Statement of Accounts for 200102

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Statement of Accounts for 200102 Powered By Docstoc
					              CONTENTS

Section                                              Page


 1    Explanatory Foreword                            2


 2    Statement of Accounting Policies                6


 3    Certificate of the Borough Treasurer           11


 4    Statement of Responsibility for the Accounts   12


 5    Consolidated Revenue Account                   13


 6    Housing Revenue Account                        23


 7    Collection Fund                                30


 8    Consolidated Balance Sheet                     33


 9    Statement of Total Movement in Reserves        47


 10   Cash Flow Statement                            50


 11   Auditor’s Report                               53




                                     1
1      EXPLANATORY FOREWORD


       Introduction

1.1.   The Council's accounts for the year 2001/02 are set out in sections 4 to 10.
       They consist of :-

       ·   The Statement of Responsibility for the Accounts
       ·   The Consolidated Revenue Account - the Council's main revenue account,
           covering income and expenditure on all services other than the yield on Local
           Taxes.
       ·   The Housing Revenue Account - which shows income and expenditure on Council
           Housing.
       ·   The Collection Fund Revenue Account.
       ·   The Consolidated Balance Sheet which sets out the financial position of the
           Council as at 31st March 2002.
       ·   The Statement of Total Movement in Reserves which summarises the movements
           on revenue and capital reserves
       ·   The Cash Flow Statement which summarises the inflows and outflows of cash
           arising from both revenue and capital transactions with third parties.

       All the accounts are supported by the Statement of Accounting Policies, which follows
       this foreword, and by various notes to the accounts.

       Reference is made to the accounts of the Northamptonshire County Council's Pension
       Fund in the notes to the accounts, however, they do not form part of the Borough
       Council's accounts themselves.


1.2.   This foreword provides a brief explanation of the financial aspects of the Council's
       activities and draws attention to the main characteristics of the Council's financial
       position. The three charts below show in broad terms where the Council's money
       comes from, what it is spent on and what services it provides.

1.3    Government Grants provide
       more than a third of the                Where The Money Comes From
       Council's resources (36%).
                                                                                     Local
       56% comes from the                                                          Taxpayers
       services it provides through          Fees                                     8%
                                            Charges
       rents and charges and from
                                           and Other
       interest on internal                 Income
       balances. Council Tax                  56%                                Government
       accounts for only 8% of the                                                 Grants
                                                                                    36%
       total income.




                                               2
1.4       Running expenses such as
          maintaining buildings,                    Where The Money Goes
          operating vehicles and
          purchase of supplies and
          services take up more than       Running                                    Capital
          half (63%) of the total           Costs                                    Financing
                                             63%                                        4%
          expenditure. Employees
          account for about 33% of
          the total. More details on                                                 Employees
                                                                                        33%
          staffing are given in the
          Council's Annual Report,
          which is published
          separately.
          Financing charges are the payments of principal and interest on external loans, plus
          Capital expenditure financed from Revenue.


1.5.      More than half (61%) of the total expenditure is on Housing related services. Other
          Service proportions are shown in the chart below.


                              The Services Provided
                                                                                   Trading Services
       Housing Revenue                                                                    2%
          Account                                                                  Other Services
             50%                                                                         1%

       Housing General Fund                                                     Central Services to
               11%                                                                  the Public
                                                                                        7%
                                                                                     Corporate &
                                                                                   Democratic Core
       Highw ays Roads &                                                                 3%
           Transport
              5%
                                                                                  Unapportionable
                                                                                 Central Overheads
            Planning &
                                                                                         1%
       Development Services
                3%
                                                                                  Cultural & Related
          Environmental
                                                                                       Services
            Services
                                                                                         10%
               7%




                                                 3
       Budget

1.6.   The main components of the budget for 2001/02 and how these compare with actual
       income and expenditure are set out below :-

                                                       Original     Actual Variation
                                                        Budget
                                                         £'000        £'000      £'000

       Service Expenditure                             108,376     108,758          382
       Capital Financing Costs                           7,391       4,954       (2,437)
                                                       115,767     113,712       (2,055)
       Income from Services                            (65,442)    (64,674)         768
       Contributions to (from) Reserves                   (517)        918        1,435
       Government Grants                               (39,522)    (41,071)      (1,549)
       Precept                                          (8,832)     (8,832)           0

       Deficit (Surplus) for Year                         1,454          53      (1,401)
       Balance Brought Forward                           (2,856)     (3,247)       (391)

       Balance Carried Forward                           (1,402)     (3,194)     (1,792)

1.7.   In the changeable and challenging environment currently facing local government, the
       Council maintains revenue reserves at a level of about £8.68m.

       Capital Expenditure.

1.8.   In 2001/02 the Council spent £12.606m on capital projects, of which £9.934m was on
       Housing projects, and £2.672m on Other Services projects, as follows :-

                                                                      £'000      £'000
       Housing
       Council Housing                                                7,597
       Improvement Grants                                             1,543
       Housing Associations                                             217
       Single Regeneration Budget                                       577      9,934

       Other Services
       Leisure Facilities                                               252
       Single Regeneration Budget                                       398
       Urban Enhancement                                                136
       Westbridge Modular Buildings                                     151
       Victoria Road Flood Defence                                      196
       Museum - Boot and Shoe Display                                   134
       ICTS Equipment                                                   492
       Parklands Linear Park                                            122
       Other                                                            791      2,672
                                                                                12,606



                                             4
1.9.   The capital expenditure of £12.606m was financed by borrowing £1.220m, the use of
       £2.487m capital receipts, grants of £7.530m and £1.369m from other sources.


       Borrowing

1.10. Current borrowing totals
                                                  The Source of Borrowing
      £65.10m, of which
      £6.14m is less than 1                                                        CNT
      year. The chart shows                                                        1%

      the proportions of the             Market
      total debt that arose              Bonds                                  Temporary
                                          77%                                     10%
      from various sources.
                                                                                   PWLB
                                                                                    12%



       Accounting Policies

1.11. The accounting policies adopted by the Council comply with the relevant
      recommended accounting practices. The Council's policies are explained fully in
      Section 2 and in the notes to the accounts in Sections 5 to 10.


1.12. There has been no change in the Council's statutory functions.


       Further Information

1.13. As part of the Council's policy of providing full information about the Council's affairs,
      further information about the accounts is available from :-
              The Director of Strategic Resources and Borough Treasurer,
              The Guildhall,
              St Giles Square
              Northampton.

       In addition, interested members of the public have a statutory right to inspect the
       accounts before the commencement of the audit. The availability of the accounts for
       inspection is advertised in the local press.

       Other documents that are available for inspection by local electors, following
       application to the above address include :-

       ·   The Register of Members Expenses
       ·   The Register of Members Interests




                                                  5
2     STATEMENT OF ACCOUNTING POLICIES


2.1   General

      The accounts have been prepared in accordance with the Code of Practice on Local
      Authority Accounting and incorporating the requirements of the Best Value
      Accounting Code of Practice.

      The Codes of Practice were issued by the Chartered Institute of Public Finance and
      Accountancy (CIPFA), and are supported by a number of detailed accounting
      recommendations, including the application of Statements of Standard Accounting
      Practice (SSAPs) to Local Authorities in Great Britain approved by the Accounting
      Standards Board - any exceptions being stated in the notes to the accounts.


2.2   Fixed Assets

      Following the introduction of Capital Accounting Regulations, the fixed assets of the
      Council are no longer recorded in the accounts at primarily historic cost valuation. A
      range of valuation methods are used for different categories of asset, introduced by the
      CIPFA Code of Practice 1993, as follows :-

      Operational Assets
      ·      Council Housing                          Existing Use Value – Social Housing

      ·      Other Land and                           Open Market Value (Existing Use)
             Buildings                                Depreciated Replacement Cost

      ·      Equipment, Vehicles and Plant            Depreciated Replacement Cost

      ·      Community Assets                         Historic Cost

      ·      Infrastructure                           Historic Cost

      Non-Operational Assets                          Open Market Value

      In the Consolidated Balance Sheet, fixed assets are shown net of a depreciation charge,
      where applicable. Depreciation is charged on all assets other than Land and Non
      Operational Assets.




