ST. HELENS BOROUGH COUNCIL

STATEMENT OF ACCOUNTS

2009-2010

TABLE OF CONTENTS Page No. FOREWORD BY CHIEF FINANCIAL OFFICER 3 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 8 THE COUNCIL (TO BE INCLUDED ONCE REPORT RECEIVED) STATEMENT OF MAIN PRINCIPLES, ACCOUNTING POLICIES 12 AND ESTIMATION TECHNIQUES STATEMENT OF RESPONSIBILITIES FOR THE 25 STATEMENT OF ACCOUNTS ANNUAL GOVERNANCE STATEMENT 26 CORE FINANCIAL STATEMENTS - INCOME AND EXPENDITURE ACCOUNT 42 - STATEMENT OF MOVEMENT ON THE GENERAL FUND 43 BALANCE - STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 44 - BALANCE SHEET 45 - CASHFLOW STATEMENT 47 NOTES TO THE CORE FINANCIAL STATEMENTS 49 SUPPLEMENTARY FINANCIAL STATEMENTS - COLLECTION FUND 92 NOTES TO THE SUPPLEMENTARY FINANCIAL STATEMENTS 93 GLOSSARY OF FINANCIAL TERMS 95 OTHER INFORMATION AVAILABLE 107

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FOREWORD By Chief Financial Officer INTRODUCTION The Statement of Accounts which follow demonstrate the Council's financial performance for the year ended 31 March 2010 and present its overall financial position at the end of that period. Each account contains an explanatory note covering the purpose of the account and more detailed notes explaining key items. The statements have been prepared in accordance with all relevant prescribed guidance, Codes of Practice and Reporting Standards. The form and content of the Statements have, once again, undergone changes in 2009-2010 as a result of amendments imposed by the CIPFA Statement of Recommended Practice (SORP), details of which are highlighted on Page 22. The purpose of this Foreword is to provide a guide to the most significant matters reported in the accounts. Expenditure falls into two broad areas, namely Revenue (concerning the provision of Council services) and Capital (the acquisition or improvement of fixed assets). REVENUE SPENDING IN 2009-2010 General Fund The original budget was set in March 2009 at £167.8M. In doing so Council Tax increases were limited to 2.5% for the eighth year in succession. The actual expenditure against this budget is summarised below:-

OriginalEstimate

£MActual

£MVariance

£MSpending on St. Helens Services Levies paid to other Bodies Parish Precepts

143.208 24.364

0.277

138.386 24.356

0.277

(4.822)(0.008)

0 Expenditure 167.849 163.019 (4.830)Revenue Support Grant (RSG) Business Rate Pool Receipts Collection Fund Receipts LAA Reward Grant Local Authority Business Growth Incentive (LABGI) Grant Area Based (ABG) Grant

(16.049)(69.534)(63.114)

0 0

(20.152)

(16.049)(69.534)(63.114)

(0.823)(0.133)

(20.654)

0 0 0

(0.823)(0.133)

(0.502)Income (168.849) (170.307) (1.458)Net Contribution (to)/from General Fund Balances

(1.000) (7.288) (6.288)

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The reduced spend is a net position and results from the following:- £M £M Savings and Underspends in Year

- Portfolio Underspends - Supporting People - Area Based Grant Schemes - Ward Committee Environmental Fund - LAA Reward Grant

(2.5)(3.0)(3.7)(0.9)(0.8)

(10.9) Less: Contribution to Earmarked Balances in Year 4.6 Net Decrease in Spending (6.3) CAPITAL SPENDING IN 2009-2010 The Council spent £37.4M in 2009-2010 on capital items, with the most significant being:-

Capital Programme Schemes £000 Hope Academy Cowley Language College New Build Highways Infrastructure Cemetery & Crematorium Structural Carriageway & Maintenance Pupil Support Unit – Cowley Queens Park Leisure Centre Redevelopment Parr Swimming & Fitness Centre Changing Accommodation Harnessing Technology St. Helens City Learning Centre Vehicle Replacement Programme Playbuilder Programme

9,859 7,048 5,137 2,332 1,495 1,044 1,004

636 613 529 529 520

The financing of this expenditure was by the following methods:-

Type of Funding £000 Government Grants Borrowing Capital Receipts Revenue Contribution Other External Contributions

27,193 7,400 1,590

865 316

TOTAL 37,364 RESERVES Unallocated Reserves (General Fund Balances) at the end of 2009-2010 stand at £18.6M. The level of balances will be reviewed as part of the risk assessment exercise to be undertaken as part of the Medium Term Budget Strategy process.

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In addition the Council has Earmarked Reserves (Specific Revenue Reserves) totalling £32.7M, including Schools Balances (£7.0M) and pump priming funds in the form of the following:- Service Development £3.5M Service Modernisation £10.9M Gershon Efficiency £0.7M Building Schools for the Future £1.0M Insurances £3.9M Care Services Fund £3.0M

A detailed list of Earmarked Reserves is shown in the Notes to the Core Statements. The Council has £57.1M of usable capital receipts which are currently invested. These are available in future years for investment, the repayment of debt or the financing of capital investment. Balances relating to 4NW (formerly the North West Regional Assembly (NWRA)), for which St. Helens is the lead authority and accountable body, equated to £1.469M as at 31 March 2010. The Pension Reserve, introduced under FRS 17 Retirement Benefits requirements, is matched by a Pensions liability equating to some £241.0M. This may be further analysed:- £000Local Government Pension Scheme (LGPS) Teachers' Pension Scheme (TPS)

214,936 26,101

TOTAL 241,037 Statutory arrangements relating to the funding of liabilities have resulted in increased employer contribution rates for the Local Government Pension Scheme with effect from 1 April 2008. The next triennial review is currently underway and any rate changes will come into effect from April 2011. At this stage it is assumed that rates will increase. Although asset returns in 2009-2010 have been exceptionally good the financial assumptions relating to the fund liabilities at 31 March 2010 are more conservative than previous estimates. The net effect of this is an overall increase in the scheme deficit year on year. BORROWING FACILITIES Historically, the majority of all approved borrowing has been secured via the Public Works Loan Board (PWLB). The PWLB offers borrowing at rates only slightly above rates at which the Government secures its borrowing and as such has traditionally been considered to be the most cost effective source of obtaining "traditional" funding.

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During 2003-2004 the Council first introduced an element of 'market borrowing' in the form of Lender Option Borrower Option (LOBO) loans. These loans offer guaranteed low-cost borrowing for agreed initial periods with options on the part of both the Council and the Lender in relation to the residual, longer term period of the loan. The Council is free to repay the loans in full, without penalty, if it is not agreeable with options proposed by the Lender. The position as at 31 March 2010 can be summarised as:- LOBO

£000

OtherMarket

Borrowing£000

PWLB

£000

TOTAL

£000

Long Term Borrowing Short Term Borrowing

23,000 0

0 0

70,382 3

93,382 3

TOTAL 23,000 0 70,385 93,385 In contrast, the Capital Financing Requirement (as defined in the Prudential Framework for Capital Accounting), which measures the underlying need to borrow to finance capital expenditure was some £144.7 M as at 31 March 2010. The Authority's adopted strategy in previous years has been to defer elements of its borrowing requirements by funding this temporarily by available 'free' internal resources. During the year, the Authority has reduced its borrowing liabilities further and in doing so has reduced its exposure to credit risk associated with investment holdings. CONCLUSION The Council continues to be successful in managing its finances and has maintained a sound financial base from which it can meet increasing demands and for the Council's future development. These challenges include responding to the Government’s plans to reduce the level of public debt which will involve significant reductions in public spending. This will mean Central Government Grants received by the Council will be reduced or, in some instances, withdrawn. This will require continued effective financial management to maintain the Council’s financial position and to ensure services continue to be delivered effectively. I would like to thank all Members and Officers who have made 2009-2010 a success and would particularly like to thank colleagues in the Finance function for their hard work and commitment in completing this Statement of Accounts and all the supporting information.

IAN ROBERTS Assistant Chief Executive (Finance)

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APPROVAL OF ACCOUNTS I confirm that these accounts were approved by the Audit and Governance Committee at the meeting held on 28 June 2010. Signed on behalf of St. Helens Borough Council

Chair of meeting approving the Accounts Date: 28 June 2010

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. HELENS COUNCIL

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STATEMENT OF MAIN PRINCIPLES, ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES

GENERAL The accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (2009), the Standard of Professional Practice on Financial Reporting, and guidance notes issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). The Code of Practice specifies the principles and practices of accounting required to prepare a Statement of Accounts which 'presents fairly' the financial position and transactions of a Local Authority and is based on approved accounting standards, except where these conflict with specific statutory accounting requirements. Such conflicts have been significantly reduced in recent years through developments introduced by CIPFA. In accordance with the Code of Practice (SORP), the Authority has adopted a number of principles to be followed in selecting accounting policies to be used and the corresponding use of disclosures needed to help users to understand those adopted policies and how they have been implemented. In doing so, the Authority intends that the policies adopted are those most appropriate to its particular circumstances for the purpose of presenting a true and fair view of the financial position and transactions of the Authority. Policies are reviewed regularly to ensure they remain appropriate, and are changed when a new policy becomes more appropriate to the Authority's circumstances - a full disclosure of any such changes will always be provided. The concepts that the Authority has regard to in selecting and applying the most appropriate policies and estimation techniques are: • the qualitative characteristics of financial information

- relevance - reliability - comparability - understandability - materiality

• pervasive accounting concepts - accruals - going concern - primacy of legislative requirements Accounting policies can be defined as the principles, bases, conventions, rules and practices applied, that specify how the transactions and other events are to be reflected in the financial statements through recognising, selecting measurement bases for, and presenting assets, liabilities, gains, losses and changes in reserves. The following accounting policies and estimation techniques are consistent with the accounting concepts and, where appropriate, the relevant accounting standards.

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ACCRUALS OF INCOME AND EXPENDITURE Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular:- fees, charges and rents due from customers are accounted for as income at the date

the Council provides the relevant goods or services;

supplies are recorded as expenditure when they are consumed - where this is a gap between the date supplies are received and their consumption, they are carried as stocks on the Balance Sheet;

interest payable on borrowings and receivable on investments is accounted for on the basis of the effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined by the contract;

where income and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where it is doubtful that debts will be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected.

The one exception which merits comment occurs where no apportionment of wages' costs is made at 31 March where that date does not coincide with the end of the 'wages week'. AREA BASED GRANT From 2008-2009, the previously administered Local Area Agreement (LAA) Grant has been replaced by Area Based Grant (ABG). ABG is a non-ring fenced general grant, with no conditions on use imposed as part of the grant determination, ensuring full local control over how funding is used. Unlike LAA grant, its use is not mandatorily restricted to supporting the achievement of LAA targets. Being a general grant, ABG is included in the Income & Expenditure Account with other general income sources. CAPITAL RECEIPTS Capital receipts from fixed asset disposal are recorded on an accruals basis and are initially credited to the Income & Expenditure Account as part of the gain or loss on disposal, with a subsequent appropriation to the Usable Capital Receipts Reserve made via the Statement of Movement on General Fund Balances. During 2005-2006 the Secretary of State determined that under provisions included in the Local Government Act 2003, the Authority was required to pay over to him specified amounts of any capital receipt derived from the disposal of housing land after 1 April 2004. Such receipts principally relate to the repayment of HRA mortgage principal. Usable receipts are shown separately in the Balance Sheet and can be used either to finance new capital investment, to repay grant received in relation to the assets disposed of, to finance the premium sums arising from the rescheduling of debt, or set aside to reduce the Council's underlying need to borrow.

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CHARGES TO REVENUE FOR FIXED ASSETS Service revenue accounts, support services and trading accounts are debited with the following amounts to record the real cost of holding fixed assets during the year:- (i) depreciation attributable to the assets used by the relevant service; (ii) any impairment losses attributable to the clear consumption of economic benefits on

fixed assets used by the service, and other losses where there are no accumulated gains in the Revaluation Reserve (specific to the individual asset) against which they can be written off;

(iii) amortisation of intangible fixed assets attributable to the service. The Council is not required to raise Council Tax to cover these items. However, it is required to make an annual provision from revenue to contribute towards the reduction in its overall borrowing requirement (see “Redemption of Debt”). The items detailed above are, therefore, reversed and replaced by revenue provision in the Statement of Movement on the General Fund Balance, by way of an adjusting transaction with the Capital Adjustment Account. Those charges that relate to non-operational assets are charged to Non-Distributed Costs within the Income & Expenditure Account. CONTINGENT LIABILITIES Contingent liabilities are not accrued in the accounting statements. They are disclosed by way of notes if there is a possible obligation which may require a payment or transfer of economic benefits. DEPRECIATION Depreciation is provided for on all fixed assets with a determinable finite useful life. For fixed assets, other than non-depreciable land and non-operational investment properties, the only grounds for not charging depreciation is that the charge would be immaterial. Provision for depreciation is made by allocating the asset value over the period expected to benefit from their use on a straight line basis. The useful lives of assets are estimated on a realistic basis, reviewed on a regular basis and, where necessary, revised. Subsequent expenditure on a fixed asset that maintains or enhances the previously assessed standard of performance of the asset does not negate the need to charge depreciation. FINANCIAL ASSETS All investments are initially recognised on the basis of fair value, with subsequent measurement dependant on the classification of the individual financial instrument concerned. The provisions included within FRS26 - Financial Instruments : Recognition and Measurement dictate the precise classification and accounting policies used are in keeping with that standard.

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Investments used by the Council are of the type whereby they are classed as 'Loans & Receivables' and accounted for using the Amortised Cost basis. In doing so, annual credits to the Income & Expenditure Account for interest receivable are based on the carrying amount of the asset multiplied by the effective interest rate for the instrument. This results in the interest credited to the Income & Expenditure Account being the amount receivable for the year in the loan agreement. However, the Council has made a number of loans to other parties at less than market rates (soft loans). When soft loans are made, a loss is recorded in the Income & Expenditure Account for the present value of interest that will be foregone over the life of the loan, resulting in a lower amortised cost than the outstanding principal. Interest is thereafter credited at a higher effective rate of interest than the rate receivable, with the difference serving to increase the amortised cost of the loan in the Balance Sheet. Statutory provisions require that there should be no impact on the Council Tax payer arising from these accounting transactions, and a transfer to or from the Financial Instruments Adjustment Account (via the Statement of Movement on General Fund Balance) achieves this requirement. CIPFA’s Local Authority Accounting Panel (LAAP) Bulletin 84 includes guidance that stipulates interest accrued on financial assets at the Balance Sheet date should be associated with, and, increase the carrying value of the loan until such time as the interest is received. Previously, LAAP Bulletin 81, had provided recommendation that interest accrued on financial assets should be shown in the current assets lines within the Balance Sheet (within debtors). Restated Statements and associated notes are included as a result of this change in accounting policy. FINANCIAL LIABILITIES Financial liabilities are initially measured at fair value and carried at their amortised cost. Annual charges to the Income and Expenditure Account for interest payable are based on the carrying amount of the liability, multiplied by the effective rate of interest for the instrument. For most of the borrowings that the Council has, this means that the amount presented in the Balance Sheet is the outstanding principal repayable (adjusted for accrued interest) and interest charged to the Income and Expenditure Account is the amount payable for the year in the loan agreement. Gains and losses on the repurchase or early settlement of borrowing are credited and debited to Net Operating Expenditure in the Income and Expenditure Account in the year of repurchase/settlement. However, where repurchase has taken place as part of a restructuring of the loan portfolio that involves the modification or exchange of existing instruments, the premium or discount is respectively deducted from or added to the amortised cost of the new or modified loan and the write-down to the Income and Expenditure Account is spread over the life of the loan by an adjustment to the effective interest rate. Where premiums and discounts have been charged to the Income and Expenditure Account, regulations allow the impact on the General Fund Balance to be spread over future years. The Council has a policy of spreading the gain/loss over the term that was remaining on the loan against which the premium was payable or discount receivable when it was repaid. The reconciliation of amounts charged to the Income and Expenditure Account to the net charge required against the General Fund Balance is managed by a transfer to or

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from the Financial Instruments Adjustment Account in the Statement of Movement on the General Fund Balance. CIPFA’s Local Authority Accounting Panel (LAAP) Bulletin 84 includes guidance that stipulates interest accrued on financial liabilities at the Balance Sheet date should be associated with, and, increase the carrying value of the loan until such time as the interest is paid. Previously, LAAP Bulletin 81, had provided recommendation that interest accrued on financial liabilities should be shown in the current liabilities lines within the Balance Sheet (within creditors). Restated Statements and associated notes are included as a result of this change in accounting policy. GOVERNMENT GRANTS AND CONTRIBUTIONS Government grants are accounted for on an accruals basis and recognised in the appropriate revenue account when the conditions of their receipt have been complied with (i.e. they are matched to the expenditure to which they relate). Grant monies received but unspent at the year end are only credited to the Income & Expenditure Account if all restrictions on the expenditure to which they can be applied have been removed. Grants to cover general expenditure are credited to the foot of the Income & Expenditure Account after Net Operating Expenditure. Capital grants used to finance capital expenditure are initially credited to a Government Grants Deferred Account. Where the acquisition of a fixed asset is financed either wholly or in part by a government grant or other contribution, amounts are released from the government grants-deferred account to the relevant service in the Income and Expenditure Account over the useful life of the asset, to offset any provision for depreciation charged to the Income and Expenditure Account in respect of assets to which the grants relate. GROUP ACCOUNTS The Statements have been prepared with due regard to the group accounting requirements contained in the SORP, which require all Local Authorities to consider all their interests and to prepare a full set of Group Financial Statements where they have material interests in subsidiaries, associates or joint ventures. In the event, consideration of all the Council's interests have determined that such Group Financial Statements are not required for 2009-2010 - such determination having been made after analysing the full scope of CIPFA's guidance on the preparation of Group Accounts and the detailed arrangements in operation between the Council and its various 'partners'. Analysis of the Council's activity has deemed that no additional group accounting statements are required arising from the SORP demands. INTANGIBLE FIXED ASSETS Expenditure on assets that do not have physical substance but are identifiable and controlled by the Council (e.g. software licences) is capitalised when it will bring benefits to the Council for more than one financial year. The balance is amortised to the relevant service revenue account over the economic life of the investment to reflect the pattern of consumption of benefits.

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INTERNAL INTEREST Interest earned is recorded initially in the Income & Expenditure Account (see Policy on Financial Assets). Subsequent allocations are made to certain other individual funds, based on individual cashflows and an average rate of interest. LEASES The Authority currently holds no finance leases, which would require the apportionment of rental payments between the finance charge and the principal element. Rentals payable under operating leases are charged to revenue on a straight line basis over the term of the lease agreement, whilst rental income receivable from operating leases are recognised on a similar basis. OVERHEADS AND SUPPORT SERVICES All costs of management, support services and administration have been fully allocated on a consistent basis to users mainly on the basis of time spent on those services. Office accommodation costs are allocated on the basis of area occupied. The cost of service strategy and regulation of any service is allocated to a separate objective level in the accounts of that service. The costs of corporate and democratic core (CDC) and non-distributed costs (NDC) as defined by CIPFA's BVACOP are allocated to separate objective expenditure heads and are not apportioned to other divisions of service. These items are clearly disclosed in the Income and Expenditure Account. PENSIONS The Council participates in two different pension schemes: (i) Teachers

This is an unfunded scheme administered on behalf of the Department for Children, Schools & Families (DCSF).

(ii) Other Employees

Other employees, subject to certain qualifying criteria, are eligible to join the Local Government Superannuation Scheme.

Both schemes provide members with defined benefits related to pay and service. In accordance with FRS 17 Retirement Benefits separate policies are in place for those Schemes accounted for on a defined benefit basis and those accounted for on a defined contribution basis.

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Defined Benefit Schemes Accounting policies set out as below shall apply in respect of pension costs arising from the Local Government Pension Scheme and, in addition, in respect of unfunded discretionary benefits paid (irrespective of the scheme to which it relates):- (i) the attributable assets of each Scheme are measured at the balance sheet date

based on actual performance of the Pension Fund for the year. Any liabilities such as accrued expenses are deducted. The attributable Scheme liabilities are measured on an actuarial basis using the projected unit method. The Scheme liabilities comprise:-

(a) any benefits promised under the formal terms of the Scheme; and

(b) any constructive obligations for further benefits where a public statement or past practice by the Council has created a valid expectation in the employees that such benefits will be granted;

(ii) the surplus/deficit in a Scheme is the excess/shortfall of the value of the assets in the

Scheme over/below the present value of the Scheme liabilities. The Council would recognise an asset to the extent that it would be able to recover a surplus either through reduced contributions in the future or through refunds from the Scheme. The Council recognises a liability to the extent that it reflects its legal or constructive obligation;

(iii) any unpaid contributions to the Scheme are presented in the balance sheet as a

current liability creditor; (iv) the change in the defined benefit asset or liability (other than that arising from

contributions to the Scheme) is analysed, where appropriate, into the following components:-

(a) periodic costs:- (1) current service cost; (2) interest cost; (3) expected return on assets; and

(4) actuarial gains and losses; and

(b) non-periodic costs:- (1) past service costs; and (2) gains and losses on settlements and curtailments; (v) the current service cost is included within Net Cost of Services. Both the interest

cost and the expected return on assets are included within Net Operating Expenditure. Actuarial gains and losses arising from any new valuation and from updating the latest actuarial valuation to reflect conditions at the balance sheet date are recognised in the Statement of Total Recognised Gains & Losses for the period;

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(vi) past service costs are recognised in Net Cost of Services on a straight-line basis over the period in which the increases in benefit vest. To the extent that the benefits vest immediately, the past service cost is recognised immediately;

(vii) losses arising on a settlement or curtailment not allowed for in the actuarial

assumptions are measured at the date on which the Authority becomes demonstrably committed to the transaction, and recognised in Net Cost of Services at that date. Gains arising on a settlement or curtailment not allowed for in the

actuarial assumptions are measured at the date on which all parties whose consent is required are irrevocably committed to the transaction, and recognised in Net Cost of Services at that date.

