material impact because the charge will be immaterial for its treasury management assets and it already makes a provision for doubtful debts on its service assets

IFRS15 Revenue from Contracts with customers - The standard will require the Council to recognise revenue in such a way that it represents the transfer of promised goods or services to the service recipient (customer) in an amount that reflects the consideration to which the Council expects to be entitled in exchange for those goods or services It is unlikely that this will have a significant impact upon the financial statements However additional disclosures may be required

The other minor changes relating to IAS7 Amendment to Statement of Cash Flows Disclosure Information and IAS12 Amendment to Income Taxes and specifically the Recognition of Deferred Tax Assets for Unrealised Losses are not expected to have a material effect on the Councils Statement of Accounts

2 Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 62 Notes to the Accounts the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events The critical judgements made in the Statement of Accounts are

a) There is some uncertainty about future levels of funding from the W elsh Government and in particular the receipt of specific revenue and capital grants The Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and significantly reduce levels of service provision The Council has a Medium Term Financial Strategy which is reviewed on a periodic basis and is available on the Councils website

b) As at 31 March 2018 there is one outstanding claim for compensation from a landowner affected by a W elsh Government grant funded road scheme No provision has been made for such payments as they would ordinarily be met by the W elsh Government as part of the scheme

c) A review of assets in particular those held for economic development purposes concluded that the Council has no assets which are held solely for the purpose of income generation or capital appreciation and therefore the Council has no investment properties

3 Assumptions made about the future and other sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Council 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 Councils Balance Sheet at 31 March 2018 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows

Item Uncertainties Effect if Actual Results Differ from Assumptions

Property Plant amp Assets are depreciated over useful lives that are dependant on If the useful life of assets is reduced depreciation increases Equipment 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 Council will be able to sustain its current spending on repairs and maintenance bringing into doubt the useful lives assigned to assets

and the carrying amount of the assets falls It is estimated that the annual depreciation charge for buildings would increase by pound122m if the useful lives were reduced by one year and pound324m if reduced by two years

PFI and Similar PFI and similar arrangements have been considered to have an A 1 increase in the RPI will increase the unitary payments Arrangements implied finance lease within the leases to calculate interest and

principal payments In addition the future RPI increase within the contracts has been estimated as remaining constant throughout the remaining period of the contract

over the next twenty years by pound285m

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 Council with expert advice about the assumptions to be applied

The effects on the net pension liability of changes in individual assumptions can be measured For instance a 01 increase in the discount rate assumption would result in a decrease in the pension liability of pound14879k However the assumptions interact in complex ways During 201718 the Councils actuaries advised that the net pensions liability had decreased by pound43498k attributable to updating of the assumptions

Arrears At 31 March 2018 the Council had a balance of sundry debtors of pound49m A review of significant balances suggested that an impairment of doubtful debts of 32 (pound158k) was appropriate However in the current economic climate it is not certain that such an allowance would be sufficient

If collection rates were to deteriorate a doubling of the amount of the impairment of doubtful debts would require an additional pound158k to be set aside as an allowance

-14shy

NOTES TO THE ACCOUNTS

4 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 Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure

Usable Reserves

201718

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES

Charges for depreciation impairment and revaluation losses of 17904 17102 0 0 (35006) non current assets

Amortisation of intangible assets 13 0 0 0 (13)

Capital grants and contributions applied (7581) (7843) 0 0 15424

Revenue expenditure funded from capital under statute 1538 5 0 0 (1543)

Amounts of non current assets written off on disposal or sale as 517 2291 0 0 (2808) part of the gain loss on disposal to the CIampES

Income in relation to donated assets (1) 0 0 0 1

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (5737) (6545) 0 0 12282

Capital Expenditure charged against the General Fund and HRA balances (1790) (11850) 0 0 13640

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES (68) 0 0 68 0

Application of grants to capital financing transferred to the Capital Adjustment Account 0 0 0 (243) 243

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gain loss on (549) (2291) 2840 0 0 disposal to the CIampES

Revenue Income defined as capital under statute 0 0 0 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (1709) 0 1709

Transfer (to) from Capital Adjustment account - set aside

- Repayments of loans to voluntary bodies 0 0 15 0 (15)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 1 0 (1)

Total Adjustments for Capital Purposes (see page 9) 4246 (9131) 1147 (175) 3913

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the 26793 3516 0 0 (30309) CIampES - see note 43 amp 53

Employers pension contributions payable in the year (19360) (2342) 0 0 21702

Net Change for Pensions Adjustments (see page 9) 7433 1174 0 0 (8607)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from (109) 5 0 0 104 finance costs chargeable in the year in accordance with statutory requirements

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES on an (714) 19 0 0 695 accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

Total Other Differences (see page 9) (823) 24 0 0 799

Total Adjustments 10856 (7933) 1147 (175) (3895)

-15shy

NOTES TO THE ACCOUNTS

4 Adjustments between Accounting Basis and Funding Basis Under Regulations contd

Usable Reserves

201617 Comparative figures

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES Statement

Charges for depreciation impairment and revaluation losses of non current assets

19500 24828 0 0 (44328)

Amortisation of intangible assets 16 0 0 0 (16)

Capital grants and contributions applied (6827) (7880) 0 0 14707

Revenue expenditure funded from capital under statute 819 5 0 0 (824)

Amounts of non current assets written off on disposal or sale as part of the gainloss on disposal to the CIampES

2625 1870 0 0 (4495)

Income in relation to donated assets (2) 0 0 0 2

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (7306) (5348) 0 0 12654

Capital Expenditure charged against the General Fund and HRA balances (3995) (12900) 0 0 16895

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES

(86) 0 0 86 0

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

0 0 0 (144) 144

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gainloss on disposal to the CIampES

(2190) (1858) 4048 0 0

Revenue Income defined as capital under statute (118) (5) 123 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (6724) 0 6724

Transfer (to) from Capital Adjustment account - set aside 0 0 0 0 0

- Repayments of loans to voluntary bodies 0 0 18 0 (18)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 2 0 (2)

Total Adjustments for Capital Purposes (see page 9) 2436 (1288) (2533) (58) 1443

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the CIampES - see note 43 amp 53

22134 2857 0 0 (24991)

Employers pension contributions payable in the year (19582) (2018) 0 0 21600

Net Change for Pensions Adjustments (see page 9) 2552 839 0 0 (3391)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from finance costs chargeable in the year in accordance with statutory requirements

(194) 8 0 0 186

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

450 17 0 0 (467)

Total Other Differences (see page 9) 256 25 0 0 (281)

Total Adjustments 5244 (424) (2533) (58) (2229)

-16shy

NOTES TO THE ACCOUNTS

5 Transfers to (from) Earmarked Reserves

This note sets out the amounts set aside from the General Fund and HRA balances in earmarked reserves to provide financing for future expenditure plans and also the amounts posted back from earmarked reserves to meet General Fund and HRA expenditure in 201718

201617 201718 Balance at Transfers Transfers Balance at Transfers Transfers Balance at 0142016 Out In 31032017 Out In 31032018

pound000 pound000 pound000 pound000 pound000 pound000 pound000

General Fund Balances held by schools 2580 (1297) 359 1642 (653) 1023 2012 Service Reserves 710 (184) 609 1135 (357) 276 1054 Insurance Reserve 2402 0 17 2419 0 220 2639 Legal Liabilities Reserve 485 (34) 800 1251 (178) 0 1073 Winter Maintenance Reserve 300 0 0 300 (295) 345 350 Early Voluntary Retirement Reserve (EVR) 94 0 0 94 0 0 94 Transitional EVR Reserve 1495 (146) 0 1349 0 0 1349 Reshaping Services Reserve 2062 (1247) 0 815 (29) 0 786 Invest To Save Reserve 61 0 75 136 0 259 395 Capital Reserve 4003 (2251) 885 2637 (103) 183 2717 Repairs and Maintenance Reserve 250 (100) 0 150 (50) 0 100 ITeC Reserve 510 (150) 0 360 (154) 0 206 IT Development 42 0 0 42 0 0 42 Customer Access 15 0 0 15 0 0 15 Local Development Plan Reserve 203 0 0 203 (29) 0 174 Waste Strategy Reserve 95 (95) 0 0 0 0 0 Carbon Emission Reserve 545 (468) 225 302 (5) 296 593 Cremation Plant Replacement Reserve 23 0 0 23 0 0 23 Section 106278 Reserve 514 (186) 0 328 0 0 328 North Wales Regional Transformation 0 0 109 109 (109) 0 0 Miscellaneous 53 (13) 5 45 0 1 46 Grant Reserves 5359 (1467) 610 4502 (548) 886 4840

Total 21801 (7638) 3694 17857 (2510) 3489 18836

Service Reserves - represents service underspends as part of the Councils carry forward arrangements for use in subsequent years