                                             6
2.3   Deferred Charges

      Deferred Charges are payments of a capital nature where no fixed asset is created, but
      which may properly be financed over a period of years. Deferred charges also relate to
      assets that have been disposed of where loan debt remains outstanding and where the
      sale proceeds have not been used to repay the debt. Under the Capital Accounting
      Regulations, the Council has opted to write off all new Deferred Charges in the year of
      account.


2.4   Basis of Charges for Capital

      Under the Capital Accounting Regulations, Services are required to bear a capital
      charge, levied for the use of an asset. The capital charge comprises an Asset Rental
      and a depreciation charge, where applicable. Asset Rentals are calculated as a given
      percentage of the asset value as follows :-
                                                                    2001/02 2000/01
      For Assets valued at Historic Cost                               6.0%        6.0%
      For all other Assets                                             6.0%        6.0%

      Depreciation is calculated on the straight line method over the determinable life of the
      asset.

      Capital Charges are levied on each service account for the assets used. The charges are
      credited to the Asset Management Revenue Account, which forms part of the
      Consolidated Revenue Account. The capital accounting regime therefore has no
      overall effect on the Revenue Account of the Authority.


2.5   Capital Receipts

      Receipts from the sale of property or other assets are required to be either set aside for
      the redemption of debt, or used to finance new capital expenditure.

      Pending such use, the useable elements are held as the Useable Capital Receipts
      Reserve in the Balance Sheet.

      The set-aside receipts currently comprise 75% of Housing receipts, subject to
      relaxations as may be defined in various regulations from time to time. There is
      currently no set-aside on Other Services receipts.

      These receipts are set aside in accordance with the requirements of the Local
      Government and Housing Act 1989, and form part of the Capital Financing Reserve.




                                              7
2.6   Redemption of Debt

      During previous years, it has been the Authority's policy not to redeem net external
      debt. In 2001/02 this policy was changed, and 40% of the Council’s External Debt was
      redeemed.

      Full allowance has been made in the Revenue Accounts of the Authority for the
      required Minimum Revenue Provision.


2.7   Stocks and Work in Progress

      Valuations of stocks held by the Borough Council are primarily made at the lower of
      cost price or net realisable value basis, in accordance with the principles laid down in
      SSAP 9. The exception to this rule is the Westbridge Depot Main Store which is
      valued at current prices.


2.8   Debtors and Creditors

      The Accounts of the Council are maintained on an accruals basis in accordance with
      the Code of Practice and SSAP2. That is, all sums due to or from the Council during
      the year, are included in the accounts whether or not cash has been received or paid in
      the year. The creditors appearing in the balance sheet, represent sums which are unpaid
      at the end of the year. Exceptions to these rules are as follows :-

      (a)    No accrual has been made, as the amounts involved are not material and the
             policy is consistently applied from year to year, for part weeks of wages, stores
             and haulage, nor for gas, electricity, telephone charges, etc., where twelve
             months expenditure has been included in the accounts.

      (b)    The interest arrears in respect of both Council House and private mortgages
             have been capitalised and thus increase the balance of mortgages outstanding
             shown on the balance sheet.

      (c)    Annual accounts for Trade Refuse Services are raised for the period from 1st
             March in each year to the end of February the following year, and are
             accounted for in the year in which the account has been raised. This policy has
             been consistently applied for over 20 years.

      (d)    Council Tax Benefit applications processed after the middle of February have,
             in the past, been accounted for in the new year. In 2001/02, this policy was
             varied to account for benefit applications in the old year, to the value of
             £0.116m.




                                              8
2.9    Grants Receivable

       Grants receivable are accounted for on an accruals basis. The accounts incorporate the
       best estimate for Grants receivable in respect of the year of account, together with
       adjustments in respect of previous years.

       Capital Grants receivable in respect of Home Renovation Grants are treated slightly
       differently, on a Receipts and Payments basis, accounting in each year for the Grant
       received, rather than the Grant due.

2.10   Reserves and Provisions

       During 2001/02 the Council maintained a number of special Provisions to meet future
       expenses that are likely or certain to occur, but the amount of which cannot yet be
       accurately determined (Section 41 (3)(b) Local Government and Housing Act 1989).

       In addition, the Council maintained a number of Reserves to meet general rather than
       specific future expenditure.

       Pursuant to the Capital Accounting Regulations, several Capital Reserves are
       maintained, to identify the capital financing and revaluation position of the Council's
       assets.


2.11   Costs of Support Services

       The costs of support services (Central and Departmental Management) have been fully
       charged to services, in compliance with the Best Value Accounting Code of Practice
       (BVACOP).

       The classification and basis of allocation of Overheads used in the Accounts is :-

       Overhead                                         Basis of Allocation

       Central, Departmental and                        ) Time spent by staff /
       Technical Support Services                       ) Extent of Service provided

       Computing Charges                                Actual use

       Office Accommodation                             Area occupied

       Other Personnel Services                         ) Per Capita
                                                        ) Extent of Service provided




                                               9
2.12   Internal Interest

       Following the changes introduced regarding Capital Accounting and the abolition of
       the Consolidated Loans Fund, individual revenue accounts are no longer charged or
       credited with interest on cash balances. The exception to this rule is the Housing
       Revenue Account, which is ring-fenced under Government regulation.

       The Housing Revenue Account is charged or credited as appropriate with the interest
       on its revenue cash balance, the rate of interest being calculated using the actual rate of
       return achieved on investments.


2.13   Pensions

       (a)    The pension costs that are charged to the Council's accounts in respect of its
              employees are equal to the contributions paid to the funded pension scheme for
              these employees. Further costs arise in respect of certain pensions paid to
              retired employees on an unfunded basis.

       (b)    These contributions have been determined on the basis of rates that are set to
              meet 100% of the liabilities of the Pension Fund, in accordance with relevant
              Government Regulations. At the time of the 1992 valuation, the large increase
              in contributions needed compared to 1992/93 was being phased in over a
              period of seven years from 1 April 1993. Following the 1995 valuation, the
              increases in the Council’s contribution as expected from the phasing in of the
              1992 increases were retained. The Council’s contribution rate for 2001/02 is
              the highest rate anticipated in the 1998 valuation.

       (c)    A further valuation was carried out as at 31st March 2001, and the results of
              this will apply to the three years from 2002/03 onwards.


2.14   Investments

       Investments are shown in the Consolidated Balance Sheet at cost, with the exception
       of those investments managed for the Council by an external fund manager, whose
       investment decisions are confined to purchasing Gilts and Certificates of Deposit on
       the Council's behalf. These are shown at the lower of Cost or Market Value for each
       instrument. Under this policy, the externally managed funds are shown at £26.15m as
       at the 31st March 2002.




                                               10
3   CERTIFICATE OF THE BOROUGH TREASURER




    I certify that the Statement of Accounts for the Financial Year 2001/02 is prepared in
    accordance with the Accounts and Audit Regulations 1996 and presents fairly the
    financial position of Northampton Borough Council as at 31st March 2002 and its
    income and expenditure for the year to that date, as set out in Sections 4 to 10
    attached.




    Jon Warlow CPFA
    Director of Strategic Resources & Borough Treasurer
    Dated 24 December 2002




                                           11
4   STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF
    ACCOUNTS

    The Authority's Responsibilities

    The Authority is required :-

    ·      To make arrangements for the proper arrangement 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 Director of Strategic
           Resources & Borough Treasurer.

    ·      To manage its affairs to secure the economic, efficient and effective use of its
           resources and to safeguard its assets.

    ·      To approve the Statement of Accounts


    The Director of Strategic Resources & Borough Treasurer's Responsibilities

    The Director of Strategic Resources & Borough Treasurer is responsible for the
    preparation of the authority's statement of accounts which, in terms of the
    CIPFA/LASAAC Code of Practice on Local Authority Accounting in Great Britain
    ("the Code"), is required to present fairly the financial position of the authority at the
    accounting date and its income and expenditure for the year ended 31 March 2002.