The approach to calculating the FRS17 figures in between full actuarial valuations is approximate in nature and at each full valuation the position is re-assessed, with the assets and liabilities attributable to each employer being fully re-calculated. Following each full valuation it can therefore be necessary to adjust previously disclosed figures - the net effect is shown as "Liability Gain/(Loss)" as appropriate. Changes in actuarial assumptions will be made dependant on prevailing conditions at the time of the calculation or on the basis of experience realised. The assumptions used between periods is fully disclosed. Defined Contribution Schemes Whilst meeting the definition of a defined benefit pension scheme, guidance requires that the Teachers' Pension Scheme, as administered by DCSF needs to be accounted for as if it were a defined contribution scheme since the Authority is unable to identify its share of the underlying assets and liabilities in the Scheme on a consistent and reasonable basis. As a result the pensions cost reported for a year is equal to the contributions payable to the Scheme for the accounting period. The cost is recognised within Net Cost of Services. An asset or liability is recognised only to the extent that there are prepaid or outstanding contributions at the balance sheet date. PENSIONS RESERVE The cost of providing pensions for employees is funded in accordance with the statutory requirements governing the particular pension schemes or funds in which the Authority participates. However, accounting for employees' pensions is in accordance with generally accepted accounting practice subject to the interpretations set out in the SORP. Where the payments made for the year in accordance with the Scheme requirements do not match the Authority's recognised operating and finance costs for the same period, the recognised cost of pensions will not match the amount required to be raised in taxation. An appropriation to or from the pensions reserve, which equals the net difference is recognised in the Statement of Movement on the General Fund Balance. Actuarial gains and losses during the year, which impact on the net surplus or deficit of the Fund will also be subject to a corresponding appropriation to/from the Pensions Reserve.

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PROVISIONS The Council sets aside provisions for any liabilities of uncertain timing or amount that have been incurred. The majority of provisions are disclosed as a separate balance sheet item whilst provisions for bad and doubtful debts are netted off the carrying amount of debtors. Provisions are recognised when (i) the Authority has a present obligation as a result of a past event; (ii) it is probable that a transfer of economic benefits will be required to settle the

obligation; and (iii) a reliable estimate can be made of the amount of the obligation. Provisions are charged to the appropriate revenue account, and where payments for expenditure are incurred to which the provision relates they are charged direct to the provision. Provisions are reviewed at each balance sheet date to reflect the current best estimate, taking into account the risks and uncertainties surrounding the events. REDEMPTION OF DEBT Capital expenditure is significantly financed by borrowing. Provision for the redemption of debt is made in accordance with the requirements contained in the Capital Finance and Accounting Regulations 2008. The minimum amount required to be repaid each year is calculated as a proportion of the Council's Capital Financing Requirement, which under Statute equated to 4% during 2009-2010. However, the provisions of the Regulations allow the Council to make additional redemption provision and this option has been exercised during the year. The Council has approved a policy of making additional provision to cover the sum of any borrowing incurred under prudential arrangements (i.e. unsupported by Government funding) over the estimated life of the asset to which that borrowing relates, as opposed to the minimum 4% per annum. RESERVES Amounts set aside for purposes falling outside the definitions of Provisions are considered as Reserves, and transfers to and from them are distinguished from service expenditure disclosed in the Income & Expenditure Account. Expenditure is not charged direct to any Reserve. Reserves include earmarked reserves set aside for specific policy purposes and balances which represent resources set aside for purposes such as general contingencies and cash flow management. Earmarked reserves include balances held by schools and in relation to 4NW. Capital reserves are not available for revenue purposes and certain of them can only be used for specific statutory purposes. The purposes and usage of both capital and revenue reserves are detailed in notes accompanying the Balance Sheet.

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REVENUE EXPENDITURE FUNDED FROM CAPITAL UNDER STATUTE Legislation allows some expenditure to be classified as capital for funding purposes when it does not result in the expenditure being carried on the Balance Sheet as a fixed asset. The purpose is to enable it to be funded from capital resources rather than be charged to the General Fund and impact on that year’s Council Tax. These items are generally grants and expenditure on property not owned by the Authority and such expenditure should be charged to the Income & Expenditure Account in accordance with the general provisions of the SORP. Any statutory provision that allows capital resources to meet the expenditure is accounted for by debiting the Capital Adjustment Account and crediting the General Fund Balance and showing as a reconciling item in the Statement of Movement on the General Fund Balance. STOCKS AND WORK IN PROGRESS Stocks are included in the Balance Sheet at the lower of actual cost or net realisable value. TANGIBLE FIXED ASSETS All expenditure on the acquisition, creation or enhancement of tangible fixed assets has been capitalised on an accruals basis, provided that it yields benefit to the Council for more than one financial year. Tangible fixed assets are initially measured at cost and subsequently valued on bases recommended by CIPFA, and in accordance with the Statement of Asset Valuation Principles and Guidance Notes issued by the Royal Institution of Chartered Surveyors (R.I.C.S.), and are classified into the groupings required by the Code of Practice on Local Authority Accounting. The valuation bases are: - Operational assets are included in the balance sheet at the lower of net current

replacement cost or net realisable value in existing use.

- Non-operational assets are included in the balance sheet at market value. - Infrastructure assets and community assets are included in the balance sheet at historical cost. Subsequent revaluations of tangible fixed assets are carried out by qualified internal Valuers as part of a rolling programme over a five year cycle, although material changes to asset valuations will be adjusted in the interim period, as they occur. Additions during the year are included in the accounts at their cost of acquisition pending any required valuation. Any surpluses arising on the revaluation of assets are credited to the Revaluation Reserve to recognise unrealised gains, whilst any deficits arising are debited to the relevant service revenue account in the Income & Expenditure Account to the extent that there are no accumulated gains in the Revaluation Reserve. The value at which each category of assets is included in the balance sheet is reviewed at the end of each accounting period and where there is reason to believe that its value has changed materially, by impairment or other in the period, the valuation is adjusted accordingly.

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All valuations are net of depreciation, where appropriate. Any impairment losses on tangible fixed assets are recognised within the accounting statements. Upon disposal the net book value of the asset disposed of is written off to the Income & Expenditure Account as part of the gain/loss on disposal. Receipts from disposals are credited to the Income & Expenditure Account as part of the gain or loss on disposal. Receipts are subsequently required to be credited to the Usable Capital Receipts Reserve, and are appropriated to that Reserve from the Statement of Movement on the General Fund Balance. The written-off value of disposals is not a charge against Council Tax, as the cost of the respective assets is fully provided for under separate arrangements for capital financing. Amounts are appropriated to the Capital Adjustment Account from the Statement of Movement on the General Fund Balance. VALUE ADDED TAX VAT is included in income and expenditure accounts, whether of a capital or revenue nature, only to the extent that it is irrecoverable. CHANGES IN ACCOUNTING POLICY/TREATMENT A number of changes in accounting treatment have arisen in recent years to reflect the Authority's obligations to keep the accounts in accordance with 'proper practices'. This is defined, for the purpose of Local Government legislation, as meaning compliance with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom, prepared by the CIPFA/LASAAC Joint Committee, and recognised by the Accounting Standards Board (ASB) as a Statement of Recommended Practice. The continuous review and annual update of the Code of Practice have introduced a number of revised or additional requirements for the Council's Financial Statements in those years. The main changes introduced into the 2009 Code of Practice are identified as:- (i) the SORP 2009 requires Authorities to account for PFI and similar contracts in a

manner that is consistent with the adaptation of IFRIC 12 Service Concession Arrangements as contained in the government’s Financial Reporting Manual (FreM). IFRIC 12 deals primarily with service concession arrangements for the delivery of public services.

For arrangements to come under the scope of IFRIC 12 they must meet specific criteria involving the use of relevant asset(s) and a series of tests aimed at establishing whether the Local Authority controls the services being provided and has a residual interest in the asset being used to provide services. Whilst there is no specific definition of a service concession provided in IFRIC 12, a service concession generally involves the grantor conveying to the operator for a period of time the right to provide services that give the public access to economic and social facilities. Where IFRIC 12 is applicable the Council shall recognise the assets used in service provision on its Balance Sheet at fair value.

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The Council has undertaken a review of its current arrangements and contracts to determine whether any would fall to be classified and therefore accounted for commensurate with the scope of IFRIC 12. Based on this review it has been determined that no arrangements fall to be recognised under this Accounting Standard.

(ii) FRS5 : Reporting of the Substance of Transactions requires an entity’s financial statements to report the substance of the transaction into which it has entered – setting out how to determine the substance, whether any resulting assets or liabilities should be included in the Balance Sheet, and what disclosures are appropriate. A review of the Council’s transactions in respect of Voluntary Controlled (VC) Schools has determined that such Schools fall to be recognised on its Balance Sheet and this has resulted in 5 primary schools with a combined capital value of £6.698m being included on the Council’s Balance Sheet as at 31 March 2010. In accordance with the Authority’s approach towards valuing schools, each schools fair value has been established by valuing them at Depreciated Replacement Cost (DRC). The Table below summarises the schools that have been brought onto the Balance Sheet and their values:-

School Value

(£M)District C of E Primary School 1.309Eccleston Lane Ends Primary School 1.035Rainford C of E Primary School 1.273Sutton Oak C of E Primary School 1.508Wargrave Primary School 1.573Total 6.698

(iii) the requirement to account for Council Tax transactions within the Collection Fund

on an accruals basis and using the principles that in its capacity as a billing authority, the Council acts as an agent – collecting and distributing Council Tax on behalf of the major preceptors and itself. Previously, the SORP required that the Council Tax Income included in the Income & Expenditure Account to be the amount that under regulation was required to be transferred from the Collection Fund to the General Account. The difference between the income included in the Income & Expenditure Account and the amount required by legislation to be credited to the General Fund shall be taken to the Collection Fund Adjustment Account and included as a reconciling item in the Statement of Movement on the General Fund Balance.

Since the collection of Council Tax is now deemed an agency arrangement, the cash collected by the Council from Council Tax debtors belongs proportionately to the Council and the major preceptors (Fire and Police), as do any arrears, overpayments or credits relating to Council Tax due. There will, therefore, be a debtor/creditor position between the Council and each major preceptor (since the net cash paid to each preceptor will not be its share of cash collected from the Council Taxpayers).

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The Cashflow Statement shall now include only the Council’s own share of Council Tax net cash collected from Council Tax debtors in the year; and the amount included for precepts paid shall exclude amounts paid to major preceptors. The difference between the major preceptors’ share of the net cash collected from Council Tax debtors and the net cash paid to major preceptors as precepts and settlement of previous years’ surplus/deficit shall be included as a net increase/decrease in ‘other liquid resources’.

In introducing this new requirement, the 2008-2009 comparatives have been restated on the same basis;

(iii) as an extension of the requirement detailed in (ii) above, CIPFA has concluded that the Council acts as the agent of Government when collecting National Non-Domestic Rates (NNDR). The 2009 SORP includes detailed requirements for accounting for NNDR, which includes a requirement that, unlike previously, billing authorities shall not recognise NNDR debtor and creditor balances and impairment allowances for doubtful debts in their Balance Sheets, but instead recognise a creditor or debtor for cash collected for NNDR debtors as agent of the Government but not paid to the Government (or overpaid to the Government) at the Balance Sheet date. In introducing this new requirement, the 2008-2009 comparatives have been restated on the same basis;

(iv) an amendment has been introduced that requires the portion of long-term financial liabilities due to be settled within 12 months after the Balance Sheet date to be presented in current liabilities;

(v) five disclosure notes have been removed as requirements of the 2009 SORP:-

- Expenditure on Publicity; - the Building Control Account; - Income under the Local Authorities Goods & Services Act;

- Section 137 expenditure; - Business Improvement District Schemes. The first three of these are relevant to this Council and were previously included as disclosures in the Statement of Accounts.

(vi) Regulation 4 of the Accounts and Audit (Amendment No.2)(England) Regulations 2009 has introduced a new legal requirement ‘to increase transparency and accountability’ in Local Government for reporting remuneration of senior employees. Disclosure Note 13 has been prepared in compliance with the regulatory requirement and uses CIPFA’s LAAP Bulletin 85 Senior Officer Remuneration as guidance in doing so;

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STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS THE AUTHORITY'S RESPONSIBILITIES The Authority is required:- (i) to make arrangements 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 Authority, that officer is the Assistant Chief Executive (Finance);

(ii) to manage its affairs to secure economic, efficient and effective use of resources and

safeguard its assets; (iii) to approve the Statement of Accounts. RESPONSIBILITIES OF THE ASSISTANT CHIEF EXECUTIVE (FINANCE) The Assistant Chief Executive (Finance) is responsible for the preparation of the Authority's statement of accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom ('the Code of Practice'). In preparing this statement of accounts, the Assistant Chief Executive (Finance) has:- (i) selected suitable accounting policies and then applied them consistently; (ii) made judgements and estimates that were reasonable and prudent; (iii) complied with the Code of Practice. The Assistant Chief Executive (Finance) has also:- (i) kept proper accounting records which were up-to-date; (ii) taken reasonable steps for the prevention and detection of fraud and other

irregularities. CERTIFICATE I certify that this Statement of Accounts gives a true and fair view of the financial position of St. Helens Council at 31 March 2010 and its income and expenditure for the year then ended. In doing so I authorise the Statement for issue and confirm that it is this date up to which events after the Balance Sheet date have been considered in preparing the Statement.

Ian Roberts Assistant Chief Executive (Finance) Date: 27 September 2010

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ANNUAL GOVERNANCE STATEMENT

2009-2010 Scope of Responsibility St. Helens Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. The Council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. In discharging this overall responsibility, the Council is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions, and which includes arrangements for the management of risk. The Council approved and adopted a Code of Corporate Governance in September 2008 based on the principles in the CIPFA /SOLACE Framework and in line with the revised framework, “Delivering Good Governance in Local Government”. This statement explains how St. Helens Council complies with the Code meeting the requirements of Regulation 4(2) of the Accounts and Audit Regulations 2003 as amended by the Accounts and Audit (Amendment) (England) Regulations 2006. The purpose of the Governance Framework The governance framework comprises the systems and processes, and culture and values, by which the Authority is directed and controlled and its activities through which it accounts to, engages with and leads the community. It enables the Authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of St. Helens Council’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The governance framework has been in place at St. Helens Council for the year ended 31 March 2010 and up to the date of approval of the statement of accounts. The Governance Framework In 2004 the Independent Commission on Good Governance in Public Services, established by CIPFA and the Office for Public Management in partnership with the Joseph Rowntree Foundation, identified six key principles during governance work it was undertaking in both the public and private sector. It resulted in the publication of “The Good Governance Standard for Public Services”.

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These key principles have been adapted by CIPFA/SOLACE in order that they can be fully adopted within the local government context and are detailed in the 2007 publication “Delivering Good Governance in Local Government”. The principles have informed the exercise which underpins this statement, which details the systems and processes that the Council has put in place and demonstrates the extent to which the governance framework is robust and fit for purpose. The Council has a clear focus on its purpose, outcomes for the community, and the creation and implementation of a vision for the local area

The Council prides itself in its role as a community leader in shaping, articulating and giving effect to the ambitions of the community. Led by the Council, the Local Strategic Partnership (LSP) vigorously pursues an ambitious vision to make St. Helens a modern, distinctive, economically prosperous and vibrant Borough, as set out in the Borough’s Sustainable Community Plan. The Council’s corporate objectives and priorities are aligned with the Sustainable Community Plan, as are those of key strategic partners. The Sustainable Community Plan has been developed by our Local Strategic Partnership (LSP) which is chaired by the Council Leader and includes representation from St. Helens Chamber, the PCT, Merseyside Police, the Council for Voluntary Services, the Community Empowerment Network, St. Helens College, Helena Partnerships and Community Faith representatives. The Sustainable Community Plan has five primary objectives and these are:-

Economic Development and Enterprise; Healthier Communities and Older People; Communities and Neighbourhoods; Safer Communities; Children and Young People.

Each objective has a series of desired outcomes with a corresponding set of key performance measures and future targets to ensure successful delivery. The Plan is underpinned by a set of common values and beliefs. The Council and its partners are committed to treating people with dignity and providing high quality, value for money services that meet people’s needs ensuring that all residents can enjoy equal and quality life chances and are valued and respected in their communities. The long term objectives of the Plan have also been developed by, and shared with, partners and the community and are embedded in the ambitious work programmes of the LSP and in the Local Area Agreement, which acts as a short term delivery plan for the Sustainable Community Plan. They are clear and understood by Councillors, staff and other stakeholders.

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The Council’s Corporate Plan is closely aligned with the Sustainable Community Plan. Its corporate aims, objectives and priorities have been arrived at following full consideration of national shared priorities and local priorities. It confirms what the Council is seeking to achieve and defines key aims, objectives and priorities. It also lists key performance indicators and three year targets to demonstrate the extent to which we are achieving our strategic goals. Integral to this is the financial strategy which links spending to these goals, demonstrating how resources are specifically targeted to delivering our priorities, and that they are fully resourced. Financial management is recognised as a strength in St. Helens and the Council’s medium term financial strategy is aimed at maximising resources for priority areas, while minimising the burden on local taxpayers through the achievement of value for money. The Corporate Plan is reviewed annually and approved by the Council’s Chief Officer Group, the Executive and Council. A communication strategy in respect of corporate objectives and priorities has been developed, approved and implemented. The Corporate Plan is distributed annually to members, staff, partners and other stakeholders and corporate objectives and priorities are annually communicated to staff through the business planning and appraisal process. There is consultation with stakeholders and strategic partners on service provision compared to cost.

Departmental Business and Annual Service Plans are formulated from the Corporate Plan with clear standardised terms of reference for their preparation. They clearly reflect corporate objectives and priorities and match approved funding. The Council produces a Corporate Performance Management Report detailing our performance against targets and achievements against priorities. The Council has a strong record of effective performance management, demonstrated by positive direction of travel and improved outcomes for the community, and is a key driver in ensuring continuous service improvement. The Council’s Performance Management Framework (PMF) provides for a robust and transparent performance management system. Corporate documents are available on the Council’s intranet and website.

Council Members and Officers work together to achieve a common purpose with clearly defined functions and roles St. Helens Council is an open and inclusive organisation. At the political level, there is an established and effective and positive working relationship between Members and Chief Officers with a clear understanding of their respective roles. The demarcation between strategy and policy and operational matters is clearly understood and the boundaries respected. The Council has adopted and approved a Constitution detailing how the Council operates, how decisions are made, and by whom, and the procedures adopted to ensure these are efficient, transparent and accountable to local people. Member and Officer roles are clearly defined within the Constitution as are the decision making and recording process and approved organisational structure with delegated authorities and accountability appropriate to the Council’s business.

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St. Helens has forty eight elected members representing sixteen wards. There are nineteen Liberal Democrat members, twenty three Labour and six Conservative with the Council led by the Liberal Democrat and Conservative Members although no formal agreement exists. The Council’s Executive is the main decision making Body and was introduced in December 2001. Meetings are open to the public except where personal or confidential matters are being discussed. It comprises the Leader of the Council and six portfolio holders comprising;

Corporate Services and External Affairs; Adult Social Care and Health; Children and Young People; Urban Regeneration and Housing; Environmental Protection; Safer Communities; Culture, Sport and Heritage.

The Executive meets every three weeks and Council meets seven times a year. The Council Leader is the Chair of the LSP Board and plays a leading role at regional/sub- regional levels. The Council’s Overview and Scrutiny Commission is Chaired by the Leader of the Opposition and consists of fifteen Members of the Council, none of whom are on the Executive, together with two Church and three Parent Governor representatives. The Council appoints a number of Overview and Scrutiny Committees that deliver a comprehensive scrutiny process. The Council’s Chief Officer Group comprises the Chief Executive, four Directors of Service and seven other Chief Officers all reporting to the Chief Executive. This Group meets on a weekly basis to develop and ensure the delivery of policy issues commensurate with the Council’s aims and objectives and has a corporate responsibility for ensuring effective and efficient delivery of services. The Director of Public Health is also a member of the Group and is a joint appointment between the Council and St. Helens and Halton PCT. Regular meetings are scheduled to enable the respective political party leaders to meet with the Chief Executive to discuss key issues facing the Council. The Chief Executive is subject to six monthly appraisals by the Leaders of the three political groups at the Council. Job descriptions and person specifications are maintained for all posts within the establishment of the Council. The Council promotes sound values and can demonstrate good governance through upholding high standards of conduct and behaviour Good governance builds on the principles for the conduct of people in public life, established by the Committee on Standards in Public Life known as the Nolan Principles and the Local Government Act 2000. A hallmark of good governance is the development of shared values and these are embedded in the Council’s culture underpinning policy and behaviour. The Council delivers these values by a number of processes and procedures.