Insurance Reserve - the reserve is held to fund any future liabilities such as MMI ( note 41 ) and claims that exceed budget

Legal Liabilities Reserve - amount set aside to provide for any future legal liabilities

Winter Maintenance Reserve - amount set aside to cover costs due to unforeseen adverse weather conditions

Early Voluntary Retirement amp Transitional EVR Reserve - to fund early retirements and redundancy costs following reshaping services

Reshaping Services Reserve - an amount set aside to aid the transformation process to realise future savings for the Council

Invest To Save Reserve - provision for the investment in various plans to realise permanent financial savings

Capital Reserve - represents resources already committed to finance part of the Councils five year Non-HRA Capital Programme

Repairs and Maintenance Reserve - to respond to future uneven expenditure patterns

ITeC Reserve - ITeC provides information technology training for the benefit of the local economy and the reserve has been established to respond to future uneven expenditure patterns

IT Development amp Customer Access - to fund various IT enhancements and Self Service ICT development

Local Development Plan (LDP) Reserve - to fund costs associated with the adoption of the LDP

Waste Strategy Reserve - amount set aside to mitigate the impact of proposed reduction in the Waste Management grant

Carbon Emission Reserve - to partly fund the carbon reduction plan programme of works to reduce carbon emissions

Cremation Plant Replacement Reserve - to partly fund the cost of mercury abatement

Section 106278 Reserve - represents income from contractors which have no conditions attached but which have been set aside to fund various infrastructure projects

North Wales Regional Transformation - represents underspend on contribution made to fund North Wales Regional projects carried forward for use in subsequent years

Miscellaneous - to meet a variety of other commitments including crematorium donations and school brass band

Grant Reserves - represent income from Government grants received which have no conditions attached but which have been set aside for use in the provision of specific services

- 17 shy

NOTES TO THE ACCOUNTS

6 Other Operating Expenditure

201617 201718 pound000 pound000

2355 Community Council Precepts 2383 12716 Police and Crime Commissioner for North Wales Precept 13237

6433 North Wales Fire Authority levy 6575 734 Pensions Administration Costs 746 447 Losses (Gains) on the disposal of non current assets (32)

22685 Total 22909

7 Financing and Investment Income and Expenditure

201617 201718 pound000 pound000

17699 Interest payable and similar charges 17931 8656 Pensions Net Interest 7100

(58) Interest receivable and similar income (33)

26297 Total 24998

8 Taxation and Non Specific Grant Income

Restated 201617 201718

pound000 pound000

(59357) Council tax income (61723) (40435) Non-domestic rates (43628)

(129333) Non-ringfenced government grants (125819) (14709) Capital grants and contributions (15425)

(243834) Total (246595)

9 Audit Costs

In 201718 the Council incurred the following fees relating to external audit and inspection

201617 201718 pound000 pound000

176 Fees payable to the Wales Audit Office with regard to external audit services 176 86 Fees payable to the Wales Audit Office for the Local Government measure 85 90 Fees payable to the Wales Audit Office for the certification of grant claims and returns 80

352 341

10 Members Allowances

In 201718 allowances totalling pound955k (pound951k 201617) were paid directly to Elected Members and in addition allowances totalling pound9k (pound5k in 201617) were paid to co-opted Members inclusive of an element of expenses Further information is available on the Councils website

httpwwwwrexhamgovukenglishcouncilfinancialmembers_remunerationhtm

11 Minimum Revenue Provision

This is a statutory provision for the repayment of debt as required by the Local Authority (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 The minimum revenue provision is calculated by reference to the overall indebtedness of the Council

201617 201718 pound000 pound000

5343 Housing amount 6539 5720 Non-housing amount 4046

870 Charge for the principal part of the finance lease rentals payable 932 721 PFI - repayment of liability 765

12654 Minimum Revenue Provision 12282

-18shy

NARRATIVE REPORT

8 Pension Liability

81 The Statement of Accounts as presented complies with the requirements of International Accounting Standard 19 (IAS 19) in that the Comprehensive Income and Expenditure Account reflects the current year cost of pension provision to employees as advised by the Councilrsquos actuary Mercers In addition the Balance Sheet contains the actuaryrsquos assessment of the Councilrsquos share of the Pension Fund liability (pound283m) as at 31 March 2018 and the reserve needed to fund that liability The disclosed pension fund liability is the total projected deficit that exists over the expected life of the fund This deficit will change on an annual basis dependent on the performance of investments and the actuarial assumptions that are made in terms of current pensioners deferred pensioners and current employees

9 Interest in Companies and Other Entities

91 Wrexham Commercial Services a wholly owned subsidiary of the Council was incorporated on 1 October 2014 and commenced trading on 1 January 2015 The company has been established to trade in specified council services but initially in cleaning services The Council has not prepared Group Accounts on the grounds that there would be no material difference to the Councilrsquos single entity accounts A copy of Wrexham Commercial Servicesrsquo audited financial statements for the twelve months to 31 March 2018 can be obtained from Wrexham Commercial Services Ltd Council Offices Ruthin Road Wrexham LL13 7TU

10 Changes to the Core Statements

101 Previously the cost of the Council Tax Reduction scheme (CTRS) has been shown in the Comprehensive Income and Expenditure Account Statement (CIampES) and relevant notes to the accounts as an expense and the Council Tax Collected has been shown gross of these reductions The Council has been advised that it is inappropriate to disclose CTRS as an expense in the CIampES and that Council Tax Collected should be shown net of CTRS The 201617 comparative data in the CIampES and the Expenditure amp Funding Analysis and relevant notes have been restated to reflect this change There has been no impact on the Balance Sheet as a result of this change

102 A further change has been made to the CIampES in 201718 for the accounting treatment of care home fees The Council makes payments to residential care homes based on the gross charge less client contributions In previous years the CIampES has shown the gross charge as expenditure and the client contributions as income The Code suggests that the expenditure in the CIampES should include the Councilrsquos contribution only (ie net of client contributions) The 201617 comparative data in the CIampES and note 61 Notes to the Accounts have been restated to reflect this change

11 Financial Outlook for the Council

111 On 21 February 2018 the Council approved a Medium Term Financial Strategy which highlighted a potential revenue shortfall of approximately pound11m for the period 201920 to 202021 The strategy can be accessed by the following link

httpwwwwrexhamgovuktop_navigationsearchindexhtmq=medium20term20financial20strategy

112 It is clear that the financial outlook for the Council in terms of Welsh Government funding and support for both Revenue and Capital expenditure is likely to reduce in the medium term in line with the UK Government austerity measures Whilst precise details of funding available to the Council for 201920 and beyond have not been announced the Council anticipates a funding shortfall of around pound11m over the period 201920 to 202021

12 Further Information

121 Further information about the accounts and budgets of the Council is available from the Head of Finance W rexham County Borough Council Lambpit Street Wrexham This is part of the Councilrsquos policy of providing full information about the Councilrsquos financial affairs In addition members of the public have a statutory right to inspect the accounts before the audit is completed The availability of the accounts for inspection is advertised on the Councilrsquos website and in one conspicuous public place as required by the Accounts and Audit (Wales) (Amendment) Regulations 2018 The Statement of Accounts will also be available on the Authorityrsquos website (wwwwrexhamgovuk)

M S Owen

Head of Finance

-6shy

Statement

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Council is required under the Code to include a Statement of Responsibilities in the Statement of Accounts which sets out the respective responsibilities of the Council and the Head of Finance in respect of these Accounts

The Councils Responsibilities

The Council is required to make arrangements

bull for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs In this Council that officer is the Head of Finance

bull to manage its affairs to secure economic efficient and effective use of resources and safeguard its assets

bull to approve the of Accounts

Chai r

The Responsibility of the Head of Finance

The Head of Finance is responsible for the preparation of the Authoritys Statement of Accounts in accordance with proper practices as set out in the CIPFALASAAC Code of Practice on Local Authority Accounting in the United Kingdom 201718 (the Code)

In preparing this Statement of Accounts the Head of Finance has

bull selected suitable accounting policies and then applied them consistently

bull made judgements and estimates that were reasonable and prudent

bull complied with the local authority Code

The Head of Finance has also

bull kept proper accounting records which were up to date

bull taken reasonable steps for the prevention and detection of fraud and other irregularities

Head of Finances Certificate

The Statement of Accounts has been prepared in accordance with the Code and gives a true and fair view of the financial position of the Council at the accounting date and its income and expenditure for the year ended 31 March 2018

_ 7

MS Owen CPFA

Head of Finance

-7-

EXPENDITURE AND FUNDING ANALYSIS

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax and rent payers how the funding available to the Council (ie government grants rents and council tax) for the year has been used in providing services in comparison with those resources consumed or earned 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 Councils departments Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement

Restated 201617 201718

Net Net Net Net Expenditure Expenditure Expenditure Expenditure Chargeable Adjustments in the Chargeable Adjustments in the to General between Comprehensive to General between Comprehensive Fund and Funding and Income amp Fund and Funding and Income amp