    In preparing the statement of accounts the Director of Strategic Resources & Borough
    Treasurer has :-

    ·      Selected suitable accounting policies and then applied them consistently

    ·      Made judgements and estimates that were reasonable and prudent

    ·      Complied with the Code

    The Director of Strategic Resources & Borough Treasurer has also :-

    ·      Kept proper accounting records which were up to date

    ·      Taken reasonable steps for the prevention and detection of fraud and other
           irregularities




                                             12
5   CONSOLIDATED REVENUE ACCOUNT                     2001/02          2000/01
                            Gross                                 Net       Net
                            Costs                  Income       Costs     Costs
    SERVICES                 £'000                   £'000      £'000     £'000

    Central Services                      14,952    8,091       6,861      6,622
    Cultural, Environmental &
           Planning Services              27,232    9,002      18,230     18,171
    Highways, Roads and Transport          6,796    6,137         659      1,089
    Housing Services                      84,284   59,735      24,549      3,876
    Other Services                         1,963    1,742         221        360
    NET COST OF SERVICES                 135,227   84,707      50,520     30,118

    Precepts paid to Parish Councils                               412       361
    Grants from Parish Councils                                   (104)      (96)
    Deficit (Surplus) on Trading Operations                      1,051       909
    Deficit (Surplus) on Insurance Provision                        70      (264)
    Asset Management Revenue Account                           (23,892)   (1,467)
    Interest receivable                                         (3,645)   (5,475)
    Premium on Debt Redemption                                   7,074         0
    NET OPERATING EXPENDITURE                                   31,486    24,086

    Surplus transferred to(from) HRA balances                   1,102       (422)
    Appropriations relevant to Depreciation and MRA             1,479          0
    Contribution to(from) Revenue Reserves                       (185)       574
    Financing Capital Expenditure                                   0          0
    Financing Premiums on Redemption of Debt                   (7,074)         0
    Financing Write-Off of Deferred Charges                    (1,760)         0
    Provision for Repayment of External Loans                  (1,074)      (904)
    AMOUNT TO BE MET FROM GOVERNMENT                           23,974     23,334
    GRANT AND LOCAL TAXPAYERS

    Precept                                                     (8,832)   (8,203)
    Community Charge Collection Fund Surplus                        15       (13)
    Council Tax Collection fund Surplus                            (33)      (30)
    Council Tax Benefit Subsidy Limitation                          60        58
    Revenue Support Grant                                       (7,772)   (7,249)
    Contribution from N.N.D.R.                                  (7,359)   (7,458)
    (SURPLUS)/DEFICIT FOR THE YEAR                                  53       439

    Balance at 1st April                                        3,247      3,686
    Surplus/(Deficit) for the year                                (53)      (439)
    Balance at 31st March                                       3,194      3,247




                                          13
      Notes to The Consolidated Revenue Account

5.1   Standard Expenditure Analysis

      The Accounting Code of Practice requires that the Consolidated Revenue Account
      include an analysis of services in line with the Best Value Accounting Code of Practice.
      The BVACOP contains a more detailed standard analysis of services as listed below :-
                                                          2001/02               2000/01
                                                 Gross                   Net        Net
      Services                                   Costs     Income      Costs      Costs
                                                 £'000       £'000     £'000      £'000
      Central Services
      Central Services to the Public           10,235        7,819     2,416      2,524
      Corporate & Democratic Core                3,787         166     3,621      3,307
      Unapportioned Central Overheads              930         106       824        791
                                               14,952        8,091     6,861      6,622

      Cultural, Environmental & Planning Services
      Cultural and Related Services        13,487         4,543       8,944       9,455
      Environmental Services               10,015         2,545       7,470       7,142
      Planning & Development                3,730         1,914       1,816       1,574
                                           27,232         9,002      18,230      18,171

      Highways, Roads & Transport Services
      Highways, Roads and Transport        6,796          6,137         659       1,089

      Housing Services
      Housing General Fund                   16,168      10,627       5,541       3,347
      Housing Revenue Account                68,116      49,108      19,008         529
                                             84,284      59,735      24,549       3,876

      Other Services
      Services Recharged                      1,963       1,742         221         360
      Net Cost of Services                  135,227      84,707      50,520      30,118


5.2   Resource Accounting for the Housing Revenue Account

      The introduction of Resource Accounting for the Housing Revenue Account has
      produced several anomalies when comparing the Consolidated Revenue Account
      figures for 2001/02 and 2000/01. In particular the introduction of Asset Rental
      Charges and Depreciation on HRA assets, as well as the consequences of the Major
      Repairs Allowance all make the comparison of figures from year to year inappropriate.
      The details of Resource Accounting and its consequences for the HRA are dealt with
      more fully in the notes to the Housing Revenue Account.




                                             14
5.3   Asset Management Revenue Account

      Under the Capital Accounting Regulations, the Council is required to maintain an
      Asset Management Revenue Account, which is debited with various external interest
      and other debt charges, and credited with the capital charges levied on service revenue
      accounts. The introduction of Resource Accounting for the Housing Revenue
      Account in 2001/02 has had a significant impact on the AMRA, replacing the Item 8
      Determination with Asset Rental Charges, including Depreciation.

                                                                    2001/02     2000/01
                                                                      £’000       £'000
      Expenditure
      External Interest Paid                                          4,418       5,896
      Other External Debt Charges:
          New Towns Commission                                          131         131
          South Northamptonshire Council                                  0          71
          Debt Management Expenses                                        0         139
          Depreciation                                                7,017       1,368
                                                                     11,566       7,605

      Income
      Asset Rentals (including Depreciation)                         35,458       6,679
      Housing Item 8 Determination                                        0       2,393
                                                                     35,458       9,072
      Deficit/(Surplus) for Year                                    (23,892)     (1,467)


5.4   Section 137 - Expenditure

      Section 137 of the Local Government Act 1972 (as amended) enabled a Local
      Authority to incur expenditure on behalf of the residents where no specific power
      existed. The legislation was repealed during 2000/01. However, the figures below
      represent the expenditure for the year that was originally approved for payment under
      that power.
                                                                     2001/02 2000/01

      Maximum Allowable Expenditure per head                          £1.90       £1.90
      Relevant Population                                           196,023     195,825

                                                                      £'000       £'000

      Maximum Allowable Expenditure                                     372         372
      Actual expenditure                                                313         347




                                               15
5.5   Trading Services

      The Council operates several services deemed to be Trading Services, under the
      definitions included in the Best Value Accountancy Code of Practice (BVACOP) and
      which are not allocated to main services within the Service Expenditure Analysis
      (SEA) . The Turnover and Surplus or Deficit on these Trading and DSO Services is
      shown below. Items marked * are no longer deemed to be Trading Services. In this
      note items in brackets indicate a deficit.

                                           2001/02     2001/02     2000/01     2000/01
                                           Income      Surplus     Income      Surplus
                                             £'000       £'000       £'000       £'000

      Property Services                      4,009            0      4,108         (30)
      Highways and Sewers Works              3,052           63      2,534           5
      Electrical Services                    1,532            5      1,334          44
      Grounds Maintenance                    2,381           31      2,186           4
      Refuse Collection                          *            *      3,086          (2)
      Other Cleansing                            *            *      1,844          43
      Gully Emptying                             0            0        (15)        (15)
      Refuse Voids                             731            0        895          67
      Building Cleaning                        319            7        316         (37)
      Property Management                    1,813       (1,157)     1,771        (988)
      Total                                 13,837       (1,051)    18,059        (909)

      The following Services are also deemed to be Trading Services within the definition of
      the BVACOP but are allocated to main service areas within the SEA.