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The Assistant Chief Executive (Legal and Administrative Services) is the appointed Monitoring Officer for the Council whose functions include maintenance of the Constitution, supporting the Standards Committee and ensuring lawfulness of decision making. The Council’s Standards Committee seeks to promote and maintain high standards of conduct of the Council’s Members. In 2009-2010 the Committee met on six occasions to discuss matters of ethical standards. The Assistant Chief Executive (Finance) is the responsible Officer to the Council for the proper management of its financial affairs in order to meet the statutory requirements of Section 151 of the Local Government Act 1972 The Council has an effective framework for ethical standards with an extensive range of inter linked policy and procedures that are kept under regular review. The Council has a Code of Conduct for both Officers and Members together with a range of policies and procedures that includes:-

Health and Safety; Equalities and Diversity; Finance; Information Technology; Service Standards; Procurement; Declaration of interests by Members and Officers; Member / Officer relationships; Confidential reporting (Whistleblowing); Anti Fraud and Corruption.

The Council has developed and introduced an ongoing programme of training for Officers and Members providing coverage on a wide range of topics ensuring awareness on new and developing issues. One of the Council’s stated key priorities is to “work with partners to eliminate unlawful discrimination and promote equality, diversity, cohesion and inclusion across all communities” and the Council’s strategic approach to this agenda is detailed in a comprehensive suite of policies that are subject to regular review. The Council has an approved Corporate Complaints Policy with complaints logged, and monitored as to the timeliness of response by Officers, via the Council’s Contact System and the Consultations Manager. Chief Officers of the Council are required, on an annual basis, to provide written assurance as to the adequacy and effectiveness of management arrangements to meet nineteen criteria provided to them in a pro-forma control assurance statement. Examples of assurance areas requested include:-

Business Planning; Adherence to the Code of Corporate Governance; Risk Management; Effective implementation and review of corporate and local service policies

and procedures; Financial processes.

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The Council takes informed and transparent decisions, which are subject to effective scrutiny and the management of risk Decision making within a robust governance framework is both complex and challenging. In order that Members can make sound decisions it is essential that they have access to accurate and timely information assisted by appropriate systems ensuring decisions are implemented and resources used efficiently and effectively. The Council’s Constitution provides the framework for the decision making process and reports to the Council’s Committees require documented consideration of a range of issues in support of any recommendations made therein. These include consideration of any implications in respect of:-

Risk; Legal; Financial; Land and Property; Human Resources; Anti Poverty; Human Rights; Equalities; Health; Effects on existing Council Policy; Effects on other Council Activities; Alternative options/implications to the proposal; Previous approval/consultation.

A robust scrutiny process has been developed in that there is an overarching Overview and Scrutiny Commission with a number of Overview and Scrutiny Committees. These are:-

Adult Social Care and Health; Children and Young People’s Services; Audit and Financial Monitoring; Environment and Safer Communities; Regeneration, Housing, Culture and Leisure.

The Council’s effective scrutiny arrangements provide a comprehensive process by which policies, decisions made and/or actions taken in connection with the discharge of the Council’s functions are reviewed. The Overview and Scrutiny Commission and Committees have the authority to request the relevant Executive Members, Chief Officers or Service Officers to attend meetings to provide further information on issues of performance in their area of responsibility. The Committees also prepare reports for direct consideration by the Executive. Financial and business planning is fully integrated in the Council and effected through a process of risk analysis. All Council priorities are fully informed by risk and by opportunity costs, thereby ensuring that resources are concentrated on achieving priority outcomes. The Corporate Risk Register is a key document and risk is to the fore throughout every stage of the planning process.

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The Council’s financial and governance arrangements are strong. With specific regard to the Council’s financial control arrangements these include:

A Corporate Financial Plan 2010-2013;

Comprehensive budgeting and budget monitoring systems;

Clearly defined capital expenditure and treasury management guidelines;

Regular reporting of the Council’s budget and performance to the Executive, Council and Audit and Financial Monitoring Overview and Scrutiny Committee;

Formal project management disciplines ;

Clear targets to measure financial and other performance;

Clearly defined arrangements for devolved financial management arrangements;

Corporate Financial and Contract Procedure Rules;

Published procedures for the reporting and resolution of suspected fraudulent activities.

In 2007 the Chancellor’s budget announcement introduced International Financial Reporting Standards (IFRS) based accounting for the Public Sector and Government to bring consistency and comparability between financial statements and follow private sector best practice. The Council is required to be fully compliant with IFRS requirements in producing its 2010-2011 annual accounts and is also required to provide comparative restated (IFRS based) accounts for 2009-2010. The Audit and Governance Committee, independent from Executive and Scrutiny functions, is required to gain and monitor the necessary assurances as to the Council’s control, governance, financial management and reporting framework. In addition the Council’s Primary Assurance Group, consisting of senior officers of the Council, undertakes an annual self assessment of these arrangements culminating in an action plan for any improvements identified. It also considers emerging risks to the Council’s ability to meet its objectives culminating in the drafting of the Annual Governance Statement for subsequent challenge, consideration and approval by the Audit and Governance Committee. The Council’s risk management arrangements have traditionally been effective with strong commitment from Members and Officers of the Council supported by significant staff training. Risk management is embedded in the culture and operation of the Council. The Council’s corporate risk register identifies threats/risks to the achievement of its strategic priorities as set out in the Sustainable Community Plan and Corporate Plan. The development of the Council’s business continuity and disaster recovery arrangements has been informed by the Civil Contingencies Act and an initial set of resilience plans for ‘critical services’ is now in place. A programme of test and verification is now being developed.

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A Safety and Risk Management Forum convenes on a monthly basis and is a strategic group chaired by the Chief Executive and attended by the Directors of Services and Chief Officers together with Trade Union and Human Resources representation. It considers occupational health, organisational safety and risk management issues including civil claims and losses. St. Helens Council has worked with its partners and an independent consultant to extend existing risk management and governance arrangements to encompass the Local Strategic Partnership. An LSP Risk Management Policy Statement was adopted in January 2010 enhancing our strategic governance arrangements particularly with respect to partnership working and work is currently underway to establish an LSP Practice Toolkit and guidelines to be issued to the Thematic Group Partnerships. St. Helens has a sophisticated and robust framework for managing performance that has been instrumental in delivering high standards of service and value for money. The Council is proud of this framework but recognises the importance of a top down culture as a key aspect of successful performance management. The quality and accuracy of performance data is regularly scrutinised through a programme of data quality audits, with findings reported to Chief Officer group and the Executive. Members in St. Helens recognise that performance management is key to ensuring that the resources are appropriately employed and that the focus on our key priorities delivers the outcomes expected by the community. Members are directly involved in managing performance. Full Council approves the Corporate Plan and receives annual and quarterly performance reports. The Executive annually approves three year targets and monitors performance across all Portfolios on a monthly basis. In addition, a detailed Corporate Performance Management Report is produced every quarter to further monitor the progress of key performance measures and to report our achievements and challenges against key priorities. The Overview and Scrutiny Commission and its Committees also scrutinise these reports and takes account of performance information when determining its annual work programme. Our overall performance in 2009-2010 measured by National Performance Indicators, LAA Indicators and Local Performance Indicators, demonstrates the importance of this political commitment to high performance. More importantly, strong performance in key priority areas provides assurance that the Council’s management systems are effective in ensuring that resources are being used to secure the best possible outcomes for St. Helens. The Council develops the capacity and capability of Members and Officers to ensure their effectiveness

The Council delivers a well structured and effective Member Development Strategy and Programme based upon the following ten principles:-

Identified needs of both Members and the Council;

Members supported to, and be responsible for, identifying their own training, development and learning;

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Members have access to any training, development and learning opportunities encompassed within the strategy and annual programmes;

Training, development and learning programmes designed to demonstrate clear links with Council Policies and Plans;

Clear allocation of resources agreed to support the implementation of the strategy and annual programmes;

Training, development or learning opportunities tailored to meet the needs of groups or individuals as appropriate, within the constraints of the resources available to support the strategy;

Variety of training methods and approaches utilised to take account of the preferred learning styles of Members and provide variety and interest;

Training, development or learning programmes demonstrate intended outcomes and are subject to evaluation;

Through the development of individual Personal Development Plans (PDPs) Members are encouraged to embrace the concept of “lifelong learning”;

The strategy is subject to ongoing scrutiny and review by the Members Training Group to ensure that it remains current and fit for purpose.

The annual programme is determined by an all-party Member Training and Development Group and designed and delivered by a Member Support Team which is a partnership between Corporate Training, ICT Training and Democratic Services.

The programme for 2009-2010 included a framework for Member training called “Member Training Essentials” which identified and detailed the skills, knowledge and behaviours for all roles undertaken by Members from being a Ward Councillor to Leader of the Council. This framework helped to shape our offer in 2009-2010. In addition to this framework officer support was reviewed and strengthened with the formation of a support team involving a partnership between three different sections in the Council, Training, IT Training and Support and Democratic Services. This partnership approach meant that we could deliver the following in 2009-2010:-

A revised and improved Member Induction Package; Enhanced IT support including a project to develop Member websites; 75% of Members have a Personal Development Plan;

A comprehensive training programme for the Planning Committee;

A Chief Executive led Briefing Programme.

Current and future training plans build on the experience gained in recent years and constantly seek to introduce innovative ways of developing Member skills enabling the Council to continue to be at the forefront of Member development, such as more informal participative presentations and visits to neighbouring authorities to observe good practice.

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The Council sought and achieved the North-West Charter for Member Development Level 1 re-accreditation and set out plans to achieve Level 2 Exemplar status in 2010-2011. An independent review of the Scrutiny function has been undertaken and a dedicated Scrutiny Team established to support Members. Regular briefings and advice are provided to Members together with suitable training provided to support them in the discharge of their responsibilities as necessary. Each Scrutiny Committee has an assigned senior officer providing a link to relevant services to provide information and support where necessary. In accordance with the Local Democracy, Economic Development and Construction Act 2009, the Council has a designated Officer (Scrutiny Officer) to promote and support the Committees and the Members of the of the Committees, and to provide support and guidance to Members, the Executive and Officers of the Authority. The Council’s Audit and Governance Committee has a key role as the “body charged with governance” within the Council and undertook a self assessment of its own performance and effectiveness in March 2010 based upon national guidelines and standards and was supported by senior officers of the Council.

With regard to the workforce, the Council’s Human Resources/People Management Strategy 2007-2010 addresses how the Council will support Officers in their ability to deliver the Council’s community and corporate objectives and assist them in increasing their capacity to deliver. The Council recognises the benefits of having a committed, capable, skilled, diverse workforce that is focused on achieving the Council’s objectives and delivering high quality services to the local community. It seeks to ensure that effective systems and procedures are in place to ensure that employees are fully supported to deliver what is required. Employees are recruited, trained and deployed by the Council to support the delivery of local services in accordance with agreed aims, objectives and annual service plans. The Council operates a staff appraisal process that identifies training and development needs. The Council places great importance on the quality of its workforce, and was especially pleased to achieve the Investors In People (IIP) Gold Award accreditation for the whole Council in 2009. St. Helens was the first Council in the region to achieve this and one of the first nationally. This considerable achievement reflected not only the quality of Council systems for supporting, training and communicating with colleagues, but also its ability to cascade these consistently amongst its large and disparate workforce. The Council engages with local people and other stakeholders to ensure robust public accountability The Council acknowledges that its joint vision for the Borough will only be achieved by extensive engagement with all stakeholders, public, private, voluntary and community sectors. The Council has strategies for consultation, communications and access to services.

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The Council actively involves local residents and young people in shaping the Borough’s future and in providing direction to the Council and its partners in the development of local services. Strong consultation and engagement mechanisms, contained in a comprehensive Consultations Toolkit, enable the Council to understand the views, needs and preferences of all its stakeholders. The objectives and priorities of both the Sustainable Community Plan and the Corporate Plan are based on good intelligence and are the product of considerable consultation activity. Particular effort is made to reach the views of those who tend to be excluded from the decision making process or who have very specific needs. To increase the effectiveness of consultation the Consultation Toolkit has been developed online. It contains guidance and best practice for undertaking consultation, details of numerous community groups available for consultation with, and a database of past, current and future consultations. The toolkit is available to all statutory agencies in addition to Council Officers. A best practice and guidance booklet is also available for smaller voluntary and community groups. A range of engagement methods with the community are utilised, including:-

Ward Committees; Neighbourhood Management Areas and Action Groups; Residents surveys e.g. Place Survey conducted annually; On-line surveys; Stakeholder forums such as Senior Voice; Crime and Disorder Reduction Partnership; User groups.

Effective consultation has been undertaken across a number of key service areas and examples include the following:-

New Executive arrangements A58 Consultation Project; Alleygating Programme Residents' Consultation; Arts Strategy Consultation; Building Schools for the Future; Centre for Independent Living in St Helens; Children’s Workforce Development; Council Budget; Crime and Disorder Partnership Report and Annual Survey; Fuel Poverty Strategy 2009; Home Care Consultation; LDF Core Strategy and Supplementary Planning Documents; Mid-Mersey Strategic Housing Land Availability Assessment; Place Survey; Playbuilder Consultation; Tell Us Survey; Waste Plan Public Consultations.

The Council has sixteen Ward Committees meeting every eight weeks in public to consider matters of concern to local residents with revenue funding allocated to them to plan and deliver environmental improvements.

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A Neighbourhood Management Pilot in Parr has been successfully engaging residents in local improvement projects and the programme was extended in 2008-2009 to a further three deprived areas in the Borough. St. Helens was included as one of the country’s first national pilots for Participatory Budgeting and was selected as one of the schemes in a national evaluation of participatory budgets conducted on behalf of the Department of Communities and Local Government in 2009-2010. In assessing the performance of services, the Council actively seeks the views of its community and places great emphasis on customer satisfaction as a key measure of performance. The Council has established standards of service, particularly at the front line which are regularly monitored. An open and transparent complaints procedure is available to the community and complaints are closely monitored together with the quality of the complaint handling processes. The Council conducts regular surveys to assess the levels of satisfaction with its services and their accessibility, and feeds these into service reviews. The Council employs a range of tools and techniques to ensure that internal and external communications are effective. These include a bi-monthly staff magazine, an award-winning quarterly community magazine, newsletters, regular press releases, public documents, stakeholder presentations and public meetings. An extensive intranet is complemented by a comprehensive website and community portal. These give electronic access to information on Council services and business and provide on-line services, including requesting services, making complaints and responding to consultations. All agendas and minutes are published on the Council’s website together with any delegated executive decisions taken by Chief Officers and approved by the relevant Executive Member in accordance with the Council’s Constitution. Review of Effectiveness St. Helens Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by:- • The Monitoring Officer’s review and monitoring of the Council’s Constitution to ensure

that the aims and principles are given full effect and it is fit for purpose;

• The activities of the Standards Committee in year considering the adherence to proper standards of conduct by Members of the Council;

• The Audit and Governance Committee’s review of progress toward agreed actions arising from the Council’s Annual Governance Statement relating to 2008-2009;

• The Audit and Governance Committee’s receipt of quarterly reports from the Audit and Financial Monitoring Overview and Scrutiny Committee detailing their findings in relation to their consideration of audit reports and progress toward implementation of agreed audit actions;

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• The Council’s Primary Assurance Group whose remit is to: -

Obtain, document and evaluate, from all relevant sources, an annual assessment of the Council’s internal control and governance framework including examples of assurance and supporting evidence;

Evaluate annual assurances received from individual Chief Officer’s regarding their assessment of the internal control environment and corporate governance arrangements;

Review and gain annual assurance as to the effectiveness of the Council’s system of internal audit and indicate the outcome in the Annual Governance Statement;

Draft the Annual Governance Statement including the reporting of any significant internal control issues;

Recommend an Action Plan for Improvements where any are identified by the above actions;

Review the published Annual Governance Statement and monitor any Action Plan arising on at least a biannual basis;

• The completion of an annual pro forma statement of assurance relating to control, risk and governance by each Director and Chief Officers;

• The findings of Internal Audit in delivering its annual audit plan that includes provision for the review of the Council’s Corporate Governance and Risk Management arrangements;

• The receipt of internal audit reports by the relevant Portfolio Holders;

• The Audit and Financial Monitoring Overview and Scrutiny Committee reviewing internal and external audit reports and agreed actions arising from them and, where appropriate, seeking explanation from responsible officers;

• The annual review of the Council’s strategic risk register by Chief Officers including the Head of Corporate and Community Safety together with consideration of related reports by the Audit and Governance Committee;

• A formal monthly and quarterly reporting cycle of performance with reports considered by Chief Officer Group, Overview and Scrutiny Commission and the Council. A “traffic light” system enables officers and members to clearly identify performance against key indicators and targets and to take corrective action where necessary;

• Other external review processes, e.g. CAA, OFSTED, Audit Commission, Government Office North West, Investors in People accreditation, the Care Quality Commission;

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• The Audit Commissions CAA Organisational Assessment Report at December 2010 that scored the Council as a 3 out of 4 for both Use of Resources and Managing Performance under a much harder test than any previous assessment;

• The Audit Commission’s CAA Area Assessment Report as at December 2010 that gave a positive picture of improved partnership outcomes delivered for local communities, whilst highlighting no ‘Red Flag’ areas;

• The Audit Commission, in their Annual Audit Letter dated December 2009 confirmed for the financial year 2008–09 that the Council:-

submitted its financial statements on time supported by clear working papers and

received an unqualified audit opinion;

has made good progress in its preparations for the implementation of International Financial Reporting Standards;

is performing well and consistently above the minimum standard in respect of the Value For Money judgement; scoring an overall 3;

in managing its finances has a good track record of spending within budget whilst maintaining good service performance;

uses cost information to identify areas for VFM reviews which have led to efficiency improvements and reduced costs while delivering high quality services overall;

has been recognised for its innovative arrangements for Area Based Grant;

produces financial reports that are clear and proportionate to support strategic decision making;

has identified its key priority areas based on a good understanding of local needs and uses shared needs assessments to inform commissioning and service developments;

is implementing new ways to deliver services;

has taken account of local capacity to deliver goods and services in its approach to procurement;

reviews performance information requirements in response to feedback and to meet changing demands;

has a clear asset management plan and effective asset management;

works with partners and the community to identify innovative ways to use land and property;

demonstrates an understanding of the main areas of natural resource use and is raising awareness of the need for improved environmental management.

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The Chief Internal Auditor, in his annual outturn report for 2009-2010, confirmed that, based on work undertaken in the year, the control environment was operating effectively and there were no issues required to be brought to the attention of Members. The Primary Assurance Group undertook the review of the effectiveness of Internal Audit for 2009-2010. The Group provided a robust challenge to information provided to them by way of report, CIPFA self assessment documentation and performance and benchmarking data. The Group confirmed that based on this review Internal Audit was performing effectively. In addition, the Council’s external auditors, the Audit Commission, undertook their triennial review of Internal Audit in 2008-2009 and confirmed that expected professional standards were met and complied with best practice as identified by the CIPFA Code of Practice for Internal Audit in Local Government in the United Kingdom. The Primary Assurance Group, in their comprehensive self assessment of the control and governance framework and consideration of assurances from Chief Officers, were satisfied that there were no significant internal control issues to be brought to the attention of Members. Significant Governance Issues It is our opinion, based on the assurances provided above, that our systems of internal control and governance accord with proper practice and are operating effectively within the Council. On this basis we can report that there are no significant governance issues that require addressing by the Council. From the review of our control and governance arrangements we have identified some general areas for improvement. We intend to action these in 2010-2011 to further enhance our governance arrangements. We are satisfied that these steps will address the need for improvements that were identified in our review of effectiveness and we will monitor their implementation and operation as part of our ongoing review of governance arrangements. These improvements are detailed in the attached Annual Governance Self Assessment 2009-2010 document, the achievement of which will be subject to on going monitoring in year by the Council’s Primary Assurance Group and the Audit and Governance Committee. The Council continues to face many challenges. The global and national economy has experienced significant downturn and further government intervention is likely in the short to medium term to manage and reduce the reported public spending deficit. Consequently, there is a significant level of uncertainty regarding future central government funding with no firm indication as to the size or nature of any possible reductions. The Council will face increased financial pressures from any reduction in grant and income streams whilst also seeking to maintain the provision of comprehensive high quality services and deliver its stated efficiency targets. The constant modernisation and redefinition of Council services will therefore be key to meeting these challenges, especially in managing the demand for care given the Council’s demographics, and in responding to the environmental sustainability agenda.

41

From April 2010 funding from the LSC for the commissioning of 16-19 education is transferred to the Council. This is a major shift in responsibilities and the Council, together with its partners, will take the opportunity to maximise support and opportunity for young people in the Borough. In accordance with the requirements of the Local Government and Public Involvement in Health Act 2007 the Council has adopted new style Leader and Cabinet arrangements and these will take effect from 9 May 2010. In considering these revised arrangements the Council was mindful of ensuring they would assist in securing continuous improvement in the way in which the Council’s functions are exercised, having regard to a combination of economy, efficiency and effectiveness. The Council remains committed to seeking continuous improvement and will continue to review and strengthen the control, risk and governance environment wherever and whenever appropriate.