HRA Accounting Statement HRA Accounting Statement Balances basis Balances basis

pound000 pound000 pound000 pound000 pound000 pound000

34796 (3461) 31335 Environment amp Planning 32826 1744 34570

6836 1678 8514 Housing amp Economy 6540 3227 9767

434 (2555) (2121) Housing Revenue Account 971 (10310) (9339)

38412 222 38634 Adult Social Care 38396 1080 39476

13655 (462) 13193 Childrens Social Care 15042 319 15361

5305 9392 14697 Education 5117 6030 11147

79539 (236) 79303 Schools 79725 (6) 79719

6960 45 7005 Corporate amp Customer Services 7901 535 8436

5199 (281) 4918 Finance 4925 171 5096

1857 (194) 1663 Repair amp Maintenance 2035 (123) 1912

9024 (2115) 6909 Corporate amp Central 7279 (1821) 5458

202017 2033 204050 Cost of Services 200757 846 201603

21504 1181 22685 Other Operating Expenditure 22195 714 22909

9982 16315 26297 Financing and Investment Income and 8210 16788 24998 Expenditure

(229125) (14709) (243834) Taxation and Non Specific Grant Income (231170) (15425) (246595)

4378 4820 9198 (Surplus) Deficit (8) 2923 2915

(35254) Opening General Fund amp HRA (30876)

4378 Add (Surplus) Deficit on General (8) Fund and HRA Balance in Year

(30876) Closing General Fund and (30884) HRA Balance at 31 March

Analysed between General Fund and HRA Balances

General Fund HRA Total General Fund HRA Total pound000 pound000 pound000 pound000 pound000 pound000

(28819) (6435) (35254) Opening General Fund amp HRA Balance (24875) (6001) (30876)

3944 434 4378 Add Surplus (Deficit) on General Fund (979) 971 (8) and HRA Balances in year

(24875) (6001) (30876) Closing General Fund and HRA (25854) (5030) (30884) Balance at 31 March

Income and Expenditure recognised in accordance with generally accepted accounting practices can be seen in the Comprehensive Income and Expenditure Statement on page 10

An analysis of the movements on the HRA balance may be found in the Movement on the Housing Revenue Account Statement on page 61

- 8 shy

NOTE TO THE EXPENDITURE amp FUNDING ANALYSIS

Note to the Expenditure and Funding Analysis

This note provides a reconciliation of the main adjustments to Net Expenditure Chargeable to the General Fund and HRA Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIampES) The relevant transfers between reserves are explained in the Movement in Reserves Statement on page 11

201718 201617

Adjustment from General Fund and Net change for Net change for HRA to arrive at the Comprehensive Adjustment for the Pension Other Total Adjustment for the Pension Other Total Income and Expenditure Statement Capital Purposes Adjustments Differences Adjustments Capital Purposes Adjustments Differences Adjustments amounts (Note a) (Note b) (Note c) (Note a) (Note b) (Note c)

pound000 pound000 pound000 pound000 pound000 pound000 pound000 pound000

Environment amp Planning 1464 346 (66) 1744 (2935) (528) 2 (3461) Housing amp Economy 2909 260 58 3227 2027 (369) 20 1678 Housing Revenue Account (10612) 278 24 (10310) (2401) (179) 25 (2555) Adult Social Care 661 423 (4) 1080 1132 (910) 0 222 Childrens Social Care 35 273 11 319 (7) (456) 1 (462) Education 5851 237 (58) 6030 9816 (472) 48 9392 Schools (81) 699 (624) (6) (136) (491) 391 (236) Corporate amp Customer Services 339 201 (5) 535 289 (249) 5 45 Finance 0 173 (2) 171 5 (285) (1) (281) Repair amp Maintenance (124) 0 1 (123) (194) 0 0 (194) Corporate amp Central - Services 309 (2129) (1) (1821) (48) (2060) (7) (2115) Cost of Services 751 761 (666) 846 7548 (5999) 484 2033

Other Operating Expenditure (32) 746 0 714 447 734 0 1181 Financing and Investment Income and 9821 7100 (133) 16788 7862 8656 (203) 16315 Expenditure Taxation and Non Specific Grant Income (15425) 0 0 (15425) (14709) 0 0 (14709)

General Fund or HRA Balance (4885) 8607 (799) 2923 1148 3391 281 4820 (Surplus) Deficit

a) Adjustments for Capital Purposes (i) Services line - this column adds in depreciation amortisation impairment and revaluation gains and losses (ii) Other Operating Expenditure - adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets (iii) Financing and Investment Income and Expenditure and Services line - the statutory charges for capital financing ie minimum revenue provision and other revenue contributions are deducted as these are not chargeable under general accepted accounting practices (iv) Taxation and Non Specific Grant Income and Expenditure - capital grants are adjusted for income not chargeable under generally accepted accounting practices Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year The Taxation and Non Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year

b) Net change for the removal of pension contributions and the addition of pension (IAS 19) related expenditure and income Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income (i) For services this represents the removal of the employer pension contributions made by the authority as permitted by statute and the replacement with current service costs and past service curtailment costs (ii) For Other Operating Expenditure - this adjustment is for pensions administration costs (iii) For Financing and Investment Income and Expenditure - the net interest on the defined benefit liability is charged to the CIampES

c) Other Differences Other Differences between amounts debitedcredited to the CIampES and amounts payablereceivable to be recognised under statute (i) For Services line - this includes an adjustment for accumulated absences earned but not taken in the year (ii) For Financing and Investment Income and Expenditure the other differences column recognises adjustments to General Fund for the timing differences for premiums and discounts

- 9 shy

COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT STATEMENT

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 and rents Authorities raise taxation and rents to cover expenditure in accordance with statutory requirements this may be different from the accounting cost The taxation position is shown in both the Expenditure and Funding Analysis and the Movement in Reserves Statement The service analysis provides the total direct costs of providing the services

Gross Expenditure

pound000

Restated 201617

Income pound000

Net Expenditure

pound000

Notes Gross Expenditure

pound000

201718

Income pound000

Net Expenditure

pound000

44943 (13608) 31335 Environment amp Planning 47154 (12584) 34570

67848 (59334) 8514 Housing amp Economy 63359 (53592) 9767

47028 (49149) (2121) Housing Revenue Account 41770 (51109) (9339)

49751 (11117) 38634 Adult Social Care 51966 (12490) 39476

19044 (5851) 13193 Childrens Social Care 22326 (6965) 15361

21339 (6642) 14697 Education 18342 (7195) 11147

90155 (10852) 79303 Schools 91354 (11635) 79719

8199 (1194) 7005 Corporate amp Customer Services 9571 (1135) 8436

5805 (887) 4918 Finance 6370 (1274) 5096

1663 0 1663 Repair amp Maintenance 1912 0 1912

13328

369103

(6419)

(165053)

6909

204050

Corporate amp Central

Cost of Services

11148

365272

(5690)

(163669)

5458

201603

22685 0 22685 Other Operating Expenditure 6 22909 0 22909

42498 (16201) 26297 Financing and Investment Income and Expenditure

7 38864 (13866) 24998

0 (243834) (243834) Taxation and Non Specific Grant Income 8 0 (246595) (246595)

434286 (425088) 9198 (Surplus) or Deficit on Provision of Services 427045 (424130) 2915

(27524) (Surplus) or Deficit on revaluation of non-current assets

50 (5656)

3627 Impairment losses on non-current assets charged to the revaluation reserve

50 1962

58288 Remeasurements of the net defined (asset) liability

4344 amp 53

(43498)

34391 Other Comprehensive Income and Expenditure (47192)

43589 Total Comprehensive Income and Expenditure

(44277)

-10shy

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 Council analysed into usable reserves (ie those that can be applied to fund expenditure) and other unusable reserves The movement in Reserves Statement shows how the movements in year of the Councils 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 or rents for the year The net increase decrease line shows the statutory General Fund Balance and Housing Revenue Account (HRA) movements on the year following those adjustments

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital R

ecei

pts

Res

erve

Cap

ital G

rant

sU

napp

lied

Tot

al U

sabl

eR

eser

ves

Unu

sabl

eR

eser

ves

Tot

al C

ounc

ilR

eser

ves

pound000 pound000 pound000 pound000 pound000 pound000 pound000

Balance at 1 April 2016 28819 6435 14468 802 50524 364462 414986

Movement in Reserves during 201617

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9188)

(9188)

(10)

(10)

0

0

0

0

(9198)

0

(9198)

0

(34391)

(34391)

(9198)

(34391)

(43589)

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201617

5244

(3944)

(424)

(434)

(2533)

(2533)

(58)

(58)

2229

(6969)

(2229)

(36620)

0

(43589)