                                           2001/02     2001/02     2000/01     2000/01
                                           Income      Surplus     Income      Surplus
                                             £'000       £'000       £'000       £'000

      Open Market                               872         328        905         330
      Market Hall                                92          (2)       101         (14)
      Trade Refuse                            1,342        (166)     1,208        (304)
                                              2,306         160      2,214          12

      Further services with trading components are reported separately. (See Note 5.8
      Building Control Trading Account and Note 5.10 Goods and Services Act)




                                            16
5.6   Leasing Charges

      During 2001/02, leasing charges paid on finance and operating leases were as follows:-
                                                                  2001/02 2000/01
                                                                     £'000       £'000

      Finance Lease Secondary Rentals                                     4          24
      Operating Lease Charges                                           332         195
      IT Operating Lease Charges                                        208         221
      Vehicle Operating Lease Charges                                 1,632       1,807
      (including Maintenance)

      The future obligations arising from these operating leases (excluding vehicle charges
      inclusive of maintenance) have been identified as follows :-

                                                                    2001/02     2000/01
                                                                      £'000       £'000

             2001/02                                                      -         385
             2002/03                                                    508         385
             2003/04                                                    508         329
             2004/05                                                    426         125
             2005/06                                                    234          60
             2006/07                                                     75          17
             2007/08                                                     54
             2008/09                                                     54
             2009/10                                                     54
             2010/11                                                     54
             2011/12                                                     27




                                             17
5.7   Local Government Act 1986 Section 5 - Accounting for Publicity

      Included within the net expenditure shown in the Consolidated Revenue Account is
      expenditure on Publicity as defined in the Local Government Act 1986 Section 5. Set
      out below is a summary of those costs over the major heads of expenditure.

                                                                     2001/02     2000/01
                                                                       £'000       £'000

      Employees                                                            66          72
      Recruitment Advertising                                             172         157
      Other Advertisements                                                131         218
      Other Supplies and Services                                          53          35
      Gross Expenditure                                                   422         482

      Income                                                                0           0
      Net Expenditure                                                     422         482


5.8   Building Control Trading Account

      The Building (Local Authority Charges) Regulations require the disclosure of
      information related to the Building Control Account. It is a requirement of the
      Charges Regulations that Building Control Authorities receive income from their
      charges that fully recover the cost of carrying out this service. The break-even
      requirement is calculated over a rolling three year accounting period.

      There is a range of work for which charges can not be made related to other
      legislation, activity to meet local policy and work not related to Building Regulations.

      The statement below shows the total income and expenditure of the Building Control
      function analysed between chargeable and non-chargeable categories.

                                                                     2001/02     2000/01
                                                                       £’000       £’000
      Chargeable Activities
      Income                                                              398         390
      Expenditure                                                         346         351
      Net Deficit/(Surplus)                                               (52)        (39)

      Non-Chargeable Activities
      Income                                                                5           2
      Expenditure                                                         216         205
      Net Deficit/(Surplus)                                               211         203

      Total Deficit/(Surplus)                                             159         164




                                              18
5.9    Agency Services

       The Council carries out certain works on an agency basis for which it is fully
       reimbursed, and for which an administration fee is received. The principal area of
       work is as highways agent for Northamptonshire County Council. Work done under
       the agency arrangement cost £2.95m in 2001/02 (£2.25m in 2000/2001).

       The administration costs of the agency arrangement are by no means fully covered by
       the administration fee.

                                                                      2001/02    2000/01
                                                                        £'000      £'000

       Administration costs (including insurance premiums) for           765         685
       the highways agency arrangement and ancillary services
       such as enquiries from the public and Section 38 agreements.

       Administration fee from Highway Authority                         (315)      (300)

       Other Income                                                      (180)      (175)
                                                                          270        210


5.10   Goods and Services Act

       The Authority is able to perform work for other statutory bodies under powers
       conferred by the Local Authority (Goods and Services) Act 1970. The Council
       Departments concerned are Contract Services and the Print Services Unit. The work
       is for other public bodies including other Local Authorities and the Health Authority.

       The amount of such work carried out in 2001/02 and 2000/2001 was as follows :-

                                                  2001/02                  2000/01
                                               Costs    Income          Costs    Income
       Section                                 £'000      £'000         £'000      £'000

       Call Care                                   348       303         364         332
       Electrical Services                          36        50          55         103
       Highways Services                             1         2          31          29
       Print Services Unit                          43        43          42          44
                                                   428       398         492         508




                                              19
5.11   Pensions Costs

       In 2001/02 the Council paid an employer's contribution of £3.239m, representing
       13.3% of employees' pensionable pay, into the Northamptonshire County Council
       Pension Fund, which provides members with defined benefits related to pay and
       service. The contribution rate is determined by the Fund's actuary based on triennial
       actuarial valuations, the last relevant review being at 31 March 1998. Under Pension
       Regulations, contribution rates are set to meet 100% of the overall liabilities of the
       Fund.

       In addition the Council is responsible for all pension payments relating to "added
       years" benefits it has awarded together with the related increases. In 2001/02 these
       amounted to £0.617m, representing 2.53% of pensionable pay.

       The Fund's actuary has advised that the pension costs that it would have been
       necessary to provide for in the year in accordance with SSAP 24 "Accounting for
       pension costs" are £3.191m, representing 13.1% of pensionable pay.

       Further information can be found in the Northamptonshire County Council Pension
       Fund's Annual Report, which is available upon request from :-

       County Finance Officer
       Resources Directorate
       Northamptonshire County Council
       PO Box 136, County Hall
       Northampton, NN1 1AT


5.12   Minimum Revenue Provision

       The 1989 Local Government & Housing Act requires that there shall be a minimum
       revenue provision for depreciation and the repayment of external loans. The actual
       provisions charged to the Consolidated Revenue Account, compared to the statutory
       minimum, are shown in the table below.
                                                                    2001/02 2000/01
                                                                      £’000       £’000

       Provision for the Repayment of External Loans                   (1,074)       (904)
       Provision for Depreciation (Excluding HRA)                       1,493       1,368
       Total Provision                                                    419         464

       Minimum Revenue Provision                                          419         464




                                              20
5.13   Employees Earning More Than £40,000 pa

       The Accounting Code of Practice requires that the Authority disclose, the number of
       its employees receiving remuneration over £40,000 per annum, in bands of £10,000, as
       follows :-

                                                                  Number of Employees
                                                                   2001/02 2000/01

       From £40,000 not exceeding £50,000                                 17          11
       From £50,000 not exceeding £60,000                                  1           0
       From £60,000 not exceeding £70,000                                  4           3
       From £70,000 not exceeding £80,000                                  0           0
       From £80,000 not exceeding £90,000                                  0           0
       From £90,000 not exceeding £100,000                                 1           1


5.14   Members Allowances

       The Code of Practice requires disclosure in the Statement of Accounts of the totals of
       Members Allowances for the year.
                                                                    2001/02 2000/01
                                                                      £’000       £’000

       Mayor and Deputy Mayor Allowances                                  23          22
       Members Allowances                                                113          76
       Expenses                                                            9          13
                                                                         145         111




                                             21
5.15   Related Parties

       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 be
       controlled or influenced by the Council), not disclosed elsewhere in the Accounts. For
       the purpose of this note, Related Parties are limited to :-

       a)     Central Government          - Details of transactions regarding Government
              Grants are contained in the Cash Flow Statement Note 10.2

       b)     Precepting Authorities       - Details of the precepts paid to Major Precepting
              Authorities are contained in the Collection Fund Account Note 7.6

       c)     Subsidiary Companies         - None

       d)     Joint Ventures/Partnerships - None material

       e)     Chief Officers             - No material transactions other than Salaries and
              expenses covered by standard Conditions of Service

       f)     Members                      - Transactions regarding Members Allowances are
              disclosed in Note 5.14

              A Member is the Secretary of the 78 Derngate Trust, which received a Capital
              Grant of £40,000 in 2001/02.

              A Member is a director of a company which rents property and services from
              the Council, at market rates, for £48,000 pa.

              All these transactions are recorded in the Register of Members Interests, which
              is available for public inspection.

       g)     Pension Fund               - Transactions with the Northamptonshire County
              Council Pension Fund are disclosed in the Consolidated Revenue Account Note
              5.11

       h)     Organisations over which the Council exerts a significant influence.