Signed: _________________________ Date: 9 June 2010 Chief Executive

Signed: __________________________ Date: 9 June 2010 Leader of the Council

42

INCOME AND EXPENDITURE ACCOUNT

This Statement reports the net cost for the year of all the revenue functions for which the Authority is responsible, and demonstrates how that cost has been financed from general Government grants and income from local taxpayers. The Account is structured in accordance with the detailed requirements of the SORP and the Service Expenditure Analysis requirements of CIPFA’s Best Value Accounting Code of Practice. NOTES 2008-2009 2009-2010 2009-2010 2009-2010

Net Expenditure

£000 Gross

Expenditure£000

Income

£000

NetExpenditure

£000 CONTINUING OPERATIONS

1 & 2

3 & 9 2 4 5 5

4 & 5

52,835

48,489 49,051 25,787

249 2,205 3,494

670 2,225

Cultural, Environmental, Regulatory & Planning Services Children's & Education Services Adult Social Care Highways & Transport Services Court Services Housing Services Corporate & Democractic Core Non-Distributed Costs Central Services to the Public

56,334

201,613 66,886 28,364

221 76,317

3,356 1,698

20,988

(17,806)

(159,468) (21,453)

(2,326) 0

(76,543) (17)

0 (18,616)

38,528

42,145 45,433 26,038

221 (226) 3,339 1,698 2,372

6 185,005 NET COST OF SERVICES 455,777 (296,229) 159,548 7 1,212 Losses/(Gains) on Disposal of Fixed

Assets

4,674

272 Precepts Paid to Parish Councils

277

8 9 9

(6,854)

6,657

15

32,994

(23,075)

Interest & Investment Income Interest Payable and Similar Charges Contribution to Housing Capital Receipts Pool Pensions Interest Cost Expected return on Pensions Assets

(3,669)

5,555

5

32,270

(18,167) 196,226 NET OPERATING EXPENDITURE 180,493

(62,038)

(72,637)

Income from Council Tax and Residual Community Charge Distribution from the Non-Domestic Rate Pool

(63,632)

(69,534)

(10,112) Revenue Support Grant

(16,049)

(252) Local Authority Business Growth Incentive

(133)

(20,083)

(338)

Area Based Grant (ABG) Local Area Agreement Reward Grant

(20,654)

(823) 30,766 (SURPLUS)/DEFICIT FOR THE YEAR 9,668

43

STATEMENT OF MOVEMENT ON THE GENERAL FUND BALANCE

The Income & Expenditure Account shows the Council's actual financial performance for the year, measured in terms of the resources consumed and generated over the period. The resultant surplus or deficit is due to the measurement of both income and expenditure using essentially the same accounting conventions (United Kingdom Generally Accepted Accounting Principles - UK GAAP) that a large unlisted company would use in preparing its audited annual financial statements. However, the Council is required to credit or charge additional items to its General Fund which must be taken into account in determining its budget requirement, and in turn its Council Tax demand. Such determinations arise from statute and non-statutory proper practices. This Statement summarises the difference between the outturn on the Income and Expenditure Account and the movement on the General Fund Balance. NOTES 2008-2009

£000 2009-2010

£000

17

30,766

(26,021)

(Surplus)/Deficit for the year on the Income & Expenditure Account Net additional amount required by Statute and Non-Statutory Proper Practices to be Debited or (Credited) to the General Fund Balance for the Year

9,668

(17,386)

4,745 (Increase)/Decrease in General Fund Balance for the Year

(7,718)

The balances position may be further analysed:-

31 March 2009

£000

2009-2010 (Increase)/

Decrease in Balances

£000

31 March2010

£000(6,604) Amounts of General Fund Balances held

by Governors under Local Management of Schools arrangements

(429)

(7,033)

(11,332) Amount of General Fund Balance Generally available to the Council

(7,289) (18,621)

(17,936) TOTAL (7,718) (25,654)

44

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

This Statement summarises all the gains and losses of the Council for the year and shows the aggregate movement in its net worth. In addition to the surpluses generated on the Income and Expenditure Account, it includes all gains relating to the revaluation of fixed assets and re-measurement of the net liability to cover the cost of retirement benefits.

2008-2009 £000

2009-2010£000

30,766

(7,977)

(30,514)

(Surplus)/Deficit for the year on the Income & Expenditure Account (Surplus)/Deficit arising on Revaluation of Fixed Assets not charged to the Income & Expenditure Account Actuarial (gains)/losses on Pension Fund Assets And Liabilities

9,668

(14,572)

69,088

(7,725) Total recognised (gains)/losses for the year 64,184

45

BALANCE SHEET This is a statement of the Council's assets and liabilities and presents an overall view of its financial position at the end of the financial year. NOTES 31 March

2009 £000

31 March2010£000

18

19 & 20

592

155,400 13,048

139,541 8,462

31,416 14,463 17,838

FIXED ASSETS Intangible Fixed Assets Tangible Fixed Assets Operational Assets - Land & Buildings - Vehicles, Plant, & Equipment - Infrastructure Assets - Community Assets Non-Operational Assets - Investment Properties - Surplus Assets held for Disposal - Assets under Construction

622

177,092 14,391

141,515 11,910

31,691 13,389 13,641

380,760 TOTAL FIXED ASSETS 404,251 21 22

2,998 51,789

Long Term Debtors Long Term Investments

3,603 66,415

435,547 TOTAL LONG TERM ASSETS 474,269

23 24 22

268

25,245 64,960

37

CURRENT ASSETS Stocks and Work in Progress Debtors Short-Term Investments Petty Cash

237 27,301 68,490

42 526,057 TOTAL ASSETS 570,339

26 25

(13,179) (50,527) (21,354)

CURRENT LIABILITIES Short Term Borrowing Creditors Cash Overdrawn

(1,176)(58,022)(37,210)

440,997 TOTAL ASSETS LESS CURRENT LIABILITIES 473,931 LONG TERM LIABILITIES

26 27 28 29 9

(93,386) (5,379) (5,817)

(85,472) (166,927)

Long Term Borrowing Deferred Liabilities Provisions Government Grants Deferred Liability related to Defined Benefit Pension Schemes

(93,382)(4,976)(6,118)

(108,586)(241,037)

84,016 TOTAL ASSETS LESS LIABILITIES 19,832

46

NOTES 31 March

2009 £000

31 March2010£000

30 31 32 33 34 35

36 9

493

124,615 30,292 (1,842)

(639) 57,261 11,332 29,431

(166,927)

FINANCED BY: Deferred Credits Capital Adjustment Account Revaluation Reserve Financial Instruments Adjustment Account Collection Fund Adjustment Account Usable Capital Receipts Reserve General Fund Balance Specific Revenue Reserves Pensions Reserve

375 117,695 36,599 (2,027)

(121)57,061 18,621 32,666

(241,037) 84,016 TOTAL NET WORTH 19,832

In preparing this Statement, events up to 27 September 2010 have been considered. This is the date on which the Assistant Chief Executive (Finance) authorised the Statement for issue. These Financial Statements replace the unaudited Financial Statement authorised at the meeting of the Audit & Governance Committee on 28 June 2010.

47

CASHFLOW STATEMENT

This statement summarises the inflows and outflows of cash arising from transactions with third parties for revenue and capital purposes. NOTES 2008-2009 2009-2010 £000 £000 £000

40

201,565

179,850 57,459

271 15

(4,751) (49,134) (72,607)

(10,112) (52,961)

(193,411) (61,138)

REVENUE ACTIVITIES CASH OUTFLOWS - Cash Paid To and On Behalf of Employees - Other Operating Cash Payments - Housing Benefit Paid Out - Precepts Paid - Housing Capital Receipts Pool CASH INFLOWS - Rents (after rebates) - Council Tax Receipts - National Non-Domestic Rate Receipts from National Pool - Revenue Support Grant - DWP Grants for Benefits - Other Government Grants - Cash Received for Goods and Services/Other Operating Cash Receipts

207,155

181,522 64,975

277 5

(4,412) (50,209) (69,534)

(16,049) (61,905)

(202,734) (65,278)

453,934

(470,121)

41 (4,954) REVENUE ACTIVITIES NET CASHFLOW

(16,187)

6,981

(6,921)

RETURNS ON INVESTMENT & SERVICING OF FINANCE CASH OUTFLOWS - Interest Paid CASH INFLOWS - Interest Received

5,560

(3,669) 1,891

40

30,411 291

(2,734) (13,809)

(734)

CAPITAL ACTIVITIES CASH OUTFLOWS - Purchase of Fixed Assets - Other Capital Cash Payments CASH INFLOWS - Sale of Fixed Assets - Capital Grants Received - Other Capital Cash Receipts

36,015 282

(1,908) (38,433)

(334)

36,297

(40,675) 8,531 NET CASH (INFLOW)/OUTFLOW

BEFORE FINANCING (18,674)

48

NOTES 2008-2009 2009-2010 £000 £000 £000

42

(9,820)

(215)

MANAGEMENT OF LIQUID RESOURCES - Net increase/(decrease) in short term deposits - Net increase/(decrease) in other liquid resources

18,156

4,362 22,518

41,553

(32,000)

FINANCING CASH OUTFLOWS - Repayments of Amount Borrowed CASH INFLOWS - New Loans Raised

12,007

0 12,007 43 8,049 NET (INCREASE)/DECREASE IN

CASH 15,851

49

NOTES TO THE ‘CORE’ FINANCIAL STATEMENTS

1. 4NW

4NW (formerly North West Regional Assembly) is the Regional Leaders Forum for the North West of England, bringing together public, private and third sector stakeholders and providing a Forum to promote the sustainable development and regeneration of the region. 4NW has responsibility for regional housing, planning, transport and economic development. St. Helens holds the role of Accountable Body for 4NW and it is appropriate that the Statements fully recognise the financial implications of doing so. All 4NW activity has been analysed as falling within 'Cultural, Environmental, Regulatory & Planning Services' in accordance with CIPFA's Best Value Accounting Code of Practice (BVACOP), and the full revenue transactions relating to 4NW, as included in the Income & Expenditure Account Net Cost of Services are as detailed below:-

2008-2009 Net

Expenditure £000

2009-2010Gross

Expenditure£000

2009-2010 Income

£000

2009-2010Net

Expenditure£000

(165) Cultural, Environmental & Planning Services

3,410 (3,736) (326)

(165) NET COST OF SERVICES (172) Charges made for

Retirement Benefits in accordance with FRS17

(106)

183 Employer’s Contributions to Scheme

178

154 Transfer to NWRA Reserve (Surplus for the Year)

254

NIL AMOUNT TO BE MET BY ST. HELENS LOCAL TAXPAYERS

NIL

St. Helens' contribution to 4NW as a Local Authority member was £5,763 in 2009-2010 and St. Helens does not subsidise other members. The balance sheet position is as follows, with the reserve being ‘owned’ by partner Local Authorities:-

31 March 2009 £000

31 March 2009 £000

245 (1,695) 2,665

Debtors Creditors Cash (overdrawn)/in hand

400 (1,585) 2,655

1,215 Reserve at 31 March 1,470 See also Note 39 (Contingent Liabilities).

50

2. SERVICE LEVIES

With effect from 1 April 1990, the Council is required to pay levies to various bodies as part of the regional funding of those bodies. In accordance with the requirements of CIPFA's Best Value Accounting Code of Practice the costs of levies are incorporated within the relevant services within the Income & Expenditure account. These levies are analysed as follows:-

2008-2009

£000Service/Levying Body 2009-2010

£000

14,445

84 8,484

Highways & Transport Services Merseyside Passenger Transport Authority Cultural, Environmental, Regulatory & Planning Services Environment Agency Merseyside Waste Disposal Authority

15,043

87 9,010

23,013 TOTAL 24,140 3. SCHOOLS BUDGET FUNDED BY DEDICATED SCHOOLS GRANT

The Council’s expenditure on Schools is funded by grant monies provided by Department for Eduction (DFE) (formerly Department for Children, Schools & Families) in the form of the Dedicated Schools Grant (DSG). DSG is a ring-fenced grant that can only be applied to meet expenditure properly included in the Schools Budget. The Schools Budget includes elements for a restricted range of services, provided ‘centrally’, on an Authority-wide basis and also for the Individual Schools Budget, which is divided into a budget share for each School.

Schools Budget funded by Dedicated Schools Grant

2008-2009 Schools Budget funded by Dedicated

Schools Grant 2009-2010

Central Expenditure

£000

Individual Schools Budget

£000

Total

£000

Central Expenditure

£000

Individual Schools Budget

£000

Total

£0002,285 0 2,285 Balance brought forward at

1 April 3,555 0 3,555

12,736 89,803 102,539 Receivable in Year 13,283 91,307 104,590 0 0 0 Carry forward to future

years agreed in advance 0 0 0

15,021 89,803 104,824 Budgeted distribution for Year

16,838 91,307 108,145

11,466 89,803 101,269 Actual Expenditure in Year 15,059 91,307 106,366 3,555 0 3,555 Balance carried forward at

31 March 1,779 0 1,779

This specific grant is credited to the Children's & Education Service heading within Net Cost of Services in the Income & Expenditure Account.

51

4. BENEFITS AND BENEFIT SUBSIDY The gross costs of providing Council Tax Benefit and Rent Allowances are shown in the Housing Services and Central Services lines on the Income & Expenditure Account, as is the corresponding income received via government subsidy.

5. CENTRAL SERVICES TO THE PUBLIC, CORPORATE AND DEMOCRATIC CORE AND NON-DISTRIBUTED COSTS

CIPFA's Best Value Accounting Code of Practice (BVACOP) defines a requirement to disclose, as a minimum level of detail, the cost of Central Services on the face of the Income & Expenditure account. To assist user understanding, this total has been further broken down to sub-division level of service as detailed:-

2008-2009

Net Expenditure

£000

2009-2010Gross

Expenditure£000

2009-2010 Income

£000

2009-2010Net

Expenditure£000

3,494 670

2,225

Corporate & Democratic Core (a) Non-Distributed Costs (b) Central Services to the Public (c)

3,356 1,698

20,988

(17) 0

(18,616)

3,339 1,698 2,372

6,389 TOTAL 26,042 (18,633) 7,409

(a) Relates to those activities and costs which provide the infrastructure which allows services to be provided and includes costs relating to all aspects of Members' activities in that capacity.

(b) This item represents amounts incurred relating to:-

2008-2009

Net Expenditure

£000

2009-2010Net

Expenditure£000

116

125

392

37

(Gains)/losses on actuarially assessed retirement benefits (past service, settlements & curtailments) Impairment Charges on Non-Operational Assets Unused element of I.T. and office accommodation facilities Other

145

1,339

177

37 670 TOTAL 1,698

(c) Other Divisions of Service including Local Tax Collection, Registrars,

Elections, Emergency Planning, Local Land Charges and General Grants and Subscriptions.

52

6. NET COST OF SERVICES

Includes the total cost of all support services and holding accounts. Balances on these activities have been apportioned, allocated or charged to services in full.

It should be noted that there are a number of instances where caution should be exercised

in comparing net expenditure within the Net Cost of Services between years. For example:-

(i) differences in funding regimes will occur over a period. This is notably so where the Government ceases or commences to provide funding for a given element of service by way of specific or general grants as opposed to other, different, historic means. For example, during 2008-2009 a range of former specific grants were replaced by a non-ringfenced general grant in the form of Area Based Grant;

(ii) the implications of FRS 17 Retirement Benefits may contribute to significant

variations between financial years. This will be particularly so where curtailments, current service costs, past service costs and settlement gains/losses are evident; where changes in Pension Scheme Regulations apply; or where elements of actuarial assumptions change;

(iii) Revenue Expenditure funded from Capital under Statute may also vary

significantly between years;

(iv) Impairment Charges to the Net Cost of Services may vary significantly between years due to the incidence or absence of relevant events. Impairment charges included in the Net Cost of Services are disclosed in Note 17.

7. LOSSES/(GAINS) ON DISPOSAL OF FIXED ASSETS

2008-2009 £000

2009-2010 £000

(420) Capital Receipt arising from the Preserved Right to Buy agreement

(317)

0 Transfer of Rainhill High to Rainhill Learning Village Trust

5,195

1,632 Disposal of other assets (204) 1,212 TOTAL 4,674

8. HOUSING POOLED RECEIPTS

Under the provisions of the Local Government Act 2003, Local Authorities are required to pay over to the Secretary of State specified amounts of any capital receipts derived from the disposal of an interest in housing land after 1 April 2004. In accordance with CIPFA's SORP the sum due for payment should be matched by an appropriation from Usable Capital Receipts to ensure there is a neutral impact on the General Fund balance.

53

9. PENSIONS As part of the terms and conditions of employment of its officers and other employees, the Authority offers retirement benefits to those individuals and participates in two Pension Schemes:- (i) the Local Government Pension Scheme for staff employed under NJC terms and

conditions - this is a funded scheme where the Authority and the employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities investment assets. This scheme is administered by the Merseyside Pension Fund (and Lancashire Pension Services for the minimal residual liabilities arising from pre-Local Government reorganisation);

(ii) the Teachers' Pension Scheme for those employed under Teachers' terms and

conditions, administered by Capital Teachers’ Pensions. It provides Teachers with defined benefits upon their retirement, and the Authority contributes towards the cost by making contributions based on a percentage of members’ pensionable salaries.

(a) Transactions Accounted for Under Defined Contribution Scheme Arrangements

The Teachers’ Pension Scheme is a defined benefit scheme. Although the scheme

is unfunded, Teachers’ Pensions use a notional fund as the basis for calculating the employer’s contribution rate paid by Local Education Authorities. However, it is not possible for the Authority to identify a share of the underlying assets and liabilities in the scheme attributable to its own employees on a consistent and reasonable basis. The SORP therefore requires that the contributions to the scheme should be accounted for as if it were a defined contribution scheme and as such the pensions cost reported in the Net Cost of Services is equal to the employer's contribution payable to the Scheme in the accounting period (£7.77M resultant from an employer's contribution rate of 14.1%).

In 2008-2009 the employer’s contribution rate was 14.1%, whilst the contributions

totalled £7.70M.

The Authority is, however, responsible for the costs of additional benefits awarded upon early retirement outside of the terms of the Teachers’ scheme. These benefits are accounted for under the rules relating to defined benefit schemes.

(b) Transactions Accounted for Under Defined Benefit Scheme Arrangements

Although benefits will not actually be payable until employees retire, the Authority has a commitment to make the payments. In accordance with the detailed accounting requirements of FRS 17 Retirement Benefits and the SORP, where the pension scheme meets the definition of a defined benefit pension scheme, the cost of retirement benefits are ordinarily to be recognised in the Net Cost of Services when they are earned, rather than when the benefits are eventually paid as pensions.

However, the charge required to be made against Council Tax is based on cash

payable in year, and the effect of this is reflected in the Statement of Movement on the General Fund Balance.

54

(c) Transactions relating to Retirement Benefits

The following transactions have been made in the Income & Expenditure Account during the year to comply with the reporting requirements relating to defined benefits:-

2008-2009 2009-2010 Teachers'

Pension Scheme

£000

Local Government

Pension Scheme

£000

Teachers' Pension Scheme

£000

Local Government

Pension Scheme

£000

0 99 0

13,556 15 2

NET COST OF SERVICES Current Service Costs Past Service (Gains)/Costs (Gains)/Losses on Curtailment

0 0 0

9,060 109 34

1,547 0

31,447 (23,075)

NET OPERATING EXPENDITURE Interest Cost Expected Return on Assets

1,526 0

30,744 (18,167)

1,646 21,945 NET CHARGE TO THE INCOME & EXPENDITURE ACCOUNT

1,526 21,780

2008-2009 STATEMENT OF MOVEMENT IN

THE GENERAL FUND BALANCE

2009-2010

Teachers' Pension Scheme

£000

Local Government

Pension Scheme

£000

Teachers' Pension Scheme

£000

Local Government

Pension Scheme

£000(1,646) (21,945) Reversal of Net Charges made for

Retirement Benefits in accordance with FRS 17

(1,526) (21,780)

0

13 1,916

15,344

0 0

Actual amount charged against the General Fund Balance in the Year - Employer's Contributions payable to Scheme - Lump Sums payable to Pensioners - Retirement Benefits payable directly to Pensioners

0

0 1,996

16,288

0 0

1,929 15,344 TOTAL 1,996 16,288

(i) Current service costs are based on the actuarial assumptions which apply at the start of the accounting year. For 2009-2010, current service costs have reduced substantially compared to those for 2008-2009 as a result of significant changes in financial assumptions from 1 April 2008 to 1 April 2009 - predominantly those changes used in relation to the discount rate used to calculate scheme liabilities.

55

(d) Assets and Liabilities in Relation to Retirement Benefits

The following Tables identify the movement in the present value of scheme liabilities and the fair value of the scheme assets:-

Reconciliation of Present Value of the Scheme Liabilities

Liabilities

Local Government

Pension Scheme

(Funded)

Liabilities Local

Government Pension Scheme

(Unfunded)

Liabilities Teachers’

Pension Scheme

Liabilities Local

Government Pension Scheme

(Funded)

LiabilitiesLocal

Government Pension Scheme

(Unfunded)

LiabilitiesTeachers’

PensionScheme

2008-2009 £000

2008-2009 £000

2008-2009 £000

2009-2010 £000

2009-2010£000

2009-2010£000

(501,684) (12,877) (26,330) Balance brought forward at 1 April (424,101) (10,898) (22,491)(13,556) 0 0 Current Service Cost (9,060) 0 0 (30,689) (758) (1,547) Interest Cost (30,003) (741) (1,526)(5,034) 0 0 Contributions by Scheme

Participants (5,264) 0 0

111,108 1,869 3,556 Actuarial Gains and (Losses) (142,448) (2,161) (4,080)15,771 868 1,929 Benefits Paid 17,376 916 1,996

(15) 0 (99) Past Service Costs (109) 0 0 (2) 0 0 Curtailments (34) 0 0

(424,101) (10,898) (22,491) Balance carried forward at 31 March (593,643) (12,884) (26,101) The LGPS Unfunded Liabilities represent additional benefits awarded upon early

retirement. The contribution expected to be paid to the Schemes during 2010-2011 are broadly in line with those paid in 2009-2010, allowing for increases arising from pay inflation.