Balance at 31 March 2017 24875 6001 11935 744 43555 327842 371397

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

17857

7018

24875

0

6001

6001

Balance at 1 April 2017 24875 6001 11935 744 43555 327842 371397

Movement in Reserves during 201718

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9877)

0

(9877)

6962

0

6962

0

0

0

0

0

0

(2915)

0

(2915)

0

47192

47192

(2915)

47192

44277

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201718

10856

979

(7933)

(971)

1147

1147

(175)

(175)

3895

980

(3895)

43297

0

44277

Balance at 31 March 2018 25854 5030 13082 569 44535 371139 415674

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

18836

7018

25854

0

5030

5030

-11shy

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council Reserves are reported in two categories The first category of reserves are usable reserves ie those reserves that the Council 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 Council 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 fund services if the assets are 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 2017 Notes 31 March 2018 pound000 pound000

1036752 Property Plant amp Equipment 19 1067219

506 Heritage Assets 25 507 28 Intangible Assets 28 38

114 Long-term Debtors 30 9966

1037400 Long Term Assets 1077730

2002 Short-term Investments 33 2 20 Assets Held For Sale 31 1144

620 Inventories 614 27299 Short-term Debtors 30 34708

296 Intangible Assets 29 316 2786 Cash and Cash Equivalents 34 7444

33023 Current Assets 44228

(19398) Short-term Creditors 36 (17292) (23467) Short-term Borrowing 38 (69817)

(32) Grants Receipts in Advance - Capital 60 (1524) (160) Grants Receipts in Advance - Revenue 60 (37)

(1324) Provisions 37 (1146)

(44381) Current Liabilities (89816)

(2441) Provisions 37 (2383) (7020) Long-term Creditors 36 (6575)

(298314) Long-term Borrowing 38 (296318) (28473) Other Long-term Liabilities 39 amp 40 (27686)

(318397) Net Pension Liability 44 (283506)

(654645) Long Term Liabilities (616468)

371397 Net Assets 415674

43555 Usable Reserves 47 44535 327842 Unusable Reserves 48 371139

371397 Total Reserves 415674

-12shy

CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period The statement shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Councils future service delivery Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (ie borrowing) to the Council

201617 pound000

9198 Net (surplus) deficit on the provision of services

Notes 201718 pound000

2915

(53632) Adjustment to net surplus deficit on the provision of services for non cash movements

55 (24136)

18017 Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities

56 16790

(26417) Net cash flows from Operating Activities (4431)

56733 Investing Activities 58 43298

(28255) Financing Activities 59 (43525)

2061 Net increase or decrease in cash and cash equivalents (4658)

(4847) Cash and cash equivalents at the beginning of the reporting period

(2786)

(2786) Cash and cash equivalents at the end of the reporting period 34 (7444)

-13shy

NOTES TO THE ACCOUNTS

1 Accounting Standards that have been issued but have not yet been adopted

The CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted by the Code for the relevant financial year This applies to the adoption of the following new or amended standards within the 201819 Code and require implementation from 1 April 2018

IFRS9 Financial Instruments - The main changes include the reclassification of financial assets and the earlier recognition of the impairment of financial assets The Council does not expect the reclassification changes to have a material impact upon the financial statements because the majority of its financial assets will retain the same measurement basis Furthermore the Council does not expect the impairment changes to have a material impact because the charge will be immaterial for its treasury management assets and it already makes a provision for doubtful debts on its service assets

IFRS15 Revenue from Contracts with customers - The standard will require the Council to recognise revenue in such a way that it represents the transfer of promised goods or services to the service recipient (customer) in an amount that reflects the consideration to which the Council expects to be entitled in exchange for those goods or services It is unlikely that this will have a significant impact upon the financial statements However additional disclosures may be required

The other minor changes relating to IAS7 Amendment to Statement of Cash Flows Disclosure Information and IAS12 Amendment to Income Taxes and specifically the Recognition of Deferred Tax Assets for Unrealised Losses are not expected to have a material effect on the Councils Statement of Accounts

2 Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 62 Notes to the Accounts the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events The critical judgements made in the Statement of Accounts are

a) There is some uncertainty about future levels of funding from the W elsh Government and in particular the receipt of specific revenue and capital grants The Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and significantly reduce levels of service provision The Council has a Medium Term Financial Strategy which is reviewed on a periodic basis and is available on the Councils website

b) As at 31 March 2018 there is one outstanding claim for compensation from a landowner affected by a W elsh Government grant funded road scheme No provision has been made for such payments as they would ordinarily be met by the W elsh Government as part of the scheme

c) A review of assets in particular those held for economic development purposes concluded that the Council has no assets which are held solely for the purpose of income generation or capital appreciation and therefore the Council has no investment properties

3 Assumptions made about the future and other sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Council 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 Councils Balance Sheet at 31 March 2018 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows

Item Uncertainties Effect if Actual Results Differ from Assumptions

Property Plant amp Assets are depreciated over useful lives that are dependant on If the useful life of assets is reduced depreciation increases Equipment 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 Council will be able to sustain its current spending on repairs and maintenance bringing into doubt the useful lives assigned to assets

and the carrying amount of the assets falls It is estimated that the annual depreciation charge for buildings would increase by pound122m if the useful lives were reduced by one year and pound324m if reduced by two years

PFI and Similar PFI and similar arrangements have been considered to have an A 1 increase in the RPI will increase the unitary payments Arrangements implied finance lease within the leases to calculate interest and

principal payments In addition the future RPI increase within the contracts has been estimated as remaining constant throughout the remaining period of the contract

over the next twenty years by pound285m

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 Council with expert advice about the assumptions to be applied

The effects on the net pension liability of changes in individual assumptions can be measured For instance a 01 increase in the discount rate assumption would result in a decrease in the pension liability of pound14879k However the assumptions interact in complex ways During 201718 the Councils actuaries advised that the net pensions liability had decreased by pound43498k attributable to updating of the assumptions

Arrears At 31 March 2018 the Council had a balance of sundry debtors of pound49m A review of significant balances suggested that an impairment of doubtful debts of 32 (pound158k) was appropriate However in the current economic climate it is not certain that such an allowance would be sufficient

If collection rates were to deteriorate a doubling of the amount of the impairment of doubtful debts would require an additional pound158k to be set aside as an allowance

-14shy

NOTES TO THE ACCOUNTS

4 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 Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure

Usable Reserves

201718

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES

Charges for depreciation impairment and revaluation losses of 17904 17102 0 0 (35006) non current assets

Amortisation of intangible assets 13 0 0 0 (13)

Capital grants and contributions applied (7581) (7843) 0 0 15424

Revenue expenditure funded from capital under statute 1538 5 0 0 (1543)

Amounts of non current assets written off on disposal or sale as 517 2291 0 0 (2808) part of the gain loss on disposal to the CIampES

Income in relation to donated assets (1) 0 0 0 1

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (5737) (6545) 0 0 12282

Capital Expenditure charged against the General Fund and HRA balances (1790) (11850) 0 0 13640

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES (68) 0 0 68 0

Application of grants to capital financing transferred to the Capital Adjustment Account 0 0 0 (243) 243

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gain loss on (549) (2291) 2840 0 0 disposal to the CIampES

Revenue Income defined as capital under statute 0 0 0 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (1709) 0 1709

Transfer (to) from Capital Adjustment account - set aside

- Repayments of loans to voluntary bodies 0 0 15 0 (15)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 1 0 (1)

Total Adjustments for Capital Purposes (see page 9) 4246 (9131) 1147 (175) 3913

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the 26793 3516 0 0 (30309) CIampES - see note 43 amp 53

Employers pension contributions payable in the year (19360) (2342) 0 0 21702

Net Change for Pensions Adjustments (see page 9) 7433 1174 0 0 (8607)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from (109) 5 0 0 104 finance costs chargeable in the year in accordance with statutory requirements

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES on an (714) 19 0 0 695 accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

Total Other Differences (see page 9) (823) 24 0 0 799

Total Adjustments 10856 (7933) 1147 (175) (3895)

-15shy

NOTES TO THE ACCOUNTS

4 Adjustments between Accounting Basis and Funding Basis Under Regulations contd

Usable Reserves

201617 Comparative figures

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES Statement

Charges for depreciation impairment and revaluation losses of non current assets

19500 24828 0 0 (44328)

Amortisation of intangible assets 16 0 0 0 (16)

Capital grants and contributions applied (6827) (7880) 0 0 14707

Revenue expenditure funded from capital under statute 819 5 0 0 (824)

Amounts of non current assets written off on disposal or sale as part of the gainloss on disposal to the CIampES

2625 1870 0 0 (4495)

Income in relation to donated assets (2) 0 0 0 2

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (7306) (5348) 0 0 12654

Capital Expenditure charged against the General Fund and HRA balances (3995) (12900) 0 0 16895

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES

(86) 0 0 86 0

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

0 0 0 (144) 144

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gainloss on disposal to the CIampES