                                                                                2001/02
                                           2000/01
                                                                                £’000
                                           £’000

              Northampton Theatres     Grant Paid                        827           925
              Roadmender               Grant Paid                         54            44
              Northampton Town )       License Fee for Sixfields        (235)         (237)
                Football Club   )      Gate Receipts Paid Over         1,135         1,338



                                              22
6   HOUSING REVENUE ACCOUNT
                                                         2001/02    2000/01
                                                           £’000      £’000
    Income
    Dwelling Rent (gross)                                 36,665     34,939
    Non-Dwelling Rents                                     1,119      1,092
    Charges for Services and Facilities                    1,244      1,212
    Contributions towards Expenditure                        309        110
    HRA Subsidy Receivable:
           Rent Rebate Element                            18,154     17,317
           Housing Element                                (8,391)   (14,588)
    Airey Housing Grant                                        7          7
    Housing Benefit Transfers                                  1          3
                                                          49,108     40,092

    Expenditure
    Repairs and Maintenance                                8,481      9,240
    General Management                                     4,600      4,536
    Special Services                                       3,618      3,243
    Rents, Rates, Taxes & Other Charges                       28         60
    Rent Rebates                                          22,105     20,230
    Bad or Doubtful Debts                                    564        992

    Cost of Capital Charge                                23,104          0
    Depreciation                                           5,524          0
    Debt Management Costs                                     91         81
                                                          68,115     38,382

    Net Cost of Services                                  19,007     (1,710)

    Net HRA Income/Expenditure on the AMRA               (22,088)     1,511
    Amortised Premiums                                       301        391
    HRA Investment Income                                   (172)       (75)
    Net Operating Expenditure                             (2,952)       117

    Revenue Contribution to Capital Expenditure                0         0
    HRA Contribution to Minimum Revenue Provision            379       412
    Depreciation and Transfer to Major Repairs Reserve     1,479         0
    (Surplus)/Deficit for year                            (1,094)      529

    Transfers to/(from) Reserve                               (8)      (107)

    Balance at 1st April                                    (794)    (1,216)
    Balance at 31st March                                 (1,896)      (794)




                                          23
       Notes to the Housing Revenue Account

6.1    The Number and Types of Dwelling Stock as at 31 March 2002

       Dwelling Type                  Year of Original Construction
                                                Pre     1919     1945       Post       Total
                                                1919    1944     1964       1964

1. LOW RISE FLATS (blocks up to 2 storeys)
   1 Bedroom                                         0        251    398      896       1,545
   2 Bedrooms                                        0         70    105      278         453
   3 or more Bedrooms                                0          0      0        0           0
   TOTAL LOW RISE FLATS                              0        321    503    1,174       1,998

2. MEDIUM RISE FLATS (in blocks of 3, 4 or 5 storeys)
   1 Bedroom                                      0            12    232    1,710       1,954
   2 Bedrooms                                     0            70    183      644         897
   3 or more Bedrooms                             0             7     92       35         134
   TOTAL MEDIUM RISE FLATS                        0            89    507    2,389       2,985

3. HIGH RISE FLATS (in blocks of 6 or more storeys)
   1 Bedroom                                      0             0    134      364         498
   2 Bedrooms                                     0             0     44       85         129
   3 or more Bedrooms                             0             0     22        0          22
   TOTAL HIGH RISE FLATS                          0             0    200      449         649

4. HOUSES AND BUNGALOWS
   1 Bedroom                                        0        4        224     655         883
   2 Bedrooms                                      13    1,060        330   1,570       2,973
   3 Bedrooms                                      41      965        946   1,868       3,820
   4 or more Bedrooms                               2       48          8     350         408
   TOTAL HOUSES AND BUNGALOWS                      56    2,077      1,508   4,443       8,084

5. NON-PERMANENT DWELLINGS
   (Prefabs, mobile homes etc. available             0          0       0          0           0
    for all year occupation)

6. MULTI-OCCUPIED DWELLINGS                          0          0       0       0              0

7. TOTAL DWELLINGS (excl. Shared                   56    2,487      2,718   8,455      13,716
   Ownership) as at 31st March 2002

8      SHARED OWNERSHIP PROPERTIES                                                        147
       (Whole Equivalents at 31 March 2002 – 58 Properties)




                                            24
6.2   Non-Dwelling Rents

      The Non-Dwelling Rents figure includes various non-residential properties, or
      properties which are not currently being used as dwellings :-
                 38 shops
                 31 shops with accommodation
                 15 other properties
             3,107 garages

6.3   Resource Accounting

      With the introduction of Resource Accounting in April 2001 the format of the Housing
      Revenue Account has changed. Depreciation and capital charges for HRA properties
      have been introduced and are shown within the following additional headings:

      ·      Cost of Capital Charge
      ·      Depreciation
      ·      Net HRA Income/Expenditure on the Asset Management Revenue Account
             (also known as the Capital Asset Charges Accounting Adjustment)
      ·      Depreciation & Transfer to the Major Repairs Reserve

      This means that in these cases direct comparison of figures between the two years
      shown here is not possible. These new charges do not however affect the bottom line
      of the HRA.

      Further information on the capital charges is provided in the notes below.

6.4   Value of Housing Revenue Account Assets

      The Consolidated Balance Sheet includes Housing Revenue Account Assets as follows
      :-
                                                               2001/02 2000/01
                                                                 £’000      £’000
      Balance Sheet Values as at 31 March
      Operational Assets                                       378,260 272,211
      Non-Operational Assets                                       372        520
                                                               378,632 272,731

      Vacant Possession Value of Dwellings as at 1 April            518,482

      The Vacant Possession Value (also called the Open Market Value) most naturally
      relates to the sale of a single owner-occupied dwelling. Therefore it must be adjusted
      to obtain the Balance Sheet Value (also called the Existing Use Value – Social
      Housing). This then represents a value for a property if it were sold with sitting
      tenants enjoying rents at less than open market rents and rights such as Right to Buy.
      The adjustment factor provided measures the difference between market and local
      authority rents at regional level. The adjustment factor for Northampton is set by the
      Government at 62%



                                             25
6.5   Major Repairs Reserve

      The Major Repairs Reserve arises as a consequence of Resource Accounting for the
      Housing Revenue Account, and was introduced in 2001/02. The movements on the
      Major Repairs Reserve are analysed as follows :-
                                                                2001/02
                                                                   £’000
      Balance as at 1 April                                            0
      Major Repairs Allowance for Year                             7,002
      Charges to MRR for HRA Capital Expenditure                   7,002
      Balance as at 31 March                                           0

      The Major Repairs Allowance was also introduced in 2001/02. It represents the
      estimated long term average amount of capital spending required to maintain the stock
      in its current condition.


6.6   HRA Capital Expenditure

      The total capital expenditure on land, houses and other property within the Housing
      Revenue Account, together with the financing of that expenditure, is analysed as
      follows :-
                                                                   2001/02
                                                                      £’000

      Total Capital Expenditure                                         7,232

      Financed by :
             Borrowing                                                    115
             Useable Capital Receipts                                      31
             Major Repairs Allowance                                    7,002
             Grants                                                        84
                                                                        7,232

6.7   HRA Capital Receipts

      The total capital receipts arising from the sale of land, houses and other property
      within the Housing Revenue Account is shown below :-

                                                                     2001/02
                                                                       £’000

      Council Housev Sales                                            11,166
      Repayment of Discount                                               61
      Shared Ownership                                                   172
      Mortgage Principal Repaid                                           46
      Sales of Land                                                        1
                                                                      11,446



                                             26
6.8    The Cost of Capital Charge

       Under Resource Accounting, introduced in April 2001, local authorities are required to
       show within the Housing Revenue Account a charge for the use of fixed assets. This is
       based on a valuation of the housing stock and other assets owned by the HRA, the
       main valuation basis being “existing use value as social housing”.

       The cost of capital charge is calculated by applying a specified notional rate of interest
       to the valuation figure. This brings the HRA into line with the practice used for other
       local authority operational assets. The interest rate is determined annually by the
       CIPFA/LASAAC Joint Committee and was 6% in 2001/02.


6.9    The Capital Asset Charges Accounting Adjustment

       It is a requirement that the cost of capital charge (see note 6.7 above) shall not affect
       the net annual surplus or deficit on the HRA. It is replaced below the “Net Cost of
       Services” but within the “Net Operating Expenditure” by the interest paid, and is
       shown under the heading “Net HRA Income/Expenditure on the Asset Management
       Revenue Account”. The interest is calculated according to the annual Item 8
       Determination prescribed by the Local Government and Housing Act 1989.


6.10   Depreciation

       The Depreciation charged to the HRA for land houses and other property all related to
       operational assets.