Reconciliation of Fair Value of the Local Government Pension Scheme Assets

2008-2009

£000 2009-2010

£000349,768 Balance brought forward at 1 April 290,563 23,075 Expected Rate of Return 18,167

(86,019) Actuarial Gains and (Losses) 79,601 15,344 Employer Contributions 16,286 5,034 Contributions by Scheme Participants 5,264

(16,639) Benefits Paid (18,290)290,563 Balance carried forward at 31 March 391,591

There are no assets to cover the Teachers’ added years liabilities.

The liabilities show the commitments that the Authority, in the long run, is estimated to have to pay to cover its Pension related obligations. The net liability of £241M has a significant impact on the net worth of the Authority as recorded in the Balance Sheet.

A major review of the LGPS Regulations has been undertaken at national level, with

subsequent amendments being introduced from April 2008. The aim of this review was to ensure that pension schemes are adequately funded.

56

One of the critical amendments resulting was the introduction of tiered employee contribution rates based on the employee’s earnings, resulting in an increase to the average employee’s contribution rates and, thus serving to reduce the net liability of the Council.

The Merseyside Pension Fund has been subject to actuarial revaluation to cover the

three year period from 1 April 2008. This revaluation took account of the statutory changes being made and resulted in increased employer contribution rates (by 1.1% to 18.2% with effect from 1 April 2008) that will address the scheme position accordingly. The next revaluation is currently being undertaken and any rate changes are likely to come into effect from 1 April 2011. In doing so, the Actuary will consider and ensure the solvency of the Fund and those rates required to support the costs of benefits payable out of the Fund both currently and in the future.

(e) Basis for Estimating Assets and Liabilities Liabilities have been assessed on an actuarial basis using the projected unit method,

an estimate of the pensions that will be payable in future years, dependent on assumptions about mortality rates, salary levels, etc. The assets and liabilities have been assessed by Mercer Human Resource Consulting Ltd., an independent firm of actuaries based on the latest full valuation of the scheme. The main assumptions used in their calculations are:-

31 March 2008 31 March 2009 31 March 2010

3.6% 4.85% 3.6% 6.1%

50%

21.3 years

24.0 years

20.3 years

23.1 years

7.5% 4.6% 6.1% 6.5%

5.25% 7.5%

3.3% 4.55% 3.3% 7.1%

50%

21.3 years

24.1 years

20.3 years

23.2 years

7.5% 4.0% 6.0% 6.5% 0.5% 7.5%

Rate of inflation Rate of increase in salaries Rate of increase in pensions Rate of discounting scheme liabilities Proportion of employees opting to take a commuted lump sum Life expectancy of male future pensioner aged 65 in 20 years time Life expectancy of female future pensioner aged 65 in 20 years time Life expectancy of male current pensioner aged 65 Life expectancy of female current pensioner aged 65 Equities Government Bonds Other Bonds Property Cash/Liquidity Other

3.3% 4.55% 3.3% 5.6%

50%

21.3 years

24.1 years

20.3 years

23.2 years

7.5% 4.5% 5.2% 6.5% 0.5% 7.5%

In his budget statement on 22 June, the Chancellor announced that the Government

would start to increase public service pensions in line with the Consumer Price Index (CPI) rather than the Retail Price Index (RPI), which has been the practice in the past. As a result, future pension increases under the Merseyside Pension Fund are expected to be slightly lower, on average, than would have been the case if this change had not been made. This change is estimated to reduce the FRS17/IAS19 benefit obligations by between 5% and 8% for most employers. The precise financial effect will be taken into account in the FRS17/IAS19 figures for the financial year ending 31 March 2011.

57

The figures included in the Balance Sheet consist of the following categories by proportion:-

31 March 2009 31 March 2010 % £000 % £000

53.6 17.7 4.8 9.3 4.2 10.4

155,74251,43013,94727,02212,20430,218

Equities Government Bonds Other Bonds Property Cash/Liquidity Other Assets

63.6 12.1 6.6 6.3 2.6 8.8

249,052 47,382 25,845 24,670 10,181 34,461

100.0 290,563 TOTAL 100.0 391,591

(f) Scheme History

Asset returns during 2009-2010 have been exceptionally good (following a very poor 2008-2009), with the Fund achieving investment returns some 20.3% in excess of the “expected” returns, as calculated at the start of the year, of approximately 6.5%.

With regards liabilities, the financial assumptions used for the calculations as at

31 March 2010 are much more conservative than those used as at 31 March 2009, driven by the yield on corporate bonds falling substantially during the year. The result has seen a large increase in FRS 17 liabilities for all employers, which is measured as being a 23.8% loss on liabilities (based on period end liabilities).

The recent scheme history is included in the Table below:- 2004-2005

£000

2005-2006

£000

2006-2007

£000

2007-2008

£000

2008-2009

£000

2009-2010

£000

Present Value of Liabilities:- Local Government Pension Scheme Teachers’ Pension Scheme

(395,120)

(22,704)

(457,624)

(24,042)

(459,727)

(23,657)

(514,561)

(26,330)

(434,999)

(22,491)

(606,527)

(26,101)

Fair value of assets in the Local Government Pension Scheme

261,943 325,356 347,052 349,768 290,563 391,591

Surplus/(deficit) in the Scheme:- Local Government Pension Scheme Teachers’ Pension Scheme

(133,177)

(22,704)

(132,268)

(24,042)

(112,675)

(23,657)

(164,793)

(26,330)

(144,436)

(22,491)

(214,936)

(26,101)

Total (155,881) (156,310) (136,332) (191,123) (166,927) (241,037)

58

Experience adjustments arising during the same period are as follows:-

Percentage of Liabilities/Assets as at Balance Sheet Date 2004-2005

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Experience Gains/(Losses) on Assets

NIL (13.2) NIL (6.8) (29.6) 20.3

Experience Gains/(Losses) on Liabilities

(1.3) (2.0) NIL (1.5) NIL NIL

The cumulative amount of actuarial losses recognised in the Statement of Total Recognised Gains and Losses is £69.422M.

10. TRADING ACCOUNTS

There are a number of services which the Authority undertakes with the public or with other third parties and may, accordingly, be assessed as being 'trading operations'. For the purposes of this note, activity undertaken on behalf of schools (who have a choice as to which service provider they will use) is included. The most significant of these being:-

2009-2010Internal

Turnover

£000

2009-2010School

Turnover

£000

2009-2010 Other

'External Parties'

Turnover £000

2009-2010Surplus/(Deficit)

£000School/Welfare/Other Catering Cleaning Caretaking Grounds Maintenance Security Services Markets General and Industrial Properties

243 735 245

2,487 728

0 0

4,885 1,385 1,208

301 229

0 0

37 23

4 100

0 913

1,304

0 0 0 0 0

(95)131

11. NATIONAL HEALTH SERVICE ACT 2006 POOLED FUNDS

Section 31 of the Health Act 1999 enabled the establishment of joint working arrangements between NHS bodies and local authorities, including the operation of 'pooled budget' and 'integrated provision' arrangements which will enable those bodies to work collaboratively to address specific local health issues. This legislation has now been repealed and replaced by Section 75 of the National Health Service Act 2006. Existing Section 31 arrangements continue as if made under the new provisions. Pooling Arrangements Two separate 'pooling' arrangements existed during the financial period:- (i) an arrangement with Halton & St. Helens PCT in relation to the Young People's

Substance Misuse Service.

59

The objectives of that arrangement were to educate young people, their parents and carers on substance misuse issues and to ensure young people identified as having problems receive appropriate advice, information, support or intervention/care packages.

(ii) an arrangement with Knowsley MBC, Knowsley PCT and Halton & St. Helens PCT in

relation to an Integrated Community Equipment Store. The pooled fund was set up to simplify access to the service by health and social care practitioners and to standardise processes and products, improving both the speed and quality of service.

The financial transactions relating to these Pooling arrangements may be

summarised:-

Total Pooled Income

2008-2009 £000

St. HelensCouncil

Contribution2008-2009

£000

Pooled Arrangement

Type of Partner

Total Pooled

Income 2009-2010

£000

St. HelensCouncil

Contribution2009-2010

£000211 120 Substance

Misuse Service

'Host' 246 125

1,914 469 Integrated Community Equipment Store

'Ordinary' 1,883 487

Arrangements are such that any in-year surplus/deficit on the scheme are carried

forward into the subsequent financial year.

Integrated Provision Arrangements The following integrated provision arrangements were registered with the

Department of Health:-

Project PARTNERS Halton &

St. Helens PCT

5 Borough NHS Trust

Halton B.C.

Integrated Mental Health Services Intermediate Care Services (Reablement & Rapid Response) Health Improvement Management Lead Commissioners

x x x x

x x

60

12. LEASING

The Authority as Lessee (i) Vehicles, Plant, Furniture and Equipment

The Authority uses various types of vehicles, wheeled bins, computer equipment and furniture and fittings under terms of operating leases. The amount paid during the year was £0.860M (£0.883M in 2008-2009).

(ii) Land and Buildings The Authority currently leases a small number of buildings/sites under operating

lease terms, the most significant (i.e. in excess of £10k p.a.) of which are as follows:-

Rental charged to Revenue 2008-2009

£000

Description Rental chargedto Revenue2009-2010

£000

442 Atlas House 442 195 Wesley House Office Accommodation 195 139 Wigan Investment Centre

4NW Office Accommodation 139

86 Beacon Building 86 33 Waterside Court 46 25 Catapult Too 30 26 Peter Street Community Centre 26 14 Flats 1-4 Tolver House 8 23 Alexandra Park 6 13 100 Corporation Street (Former Church) 0

(iii) Commitments under Operating Leases

The Authority was committed at 31 March 2010 to making payments of £1.105M under operating lease terms in 2010-2011, comprising the following elements:- Period in which Lease Expires Other Land &

Buildings£000

Vehicles, Plant& Equipment

£000Before 31 March 2011 Between 1 April 2011 & 31 March 2015 After 31 March 2015

210 165 417

128 176

9 TOTAL 792 313

The Authority as Lessor The Authority has a number of investment/commercial properties, the net book value at 31 March 2010 being £31.7M (£31.4M at 31 March 2009). Total rent receivable during 2009-2010 amounted to £1.143M (£0.958M in 2008-2009).

61

13. OFFICERS’ REMUNERATION IN EXCESS OF £50,000 The Accounts and Audit Regulations 2003 require the disclosure of amounts paid to Officers and define remuneration as:-

(i) all sums paid to or receivable by an employee;

(ii) expense allowances chargeable to tax;

(iii) the money value of benefits.

The number of employees receiving remuneration in excess of £50,000 are as follows:-

No. of Employees

2008-2009 Remuneration No. of Employees

2009-2010 58 £50,000-£54,999 70 36 £55,000-£59,999 45 12 £60,000-£64,999 16 16 £65,000-£69,999 14 11 £70,000-£74,999 10 3 £75,000 - £79,999 5 5 £80,000 - £84,999 9 3 £85,000 - £89,999 3 2 £90,000 - £94,999 1 4 £95,000 - £99,999 6 3 £100,000 - £104,999 1 0 £105,000-£109,999 1 2 £110,000 - £114,999 2 1 £115,000-£119,999 1 0 £120,000 - £124,999 0 0 £125,000-£129,999 0 0 £130,000 - £134,999 0 0 £135,000-£139,999 0 0 £140,000 - £144,999 0 0 £145,000-£149,999 0 0 £150,000 - £154,999 0 1 £155,000-£159,999 1

The Table above includes Teachers employed by their School’s Governing Body rather than directly by the Authority, these can be seen separately overleaf:-

62

No. of Employees 2008-2009

Remuneration

No. of Employees 2009-2010

17 £50,000-£54,999 23 13 £55,000-£59,999 15 2 £60,000-£64,999 4 3 £65,000-£69,999 2

4 £70,000-£74,999 1 0 £75,000 - £79,999 3 0 £80,000 - £84,999 2 0 £85,000 - £89,999 0 0 £90,000 - £94,999 1 0 £95,000-£99,999 0 1 £100,000-£104,999 0

The following Table sets out the remuneration disclosures for Senior Officers whose salary exceeds £50,000 p.a.

2008-2009 2009-2010 Salary

(£000)

Additional Payments

(£000)

Employer’s Pension

Contribution (£000)

Senior Employee Salary

(£000)

Additional Payments

(£000)

Employer’s Pension

Contribution (£000)

154 6 28 Carole Hudson – Chief Executive

152 6 28

115 1 21 Director of Urban Regeneration & Housing

115 1 21

112 0 20 Director of Environmental Protection

112 0 20

112 2 20 Director of Children &Young People’s Services

112 2 20

103 1 19 Director of Adult Social Care & Health*

108 1 20

103 1 19 Assistant Chief Executive (Finance)

103 0 19

98 0 18 Assistant Chief Executive (Legal & Administrative Services)

98 0 18

97 1 18 Assistant Chief Executive (Asset Management & Construction Procurement

97 1 18

95 3 18 Chief Executive 4NW 97 3 18

81 1 15 Head of Corporate & Community Safety

81 1 15

81 0 15 Head of Policy & Performance

81 1 15

63

2008-2009 2009-2010 Salary

(£000)

Additional Payments

(£000)

Employer’s Pension

Contribution (£000)

Senior Employee Salary

(£000)

Additional Payments

(£000)

Employer’s Pension

Contribution (£000)

81 0 15 Head of Human Resources 81 0 15

81 0 15 Head of Public Affairs 81 0 15

*The Officer employed as Director of Adult Social Care & Health changed between 2008-2009 and 2009-2010.

14. MEMBERS' ALLOWANCES

Period Allowances due

to Members £000

2008-2009 2009-2010

567 616

Details of the circumstances in which allowances are paid to Members together with annual amounts paid to each Member under such schemes can be obtained from the Head of Administrative Services, Town Hall, St. Helens, WA10 1HP.

15. RELATED PARTY TRANSACTIONS The Council is required to disclose material transactions with related parties - bodies or individuals that have the potential to control or influence the Council or to be controlled or influenced by the Council. Central Government has effective control over the general operations of the Council - it is responsible for providing the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the Council has with other parties (e.g. housing benefits). Details of the material transactions with Government Departments are included in the Cash Flow Statement and in Notes 24 (Debtors), 25 (Creditors) and 39 (Analysis of Grants). Members of the Council have direct control over financial and operational policies of the Council, and governance arrangements exist to ensure that the decision making processes contain provision for declarations of interest where appropriate. Matters worthy of reference in accordance with Financial Reporting Standards include:- (i) various Chief Officers and Members serve as Council representatives on bodies that

are in receipt of Council funding (e.g. Citizens Advice Bureau, Age Concern). The Council has processes in place to ensure that relevant interests are declared as appropriate;

(ii) contributions totalling £350k were made to the World of Glass during 2009-2010 (£375k in 2008-2009). The Council has Member representation on the Board of that organisation.

64

(iii) during 2009-2010 works and services to the value of £156k were commissioned from a company in which one Member had an interest (£87k in 2008-2009). Payments and contracts were entered into in full compliance with the Council's Constitution, in particular, with adherence to Contract Procedure Rules;

Other parties that could be classified as related parties include:-

2008-2009 Receipts

£000

2008-2009 Payments

£000

2009-2010 Receipts

£000

2009-2010Payments

£000

(31)

178

Merseyside Police Authority*(a) - Community Safety Initiatives

(15) 1,021

(10)

17

Merseyside Fire & Civil Defence Authority*(a) - Community Safety Initiatives

0 113

(3)

0 Chief Officers - Car Loan Advance/Repayment

(3) 0

*(a) Details of the transactions with these major preceptors can be found in the Collection Fund and its associated disclosure notes, and Note 24 (Debtors) Other related party transactions are disclosed in Notes 2 (Service Levies), 9 (Pensions) and 14 (Members' Allowances).

16. AUDIT FEES

The Council incurred the following fees relating to external audit and inspection:-

2008-2009 £000

2009-2010 £000

232

22

36

0

Fees payable to Audit Commission with regard to external audit services carried out by the appointed auditor Fees payable to the Audit Commission in respect of statutory inspection Fees payable to the Audit Commission for the certification of grant claims and returns Fees payable in respect of other services provided by the appointed auditor

242

17

43

0

65

17. RECONCILING ITEMS FOR THE STATEMENT OF MOVEMENT ON THE GENERAL FUND BALANCE

£000 2008-2009

£000 2009-2010

£000 £000Amounts included in the Income & Expenditure Account but required by Statute to be excluded when determining the movement on the General Fund Balance for the year (150) Amortisation of intangible fixed

assets (199)

(10,590) Depreciation of Fixed Assets (11,911) 4,999 Government Grants Deferred

amortisation 3,455

(491) Revenue Expenditure Funded from Capital under Statute

(597)

(1,212) Net gain/(loss)on sale of fixed assets

(4,674)

(23,591) Net charges made for retirement benefits in accordance with FRS 17

(23,306)

(59) Amounts relating to soft loans and premiums and discounts on the early repayment of debt

(144)

(25,636) Impairment of Fixed Assets (8,970) 187 Amount by which Council Tax

Income is different to that required by legislation

518

(56,543) TOTAL (45,828)

£000

2008-2009 £000

2009-2010 £000 £000

Amounts not included in the Income & Expenditure Account but required to be included by Statute when determining the movement on the General Fund Balance for the Year 6,150 Revenue Provision 6,383 1,999

Capital Expenditure charged in year to the General Fund Balance

1,015

(15) Transfer from Usable Capital Receipts to meet payments to the Housing Capital Receipts Pool

(5)

(51) Amounts relating to soft loans and premiums and discounts on the early repayment of debt

(41)

17,273 Payments made relating to pensions accounted as defined benefit schemes

18,284

25,356 TOTAL 25,636 Transfers to or from the General Fund Balance that are required to be taken into account when determining the movement on the General Fund Balance for the Year 5,166 Net transfer to or (from) specific

Revenue Reserves 2,806

5,166 TOTAL 2,806

(26,021) Net additional amount required to be credited to the General Fund Balance for the Year

(17,386)

66

18. INTANGIBLE FIXED ASSETS These relate to software licences which are held for externally purchased strategic I.T. systems. Costs are amortised to relevant service revenue accounts on a systematic basis over the expected life of the licences, which equates to an average of five years.

2008-2009 £000

2009-2010£000

503 Opening Net Book Value 592 708 Opening Accumulated Amortisation 859

1,211 Opening Gross Book Value 1,451 240 Additions during the Year 229

1,451 Closing Gross Book Value 1,680 859 Closing Accumulated Amortisation (1,058)592 Closing Net Book Value 622

19.(a) MOVEMENT IN TANGIBLE FIXED ASSETS

The movements of Tangible Fixed Assets and their financing during the year are shown

below:- (i) Operational Assets

Land &

Buildings

£000

Vehicles,Plant &

Equipment£000

Infra-structure

Assets£000

Community Assets

£000

Total

£000 Net Book Value at 31 March 2009

155,400 13,048 139,541 8,462 316,451

Accumulated Depreciation at 31 March 2009

5,006 11,025 19,757 0 35,788

Gross Book Value as at 1 April 2009

160,406 24,073 159,298 8,462 352,239

Additions Disposals Revaluations Appropriations/ Transfers

12,280 (6,431)3,806

14,249

5,195 0

(4,650)

0

5,998 0 0

0

1,887 0 0

1,561

25,360 (6,431)

(844)

15,810 Gross book value at 31 March 2010

184,310 24,618 165,296 11,910 386,134

Accumulated Depreciation at 31 March 2010

(7,218) (10,227) (23,781) 0 (41,226)

Balance as at 31 March 2010

177,092 14,391 141,515 11,910 344,908

67

(ii) Non-Operational Assets

InvestmentProperties

£000

Assets under

Construction£000

SurplusAssets held for Disposal

£000

Total

£000 Net Book Value at 31 March 2009

31,416 17,838 14,463 63,717

Accumulated Depreciation at 31 March 2009

0 0 83 83

Gross Book Value as at 1 April 2009

31,416 17,838 14,546 63,800

Additions Disposals Revaluations Appropriations/Transfers

0 (206)344 137

11,7740 0

(15,947)

0 (923)(199)

0

11,774 (1,129)

145 (15,810)

Gross book value at 31 March 2010

31,691 13,665 13,424 58,780

Accumulated Depreciation at 31 March 2010

0 (24) (35) (59)

Balance as at 31 March 2010

31,691 13,641 13,389 58,721

(b) CAPITAL EXPENDITURE AND FINANCING

As determined under the provisions of the Prudential Framework the Council must calculate and have regard to its 'Capital Financing Requirement' (CFR). The CFR measures the underlying need to borrow for capital purposes and is a product of the historic and in-year decisions and activity relating to capital investments and the funding thereof.