(2190) (1858) 4048 0 0

Revenue Income defined as capital under statute (118) (5) 123 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (6724) 0 6724

Transfer (to) from Capital Adjustment account - set aside 0 0 0 0 0

- Repayments of loans to voluntary bodies 0 0 18 0 (18)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 2 0 (2)

Total Adjustments for Capital Purposes (see page 9) 2436 (1288) (2533) (58) 1443

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the CIampES - see note 43 amp 53

22134 2857 0 0 (24991)

Employers pension contributions payable in the year (19582) (2018) 0 0 21600

Net Change for Pensions Adjustments (see page 9) 2552 839 0 0 (3391)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from finance costs chargeable in the year in accordance with statutory requirements

(194) 8 0 0 186

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

450 17 0 0 (467)

Total Other Differences (see page 9) 256 25 0 0 (281)

Total Adjustments 5244 (424) (2533) (58) (2229)

-16shy

NOTES TO THE ACCOUNTS

5 Transfers to (from) Earmarked Reserves

This note sets out the amounts set aside from the General Fund and HRA balances in earmarked reserves to provide financing for future expenditure plans and also the amounts posted back from earmarked reserves to meet General Fund and HRA expenditure in 201718

201617 201718 Balance at Transfers Transfers Balance at Transfers Transfers Balance at 0142016 Out In 31032017 Out In 31032018

pound000 pound000 pound000 pound000 pound000 pound000 pound000

General Fund Balances held by schools 2580 (1297) 359 1642 (653) 1023 2012 Service Reserves 710 (184) 609 1135 (357) 276 1054 Insurance Reserve 2402 0 17 2419 0 220 2639 Legal Liabilities Reserve 485 (34) 800 1251 (178) 0 1073 Winter Maintenance Reserve 300 0 0 300 (295) 345 350 Early Voluntary Retirement Reserve (EVR) 94 0 0 94 0 0 94 Transitional EVR Reserve 1495 (146) 0 1349 0 0 1349 Reshaping Services Reserve 2062 (1247) 0 815 (29) 0 786 Invest To Save Reserve 61 0 75 136 0 259 395 Capital Reserve 4003 (2251) 885 2637 (103) 183 2717 Repairs and Maintenance Reserve 250 (100) 0 150 (50) 0 100 ITeC Reserve 510 (150) 0 360 (154) 0 206 IT Development 42 0 0 42 0 0 42 Customer Access 15 0 0 15 0 0 15 Local Development Plan Reserve 203 0 0 203 (29) 0 174 Waste Strategy Reserve 95 (95) 0 0 0 0 0 Carbon Emission Reserve 545 (468) 225 302 (5) 296 593 Cremation Plant Replacement Reserve 23 0 0 23 0 0 23 Section 106278 Reserve 514 (186) 0 328 0 0 328 North Wales Regional Transformation 0 0 109 109 (109) 0 0 Miscellaneous 53 (13) 5 45 0 1 46 Grant Reserves 5359 (1467) 610 4502 (548) 886 4840

Total 21801 (7638) 3694 17857 (2510) 3489 18836

Service Reserves - represents service underspends as part of the Councils carry forward arrangements for use in subsequent years

Insurance Reserve - the reserve is held to fund any future liabilities such as MMI ( note 41 ) and claims that exceed budget

Legal Liabilities Reserve - amount set aside to provide for any future legal liabilities

Winter Maintenance Reserve - amount set aside to cover costs due to unforeseen adverse weather conditions

Early Voluntary Retirement amp Transitional EVR Reserve - to fund early retirements and redundancy costs following reshaping services

Reshaping Services Reserve - an amount set aside to aid the transformation process to realise future savings for the Council

Invest To Save Reserve - provision for the investment in various plans to realise permanent financial savings

Capital Reserve - represents resources already committed to finance part of the Councils five year Non-HRA Capital Programme

Repairs and Maintenance Reserve - to respond to future uneven expenditure patterns

ITeC Reserve - ITeC provides information technology training for the benefit of the local economy and the reserve has been established to respond to future uneven expenditure patterns

IT Development amp Customer Access - to fund various IT enhancements and Self Service ICT development

Local Development Plan (LDP) Reserve - to fund costs associated with the adoption of the LDP

Waste Strategy Reserve - amount set aside to mitigate the impact of proposed reduction in the Waste Management grant

Carbon Emission Reserve - to partly fund the carbon reduction plan programme of works to reduce carbon emissions

Cremation Plant Replacement Reserve - to partly fund the cost of mercury abatement

Section 106278 Reserve - represents income from contractors which have no conditions attached but which have been set aside to fund various infrastructure projects

North Wales Regional Transformation - represents underspend on contribution made to fund North Wales Regional projects carried forward for use in subsequent years

Miscellaneous - to meet a variety of other commitments including crematorium donations and school brass band

Grant Reserves - represent income from Government grants received which have no conditions attached but which have been set aside for use in the provision of specific services

- 17 shy

NOTES TO THE ACCOUNTS

6 Other Operating Expenditure

201617 201718 pound000 pound000

2355 Community Council Precepts 2383 12716 Police and Crime Commissioner for North Wales Precept 13237

6433 North Wales Fire Authority levy 6575 734 Pensions Administration Costs 746 447 Losses (Gains) on the disposal of non current assets (32)

22685 Total 22909

7 Financing and Investment Income and Expenditure

201617 201718 pound000 pound000

17699 Interest payable and similar charges 17931 8656 Pensions Net Interest 7100

(58) Interest receivable and similar income (33)

26297 Total 24998

8 Taxation and Non Specific Grant Income

Restated 201617 201718

pound000 pound000

(59357) Council tax income (61723) (40435) Non-domestic rates (43628)

(129333) Non-ringfenced government grants (125819) (14709) Capital grants and contributions (15425)

(243834) Total (246595)

9 Audit Costs

In 201718 the Council incurred the following fees relating to external audit and inspection

201617 201718 pound000 pound000

176 Fees payable to the Wales Audit Office with regard to external audit services 176 86 Fees payable to the Wales Audit Office for the Local Government measure 85 90 Fees payable to the Wales Audit Office for the certification of grant claims and returns 80

352 341

10 Members Allowances

In 201718 allowances totalling pound955k (pound951k 201617) were paid directly to Elected Members and in addition allowances totalling pound9k (pound5k in 201617) were paid to co-opted Members inclusive of an element of expenses Further information is available on the Councils website

httpwwwwrexhamgovukenglishcouncilfinancialmembers_remunerationhtm

11 Minimum Revenue Provision

This is a statutory provision for the repayment of debt as required by the Local Authority (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 The minimum revenue provision is calculated by reference to the overall indebtedness of the Council

201617 201718 pound000 pound000

5343 Housing amount 6539 5720 Non-housing amount 4046

870 Charge for the principal part of the finance lease rentals payable 932 721 PFI - repayment of liability 765

12654 Minimum Revenue Provision 12282

-18shy

Statement

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS

The Council is required under the Code to include a Statement of Responsibilities in the Statement of Accounts which sets out the respective responsibilities of the Council and the Head of Finance in respect of these Accounts

The Councils Responsibilities

The Council is required to make arrangements

bull for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs In this Council that officer is the Head of Finance

bull to manage its affairs to secure economic efficient and effective use of resources and safeguard its assets

bull to approve the of Accounts

Chai r

The Responsibility of the Head of Finance

The Head of Finance is responsible for the preparation of the Authoritys Statement of Accounts in accordance with proper practices as set out in the CIPFALASAAC Code of Practice on Local Authority Accounting in the United Kingdom 201718 (the Code)

In preparing this Statement of Accounts the Head of Finance has

bull selected suitable accounting policies and then applied them consistently

bull made judgements and estimates that were reasonable and prudent

bull complied with the local authority Code

The Head of Finance has also

bull kept proper accounting records which were up to date

bull taken reasonable steps for the prevention and detection of fraud and other irregularities

Head of Finances Certificate

The Statement of Accounts has been prepared in accordance with the Code and gives a true and fair view of the financial position of the Council at the accounting date and its income and expenditure for the year ended 31 March 2018

_ 7

MS Owen CPFA

Head of Finance

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EXPENDITURE AND FUNDING ANALYSIS

The objective of the Expenditure and Funding Analysis is to demonstrate to council tax and rent payers how the funding available to the Council (ie government grants rents and council tax) for the year has been used in providing services in comparison with those resources consumed or earned 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 Councils departments Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement

Restated 201617 201718

Net Net Net Net Expenditure Expenditure Expenditure Expenditure Chargeable Adjustments in the Chargeable Adjustments in the to General between Comprehensive to General between Comprehensive Fund and Funding and Income amp Fund and Funding and Income amp

HRA Accounting Statement HRA Accounting Statement Balances basis Balances basis

pound000 pound000 pound000 pound000 pound000 pound000

34796 (3461) 31335 Environment amp Planning 32826 1744 34570

6836 1678 8514 Housing amp Economy 6540 3227 9767

434 (2555) (2121) Housing Revenue Account 971 (10310) (9339)