                                                                      2001/02
                                                                        £’000

       Depreciation on Operational Assets                            5,524




                                               27
6.11   HRA Subsidy Receivable
                                                                    2001/02     2000/01
                                                                      £’000       £’000
              Housing Element
       Management Allowance                                            4,490       4,617
       Maintenance Allowance                                           7,159       6,857
       Major Repairs Allowance                                         7,002           0
       Charges for Capital                                             2,379       2,686
       Other Reckonable Expenditure – Leasing                              2          22
       Tenant Participation Compacts                                      23          21
       Resource Accounting Allowance                                      62          59
       Total Housing Element Expenditure                              21,117      14,262

       Rent                                                           29,485      28,818
       Interest on HRA Mortgages                                          23          32
       Total Housing Element Income                                   29,508      28,850

       Housing Element                                                (8,391)    (14,588)
       Rent Rebate Element                                            18,154      17,318

       HRA Subsidy Receivable                                          9,763       2,730

       There are two main elements to HRA subsidy :-

       ·      a rent rebate element; and
       ·      a housing element which comprises all items other than rent rebates. and relates
              to the traditional landlord account. As Northampton shows a notional surplus
              this is offset against the rent rebate element, thus reducing the authority’s
              overall subsidy entitlement.

       An authority with a notional surplus (negative housing element) will therefore be
       required to meet part (or all) of the rent rebate it grants to HRA tenants.




                                              28
6.12   Rent Arrears and Provision for Bad Debts

       During the year 2001/02, housing rent arrears, as a proportion of gross rent income
       increased from 7.8% of the amount due to 7.9%. This percentage and the figures
       below have been calculated in accordance with the definitions used for Best Value and
       Audit Commission Performance Indicators.

                                                                   2001/02     2000/01
                                                                     £'000       £'000

       Arrears as at 31st March                                       3,063       2,863

       Amounts written off during the year                              473        499

       The HRA Bad Debt Provision at 31st March is as follows :-

                                                                   2001/02     2000/01
                                                                     £'000       £'000

       HRA Bad Debt Provision                                         2,185      2,094



6.13   Court Costs Income

       Due to legal difficulties associated with recovering monies owed for Court Costs from
       ex-Council tenants, the arrears are held as memorandum accounts only, and are thus
       not included in the Housing Revenue Account or the Consolidated Balance Sheet .
       Income is brought into account as and when received :-

                                                                   2001/02     2000/01
                                                                     £'000       £'000

       Court Costs                                                      121        128




                                             29
7   THE COLLECTION FUND                             Business   Council    Community   2001/02    2000/2001
    INCOME AND EXPENDITURE ACCOUNT                    Rates        Tax      Charge      Total        Total
                                                      £'000      £'000       £'000      £'000        £'000
    Income
    Council Tax Net                                             47,971                 47,971       45,235
    Transfers from General Fund
           Council Tax Benefits                                  6,336                  6,336        5,842
    Business Ratepayers                              78,578                            78,578       77,053
    Contributions
           Council Tax Benefit Subsidy Limitation                  60                      60           58
           Adjustment of Prior Year CC                                           0          0            0
                                                     78,578     54,367           0    132,945      128,188
    Expenditure
    Precepts and demands
           Northamptonshire C.C.                                39,936                 39,936       37,449
           Northants Police Authority                            5,052                  5,052        4,763
           Northampton B.C.                                      8,832                  8,832        8,203
    Business Rates
           Payment to National Pool                  78,262                            78,262       76,731
           Allowable Costs                              316                               316          322
    Bad and Doubtful Debts
           Write Offs                                             664                    664          438
           Provision                                               23                     23          196
    Contributions
           From Prior Years CTCF Surplus                           33                      33           30
           From Prior Years CCCF Surplus             ______                    (15)       (15)          13
                                                     78,578     54,540         (15)   133,103      128,145
    Fund Surplus/(Deficit) in Year                        0       (173)         15       (158)          43
    B/fwd as at 1st April                                 0        355         (15)       340          297
    C/fwd as at 31st March                                0        182           0        182          340




                                                       30
      Notes to the Collection Fund Account

7.1   The Council Tax replaced the Community Charge from the 1st April 1993. The
      Collection Fund Revenue Account is made up of three elements representing the yield
      from National Non-Domestic Rates, Council Tax, and the shrinking effect of the
      Community Charge.


7.2   Surpluses or Deficits on the three elements of the Collection Fund are treated
      separately.

      ·      Non-Domestic Rates monies are passed to Central Government as soon as
             practicable after the year of account.
      ·      Council Tax estimated surpluses and deficits are distributed to major
             Precepting Authorities as part of the normal budget process, in the following
             year.
      ·      Community Charge Surpluses and Deficits form a contribution to the Billing
             Authority's General Fund.

      Due to the reducing effect of the Community Charge, it was deemed no longer viable
      to maintain the Community Charge Information System, which could not economically
      be made compliant with Year 2000 standards. The System was closed with effect from
      30th September 1999, and the final entries impact on the Council’s General Fund in
      2001/02.


7.3   The surplus on the Council Tax element of the Collection Fund at 31st March 2002
      was £0.182m. This surplus will be distributed in the following financial year between
      Northampton Borough Council, Northamptonshire County Council and
      Northamptonshire Police Authority in proportion to the value of the respective
      precepts and demands made by the three Authorities on the Collection Fund.


7.4   A new valuation list for non-domestic properties took effect from 1 April 2000.
      Appeals against valuations are continuing, and are still outstanding against the new list
      and the two previous valuation lists.

      The total Rateable Value on each list is shown below :-

                                                       1990 List 1995 List 2000 List
                                                          £'000     £’000     £’000

      Rateable Value at 1.4.2001                         139,032     168,877      211,712
      Rateable Value at 31.3.2002                        138,965     167,560      208,897

      The National Non-Domestic Rate multiplier for the year 2001/02, as determined by the
      Government was 43.0p.(41.6p in 2000/2001).




                                              31
7.5   The Council Tax base represents the number of chargeable dwellings in each valuation
      band adjusted to an equivalent number of Band D properties. The actual number of
      properties in each band at 31st March was:

                                                 Weight                   2002     2001

             Band A                               6/9                28,862       28,805
             Band B                               7/9                19,528       19,368
             Band C                               8/9                19,013       18,599
             Band D                               9/9                 8,769        8,457
             Band E                              11/9                 4,767        4,629
             Band F                              13/9                 2,028        1,923
             Band G                              15/9                 1,005          935
             Band H                              18/9                    70           61
                                                                     84,042       82,777

      After adjusting for exemptions, discounts, etc. the Tax base was:

                                                                   2001/02       2000/01

      Tax Base                                                       60,975       59,978

      The basic amount of Council Tax (before adjustments for special expenses and
      parishes) for Band D property for 2001/02 was £869.43 (£828.10 in 2000/01).


7.6   Precepts levied on the Collection Fund for the year 2001/02 were as follows :

                                                                   2000/02       2000/01
                                                                     £’000         £'000

      Northamptonshire County Council                                39,936       37,449
      Northamptonshire Police Authority                               5,052        4,763
      Northampton Borough Council                                     8,832        8,203




                                            32
8   CONSOLIDATED BALANCE SHEET AS AT 31 MARCH
                                           See       2002             2001
    Long Term Assets                      Note £'000     £'000       £'000
    Net Fixed Assets                 8.1 & 8.2
           Council Dwellings                           378,136     263,907
           Other Land & Buildings                       67,684      67,161
           Vehicles Plant & Equipment                    1,388         767
           Infrastructure                                  293         306
           Community Assets                              1,477       1,467
           Non-Operational Assets                       24,033      29,323
                                                       473,011     362,931
    Deferred Charges                 8.4                     0           0
    Long Term Debtors                8.3                 9,305      10,048
    TOTAL LONG TERM ASSETS                             482,316     372,979

    Current Assets
    Stocks and Work in Progress     8.5          338                   452
    Debtors                         8.6       12,886                13,991
    Short Term Investments          8.7       53,529                95,226
    Imprests                                      84                    84
    Cash in Hand                                                       564
                                              66,837               110,317