2008-2009

£000 2009-2010

£000 142,963 Opening Capital Financing Requirement 143,220

240

14,388 13,955

424

Capital Investment Intangible Assets Operational Assets Non-Operational Assets Long Term Debtors

229

25,362 11,774

522 37,887

491 Revenue Expenditure Funded from Capital under Statute

597

(2,761)

(18,331)

(1,999)

Sources of Finance Capital Receipts Government Grants & Other Contributions Capital Expenditure financed directly from Revenue

(2,098)

(27,509)

(1,015) (30,622)

(6,150)

Revenue Provision Revenue Provision

(6,383)

143,220 Closing Capital Financing Requirement 144,699

68

This increase in year may be summarised:-

2008-2009 £000

2009-2010£000

6,407 Capital Programme expenditure financed by borrowing

7,862

(6,150) Less: Revenue Provision (6,383)257 Increase in Capital Financing Requirement 1,479

(c) INFORMATION ON ASSETS HELD

Tangible fixed assets owned by the Council include the following:- Portfolio/Asset Type Number

as at 31 March 2010

Children & Young People's Services Schools (Community) Pupil Referral Units Children's Centres Children’s Centre Outreach Base Mini Children’s Centres Integrated Children’s Services Facility City Learning Centres Space for Sports and Arts Facilities Children’s Homes Offices/Admin Residential (Caretaker's Houses)

34

3 6 2 4 1 2 2 2 2 1

Adult Social Care & Health Residential Homes and Day Centres Offices/Admin

7 2

Urban Regeneration & Housing Off Street Car Parks Travellers' Site Office/Admin Offices/Central Library

26

1 9 1

Social & Cultural Development Libraries Sports Centres/Pools Golf Course Shop/Driving Range

12

3 2

Environmental Protection Cemeteries/Crematorium Depots Changing Rooms/Pavilions Miscellaneous Parks Buildings Bridges & Other Highway Structures Roads

2 2 9 7

188 720km

69

Portfolio/Asset Type Number as at

31 March 2010 Safer Communities Youth Centres Offices/Admin

3 1

In addition there are numerous items of operational equipment under the ownership of the Council, including IT equipment, CCTV equipment, play equipment, machinery, items of street furniture, air quality monitoring equipment and fixtures and fittings.

(d) LEASING No assets are held by the Authority under finance leases.

(e) FIXED ASSET VALUATION All freehold and leasehold land and properties which comprise the Authority's property portfolio have been valued by the Council's qualified in-house valuers. The properties have been valued on the undermentioned bases in accordance with the Valuation of Local Authority Assets for Financial Statements (including Balance Sheets), as outlined in Guidance Note 11 of the R.I.C.S. Appraisal and Valuation Manual. Furniture, plant and machinery is not included in the valuation of the buildings except where stated otherwise. Properties regarded by the Authority as operational and non-specialised are valued at the lower of net current replacement cost and net realisable value in existing use. Properties regarded by the Authority as operational and specialised are valued on the basis of Depreciated Replacement Cost (DRC). Properties regarded as Infrastructure Assets or Community Assets by the Authority are valued on the basis of historical cost. Properties regarded by the Authority as non-operational are valued on the basis of Market Value (MV). Valuations are carried out as part of a rolling programme over a five year cycle. As in previous years, during 2009-2010, valuations have been made by qualified A.R.I.C.S. internal valuers. The Authority is not aware of any factors that would necessitate a material change to valuations conducted in previous years.

70

The following Table shows the progress of the Council's rolling programme for the revaluation of fixed assets:-

OperationalLand &

Buildings£000

Vehicles,Plant &

Equipment£000

Non-Operational

Assets

£000 Valued at current value in:- Current Year Previous Year Two Years Ago Three Years Ago Four Years Ago Over Four Years Ago

69,282 61,500 28,473 9,512 9,632 5,911

5,559 6,176 1,978 6,633 1,983 2,289

19,788 31,062 1,741 2,311 2,377 1,501

TOTAL 184,310 24,618 58,780 Community assets and infrastructure assets are excluded from the above, since they are valued at historic cost.

(f) DEPRECIATION For all assets subject to depreciation, that depreciation has been charged in accordance with the requirements of FRS15 Tangible Fixed Assets on a straight-line basis. Each assets useful life is assessed as the basis of calculating the annual depreciation charge. A summary of depreciation charged during the year is provided below:-

2008-2009 Average

Asset Life (Years)

2008-2009 Depreciation

Charged in Year

£000

Asset Classification 2009-2010 Average

Asset Life (Years)

2009-2010Depreciation

Chargedin Year

£00036

5

35

N/A N/A

3,915

2,735

3,940 N/A N/A

Operational Land & Buildings Vehicles, Plant & Equipment Infrastructure Assets Community Assets Non-Operational Assets

36

6

37 N/A N/A

4,382

3,504

4,025 N/A N/A

10,590 TOTAL 11,911

71

20. CAPITAL SCHEMES (i) The major items of capital expenditure during the year were:-

Capital Programme Schemes £000

Hope Academy Cowley Language College New Build Highways Infrastructure Cemetery & Crematorium Pupil Support Unit – Cowley Queens Park Leisure Centre Redevelopment Parr Swimming & Fitness Centre Changing Accommodation Harnessing Technology St. Helens City Learning Centre Vehicle Replacement Programme Playbuilder Programme

9,859 7,048 5,137 2,332 1,044 1,004

636 613 529 529 520

(ii) Significant contracts for future capital expenditure include:-

Expenditureapproved andcontracted at

31 March 2010

£000

Expenditureapproved to

proceed but notcontracted at

31 March 2010£000

Hope Academy Cowley Language Sixth Form College Building Schools for the Future (BSF) ICT De La Salle Sutton Sports College Repairs & Improvements to Schools Sure Start and Early Years Grant Harnessing Technology Windle Pilkington Independent Living Centre UGB Site Renovation Queens Park Leisure Redevelopment Environmental Improvements Carbon Reduction Initiatives Vehicle Replacement Programme Recycling Waste Minimisation Playbuilder Programme Recycling Service Improvements Local Transport Plan De-Trunking Schemes Better Lighting in Sustainable Street (BLISS) Business Continuity – ICT Infrastructure

16,564 2,191

50

285 80

733

1,967 2,504

1,404

605

6,167

1,062 20,100 3,000

10,126 1,525 1,675

4,378

3,000 1,000 1,400

585

580 7,580

761 2,040 1,272

21. LONG-TERM DEBTORS

72

Fair

Value 31 March

2009 £000

Balance at 31 March

2009

£000

NewLoans

£000

Repaidin Year

£000

Balance at 31 March

2010

£000

Adjustment to Fair Value

£000

Fair Value31 March

2010£000

915 10

609 73

197 158

1,024 11 1

1,661 10

971 73

197 158

1,106 11 1

Improvement Loans Mortgages Housing Innovation Loans Council House Sales Housing Associations Mortuary Property Case Arrears Eccleston Parish Council Other

523 0 0 0 0 0

629 0 0

(19)(2)0

(15)(12)(27)

(325)(1)(1)

2,165 8

971 58

185 131

1,410 10 0

(911) 0

(319) 0 0 0

(105) 0 0

1,254 8

652 58

185 131

1,305 10 0

2,998 4,188 TOTAL 1,152 (402) 4,938 (1,335) 3,603 The "adjustment to fair value" relates to loans made at rates below prevailing market rates (soft loans).

22. INVESTMENTS

2008-2009 2009-2010 Principal

£000

Accrued Interest

£000

Total

£000

Principal

£000

Accrued Interest

£000

Total

£00062,660 2,300 64,960 Short Term

Investments 67,146 1,344 68,490

50,387 1,402 51,789 Long Term Investments (including War Stock)

65,387 1,028 66,415

113,047 3,702 116,749 TOTAL 132,533 2,372 134,905 Chancery Bank PLC went into administration in February 1991. At that time, St. Helens M.B.C. had a short-term investment of £3.4M with the bank. As a result of the voluntary arrangement agreement, this amount was converted to a term deposit and, in accordance with proper practice, a provision has been made pending the receipt of invested monies. This is written down as the investment is repaid by Chancery. The figures above are net of this provision.

2008-2009 £000

2009-2010£000

3,000 464

(2,144)

Original Investment in Chancery Accrued Interest Less: Repaid up to 31 March

3,000 464

(2,144)1,320 Investment at 31 March 1,320

73

23. STOCKS AND WORK IN PROGRESS

Balance at 31 March 2009

£000

Balance at 31 March 2010

£000 6

28 27 10 24

173

Civil Engineering Grounds Maintenance Catering Transport Library Materials Other Materials

16 19 28 16 13

145 268 TOTAL 237

24. DEBTORS

31 March2009£000

31 March2010£000

1,482 648

4,262 1,723

647 4,793

109 370 165

1,778 450 588

12,264

NNDR Agency Arrangement Benefits Subsidy Other Government Grants & Contributions VAT Former Council Tenants Council Taxpayers (a) Other Local Authorities Merseyside Police Authority (b) Merseyside Fire & Civil Defence Authority (b) Housing Benefits Employees Helena Partnerships (c) Sundry

5,981 2,255 2,229 2,421

437 4,510

154 276 122

1,719 415 330

10,741 29,279 GROSS DEBTORS 31,590

(1,664)(790)(647)(933)

Less: Provision for Bad Debts: Council Tax (a) Overpaid Housing Benefit Former Council Tenants Other

(1,600)(1,125)

(437)(1,127)

(4,034) TOTAL PROVISION FOR BAD DEBTS (4,289)25,245 NET DEBTORS 27,301

(a) Represents the Council’s share of Council Tax debtors and impairment

allowance for doubtful debts. (b) Represents the major Precepting Authorities share of Council Tax

debtors, impairment allowance for doubtful debts, overpayments, credits and deficit on the statutory Collection Fund.

(c) Primarily relates to Preserved Right to Buy receipts as provided for in the

Stock Transfer Agreement between the Council and Helena Housing.

74

25. CREDITORS

31 March

2009 £000

31 March 2010 £000

1,664 944

3,561 20,888

731 1,405

306 73

20,955

Local Government Pension Scheme Teachers' Pension Scheme Tax and Nat. Insurance Government Grants & Other Council Taxpayers (a) Other Local Authorities Employees (b) Helena Partnerships Sundry

1,817 0

3,683 23,918

839 2,143

5 495

25,122 50,527 TOTAL 58,022

(a) This represents receipts in advance and refunds due to local taxpayers. (b) Provision was made to reflect the additional 0.3% pay award which was

agreed in March 2009, but unpaid as at 31 March 2009.

26. SHORT AND LONG-TERM BORROWING Under SORP 2009 balances relating to financial instruments should be shown as current or long-term depending on when amounts are payable or receivable. Accrued interest in respect of the Authority’s PWLB and market loans are separated from the principal sums as these are payable within 12 months and therefore should be treated as current liabilities.

Analysis of Short-Term Borrowing by Type

2008-2009 2009-2010 Principal

£000

Accrued Interest

£000

Total

£000

Principal

£000

Accrued Interest

£000

Total

£0003 859 862 PWLB 3 859 862

12,000 317 12,317 Market Loans 0 313 313 12,003 1,176 13,179 TOTAL 3 1,172 1,175

Analysis of Long-Term Borrowing by Type

Principal

31 March 2009 £000

Principal

31 March 2010 £000

70,386 23,000

Public Works Loan Board Market Loans

70,382 23,000

93,386 TOTAL 93,382

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Analysis of Long-Term Borrowing by Maturity Period

31 March 2009 31 March 2010 Principal

£000 Principal

£000 4

20,014 13,029

5,270 37,069 18,000

Between one and two years Between two and five years Five to fifteen years Fifteen to twenty five years Twenty five to fifty years Over fifty years

20,004 15

13,037 7,578

34,748 18,000

93,386 TOTAL 93,382 27. DEFERRED LIABILITIES

These consist of liabilities which are payable over a period of time and are analysed as follows:

31 March 2009 £000

31 March 2010 £000

677 4,702

Commuted Sums/Contractor Bonds Merseyside Residual Body Debt

551 4,425

5,379 TOTAL 4,976 28. PROVISIONS

Balance at

1 April 2009

£000

ExpenditureCharged to

Provisionin Year

£000

Increase/ (Decrease) in Provision

£000

Balance at 31 March

2010

£000 Insurance Provision (a) 5,817 (501) 802 6,118 TOTAL 5,817 (501) 802 6,118

(a) Provision is made for projected liabilities relating to certain uninsured losses.

The Council determines its insurance requirements as part of its Risk Management process and arranges 'cover' for any insurance related liabilities via a combination of policies with external providers and its own self-funding. The balance of the fund is regularly assessed for its adequacy. In the case of its liability provision a consultancy opinion on size is commissioned on a frequent basis. The timing of settlement of these liabilities is uncertain, but is likely to be over a period of years.

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29. GOVERNMENT GRANTS DEFERRED ACCOUNT This account represents grants and contributions received to finance (wholly or partly) the acquisition of fixed assets. These amounts are released to the respective Net Cost of Services Revenue Account over the useful life of the asset to match the depreciation charged on the asset to which it relates.

2008-2009 2009-2010 £000 £000 £000

72,140 Balance at 1 April 85,472

16,784 1,547

Financing of Capital Expenditure: - Grants - Other Contributions

27,193

316 27,509 Amortised during the year to

Income & Expenditure Account

(74) - Intangible Assets (80) (2,672) - Tangible Assets (3,375) (2,253) - Grants not matched to Assets 0

0 - Asset Disposals (940) (4,395)85,472 Balance at 31 March 108,586

30. DEFERRED CREDITS

These are analysed as follows:-

31 March 2009 £000

31 March 2010 £000

420 73

Preserved Right to Buy Receipts Sales of Council Houses - Principal Outstanding

317 58

493 TOTAL 375

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31. CAPITAL ADJUSTMENT ACCOUNT The account represents deficits arising from the periodic revaluation of fixed assets and amounts set aside from capital receipts or revenue resources to finance capital expenditure on fixed assets, or for the repayment of external loans and certain other capital financing transactions.

2008-2009 2009-2010 £000 £000 £000 £000

146,157 Balance brought forward at 1 April 124,615 0 Adjustment for Asset Written out in Previous

Years in Error 460

0 Voluntary Controlled Schools recognised under FRS5 during the yer

6,698

2,761

(28)

2,733

Capital Receipts Set Aside - Usable capital receipts applied - Long term debtors written off

2,097

(33)

2,064

1,999

6,150

8,149

Revenue Resources Set Aside - Capital expenditure funded from revenue - Revenue Provision for debt repayment

1,015

6,383

7,398

322 Amortised Revaluation Reserve 822

(2,885) 2,008

0

(877)

Write down of Fixed Asset Disposals - Net Book Value - Revaluation Reserve Balances - Government Grants Deferred

(7,365)

285 940

(6,140) Other items required by Statute and Non-

Statutory proper practices to be debited to Income & Expenditure Account in the Year

(151) - Amortised Intangible Fixed Assets (199) (10,590) - Depreciation of Fixed Assets (11,911) (25,636) - Impairment of Fixed Assets (8,970)

2,746 - Amortisation of Government Grants Deferred to Revenue

3,455

(491) (34,122) - Revenue Expenditure Funded from Capital under Statute

(597) (18,222)

2,253 Amortisation of Government Grants deferred not matched to Assets

0

124,615 Balance carried forward at 31 March 117,695

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32. REVALUATION RESERVE The reserve represents those gains on the revaluation of fixed assets that have not yet been realised through sales of those assets. It includes gains recognised since 1April 2007 only, the date of its formal implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account.

31 March 2009 £000

31 March2010£000

(24,645) Balance brought forward at 1 April (30,292)(7,977) In Year Revaluation Gains (8,585)

0 Revaluation Reserve Write Downs – Reduction in Asset Valuations

1,171

2008 Revaluation Gains relating to assets disposed in year

285

322 Amortisation of previous year Revaluation Gains to Income & Expenditure Account

822

(30,292) Balance carried forward at 31 March (36,599)

33. FINANCIAL INSTRUMENTS ADJUSTMENT ACCOUNT This account was introduced in 2007-2008 to reflect changes introduced by the SORP arising from FRS25 and FRS26. It holds the accumulated difference between the financing costs (of financial instruments) included in the Income & Expenditure Account and those required in accordance with Regulations to be charged to the General Fund Balance.

2008-2009 2009-2010 £000 £000 £000 £000

(2,792)

(544) 283 (3,053)

Premium on Early Debt Redemption Balance brought forward at 1 April Incurred in Year Charged to General Fund in accordance with Regulations

(3,053)

0 293 (2,760)

2,199

534 (332) 2,401

Discounts on Early Debt Redemption Balance brought forward at 1 April Incurred in Year Credited to General Fund in accordance with Regulations

2,401

0 (334) 2,067

(1,141)

(300) 251 (1,190)

Soft Loans Balance brought forward at 1 April In Year Adjustment to Fair Value Interest in accordance with Regulations charged to Service Revenue Account

(1,190)

(451) 307 (1,334)

(1,842) Balance carried forward at 31 March (2,027)

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34. COLLECTION FUND ADJUSTMENT ACCOUNT

2008-2009 £k

2009-2010£k

826 Balance brought forward at 1 April 639 (187) Movement in Year (518)639 Balance carried forward at 31 March 121

This represents that element of the Collection Fund deficit attributable to the Council (see Note 4 to the Collection Fund Income & Expenditure Account).

35. USABLE CAPITAL RECEIPTS RESERVE

Usable capital receipts are generally available to finance capital investment or to repay borrowing in future years. However, where assets are sold which have acquired a betterment value as a result of Government funding, a potential for repayment arises. The balance held includes £2.539M which is earmarked for the potential repayment of Grant to the Government, and may be analysed:-

2008-2009 2009-2010 £000 £000 £000 £000

57,318 Balance brought forward at 1 April

57,261

1,253 1,410

56

2,719

Amounts received in Year - Asset Sales - Preserved Right to Buy Receipts - Repaid loans, grants and advances

1,435

420

48 1,903

(15) Transferred to Revenue Account re. Housing Pooled Capital Receipts

(5)

(2,761) Amounts applied to finance new capital investment in year

(2,098)

57,261 Balance carried forward at 31 March

57,061

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36. SPECIFIC REVENUE RESERVES

Balance at 1 April 2009

£000

Movements in Year

£000

Balance at 31 March

2010 £000

3,465 Insurance Fund (a) 417 3,882 790 Commuted Sums (b) 0 790 57 I.T. Developments (c) (25) 32

176 Capital Challenge (d) 0 176 0 Care Services Transitional Demand Fund (e) 3,000 3,000

120 Affordable Housing (f) 0 120 2,088 Service Development (g) 1,448 3,536

11,540 Service Modernisation (h) (604) 10,936 899 Gershon Efficiencies (i) (168) 731

1,215 4NW(j) 254 1,469 2,477 Building Schools for the Future(k) (1,516) 961

22,827 Sub-Total 2,806 25,6336,604 Schools Balances (l) 429 7,033

29,431 TOTAL 3,235 32,666 (a) The Insurance Fund Reserve has been established to be used to offset any exceptional uninsured losses that may occur in future periods.

(b) Sums received from property developers invested to generate returns sufficient to meet ongoing Council obligations arising from agreements with those developers (typically grounds maintenance on private housing developments).

(c) The I.T. Development Fund is designed to provide investment to support the

e-Government agenda and essential ICT projects without which significant service deterioration would occur.

(d) The Capital Challenge Reserve has been established to finance continuing capital infrastructure projects in and around the Town Centre.

(e) The Care Services Transitional Demand Fund was set up in 2009-2010 and

is to be utilized in future years in order to mitigate the implications of short term demand fluctuations within the Care Services.

(f) The Affordable Housing Reserve contains receipts received from Developers

earmarked for the provision of future Affordable Housing initiatives.

(g) The Service Development Fund is designed to provide short term development capacity to support areas or initiatives by providing 'seed corn funding'.

(h) The Service Modernisation Fund is used to assist in any necessary

rationalisation or reprovision of services as part of the Council's ongoing modernisation agenda.

(i) The Gershon Efficiencies Fund supports projects and actions which will have

a measurable impact on the provision of improved efficiency in services.

(j) See Note 1 for further details relating to 4NW.

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(k) A reserve has been created to fund future liabilities arising from the Building Schools for the Future programme, which will rationalise the infrastructure providing Secondary Education in the Borough. (l) Balances held by Governors under delegated scheme arrangements, whereby such balances are committed to be spent on the Education service.

37. FINANCIAL INSTRUMENTS

(a) Financial Assets and Liabilities

The Council’s financial instruments include financial assets (cash and cash equivalents and loans and receivables) and financial liabilities (trade payables arising from day-to-day operations and borrowings). The main purposes of the Council’s financial instruments are to raise finance to support the Council’s day-to-day operations (by investing surplus cash balances where appropriate) and finance investment undertaken through the capital programme.

The following Table details the categories of financial assets and liabilities held by the Council as at 31 March 2010.

Balance as at 31 March 2009(1)

Balance as at 31 March 2010

Current

£000

Long Term £000

Total

£000

Current

£000

Long Term £000

Total

£000

62,660 2,300

13,589

0

50,387 1,402

0

2,998

113,047 3,702

13,589

2,998

Assets Loans & Receivables – Analysed by:- - Investments Outstanding - Accrued Interest on Investments - Current Assets (including short term debtors and petty cash) - Long Term Debtors (soft loans)

67,146 1,344

10,578

0

65,387 1,028

0

3,603

132,533 2,372

10,578

3,603

78,549 54,787 133,336 Total Loans & Receivables 79,068 70,018 149,086

(12,003) (1,177)

(50,261)

(93,386) 0 0

(105,389) (1,177)

(50,261)

Liabilities Financial Liabilities held at Amortised Cost – Analysed by:- - Loans Outstanding - Accrued Interest on Loans - Current Liabilities (including short term creditors and cash overdrawn)

(3) (1,172)

(84,326)

(93,382) 0 0

(93,385) (1,172)

(84,326)

(63,441) (93,386) (156,827) Total Financial Liabilities (85,501) (93,382) (178,883)

(1) The 2008-2009 comparative figures for Loans and Receivables and Loans Outstanding have been adjusted to include Accrued Interest. The current assets and liabilities figures have been restated to take account of this movement.