38412 222 38634 Adult Social Care 38396 1080 39476

13655 (462) 13193 Childrens Social Care 15042 319 15361

5305 9392 14697 Education 5117 6030 11147

79539 (236) 79303 Schools 79725 (6) 79719

6960 45 7005 Corporate amp Customer Services 7901 535 8436

5199 (281) 4918 Finance 4925 171 5096

1857 (194) 1663 Repair amp Maintenance 2035 (123) 1912

9024 (2115) 6909 Corporate amp Central 7279 (1821) 5458

202017 2033 204050 Cost of Services 200757 846 201603

21504 1181 22685 Other Operating Expenditure 22195 714 22909

9982 16315 26297 Financing and Investment Income and 8210 16788 24998 Expenditure

(229125) (14709) (243834) Taxation and Non Specific Grant Income (231170) (15425) (246595)

4378 4820 9198 (Surplus) Deficit (8) 2923 2915

(35254) Opening General Fund amp HRA (30876)

4378 Add (Surplus) Deficit on General (8) Fund and HRA Balance in Year

(30876) Closing General Fund and (30884) HRA Balance at 31 March

Analysed between General Fund and HRA Balances

General Fund HRA Total General Fund HRA Total pound000 pound000 pound000 pound000 pound000 pound000

(28819) (6435) (35254) Opening General Fund amp HRA Balance (24875) (6001) (30876)

3944 434 4378 Add Surplus (Deficit) on General Fund (979) 971 (8) and HRA Balances in year

(24875) (6001) (30876) Closing General Fund and HRA (25854) (5030) (30884) Balance at 31 March

Income and Expenditure recognised in accordance with generally accepted accounting practices can be seen in the Comprehensive Income and Expenditure Statement on page 10

An analysis of the movements on the HRA balance may be found in the Movement on the Housing Revenue Account Statement on page 61

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NOTE TO THE EXPENDITURE amp FUNDING ANALYSIS

Note to the Expenditure and Funding Analysis

This note provides a reconciliation of the main adjustments to Net Expenditure Chargeable to the General Fund and HRA Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement (CIampES) The relevant transfers between reserves are explained in the Movement in Reserves Statement on page 11

201718 201617

Adjustment from General Fund and Net change for Net change for HRA to arrive at the Comprehensive Adjustment for the Pension Other Total Adjustment for the Pension Other Total Income and Expenditure Statement Capital Purposes Adjustments Differences Adjustments Capital Purposes Adjustments Differences Adjustments amounts (Note a) (Note b) (Note c) (Note a) (Note b) (Note c)

pound000 pound000 pound000 pound000 pound000 pound000 pound000 pound000

Environment amp Planning 1464 346 (66) 1744 (2935) (528) 2 (3461) Housing amp Economy 2909 260 58 3227 2027 (369) 20 1678 Housing Revenue Account (10612) 278 24 (10310) (2401) (179) 25 (2555) Adult Social Care 661 423 (4) 1080 1132 (910) 0 222 Childrens Social Care 35 273 11 319 (7) (456) 1 (462) Education 5851 237 (58) 6030 9816 (472) 48 9392 Schools (81) 699 (624) (6) (136) (491) 391 (236) Corporate amp Customer Services 339 201 (5) 535 289 (249) 5 45 Finance 0 173 (2) 171 5 (285) (1) (281) Repair amp Maintenance (124) 0 1 (123) (194) 0 0 (194) Corporate amp Central - Services 309 (2129) (1) (1821) (48) (2060) (7) (2115) Cost of Services 751 761 (666) 846 7548 (5999) 484 2033

Other Operating Expenditure (32) 746 0 714 447 734 0 1181 Financing and Investment Income and 9821 7100 (133) 16788 7862 8656 (203) 16315 Expenditure Taxation and Non Specific Grant Income (15425) 0 0 (15425) (14709) 0 0 (14709)

General Fund or HRA Balance (4885) 8607 (799) 2923 1148 3391 281 4820 (Surplus) Deficit

a) Adjustments for Capital Purposes (i) Services line - this column adds in depreciation amortisation impairment and revaluation gains and losses (ii) Other Operating Expenditure - adjusts for capital disposals with a transfer of income on disposal of assets and the amounts written off for those assets (iii) Financing and Investment Income and Expenditure and Services line - the statutory charges for capital financing ie minimum revenue provision and other revenue contributions are deducted as these are not chargeable under general accepted accounting practices (iv) Taxation and Non Specific Grant Income and Expenditure - capital grants are adjusted for income not chargeable under generally accepted accounting practices Revenue grants are adjusted from those receivable in the year to those receivable without conditions or for which conditions were satisfied throughout the year The Taxation and Non Specific Grant Income and Expenditure line is credited with capital grants receivable in the year without conditions or for which conditions were satisfied in the year

b) Net change for the removal of pension contributions and the addition of pension (IAS 19) related expenditure and income Net change for the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related expenditure and income (i) For services this represents the removal of the employer pension contributions made by the authority as permitted by statute and the replacement with current service costs and past service curtailment costs (ii) For Other Operating Expenditure - this adjustment is for pensions administration costs (iii) For Financing and Investment Income and Expenditure - the net interest on the defined benefit liability is charged to the CIampES

c) Other Differences Other Differences between amounts debitedcredited to the CIampES and amounts payablereceivable to be recognised under statute (i) For Services line - this includes an adjustment for accumulated absences earned but not taken in the year (ii) For Financing and Investment Income and Expenditure the other differences column recognises adjustments to General Fund for the timing differences for premiums and discounts

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COMPREHENSIVE INCOME AND EXPENDITURE ACCOUNT STATEMENT

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 and rents Authorities raise taxation and rents to cover expenditure in accordance with statutory requirements this may be different from the accounting cost The taxation position is shown in both the Expenditure and Funding Analysis and the Movement in Reserves Statement The service analysis provides the total direct costs of providing the services

Gross Expenditure

pound000

Restated 201617

Income pound000

Net Expenditure

pound000

Notes Gross Expenditure

pound000

201718

Income pound000

Net Expenditure

pound000

44943 (13608) 31335 Environment amp Planning 47154 (12584) 34570

67848 (59334) 8514 Housing amp Economy 63359 (53592) 9767

47028 (49149) (2121) Housing Revenue Account 41770 (51109) (9339)

49751 (11117) 38634 Adult Social Care 51966 (12490) 39476

19044 (5851) 13193 Childrens Social Care 22326 (6965) 15361

21339 (6642) 14697 Education 18342 (7195) 11147

90155 (10852) 79303 Schools 91354 (11635) 79719

8199 (1194) 7005 Corporate amp Customer Services 9571 (1135) 8436

5805 (887) 4918 Finance 6370 (1274) 5096

1663 0 1663 Repair amp Maintenance 1912 0 1912

13328

369103

(6419)

(165053)

6909

204050

Corporate amp Central

Cost of Services

11148

365272

(5690)

(163669)

5458

201603

22685 0 22685 Other Operating Expenditure 6 22909 0 22909

42498 (16201) 26297 Financing and Investment Income and Expenditure

7 38864 (13866) 24998

0 (243834) (243834) Taxation and Non Specific Grant Income 8 0 (246595) (246595)

434286 (425088) 9198 (Surplus) or Deficit on Provision of Services 427045 (424130) 2915

(27524) (Surplus) or Deficit on revaluation of non-current assets

50 (5656)

3627 Impairment losses on non-current assets charged to the revaluation reserve

50 1962

58288 Remeasurements of the net defined (asset) liability

4344 amp 53

(43498)

34391 Other Comprehensive Income and Expenditure (47192)

43589 Total Comprehensive Income and Expenditure

(44277)

-10shy

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 Council analysed into usable reserves (ie those that can be applied to fund expenditure) and other unusable reserves The movement in Reserves Statement shows how the movements in year of the Councils 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 or rents for the year The net increase decrease line shows the statutory General Fund Balance and Housing Revenue Account (HRA) movements on the year following those adjustments

Gen

eral

Fun

dB

alan

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Hou

sing

Rev

enue

Acc

ount

Cap

ital R

ecei

pts

Res

erve

Cap

ital G

rant

sU

napp

lied

Tot

al U

sabl

eR

eser

ves

Unu

sabl

eR

eser

ves

Tot

al C

ounc

ilR

eser

ves

pound000 pound000 pound000 pound000 pound000 pound000 pound000

Balance at 1 April 2016 28819 6435 14468 802 50524 364462 414986

Movement in Reserves during 201617

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9188)

(9188)

(10)

(10)

0

0

0

0

(9198)

0

(9198)

0

(34391)

(34391)

(9198)

(34391)

(43589)

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201617

5244

(3944)

(424)

(434)

(2533)