    Less Current Liabilities
    Temporary Borrowing                       (6,148)              (22,600)
    Creditors                       8.8      (18,624)              (23,121)
    Cash Overdrawn                            (1,404)
                                             (26,176)              (45,721)
    NET CURRENT ASSETS                                   40,661     64,596

    TOTAL ASSETS LESS CURRENT LIABILITIES               522,977    437,575

    Long Term Liabilities
    Long Term Borrowing        8.9                      (58,948)   (85,331)
    Deferred Credits           8.10                        (236)      (282)
    Special Provisions         8.12                        (689)      (594)
    TOTAL ASSETS less LIABILITIES                       463,104    351,368

    Financed by :-
    Fixed Asset Restatement Reserve. 8.11               245,887    139,055
    Capital Financing Reserve        8.11               204,413    201,027
    Useable Capital Receipts Reserve 8.11                 3,957      3,145
    Earmarked Reserves                                    3,575      3,760
    Revenue Account Surpluses
           General Fund                        3,194                 3,247
           Housing Revenue Account             1,896                   794
           Collection Fund Account               182      5,272        340
    TOTAL EQUITY                                        463,104    351,368



                                       33
      Notes to the Consolidated Balance Sheet
8.1   a) Fixed Assets                    Council          Other       Vehicles       Infra-    Community      Non-        Total
                                        Dwellings       Land &        Plant &     Structure       Assets Operational     Assets
                                                       Buildings    Equipment        Assets                  Assets
                                              £'000        £'000         £'000        £'000        £'000      £'000       £'000

      i)      Gross Valuation at 01/04/01   269,630      68,507           963          399         1,467     29,323     370,289
      ii)     Impairment at 01/04/01         (1,957)                                                                     (1,957
      iii)    Depreciation at 01/04/01       (3,766)      (1,346)         (196)         (93)          0            0     (5,401)

      iv)     Net Book Value at 01/04/01    263,907      67,161           767          306         1,467     29,323     362,931

      v)      Acquisitions                     675          636          1,266                                  568       3,145
      vi)     Enhancements                                                                                                    0
      vii)    Disposals                     (13,675)         (30)                                               (548)   (14,253)
      viii)   Adjustments - Transfers         2,768         (232)                                             (2,536)         0
      ix)     Adjustments – Restatement                   (1,128)         (572)                                          (1,700)

      x)      Revaluations                  129,971       2,666            32                         10      (2,774)   129,905

      xi)     Depreciation                   (5,510)      (1,389)         (105)         (13)                             (7,017)
      xii)    Impairments                                                                                                     0

      xiii) Net Fixed Assets at 31/3/02     378,136      67,684          1,388         293         1,477     24,033     473,011


      xiv) Gross Valuation at 31/03/02      383,394      70,390          1,689         399         1,477     24,033     481,382
      xv) Depreciation at 31/03/02           (5,258)     (2,706)          (301)       (106)                              (8,371)

      xvi) Net Book Value 31/03/02          378,136      67,684          1,388         293         1,477     24,033     473,011




                                                                    34
b)    Asset Valuations

      Net Assets are shown in the Council's Consolidated Balance Sheet at Asset Valuation less depreciation (where applicable), in accordance
      with the Capital Accounting Regulations.

      The various valuation bases are as stated in the Accounting Policies (section 2.2). The following statement shows the progress of the
      Council's valuation programme for Fixed Assets, which includes the annual valuation of 30 exceptional assets, plus the continual valuation
      of enhancements and work in progress. Valuations are to be carried out by the Council's retained valuation officer, namely Richard Lewis,
      FRICS.

                                          Council          Other       Vehicles          Infra-    Community      Non-                 Total
                                         Dwellings       Land &        Plant &        Structure       Assets Operational              Assets
                                                        Buildings    Equipment           Assets                  Assets
                                              £'000         £'000         £'000           £'000        £'000      £'000                £'000

     Valued at Historic Cost                                 4,500          1,689           399          1,450                         8,038

     Valued at Current Value in
     2001/02                               383,238          57,375                                                     15,857        456,470
     2000/01                                                 4,113                                                      4,912          9,025
     1999/2000                                  156                                                                     1,544          1,700
     1998/99                                                 4,402                                                      1,305          5,707
     1997/98                                                                                                 27           415            442

     Total                                 383,394          70,390          1,689           399          1,477         24,033        481,382




                                                                      35
c)   Capital Expenditure

     The main items of capital expenditure during the financial year were :-
                                                                   2001/02     2000/01
                                                                      £’000      £'000
     Housing
     Council Housing                                                  7,597      6,506
     Improvement Grants                                               1,543      1,258
     Housing Associations                                               217        611
     Single Regeneration Budget                                         577          0
                                                                      9,934      8,375
     Other Services
     Leisure Facilities                                                 252       410
     Single Regeneration Budget                                         398       618
     Urban Enhancement                                                  136       101
     Westbridge Modular Buildings                                       151
     Victoria Road Flood Defence                                        196
     Museum – Boot and Shoe Display                                     134
     ICTS Equipment                                                     492
     Parklands Linear Park                                              122
     Other                                                              791       1384
                                                                      2,672      2,513
                                                                     12,606     10,888

d)   Capital Commitments

     The Council has capital expenditure commitments in accordance with its approved
     Capital Programme. Commitments exist in respect of expenditure which has been
     approved and contracted for, but not yet spent and also expenditure which has been
     approved but for which no contract exists. At 31st March 2002 significant expenditure
     commitments existed on the following major schemes :-
                                                                             Not Yet
     Scheme                                                 Contracted Contracted
                                                                 £'000          £'000

     Renovation Grants                                               859          522
     Museum Enhancements                                             257          256
     Parklands Open Space                                                          77
     Urban Enhancement                                                77
     Window Replacement                                            2,100
     Local Authority Social Housing Grant                            631          958
     78 Derngate                                                     210
     Communities Against Drugs                                                    132
     Bellinge Phase IV                                               242          100
     Cemetery Burial System                                                       209
     Blackthorn Phase III & IV                                        70          200
     Briar Hill Phase II & III                                        30          200
     Door Entry Systems                                                           160
     Information Technology Equipment                                300          700


                                            36
e)    Capital Financing

      Capital expenditure during the financial year has been financed as follows :-

                                                                    2001/02      2000/01
                                                                      £'000        £'000

      Credit Approvals                                                 1,220       6,252
      Capital Receipts                                                 2,487       2,707
      Revenue Contributions / Reserves                                   130         338
      Grants                                                           7,530       1,619
      Change in Capital Creditors                                        324          26
      Balance Unfinanced                                                 915         (54)
                                                                      12,606      10,888


f)    Summary of Fixed Assets

      An analysis of fixed assets held at 31st March is :-
                                                                        2002          2001

      Council Houses                                                   13716      14172
      Council Houses not used as dwellings                                33         33
      Shared Ownership Properties                                        147        154
      Council Garages                                                   3107      3,101
      Other Garages                                                      201        201
      Guildhall                                                            1          1
      Local Area Offices                                                   5          5
      Central Administrative Offices                                       5          5
      Depots                                                               1          1
      Sub-Depots                                                          22         22
      Multi-Storey Pay & Display Car Parks                                 5          5
      Surface Pay & Display Car Parks                                     15         15
      Sports & Leisure Centres                                             4          4
      Museums, Art Galleries                                               2          2
      Parks and Open Spaces                                              754 Ha     754 Ha
      Theatres                                                             2          2
      Community Centres                                                   29         24
      Markets - Open                                                       1          1
               - Indoor                                                    1          1
      Cemeteries                                                           6          6
      Bus Station                                                          1          1
      Commercial Property                                                342 Units 342 Units
      Tourist Information Centre                                           1          1
      Public Conveniences                                                 26         26
      Allotments                                                          96.43 Ha 100 Ha
      Golf Course                                                          1          1
      Gypsy Site                                                           1          1
8.2   Leases


                                              37
      The Council's policy prior to 1st April 1990 was generally to acquire vehicles, plant
      and equipment by way of finance leases. All the finance leases that remain current
      have entered their secondary period. There are therefore no future obligations under
      finance leases.

