Summary of the Council’s audited accounts for 2006/07

This page is intended to present a summary of the Council’s audited accounts for 2006/07. The full Statement of Accounts, together with the External Auditor’s report can be inspected at Council HQ, Council Contact Centres and Libraries.

Audited Accounts 2006-07

Final Audit Scotland Report 2006-07

Did you know?

The Council’s spending can be split into two main parts, namely

Revenue expenditure which covers the Council’s day to day running costs, including salaries and wages, transport costs, property costs, supplies etc.
Capital expenditure which provides fixed assets of lasting value, e.g. land, buildings, vehicles and equipment.

Revenue Spending

In 2006/07 the Council’s accounts underwent some major changes as they moved further in line with generally accepted accounting principles, known as ‘UK GAAP’. The key statement that deals with revenue expenditure involved with providing services and managing the Council is the Income and Expenditure Account. The cost of services for the year totalled £210.5m,

Expenditure
	£ million
The cost of providing services for the year totalled	210.5
To this we make the following adjustment for appropriations and other internal accounting	2.2
Giving total expenditure for the year of	212.7

Our revenue income for the year totalled £213.2m from the following sources,

Therefore the revenue income for the year was £0.5m more than the total expenditure and so the Council’s general reserve increased by £0.5m.

General Fund reserve
	£ million
General Fund reserve at the start of the year	14.0
Add: the amount by which our income exceeded expenditure	0.5
General Fund reserve at the end of the year	14.5

The Balance Sheet

This shows what the Council owns, what it owes and what is owed by others:

The Balance Sheet
Net Assets	31 March 2007 £ million
Land, Buildings, Equipment & Infrastructure owned by the Council	277.3
Stock	0.7
Net Cash at Bank	2.5
Short Term Investments	33.0
Money Owed to the Council	28.1
Money Owed by the Council	(48.0)
Net Long-Term Pension Liability	(50.4)
	243.2
Financed by
Net Long-Term Borrowing	(161.5)
Useable Reserves	(20.7)
Non Useable Reserves	(76.1)
Government Grants & Contributions Deferred	(35.3)
Pensions Reserve	50.4
	(243.2)

General Fund Reserve at 31 March 2007

The main part of the useable reserves is the General Fund Reserve, which totalled £14.5m at 31 March 2007. Some of this is ‘earmarked’ for specific purposes,

Capital Expenditure

This is the Council’s spending on buying and improving ‘fixed assets’ such as roads, buildings, vehicles and equipment. In 2006/07 it totalled £33.7m and the benefits to the Council and the Borders area are received over a long period of time.

How we paid for capital spending

The following major items featured within the total capital investment of £33.7m:

	£ thousand	£ thousand
Non Departmental Projects
Disability Discrimination Act improvements	379
		379
Major Corporate Projects
Heart of Hawick project	4,105
Galashiels Developments	3,330
Waverley Railway project	6,018
		13,453
Corporate Resources
E-Procurement project	205
PC replacement programme	408
IT Accommodation	262
		875
Education & Lifelong Learning
Land acquisition for 3 High Schools project	1,300
Schools’ Fund Grant aided projects	3,398
		4,698
Planning & Economic Development
Minor works projects	110
Gunsgreen House, Eyemouth	150
		260
Social Work
Minor works projects	315
Management Information System	171
		486
Technical Services
Roads, Bridges & Lighting	2,413
Cycling, Walking & Safer Streets projects	500
Provision of Vehicles	774
Strategic Waste Fund projects	1,876
Property Asset Programme	1,446
		7,009

Cash flow

	£ million
Cash at the beginning of the year	2.0
Total cash in	410.0
Total cash out	(409.5)
Cash at the end of the year	2.5