(2533)

(58)

(58)

2229

(6969)

(2229)

(36620)

0

(43589)

Balance at 31 March 2017 24875 6001 11935 744 43555 327842 371397

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

17857

7018

24875

0

6001

6001

Balance at 1 April 2017 24875 6001 11935 744 43555 327842 371397

Movement in Reserves during 201718

Surplus (Deficit) on the provision of services

Other Comprehensive Income and Expenditure

Total Comprehensive Income and Expenditure

(9877)

0

(9877)

6962

0

6962

0

0

0

0

0

0

(2915)

0

(2915)

0

47192

47192

(2915)

47192

44277

Adjustments between accounting basis amp funding basis under regulations (note 4)

Net Increase (Decrease) in 201718

10856

979

(7933)

(971)

1147

1147

(175)

(175)

3895

980

(3895)

43297

0

44277

Balance at 31 March 2018 25854 5030 13082 569 44535 371139 415674

Analysed overshy

Amounts earmarked (note 5)

Amounts uncommitted

Total Balance

18836

7018

25854

0

5030

5030

-11shy

BALANCE SHEET

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Council The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council Reserves are reported in two categories The first category of reserves are usable reserves ie those reserves that the Council 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 Council 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 fund services if the assets are 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 2017 Notes 31 March 2018 pound000 pound000

1036752 Property Plant amp Equipment 19 1067219

506 Heritage Assets 25 507 28 Intangible Assets 28 38

114 Long-term Debtors 30 9966

1037400 Long Term Assets 1077730

2002 Short-term Investments 33 2 20 Assets Held For Sale 31 1144

620 Inventories 614 27299 Short-term Debtors 30 34708

296 Intangible Assets 29 316 2786 Cash and Cash Equivalents 34 7444

33023 Current Assets 44228

(19398) Short-term Creditors 36 (17292) (23467) Short-term Borrowing 38 (69817)

(32) Grants Receipts in Advance - Capital 60 (1524) (160) Grants Receipts in Advance - Revenue 60 (37)

(1324) Provisions 37 (1146)

(44381) Current Liabilities (89816)

(2441) Provisions 37 (2383) (7020) Long-term Creditors 36 (6575)

(298314) Long-term Borrowing 38 (296318) (28473) Other Long-term Liabilities 39 amp 40 (27686)

(318397) Net Pension Liability 44 (283506)

(654645) Long Term Liabilities (616468)

371397 Net Assets 415674

43555 Usable Reserves 47 44535 327842 Unusable Reserves 48 371139

371397 Total Reserves 415674

-12shy

CASH FLOW STATEMENT

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting period The statement shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Councils future service delivery Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (ie borrowing) to the Council

201617 pound000

9198 Net (surplus) deficit on the provision of services

Notes 201718 pound000

2915

(53632) Adjustment to net surplus deficit on the provision of services for non cash movements

55 (24136)

18017 Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities

56 16790

(26417) Net cash flows from Operating Activities (4431)

56733 Investing Activities 58 43298

(28255) Financing Activities 59 (43525)

2061 Net increase or decrease in cash and cash equivalents (4658)

(4847) Cash and cash equivalents at the beginning of the reporting period

(2786)

(2786) Cash and cash equivalents at the end of the reporting period 34 (7444)

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NOTES TO THE ACCOUNTS

1 Accounting Standards that have been issued but have not yet been adopted

The CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the Code) requires the disclosure of information relating to the expected impact of an accounting change that will be required by a new standard that has been issued but not yet adopted by the Code for the relevant financial year This applies to the adoption of the following new or amended standards within the 201819 Code and require implementation from 1 April 2018

IFRS9 Financial Instruments - The main changes include the reclassification of financial assets and the earlier recognition of the impairment of financial assets The Council does not expect the reclassification changes to have a material impact upon the financial statements because the majority of its financial assets will retain the same measurement basis Furthermore the Council does not expect the impairment changes to have a material impact because the charge will be immaterial for its treasury management assets and it already makes a provision for doubtful debts on its service assets

IFRS15 Revenue from Contracts with customers - The standard will require the Council to recognise revenue in such a way that it represents the transfer of promised goods or services to the service recipient (customer) in an amount that reflects the consideration to which the Council expects to be entitled in exchange for those goods or services It is unlikely that this will have a significant impact upon the financial statements However additional disclosures may be required

The other minor changes relating to IAS7 Amendment to Statement of Cash Flows Disclosure Information and IAS12 Amendment to Income Taxes and specifically the Recognition of Deferred Tax Assets for Unrealised Losses are not expected to have a material effect on the Councils Statement of Accounts

2 Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 62 Notes to the Accounts the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events The critical judgements made in the Statement of Accounts are

a) There is some uncertainty about future levels of funding from the W elsh Government and in particular the receipt of specific revenue and capital grants The Council has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Council might be impaired as a result of a need to close facilities and significantly reduce levels of service provision The Council has a Medium Term Financial Strategy which is reviewed on a periodic basis and is available on the Councils website

b) As at 31 March 2018 there is one outstanding claim for compensation from a landowner affected by a W elsh Government grant funded road scheme No provision has been made for such payments as they would ordinarily be met by the W elsh Government as part of the scheme

c) A review of assets in particular those held for economic development purposes concluded that the Council has no assets which are held solely for the purpose of income generation or capital appreciation and therefore the Council has no investment properties

3 Assumptions made about the future and other sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Council 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 Councils Balance Sheet at 31 March 2018 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows

Item Uncertainties Effect if Actual Results Differ from Assumptions

Property Plant amp Assets are depreciated over useful lives that are dependant on If the useful life of assets is reduced depreciation increases Equipment 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 Council will be able to sustain its current spending on repairs and maintenance bringing into doubt the useful lives assigned to assets

and the carrying amount of the assets falls It is estimated that the annual depreciation charge for buildings would increase by pound122m if the useful lives were reduced by one year and pound324m if reduced by two years

PFI and Similar PFI and similar arrangements have been considered to have an A 1 increase in the RPI will increase the unitary payments Arrangements implied finance lease within the leases to calculate interest and

principal payments In addition the future RPI increase within the contracts has been estimated as remaining constant throughout the remaining period of the contract

over the next twenty years by pound285m

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 Council with expert advice about the assumptions to be applied

The effects on the net pension liability of changes in individual assumptions can be measured For instance a 01 increase in the discount rate assumption would result in a decrease in the pension liability of pound14879k However the assumptions interact in complex ways During 201718 the Councils actuaries advised that the net pensions liability had decreased by pound43498k attributable to updating of the assumptions

Arrears At 31 March 2018 the Council had a balance of sundry debtors of pound49m A review of significant balances suggested that an impairment of doubtful debts of 32 (pound158k) was appropriate However in the current economic climate it is not certain that such an allowance would be sufficient

If collection rates were to deteriorate a doubling of the amount of the impairment of doubtful debts would require an additional pound158k to be set aside as an allowance

-14shy

NOTES TO THE ACCOUNTS

4 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 Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure

Usable Reserves

201718

Gen

eral

Fun

dB

alan

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Hou

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Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

pplie

d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES

Charges for depreciation impairment and revaluation losses of 17904 17102 0 0 (35006) non current assets

Amortisation of intangible assets 13 0 0 0 (13)

Capital grants and contributions applied (7581) (7843) 0 0 15424

Revenue expenditure funded from capital under statute 1538 5 0 0 (1543)

Amounts of non current assets written off on disposal or sale as 517 2291 0 0 (2808) part of the gain loss on disposal to the CIampES

Income in relation to donated assets (1) 0 0 0 1

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (5737) (6545) 0 0 12282

Capital Expenditure charged against the General Fund and HRA balances (1790) (11850) 0 0 13640

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES (68) 0 0 68 0

Application of grants to capital financing transferred to the Capital Adjustment Account 0 0 0 (243) 243

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gain loss on (549) (2291) 2840 0 0 disposal to the CIampES

Revenue Income defined as capital under statute 0 0 0 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (1709) 0 1709

Transfer (to) from Capital Adjustment account - set aside

- Repayments of loans to voluntary bodies 0 0 15 0 (15)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 1 0 (1)

Total Adjustments for Capital Purposes (see page 9) 4246 (9131) 1147 (175) 3913

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the 26793 3516 0 0 (30309) CIampES - see note 43 amp 53

Employers pension contributions payable in the year (19360) (2342) 0 0 21702

Net Change for Pensions Adjustments (see page 9) 7433 1174 0 0 (8607)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from (109) 5 0 0 104 finance costs chargeable in the year in accordance with statutory requirements

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES on an (714) 19 0 0 695 accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

Total Other Differences (see page 9) (823) 24 0 0 799

Total Adjustments 10856 (7933) 1147 (175) (3895)