Figures for Loans and Receivables are shown net of any impairment.

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(b) Gains and Losses Recognised in the Income & Expenditure Account and STRGL

The Table below outlines the gains and losses that have been charged to the Income & Expenditure Account and the STRGL in relation to financial instruments.

2008-2009 2009-2010 Financial Liabilities

£000

Financial Assets

£000

Total

£000

Financial Liabilities

£000

Financial Assets

£000

Total

£000 (6,279) 0 (6,279) Interest expense (5,555) 0 (5,555)

(544) 0 (544) Losses on de-recognition – premiums in year

0 0 0

534 0 534 Gains on de-recognition – discounts in year

0 0 0

(283) 0 (283) Amortised Losses - premiums (293) 0 (293) 332 0 332 Amortised Gains - discounts 334 0 334

0 162 162 Movement on Impairment 0 (319) (319) (6,240) 162 (6,078) Interest payable and similar

charges (5,514) (319) (5,833)

0 7,339 7,339 Interest income 0 3,669 3,669 (6,240) 7,501 1,261 Net gains/ (loss) for the year (5,514) 3,350 (2,164)

(c) Fair Value of Assets and Liabilities Carried at Amortised Cost

Financial liabilities and financial assets represented by loans and receivables are carried on the Balance Sheet at amortised cost. The fair value can be assessed by calculating the present value of the cash flows that will take place over the remaining term of the instruments. In calculating the fair value of the Council’s financial assets and liabilities, the following assumptions have been used:-

the fair value of trade receivables and payables are assumed to be the

invoiced or billed amount;

for all PWLB loans, the interest rate used for the purpose of calculating the fair value is taken to be the rate available for new loans within the relevant banding as at 31 March 2010;

for all market borrowings and investments held by the Council, the interest rate used is the rate quoted by the Authority’s appointed Treasury Management Consultants, based on market conditions prevailing at the Balance Sheet date; and

no early repayment or impairment is recognised.

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The Tables below outline the fair value of assets and liabilities as at 31 March 2010.

Financial Liabilities at 31 March 2009

Financial Liabilities at 31 March 2010

Carrying Amount

£000

Accrued Interest

£000

Fair Value £000

Variance

£000

Carrying Amount

£000

Accrued Interest

£000

Fair Value £000

Variance

£00070,389 859 93,651 22,403 Public Works Loan Board

( PWLB) Loans 70,385 859 90,186 18,942

23,000 314 23,591 277 Market Loans 23,000 313 26,579 3,266 12,000 3 11,984 (19) Short Term Loans 0 0 0 0 51,438 0 51,438 0 Creditors and Cash

Overdrawn 84,326 0 84,326 0

156,827 1,176 180,664 22,661 TOTAL FINANCIAL LIABILITIES

177,711 1,172 201,091

22,208

The fair value of the Council’s financial liabilities is more than the carrying amount

because the Council’s portfolio of loans includes a number of fixed rate loans where the interest rates payable are higher than the rates available for similar loans at the Balance Sheet date. The commitment to pay interest above the current market rate increases the amount that the Council would have to pay if the lender requested or agreed to the early repayment of the loans. However, it should be noted that the market loans contain Lender Option Borrower Option (LOBO) loans, whereby at specified intervals there are options on both the part of the Council and the Lender in relation to rates applicable to the residual term of the loans. The Council is free to repay the loans, in full, and without penalty if it is not agreeable with any revised options proposed by the Lender.

The PWLB have provided calculations for the fair value of loans outstanding as at 31 March 2010 based on the new rates introduced for the early repayment of loans. Based on these rates, the fair value of loans outstanding as at 31 March 2010 is £93.929M (including accrued interest), a variance of £3.743M when compared to the valuations (adjusted for accrued interest) provided by the Council’s external treasury advisers.

Loans and Receivables as at 31 March 2009

Loans and Receivables as at 31 March 2010

Principal Amount

£000

Accrued Interest

£000

Fair Value £000

Variance

£000

PrincipalAmount

£000

Accrued Interest

£000

FairValue£000

Variance

£000113,047 3,702 118,185 1,436 Loans & Receivables 132,533 2,372 135,803 898 16,587 0 16,587 0 Loans & Receivables –

Debtors & Petty Cash 14,418 0 14,418 0

129,634 3,702 134,772 1,436 Total Loans & Receivables

146,951 2,372 150,221 898

The fair value of the Council’s loans and receivables is more than the carrying amount because the Council’s portfolio of investments includes a number of fixed rate investments where the interest rate receivable is higher than the rates available for similar loans at the Balance Sheet date.

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(d) Nature and Extent of Risks Arising from Financial Instruments

As part of the ongoing activities, the Council is exposed to credit risk, liquidity risk and market risk. The Council’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the resources available to fund services. Financial Risk Management is the responsibility of the Assistant Chief Executive (Finance) and through full adoption of CIPFA’s Treasury Management in the Public Services : Code of Practice the Council has policies and processes in place to control key financial instrument related risks. Under the policies approved by the Council in the annual Treasury Management Strategy, and through its associated Treasury Management Practices (TMPs), the Council has in place written principles for overall risk management, as well as written policies covering specific areas such as interest rate risk, credit risk and the investment of surplus cash.

Credit Risk

Credit risk is the risk that a third party will default on its obligations to the Council. Credit risk arises from deposits made with banks and financial institutions, as well as credit exposure to the Authority’s own customers. Exposure to credit risk is managed through the Council’s Counter Party lending list which places limits on the value and duration over which investments can be made with approved counterparties to minimise the risk of loss. The counterparty list comprises of institutions that are rated independently by credit rating agencies and meet specific rating requirements. The detailed minimum lending requirements for counterparties are outlined in the annual Treasury Management Strategy. The security of any capital sums available for investment is of paramount importance and as such should be the overriding factor when making decisions about investments. As a minimum, the Council’s counterparty list seeks to ensure that at the time of making investments, all banks and financial institutions meet a minimum FITCH (or Moody’s equivalent) rating of long term AA- (banks) A (building societies), short term F1, have an individual rating of B or above and a support rating of 3 or better. In addition at the time of making the investment, the institution must have a stable or positive outlook as determined by FITCH; must be domiciled in a country with a minimum sovereign rating of AA+; and its Credit Default Swap (CDS) rating must be within specified ranges.

The Council has a policy of ensuring that lending limits are commensurate with individual organisation’s ratings and to this end, will lend a maximum of £20M to the highest rated institution, including any deals made to its subsidiaries. The upper limit for investments with the highest rated individual institutions was increased by £6M in 2007-2008 to help the Council deal with the falling ratings of many financial institutions as a consequence of the turmoil in the financial markets and global economy. This level has been maintained throughout 2009-2010 as whilst some stability has returned to the market, credit ratings, even for the largest institutions, remain lower than they were prior to 2008-2009. As part of its strategy for avoiding over exposure to a few institutions the Council has continued to monitor opportunities to use surplus cash to repay loans where appropriate although no such opportunities were identified in 2009-2010.

85

As detailed in the Council’s Treasury Management Strategy the Council’s Counterparty list is regularly monitored and is updated for any adverse movements in financial institution’s ratings. Such is the robustness of the Council’s criteria for approving investments that a reduction in an institution’s outlook from stable would lead to its removal from the Counterparty list. To further strengthen the approach to identifying counterparties of sufficient caliber, the Council has due regard to information provided by its Treasury Consultants on the Credit Default Swaps (CDS) position for potential counterparties. Simply put movement of CDS’s helps flag potential risk factors institutions and therefore the Council will only place investments with institutions who, in addition to meeting the criteria outlined above, have a CDS position that is deemed by its Treasury Management Consultants to be within an acceptable range.

The Table below summarises the Council’s maximum exposure to credit risk at the Balance Sheet date, analysed by credit ratings as they were at the time of making the investment. Figures shown represent the actual investment made and therefore exclude accrued interest. The Council’s Counterparty list has been developed to ensure the security of the capital sums invested. There have been no defaults by organisations on these lists in the last five years and this is reflected in the weightings attached below.

Exposure at 31 March 2009

£000

Institution Rating Exposure at 31 March 2010

£00010,000 Banks AA+, F1= 030,000 Banks AA, F1+ 037,530 Banks AA-, F1+ 85,526

8,000 Building Societies AA-, F1+ 20,00017,510 Building Societies A, F1 0

0 Building Societies A1, F2 010,000 Banks Aa3, P-1 0

0 Money Market Funds AAA 10,0000 Other Local Authorities N/A 17,0007 War Stock N/A 7

19,437 Customers N/A 10,555

The profile of the Council’s investments is such that all material sums are invested with institutions that are based within the U.K. Whilst the Council has a call account with Svenska Handelsbanken which is a Swedish institution run through an office in London, no material sums were invested with this institution throughout the year. As a result of the current uncertain conditions in the financial markets, the Council will keep the current credit policy under review and amend the criteria as required.

The Council does not generally allow credit for customers and therefore the figure shown as customers reflects the debtors the Council has with other Authorities and other bodies.

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Liquidity Risk

Liquidity risk is the risk arising from unmatched cashflows to maturities. At the present time the Council has ready access to borrowing from the Public Works Loan Board (PWLB) so there is no significant risk that it will be unable to raise finance to meet its commitments under financial instruments. Instead the risk is that the Council will be bound to replenish a significant proportion of its borrowings at a time of unfavourable interest rates. To this extent rates will be monitored to ensure that new loans and where applicable, restructuring can be used to negate against having a significant proportion of the debt portfolio repayable at any one time.

Market Risk

The Council is exposed to significant risk in terms of its exposure to interest rate movements on its borrowing and investments. Movements in interest rates have a complex impact on the Council. For example a rise in interest rates would have the following effects:-

borrowings at variable rates – the interest expensed charged to the Income and

Expenditure Account will rise;

borrowing at fixed rates – the fair value of the liabilities will fall; investments at variable rates – the interest income credited to the Income & Expenditure Account will rise; and investments at fixed rates – the fair value of the assets will fall.

Borrowings and investments are not carried at fair value, so nominal gains and losses on fixed rate borrowings and loans would not impact on the Income and Expenditure Account or the STRGL. The Council is risk averse and seeks to minimise exposure arising from its treasury activities and does not undertake any unnecessary borrowing or investment activity. The Council seeks to manage its interest rate risk by constantly reviewing the ratio of borrowing and investments between fixed and variable interest rates in accordance with its approved Treasury Management Strategy and Prudential Indicators.

The Table below shows the impact on existing investments and borrowings had interest rates been 1% higher with all other variables being held constant.

31 March

2009 £000

31 March2010£000

(1,001) Increase/ (Decrease) in the fair value of fixed rate investment assets

(2,033)

(13,656) Increase/ (Decrease) in the fair value of fixed rate borrowing liabilities

(13,778)

The impact of a 1% fall in interest rates would be as above but with the movements being reversed.

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Price Risk

Price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices. The Council does not invest in equity shareholding. Consequently the Council is not currently exposed to price risk arising from movements in the price of shares.

Foreign Exchange Risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Council does not have financial assets or liabilities denominated in foreign currencies and thus have no exposure to loss arising from movements in exchange rates.

38. TRUST FUNDS

The Council administered 9 Trust Funds during the year which, in the main, consist of legacies left by individuals and are used mainly for educational, cultural and leisure purposes. The most significant of these Trust Funds are:- (i) the Sarah Cowley Educational Trust which provides that, available income should be

expended "for the benefit of boys and girls resident in the Borough of St. Helens by assisting their education or training, including post-graduate study, at a University or other place of learning, or to enable them to prepare for, or to assist, their entry into some profession, trade or calling and for that purpose may provide them with outfits, clothing, tools, instruments or books";

(ii) the Harry & Mavis Pilkington Fund for Arts & Leisure which is dedicated primarily for

the advancement of education through the promotion of art, literature and music; and (iii) the Ellen Greenoe Trust which was founded to provide benefits for 'the poor people

of Sutton'. These Funds are invested in either interest-bearing accounts or shares and are not

included in the Council's Balance Sheet.

31 March 2009

£

2009-2010Receipts

£

2009-2010 Payments

£

31 March 2010

£ 168,979

62,355

23,448 27,571

Sarah Cowley Educational Trust Harry & Mavis Pilkington Fund for Arts & Leisure Ellen Greenoe Trust Other Funds

4,978

436

1,159 227

(3,706)

(1,246)

0 0

170,251

61,545

24,607 27,798

282,353 TOTAL 6,800 (4,952) 284,201

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39. CONTINGENT LIABILITIES (i) The Council's previous insurers, Municipal Mutual Insurance (MMI), have now

ceased to trade and exist solely to discharge its obligations under policies previously issued. These responsibilities relate mainly to legal liability claims which typically take significant periods to finalise. In the event of MMI's insolvency during this period, local authority policyholders have agreed to enter into a 'scheme of agreement' under which there are clawback provisions on claims payments made by MMI after the implementation of the scheme. At this stage it is not considered necessary to provide a provision in relation to this, since a solvent wind-up of the company is forecast. The position will continue to be reviewed and the Council's financial exposure assessed on an ongoing basis.

(ii) Despite having reached agreement with the local Unions in respect of the implementation of Single Status and a Pay and Grading, review, the Unions have lodged claims with the Employment Tribunal Office in relation to what they perceive as unlawful practices. A large number of individual claims are now registered seeking retrospective payments. The Council is taking appropriate action to defend such claims, but notwithstanding this the Council may have a potential liability. (iii) The Government announced on 27 May 2010, that it was ending the Central Government grant funding for the Regional Leaders Board (4NW) from 30 September 2010. On 7 June 2010, the Leaders Board of 4NW met to discuss the announcement and agreed to consider any feasible options for maintaining a Leaders Forum for the North West. A decision will be made about the future operations of 4NW at the Annual General Meeting on 2 July 2010. It is possible that there may be potential liabilities that could arise as a result of this – though at this stage the precise implications cannot be determined or reasonably estimated.

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40. ANALYSIS OF GRANTS

2009-2010Revenue

£000

2009-2010Capital

£000Department for Education (formerly Department for Children, Schools & Families) Standards Fund Teachers' Pay Reform Sure Start, Early Years & Childcare Learning & Skills Council Post 16 Education Learning & Skills Council Adult Education Dedicated Schools Grant Secure Accommodation Grant Building Schools for the Future Contact Point 14-19 Diplomas Youth Opportunities Fund Youth Capital Fund Playbuilder

18,667 160

8,732 6,125

625 104,590

2,502

178 355 275 74 27

9,284

320

20,075

436 529

Department for Communities & Local Government Regional Housing Regional Chambers Funding Planning Delivery Grant Supporting People Local Authority Business Growth Incentive Local Area Agreement Reward Grant Area Based Grant Growth Point Free Swimming Local Enterprise Growth Initiative

2,841 2,775

136 9,879

133 840

20,654 870 173 227

1,144

806

54 930

Department of Health Social Care Reform Communities for Health Stroke Grant

793 72 91

Europe European Regional Development Fund European Social Fund

96 312

321

Department for Works & Pensions Housing Benefit

18,215

Home Office Crime Reduction Drugs Action Team

603 234

Other Miscellaneous Grants Transport Supplementary Grant Lottery N.W. Development Agency Sports Council Waste Infrastructure Grant Other

129 327 24

193

807

2,473 117 469 552 263 660

TOTAL 202,734 38,433

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41. RECONCILIATION OF THE NET (SURPLUS)/DEFICIT ON THE INCOME & EXPENDITURE ACCOUNT TO THE MOVEMENT IN CASH

2009-2010 £000 £000NET (SURPLUS)/DEFICIT FOR THE YEAR 9,669 Adjustments for:- (i) Servicing of Finance Items - Interest Paid - Interest Received

(ii) Non-Cash Items - Intangibles written out - Fixed Asset Impairments - Depreciation - Financial Instrument Adjustment - Retirement Benefits - Deferred Grants written out - Losses on Disposal of Fixed Assets (iii) Movement in:- - Long Term Debtors - Debtors - Stock and Work in Progress - Creditors - Provisions - Deferred Liability

(5,560)3,669

(199)(8,970)

(11,911)(145)

(5,022)3,456

(4,674)

797 (5)

(31)2,913 (301)127

(1,891)

(27,465)

3,500

REVENUE ACTIVITIES NET CASHFLOW (16,187)

42. LIQUID RESOURCES These consist of short term approved investments made with banks and building societies through the Council's internal investment activity or via the Council's appointed external fund managers.

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43. RECONCILIATION OF THE MOVEMENT IN CASH TO MOVEMENT IN NET DEBT

Movement in Year

£000

Balance 31 March

2009 £000

BALANCE SHEET MOVEMENTS:- Movement in Year

£000

Balance31 March

2010£000

21,553 (12,000)

(9,820) (324) 109

10 (8,059)

(93,386) (13,179) 116,749

1,482 535

37 (21,354)

Long Term Borrowing Short Term Borrowing Temporary Loan Investments NNDR Agency Debtor Major Precepting Authority Debtors Petty Cash Cash Overdrawn

4 12,003 18,156

4,499 (137)

5 (15,856)

(93,382)(1,176)

134,905 5,981

398 42

(37,210)(8,531) (9,116) 18,674 9,558

(9,820) 9,553

(8,049)

CASHFLOW STATEMENT BALANCES:- Management of Liquid Resources Financing Increase in Cash and Cash Equivalents

22,518 12,007

(15,851)

(8,316) 18,674

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COLLECTION FUND INCOME AND EXPENDITURE ACCOUNT The Collection Fund is a statutory account introduced under the Local Government Finance Act 1988. The Code of Practice on Local Authority Accounting requires the inclusion of a separate Income and Expenditure Account for the Collection Fund. A separate balance sheet is not required as Collection Fund balances are consolidated with other accounts of the Authority (see Balance Sheet). NOTES 2008-2009

£000 2009-2010

£000

1

2

3

58,683

14,086 (4)

46,267

506

INCOME Income from Council Tax Transfers from General Fund - Council Tax Benefits - Transitional Relief Income from Business Ratepayers Contributions Toward Previous Year's Estimated Collection Fund Deficit

59,241

15,570 (1)

46,031

849

119,538 TOTAL INCOME 121,690

62,284 7,440 3,337

46,064 203

(6)

EXPENDITURE Precepts and Demands - St. Helens Council - Merseyside Police Authority - Merseyside Fire & Civil Defence Authority Business Rates - Payments to National Pool - Costs of Collection Movement in Bad & Doubtful Debts Provision

63,840 7,812 3,465

45,829 202

(66)

119,322 TOTAL EXPENDITURE 121,082 4 216 Movement on Fund Balance 608

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NOTES TO THE COLLECTION FUND INCOME AND EXPENDITURE ACCOUNT

1. INCOME FROM COUNCIL TAX Calculation of the Council Tax Base

The Council Tax replaced the Community Charge from 1 April 1993 and is a tax based on property valuation bandings (A to H). There is a basic tax for the middle band (Band D) with proportionately higher and lower taxes for the other bands. The Council's tax base i.e. the number of chargeable dwellings in each band (adjusted for discounts where applicable), converted to an equivalent number of Band D dwellings was calculated as follows:-

Band

Estimated No. ofTaxable Properties

After Discounts

Ratio

Band DEquivalentDwellings

A B C D E F G H

36,115 16,824 14,340

6,220 3,056 1,504

587 30

6/9 7/9 8/9 9/9

11/9 13/9 15/9 18/9

24,078 13,085 12,747

6,220 3,735 2,172

978 60

78,676 63,075 Less: Anticipated changes during the year for successful appeals against valuation banding, new properties, demolitions, disabled persons relief and exempt properties

(6,953)

56,122 Less: Adjustment for collection rates (562)TOTAL Band D Equivalent 55,560

The average Council Tax for Band D dwellings for the Council and major precepting authorities was £1,352.01p.

2008-2009 £000

Council Tax Income 2009-2010£000

72,818 (14,086) 4

Estimated Income (£1,352.01 x 55,560) Less: Council Tax Benefit Transitional Relief

75,118 (15,570) 1

58,736 59,549 736 Add: Estimated doubtful debts (56,122 – 55,560 x

£1,352.01) 760

59,472 60,309 6 Movement in Actual provision for doubtful debt 66 59,478 60,375 (795) Less: Adjustment re discounts, exemptions, etc. (1,134)58,683 Income from Council Tax 59,241

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2. INCOME FROM BUSINESS RATEPAYERS Under the arrangements for uniform business rates the Council collects non-domestic rates for its area which are based on local rateable values multiplied by a uniform (national) rate. The total amount after deduction of certain reliefs and other allowable deductions is paid to a central pool (the NNDR pool) managed by Central Government, which in turn pays back to Authorities their share of the pool based on a standard amount per head of resident population. The total non-domestic rateable value at 31 March 2010 was £115.4M and the national non-domestic multiplier for the year was 48.5 pence.

3. PREVIOUS YEAR'S COLLECTION FUND SURPLUS/DEFICIT The estimated previous year's Council Tax surplus/deficit is credited/recharged between the billing Authority and the major Precepting Authorities in proportion to amounts raised.