-15shy

NOTES TO THE ACCOUNTS

4 Adjustments between Accounting Basis and Funding Basis Under Regulations contd

Usable Reserves

201617 Comparative figures

Gen

eral

Fun

dB

alan

ce

Hou

sing

Rev

enue

Acc

ount

Cap

ital

Rec

eipt

sR

eser

ve

Cap

ital

Gra

nts

Una

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d

Mov

emen

tin

Unu

sabl

eR

eser

ves

pound000 pound000 pound000 pound000 pound000

Adjustments primarily involving the Capital Adjustment Account

Reversal of items debited or credited to the CIampES Statement

Charges for depreciation impairment and revaluation losses of non current assets

19500 24828 0 0 (44328)

Amortisation of intangible assets 16 0 0 0 (16)

Capital grants and contributions applied (6827) (7880) 0 0 14707

Revenue expenditure funded from capital under statute 819 5 0 0 (824)

Amounts of non current assets written off on disposal or sale as part of the gainloss on disposal to the CIampES

2625 1870 0 0 (4495)

Income in relation to donated assets (2) 0 0 0 2

Insertion of items not debited or credited to the CIampES

Statutory provision for the financing of capital investment (note 11) (7306) (5348) 0 0 12654

Capital Expenditure charged against the General Fund and HRA balances (3995) (12900) 0 0 16895

Adjustments primarily involving the Capital Grants Unapplied Account

Capital grants and contributions unapplied credited to the CIampES

(86) 0 0 86 0

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

0 0 0 (144) 144

Adjustments primarily involving the Capital Receipts Reserve

Transfer of cash sale proceeds credited as part of the gainloss on disposal to the CIampES

(2190) (1858) 4048 0 0

Revenue Income defined as capital under statute (118) (5) 123 0 0

Use of the Capital Receipts Reserve to finance new capital expenditure 0 0 (6724) 0 6724

Transfer (to) from Capital Adjustment account - set aside 0 0 0 0 0

- Repayments of loans to voluntary bodies 0 0 18 0 (18)

Transfer from Deferred Capital Receipts upon receipt of cash 0 0 2 0 (2)

Total Adjustments for Capital Purposes (see page 9) 2436 (1288) (2533) (58) 1443

Adjustments involving the Pensions Reserve

Reversal of items relating to retirement benefits debited or credited to the CIampES - see note 43 amp 53

22134 2857 0 0 (24991)

Employers pension contributions payable in the year (19582) (2018) 0 0 21600

Net Change for Pensions Adjustments (see page 9) 2552 839 0 0 (3391)

Adjustments involving the Financial Instruments Adjustment Account

Amount by which finance costs charged to the CIampES are different from finance costs chargeable in the year in accordance with statutory requirements

(194) 8 0 0 186

Adjustments involving the Accumulated Absences Account

Amount by which officer remuneration charged to the CIampES accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements

450 17 0 0 (467)

Total Other Differences (see page 9) 256 25 0 0 (281)

Total Adjustments 5244 (424) (2533) (58) (2229)

-16shy

NOTES TO THE ACCOUNTS

5 Transfers to (from) Earmarked Reserves

This note sets out the amounts set aside from the General Fund and HRA balances in earmarked reserves to provide financing for future expenditure plans and also the amounts posted back from earmarked reserves to meet General Fund and HRA expenditure in 201718

201617 201718 Balance at Transfers Transfers Balance at Transfers Transfers Balance at 0142016 Out In 31032017 Out In 31032018

pound000 pound000 pound000 pound000 pound000 pound000 pound000

General Fund Balances held by schools 2580 (1297) 359 1642 (653) 1023 2012 Service Reserves 710 (184) 609 1135 (357) 276 1054 Insurance Reserve 2402 0 17 2419 0 220 2639 Legal Liabilities Reserve 485 (34) 800 1251 (178) 0 1073 Winter Maintenance Reserve 300 0 0 300 (295) 345 350 Early Voluntary Retirement Reserve (EVR) 94 0 0 94 0 0 94 Transitional EVR Reserve 1495 (146) 0 1349 0 0 1349 Reshaping Services Reserve 2062 (1247) 0 815 (29) 0 786 Invest To Save Reserve 61 0 75 136 0 259 395 Capital Reserve 4003 (2251) 885 2637 (103) 183 2717 Repairs and Maintenance Reserve 250 (100) 0 150 (50) 0 100 ITeC Reserve 510 (150) 0 360 (154) 0 206 IT Development 42 0 0 42 0 0 42 Customer Access 15 0 0 15 0 0 15 Local Development Plan Reserve 203 0 0 203 (29) 0 174 Waste Strategy Reserve 95 (95) 0 0 0 0 0 Carbon Emission Reserve 545 (468) 225 302 (5) 296 593 Cremation Plant Replacement Reserve 23 0 0 23 0 0 23 Section 106278 Reserve 514 (186) 0 328 0 0 328 North Wales Regional Transformation 0 0 109 109 (109) 0 0 Miscellaneous 53 (13) 5 45 0 1 46 Grant Reserves 5359 (1467) 610 4502 (548) 886 4840

Total 21801 (7638) 3694 17857 (2510) 3489 18836

Service Reserves - represents service underspends as part of the Councils carry forward arrangements for use in subsequent years

Insurance Reserve - the reserve is held to fund any future liabilities such as MMI ( note 41 ) and claims that exceed budget

Legal Liabilities Reserve - amount set aside to provide for any future legal liabilities

Winter Maintenance Reserve - amount set aside to cover costs due to unforeseen adverse weather conditions

Early Voluntary Retirement amp Transitional EVR Reserve - to fund early retirements and redundancy costs following reshaping services

Reshaping Services Reserve - an amount set aside to aid the transformation process to realise future savings for the Council

Invest To Save Reserve - provision for the investment in various plans to realise permanent financial savings

Capital Reserve - represents resources already committed to finance part of the Councils five year Non-HRA Capital Programme

Repairs and Maintenance Reserve - to respond to future uneven expenditure patterns

ITeC Reserve - ITeC provides information technology training for the benefit of the local economy and the reserve has been established to respond to future uneven expenditure patterns

IT Development amp Customer Access - to fund various IT enhancements and Self Service ICT development

Local Development Plan (LDP) Reserve - to fund costs associated with the adoption of the LDP

Waste Strategy Reserve - amount set aside to mitigate the impact of proposed reduction in the Waste Management grant

Carbon Emission Reserve - to partly fund the carbon reduction plan programme of works to reduce carbon emissions

Cremation Plant Replacement Reserve - to partly fund the cost of mercury abatement

Section 106278 Reserve - represents income from contractors which have no conditions attached but which have been set aside to fund various infrastructure projects

North Wales Regional Transformation - represents underspend on contribution made to fund North Wales Regional projects carried forward for use in subsequent years

Miscellaneous - to meet a variety of other commitments including crematorium donations and school brass band

Grant Reserves - represent income from Government grants received which have no conditions attached but which have been set aside for use in the provision of specific services

- 17 shy

NOTES TO THE ACCOUNTS

6 Other Operating Expenditure

201617 201718 pound000 pound000

2355 Community Council Precepts 2383 12716 Police and Crime Commissioner for North Wales Precept 13237

6433 North Wales Fire Authority levy 6575 734 Pensions Administration Costs 746 447 Losses (Gains) on the disposal of non current assets (32)

22685 Total 22909

7 Financing and Investment Income and Expenditure

201617 201718 pound000 pound000

17699 Interest payable and similar charges 17931 8656 Pensions Net Interest 7100

(58) Interest receivable and similar income (33)

26297 Total 24998

8 Taxation and Non Specific Grant Income

Restated 201617 201718

pound000 pound000

(59357) Council tax income (61723) (40435) Non-domestic rates (43628)

(129333) Non-ringfenced government grants (125819) (14709) Capital grants and contributions (15425)

(243834) Total (246595)

9 Audit Costs

In 201718 the Council incurred the following fees relating to external audit and inspection

201617 201718 pound000 pound000

176 Fees payable to the Wales Audit Office with regard to external audit services 176 86 Fees payable to the Wales Audit Office for the Local Government measure 85 90 Fees payable to the Wales Audit Office for the certification of grant claims and returns 80

352 341

10 Members Allowances

In 201718 allowances totalling pound955k (pound951k 201617) were paid directly to Elected Members and in addition allowances totalling pound9k (pound5k in 201617) were paid to co-opted Members inclusive of an element of expenses Further information is available on the Councils website

httpwwwwrexhamgovukenglishcouncilfinancialmembers_remunerationhtm

11 Minimum Revenue Provision

This is a statutory provision for the repayment of debt as required by the Local Authority (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 The minimum revenue provision is calculated by reference to the overall indebtedness of the Council

201617 201718 pound000 pound000

5343 Housing amount 6539 5720 Non-housing amount 4046

870 Charge for the principal part of the finance lease rentals payable 932 721 PFI - repayment of liability 765

12654 Minimum Revenue Provision 12282

-18shy