2008-2009 Surplus/(Deficit)

£000

2009-2010Surplus/(Deficit)

£000(433)

(50) (23)

St. Helens M.B.C. Merseyside Police Authority Merseyside Fire & Civil Defence Authority

(726)(85)(38)

(506) TOTAL (849)

4. MOVEMENT ON FUND BALANCE The movement on the Fund Balance consists of:-

2008-2009 £000

2009-2010 £000

(966) Balance at 1 April (750) 216 Surplus/(Deficit) in Year 608

(750) Balance at 31 March (142)

The Collection Fund balance must be shared by the billing Authority and the major Precepting Authorities as follows:-

2008-2009 £000

2009-2010£000

(639) St. Helens M.B.C. (122)(76) Merseyside Police Authority (14)(35) Merseyside Fire & Civil Defence

Authority (6)

(750) TOTAL (142)

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GLOSSARY OF FINANCIAL TERMS

ACCOUNTING POLICIES

Those principles, bases, conventions, rules and practices applied that specify how the effects of transactions and other events are to be reflected in its financial statements through: (i) recognising; (ii) selecting measurement bases for; and (iii) presenting assets, liabilities, gains, losses and changes to reserves. ACCRUALS The concept that income and expenditure are recognised as they are earned or incurred, not as money is received or paid. AMORTISATION The accounting technique of recognising a cost or item of income in the Income & Expenditure Account over a period of years rather than when the initial payment is made. Its purpose is to charge/credit the cost/income over the accounting periods that gain benefit for the respective item. The technique is supported by relevant accounting policies and practices. AMORTISED COST A method of determining the Balance Sheet carrying amount and periodic charges to the Income & Expenditure Account of a financial instrument based on the expected cash flows of that instrument. ACTUARIAL GAINS AND LOSSES

For a defined benefit pension scheme, the changes in actuarial deficits or surpluses that arise because :

(i) events have not coincided with the actuarial assumptions made for the last valuation (experience gains and losses) ; or (ii) the actuarial assumptions have changed.

BALANCES AND RESERVES

These represent the accumulated 'free' monies of the Authority. General Fund Balances may be utilised to reduce the Council Tax. Reserves are often earmarked for specific purposes for the funding of future defined Council initiatives.

BEST VALUE ACCOUNTING CODE OF PRACTICE (BVACOP)

A CIPFA Code established to modernise the system of Local Authority accounting and reporting to ensure that it meets the changed and changing needs of modern Local Government; particularly the duty to secure and demonstrate best value in the provision of services.

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BVACOP establishes 'proper practice' with regard to consistent financial reporting below the Statement of Accounts level and is given statutory force in England by Regulations made under the Local Government Act 2003. CAPITAL EXPENDITURE Expenditure on the acquisition of a fixed asset or expenditure which adds to and not merely maintains the value of an existing fixed asset. CAPITAL FINANCING REQUIREMENT (CFR) Introduced as a result of the Prudential Framework for Capital Accounting and measures the underlying need of the Authority to borrow for expenditure of a capital nature. CAPITAL RECEIPTS The proceeds from the sale of capital assets which, subject to various limitations (e.g. Pooling obligations contained in the Local Government Act 2003) can be used to finance Capital Expenditure, invested, or to repay outstanding debt on assets originally financed through borrowing. COLLECTION FUND The Collection Fund is a separate statutory fund under the provisions of the Local Government Finance Act 1988. It shows the transactions in relation to non-domestic rates, any residual Community Charge and the Council Tax, and illustrates the way in which these have been distributed to precepting Authorities and the General Fund. CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY (CIPFA) CIPFA is the leading professional accountancy body for public services, and uniquely among the professional accounting bodies in the UK, CIPFA has responsibility for setting accounting standards, for a significant part of the economy, namely Local Government. COMMUNITY ASSETS Assets that the Local Authority intends to hold in perpetuity, that have no determinable useful life, and that may have restrictions on their disposal. Examples of community assets are parks and historic buildings. CONSISTENCY

The principle that the accounting treatment of like items within an accounting period and from one period to the next is the same. CONTINGENT LIABILITY A condition which exists at the balance sheet date, where the outcome will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events. Where a material loss can be estimated with reasonable accuracy a contingent liability is accrued in the financial statements. If, however, a loss cannot be accurately estimated or the event is not considered sufficiently certain, it will be disclosed in a note to the balance sheet.

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CORPORATE AND DEMOCRATIC CORE The corporate and democratic core comprises all activities which Local Authorities engage in specifically because they are elected, multi-purpose authorities. The cost of these activities are thus over and above those which would be incurred by a series of independent, single purpose, nominated bodies managing the same services. There is therefore no logical basis for apportioning these costs to services. COUNCIL TAX A property based tax levied on all domestic properties in the Borough. The banding (and resultant sums due) are based on independent assessed property values. The Council sets levels of Council Tax on an annual basis under relevant statutory provisions. CREDIT RISK The possibility that one party to a financial instrument will fail to meet their contractual obligations, causing a loss to the other party. CURRENT SERVICE COST (PENSIONS) The increase in the present value of a defined benefit scheme's liabilities expected to arise from employee service in the current period. CURTAILMENT For a defined benefit scheme, an event that reduces the expected years of future service of present employees or reduces for a number of employees the accrual of defined benefits for some or all of their future service. Curtailments include : (i) termination of employees services earlier than expected, for example as a result of closing or discontinuing a segment of a business ; and (ii) termination of, or amendment to the terms of, a defined benefit scheme so that some or all future service by current employees will no longer qualify for benefits or will qualify only for reduced benefits.

DEFERRED CREDITS

These represent capital income to be received in the future, when disposals have taken place, and deferred payments have been agreed e.g. the principal outstanding from the sale of ex-council houses.

DEFINED BENEFIT SCHEME

A pension or other retirement benefit scheme other than a defined contribution scheme. Usually, the scheme rules define the benefits independently of the contributions payable, and the benefits are not directly related to the investments of the scheme. The scheme may be funded or unfunded (including notionally funded).

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DEFINED CONTRIBUTION SCHEME

A pension or other retirement benefit scheme into which an employer pays regular contributions fixed as an amount or as a percentage of pay and will have no legal or constructive obligation to pay further contributions if the scheme does not have sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

DEPRECIATED REPLACEMENT COST (DRC)

A method of valuation which provides a recognised proxy for the market value of specialised properties.

DEPRECIATION

The measure of the wearing out, consumption, or other reduction in the useful life of a fixed asset, whether arising from use, effluxion of time or obsolescence through technological or other changes.

DISCRETIONARY BENEFITS

Retirement benefits which the employer has no legal, contractual or constructive obligation to award and which are awarded under the Authority's discretionary powers.

EFFECTIVE INTEREST RATE (METHOD)

A method that calculates the rate of interest that is necessary to discount the estimated stream of principal and interest cashflows through the expected life of a financial instrument to equal the amount at initial recognition. The rate is then applied to the carrying amount at each reporting date to determine the interest expense or income for that period. In this way the interest expense or income is recognised in a consistent manner over the life of the instrument.

ESTIMATION TECHNIQUES

The methods adopted by an entity to arrive at estimated monetary amounts, corresponding to the measurement bases selected for assets, liabilities, gains, losses and changes to reserves.

EXISTING USE VALUE (EUV) The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion assuming that the buyer is granted vacant possession of all parts of the property and disregarding potential alternative uses and any other characteristics that would cause its market value to differ from that needed to replace the remaining service potential at least cost. EXPECTED RATE OF RETURN (ON PENSIONS ASSETS) For a funded defined benefit scheme, the average rate of return, including both income and changes in fair value but net of scheme expenses, expected over the remaining life of the related obligation on the actual assets held by the scheme.

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FAIR VALUE The fair value of an asset is the price at which it could be exchanged in an arm's length transaction, less, where applicable, any grants receivable towards the purchase or use of the asset. FINANCIAL INSTRUMENT A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another. The term covers both financial assets and financial liabilities and includes both the most straightforward finanical assets such as trade receivables (debtors) and trade payables (creditors) and the most complex ones such as derivatives. Typical financial instruments are:- (i) Liabilities

Trade payables Borrowings Financial Guarantees

(ii) Assets

Bank deposits Trade receivables Loans receivable Investments

Amounts relating to Council Tax, Non-Domestic Rates, Government Grants etc., are outside the scope of the accounting provisions as they are statutory issues, not arising from contracts. FINANCE LEASE A lease that transfers substantially all of the risks and rewards of ownership of a fixed asset to the lessee. Such a transfer of risks and rewards may be presumed to occur if at the inception of the lease the present value of the minimum lease payments, including any initial payment, amounts to substantially all of the fair value of the leased asset.

FIXED ASSETS

Assets that yield benefits to the Local Authority and the services it provides for a period of more than one year.

GENERAL FUND

This is the account to which the cost for the year of the major functions for which the Authority is responsible are charged. Credited to the fund are charges made by the Authority, specific Government and other grants and receipts from the Collection Fund.

GOVERNMENT GRANTS

Assistance by Government and inter-Government agencies and similar bodies, whether local, national or international, in the form of cash or transfers of assets to an Authority in return for past or future compliance with certain conditions relating to the activities of the Authority.

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IMPAIRMENT

A reduction in the value of a fixed asset below its carrying amount on the balance sheet.

INFRASTRUCTURE ASSETS

Fixed assets that are inalienable, expenditure on which is recoverable only by continued use of the asset created. Examples of infrastructure assets are highways and footpaths.

INTANGIBLE FIXED ASSET

"Non-financial" fixed assets that do not have physical substance but are identifiable and are controlled by the Authority through custody or legal rights. Purchased intangibles (e.g. software licences) are capitalised at cost, whilst internally developed intangibles are only capitalised where there is a readily ascertainable market value for them.

INTEGRATED PROVISION

Arrangement permissible under the Health Act 1999 and National Health Service Act 2006 that allows partner organisations, including Local Authorities, Primary Care Trusts and NHS Trusts to work within one management structure, and in doing so increasing the ability to join up services and provide seamless services for service users.

INTEREST COST (PENSIONS)

For a defined benefit scheme, the expected increase during the period in the present value of the scheme liabilities because the benefits are one period closer to settlement.

LIQUID RESOURCES Current asset investments that are readily disposable by the Authority without disrupting its business and are either readily convertible to known amounts of cash at or close to the carrying amount, or traded in an active market. LIQUIDITY RISK The possibility that one party will be unable to raise funds to meet its commitments associated with financial instruments. LOCAL AUTHORITY BUSINESS GROWTH INITIATIVE (LABGI) GRANT An unringfenced grant from Central Government which is paid to Local Authorities based on a number of factors around local economic growth. The notion of the grant is that it provides additional incentives for Authorities to work in partnership with businesses and other key partners to maximise such growth. LOCAL PUBLIC SERVICES AGREEMENT (LPSA) Provide individual Authorities with the chance to sign up to challenging targets to deliver key national and local priorities in return for operational flexibilities and incentives, with rewards (including financial ones) for success.

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MARKET RISK The possibility that the value of a financial instrument will fluctuate because of changes in interest rates, market prices, foreign currency exchange rates, etc. MARKET VALUE The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. NET BOOK VALUE The amount at which fixed assets are included in the balance sheet, i.e. their historical cost or current value less the cumulative amount provided for depreciation. NET CURRENT REPLACEMENT COST The cost of replacing or recreating the particular asset in its existing condition and in its existing use i.e. the cost of its replacement or of the nearest equivalent asset, adjusted to reflect the current condition of the existing asset. NET REALISABLE VALUE The open market value of the asset in its existing use (or open market value in the case of non-operational assets), less the expenses to be incurred in realising the asset. NATIONAL NON-DOMESTIC RATES (NNDR) These are often referred to as Business Rates, and are a levy on business properties based on a national rate in the pound applied to the ‘rateable value’ of the property. The Government determines that national rate poundage, Local Authorities collect the sums due, but the proceeds are pooled (paid over) to Central Government, who redistribute the sums back to Authorities on a pro-rata basis to the Authority’s population. NON-OPERATIONAL ASSETS Fixed assets held by a Local Authority but not directly occupied, used or consumed in the delivery of services, or for the service or strategic objectives of the Authority. They may comprise:- - assets held for the primary purpose of investment from which a commercial rental income is

obtained; - vacant property awaiting either redevelopment or disposal; - land and buildings currently in the course of development but not yet completed and

occupied for the proposed service.

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OPERATING LEASES A lease other than a finance lease. This is a method of financing assets which allows the Council to use, but not own an asset. A third party purchases the asset on behalf of the Council, who then pay the lessor an annual rental over the life of the asset. Expenditure financed by operating leasing does not count against capital allocations.

OPERATIONAL ASSETS Fixed assets held and occupied, used or consumed by the Local Authority in the direct delivery of those services for which it has either a statutory or discretionary responsibility, or for the service or strategic objectives of the Authority. PAST SERVICE COST/GAIN For a defined benefit scheme, the increase or reduction in the present value of the scheme liabilities related to employee service in prior periods arising in the current period as a result of the revision of scheme benefits. POOLED BUDGET Arrangement permissible under the Health Act 1999 and National Health Service Act 2006 that provides an opportunity for partners to bring money together, in a discrete fund, to pay for the services that are an agreed part of the pooled fund arrangement for the client group who are to benefit from one or all of the services. Instead of users being inconvenienced by disputes about Health and Local Authority responsibilities, organisations will agree at the outset the range of Health and Local Government services to be purchased and provided from a pooled fund. PRECEPT This is a charge levied by one Council or other legally specified entity which is collected on its behalf by another by adding the precept to its own Council Tax and paying over the appropriate cash collected. PRESERVED RIGHT TO BUY AGREEMENT An agreement with Helena Housing made at the time of the full transfer of the Council’s housing stock to Helena in July 2002. The conditions are such that the Council is entitled to a percentage share of subsequent ‘Right to Buy’ sales made by Helena to qualifying tenants. The sum paid to the Council under this agreement must be classed as a Capital Receipt. PROJECTED UNIT METHOD An accrued benefits valuation method in which the scheme liabilities make allowance for projected earnings. An accrued benefits valuation method is a valuation method in which the scheme liabilities at the valuation date relate to:- (i) the benefits for pensioners and deferred pensioners (i.e. individuals who have ceased to be

active members but are entitled to benefits payable at a later date) and their dependants, allowing where appropriate for future increases; and

(ii) the accrued benefits for members in service on the valuation date.

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The accrued benefits are the benefits for service up to a given point in time, whether vested rights or not. Guidance on the projected unit method is given in the Guidance Note GN26 issued by the Faculty and Institute of Actuaries.

Under this method, the current service cost will increase as members of the scheme approach retirement. PROVISIONS These are sums charged where a reliable estimate can be made when the Authority has a present obligation (legal or constructive) as a result of a past event that either:- - binds the Authority to transfer economic benefits as a result of statutory provisions or

contractual terms; or - arising from the Authority's actions, creates a valid expectation amongst another party that

transfer of economic benefits will occur. PRUDENCE The concept that revenue is not anticipated but is recognised only when realised in the form either of cash or of other assets, the ultimate cash realisation of which can be assessed with reasonable certainty. RELATED PARTIES Two or more parties are related parties when at any time during the financial period:- (i) one party has direct or indirect control of the other party; or (ii) the parties are subject to common control from the same source; or (iii) one party has influence over the financial and operational policies of the other party to an

extent that the other party might be inhibited from pursuing at all times its own separate interests; or

(iv) the parties, in entering a transaction, are subject to influence from the same source to such

an extent that one of the parties to the transaction has subordinated its own separate interests.

Examples of related parties of an Authority include:- (i) central government; (ii) local authorities and other bodies precepting or levying demands on the Council Tax; (iii) its members; (iv) its chief officers; and (v) its pension fund. For individuals identified as related parties, the following are also presumed to be related parties:-

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(i) members of the close family, or the same household; and (ii) partnerships, companies, trusts or other entities in which the individual, or a member of their

close family or the same household, has a controlling interest.

RELATED PARTY TRANSACTION A related party transaction is the transfer of assets or liabilities or the performance of services by, to or for a related party irrespective of whether a charge is made. Related party transactions include the provision of services to a related party The materiality of related party transactions should be judged not only in terms of their significance to the authority, but also in relation to its related party. RETIREMENT BENEFITS All forms of consideration given by an employer in exchange for services rendered by employees that are payable after the completion of employment. Retirement benefits do not include termination benefits payable as a result of either:- (i) an employer's decision to terminate an employee's employment before the normal

retirement date; or (ii) an employee's decision to accept voluntary redundancy in exchange for those benefits,

because these are not given in exchange for services rendered by employees. REVENUE SUPPORT GRANT (RSG) This is a Government grant in aid of Local Authority Services generally. It is based on the Government's assessment of how much an Authority needs to spend in order to provide a standard level of service. REVENUE EXPENDITURE This is money spent on the day to day running costs of providing services. It is usually of a constantly recurring nature and produces no permanent asset. SCHEME LIABILITIES The liabilities of a defined benefit scheme for outgoings due after the valuation date. Scheme liabilities measured using the projected unit method reflect the benefits that the employer is committed to provide for service up to the valuation date. SENIOR OFFICER A Senior Officer is an employee whose salary is more than £150,00 per year, or one whose salary is at least £50,000 per year, (calculated pro rata for a part-time employee) and who is:- (a) the designated Head of Paid Service, a statutory Chief Officer or a non-statutory Chief

Officer of a relevant body, as defined under the Local Government and Housing Act 1989;

(b) the head of staff for a relevant body which does not have a designated Head of Paid Service;

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(c) any person having responsibility for the management of the relevant body, to the extent that

the person has power to direct or control the major activities of the body, in particular activities involving the expenditure of money, whether solely or collectively with other persons.

Senior employees are typically an Authority’s Chief Executive (or equivalent), their direct reports (other than administration staff), statutory Chief Officers and potentially any employee that the Authority considers having responsibilities and powers indicated in (c) above. For St. Helens, Senior Officers are deemed to be members of the ‘Chief Officer Group’ plus the Chief Executive 4NW. SETTLEMENT An irrevocable action that relieves the employer of the primary responsibility for a pension obligation and eliminates significant risks relating to the obligation and the assets used to effect the settlement. Settlement includes the transfer of scheme assets and liabilities relating to a group of employees leaving the Authority's scheme. SOFT LOAN A loan that is made (for policy reasons, or other) below prevailing market rates, including any interest free loans. Commonly, such loans are to individuals or voluntary organisations in pursuance of locally defined priorities.

The fair value of such a loan is less than the amount of cash lent, and in accordance with accounting standards the fair value must be calculated as the present value of all estimated future cash receipts discounted by using the prevailing market rate of interest for a similar instrument and for an organisation/individual with a similar credit rating. SPECIALISED PROPERTY Properties which, due to their specialised nature, are rarely, if ever, sold on the open market for single owner occupation for a continuance of their existing use due to the specialised nature of the building, their construction, arrangement, size, location or otherwise. SPECIFIC GOVERNMENT GRANTS These are designed to aid particular services and may be revenue or capital in nature. They typically have specified conditions attached to them such that they may only be used to fund expenditure which is incurred in pursuit of defined objectives. STATEMENT OF RECOMMENDED PRACTICE (SORP) Issued by CIPFA, reviewed each year, and setting out proper accounting practices required for Statement of Accounts, the SORP has statutory status via the provisions of the Local Government Act 2003. The SORP specifies those principles and practices required to prepare a Statement of Accounts that ‘presents fairly’ the financial position of a Local Authority.

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STOCKS The amount of unused or unconsumed stocks held in expectation of future use. When use will not arise until a later period, it is appropriate to carry forward the amount to be matched to the use or consumption when it arises. Stocks comprise the following categories:- (i) goods or other assets purchased for resale; (ii) consumable stores; and (iii) raw materials and components purchased for incorporation into products for sale. TOTAL COST The total cost of a service or activity includes all costs which relate to the provision of the service (directly or bought in) or to the undertaking of the activity. Gross total cost includes employee costs, expenditure relating to premises and transport, supplies and services, third party payments, support services and capital charges. This includes an appropriate share of all support services and overheads, which need to be apportioned. USEFUL LIFE The period over which the Local Authority will derive benefits from the use of a fixed asset.

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OTHER INFORMATION AVAILABLE

Should you require further information about St. Helens Council, a wide variety of information is available via the following:- Internet The Council website contains a whole host of up-to-date information on the activities of the Council and its partners (www.sthelens.gov.uk). This includes, but is not limited to, electronic versions of the documents detailed below. Budget Book Detailing the Council's budget (revenue and capital). Copies are kept in most Council Offices and Libraries. Corporate Plan Full copies of this important document are kept in most Council Offices and Libraries. St. Helens First A copy of this community magazine is distributed to all households in the Borough on a quarterly basis. Council Tax Information Leaflet This is issued annually with the Council Tax demand note to explain the Council Tax, Non-Domestic Rates and the finances of the Authority. Council Minutes Reference copies are kept in the Central Library. If you experience any difficulty in obtaining any of the above or would like further details, please contact Ian Roberts, Assistant Chief Executive (Finance) at the Town Hall, St. Helens. Alternatively, you can contact the Council's Contact Centre: By telephone (01744-456789) during the following hours: - Monday to Friday 8.00 a.m. to 8.00 p.m. - Saturday 10.00 a.m. to 2.00 p.m. Minicom : 01744 671671 In person at the offices in Wesley House, Corporation Street, St. Helens during the following hours: - Monday to Friday 9.00 a.m. to 5.00 p.m. By e-mail (contactcentre@sthelens.gov.uk)

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Public Inspection of Accounts Each year, usually in July, there is a specific time when the public may inspect the accounts. A public notice appears at least two weeks beforehand in the local press giving details of dates and times.