      From 1st April 1990 the Council's policy was generally to acquire vehicles, plant and
      equipment by way of operating leases.


8.3   Long Term Debtors

      These primarily relate to outstanding mortgages, and to loan debt and annuities due on
      land appropriated in respect of assets transferred to Northamptonshire County Council
      on 1st April 1974. The Balance on Premiums on the Rescheduling of PWLB Debt
      (prior to being written off) are shown here. Loans to Local Organisations also form an
      element of Long Term Debtors.

                                                                   2001/02     2000/01
                                                                     £'000       £'000

      Current Mortgages - HRA                                           236         282
             - Section 43                                                 6          10
             - Housing Associations                                     317         317
      Northamptonshire Police Authority                                  11          13
      Northamptonshire County Council
             Loan Debt                                                6,375       6,829
             Annuities on Land transferred                              620         624
      Loans to Local Organisations                                      259         285
      PWLB Rescheduling Premiums                                      1,551       1,758
                                                                      9,375      10,118
      Less Bad Debt Provision                                           (70)        (70)
                                                                      9,305      10,048


8.4   Deferred Charges
                                           Balance     Expend- Amounts Balance
                                           1/4/2001       iture Written 31/3/2002
                                                                    Off
                                              £'000      £'000   £'000      £'000

      Improvement Grants                           0      1,543       1,543           0
      Housing Association Grant                    0        217         217           0
                                                   0      1,760       1,760           0

      Deferred Charges have been written off in the year of account to the Capital Financing
      Reserve.




                                             38
8.5   Stock and Work in Progress

      Stocks held at the main stores at Westbridge Depot and the sub-stores were valued at
      current prices, effectively revaluing stock holdings to the current delivery price, each
      time a commodity was purchased.

      Stocks held at the Council's other stores are held at cost price.

      Work in progress which will be charged to outside bodies is included in the accounts at
      cost plus attributable profit less foreseeable losses.

      The apportionment of the items in the Balance Sheet is as follows :-

                                                                      2001/02       2000/01
                                                                        £'000         £'000
      Stocks and Stores:
             Westbridge Depot Main Stores                                   166        192
             Sub-Stores                                                      58        142
             Other Stores                                                   114        118
                                                                            338        452

      Work in Progress                                                        0          0
                                                                            338        452


8.6   Debtors                                                                 31st March
                                                                            2002      2001
                                                                           £'000     £'000

      Government Departments                                                 819      1,631
      Other Local and Public Authorities                                     401        215
      Local Taxpayers                                                      7,109      8,417
      Rents                                                                2,779      2,730
      Sundry Debtors                                                       6,195      6,943
      Employee Loans                                                         357        385
                                                                          17,660     20,321
      Less Provision for bad debts                                        (4,774)    (6,330)
                                                                          12,886     13,991




                                              39
8.7   Investments

      Investments consist of marketable securities relating mainly to the Insurance Provision
      and Capital Receipts Unapplied. An analysis and comparison with market value at 31st
      March is as follows :-
                                               31 March 2002             31 March 2001
                                              Book       Market         Book     Market
                                             Value         Value       Value       Value
                                              £'000        £'000        £'000      £'000

      Gilts                                  11,502      11,502           0           0
      U. K. Equities                            100         100         100         100
      Building Societies                     15,527      15,527      50,024      50,024
      Cash on Deposit                           220         220          22          22
      Banks                                  26,180      26,180      45,080      45,128
                                             53,529      53,529      95,226      95,274

      The book value of investments generally follows the prudence concept, by valuing
      investments at the lower of cost and market value.


8.8   Creditors
                                                                         31st March
                                                                       2002      2001
                                                                      £'000     £'000

      Government Departments                                          3,682       7,669
      Other Local and Public Authorities                              1,408       1,632
      Local Taxpayers                                                 1,460       1,171
      Tenants                                                           463         395
      Sundry Creditors                                                7,393       8,632
      Deposits                                                        4,218       3,622
                                                                     18,624      23,121




                                             40
8.9    Long Term Borrowing
                                           Range of Interest           Total Outstanding
       Source of Loan                      Rates Payable                as at 31st March
                                                 %                       2002        2001
                                                                        £'000       £'000

       Public Works Loan Board              10.6 - 10.8                 7,528      12,303
       Bonds/Mortgages/Money Market         5.68 – 8.75                50,100      71,700
       New Towns Commission                 9.25                        1,320       1,328
                                                                       58,948      85,331

       An analysis of loans by maturity                                 £'000       £'000

       Maturing in 1-2 years                                              423         735
       Maturing in 2-5 years                                            1,571       2,628
       Maturing in 5-10 years                                           2,601       5,452
       Maturing in more than 10 years                                  54,353      76,516
                                                                       58,948      85,331

       In previous years, the principal repayment due on long term borrowing from the New
       Town Commission was disclosed as long term borrowing, and was described in the
       table above as maturing within one year. Such maturing loans are now disclosed on
       the balance sheet as temporary borrowing. The prior year figures have been adjusted
       to reflect this change.


8.10   Deferred Credits

       Deferred Credits represent the deferred capital receipt in respect of sold Council
       Houses on which a Mortgage was granted by the Council.

                                                                       As At 31st March
                                                                        2002       2001
                                                                       £'000      £'000

       Deferred Credits re Mortgages                                      236         282




                                              41
8.11   Capital Reserves

       The Capital Accounting Regulations introduced three accounts as Capital Reserves,
       namely :-

       ·      Fixed Asset Restatement Reserve (FARR), which represents the net effects of
              asset valuations. The balance on the account quantifies the net difference
              between the,cost of the Council's assets and the value of those assets.

       ·      Capital Financing Reserve (CFR), which represents the proportion of the
              Council's assets that have been fully financed, (i.e. charged to a revenue
              account, or financed from grants). The account incorporates the Provision for
              Credit Liabilities, which in turn contains the reserved part of Capital Receipts.

       ·      Useable Capital Receipts Reserve (UCRR), which represents that proportion of
              the Council's Capital Receipts which has not been reserved, under Government
              Regulation, and which has not been used to finance capital expenditure etc.

       The movements on the Capital Reserves are summarised below :-

                                                        FARR           CFR         UCRR
                                                         £'000         £'000        £'000
       Balance Brought Forward
              as at 31 March 2001                      139,055      201,027          3,145

       Capital Receipts in Year - Housing                              8,741         2,842
                                - Other                                                340
                                - Adjustment                              (75)          75
       Alienation of Assets                            (15,505)

       Revenue Financing
       Capital Receipts Applied                                        2,487        (2,487)
       Other external financing                                          137
       Major Repairs Allowance                                         7,002

       Provision for Repayment of External Debt                          419
       Depreciation                                                   (7,017)
       Grants Received                                                   528            42
       Debt Redemption                                                (7,073)
       Deferred Charges Written Down                                  (1,763)

       Variance on Capital Expenditure.                122,337
         against Valuations in Year
       Balance Carried Forward
          as at 31 March 2002                          245,887      204,413          3,957




                                               42
       As noted above, the Capital Financing Reserve includes the Provision for Credit
       Liabilities, details of which are noted below :-

                                                                    2001/02     2000/01
                                                                      £'000       £'000

       Opening Balance at 1st April                                   91,910     84,656

       ADD Reserved Receipts in year arising from:
           Sale of Land and Buildings                                  1,668       7,186
           Sale of Vehicles and Plant                                      0           0

       Minimum Revenue Provision                                         419         464

       LESS Receipts applied in year:
              Financing Capital Expenditure
              Improvement Grants                                      (1,082)      (396)
       Balance as at 31 March                                         92,915     91,910


8.12   Provisions and Reserves

       As mentioned in section 2.10, the Authority operates a number of Provisions and
       Reserves for the purposes of meeting future expenses. The Reserves and Provisions
       were created by contributions from revenue accounts. The provisions are used for the
       purposes outlined below. The various reserves are used for the purposes as described
       in the notes to the Statement of Total Movements in Reserves (Note 9.2).

       (a)    Insurance Provision

       The provision covers the following risks :-

       ·      Liability claims arising from 1992/93 onwards.
       ·      Claims under the policy excess on the Council’s own dwellings and buildings.
       ·      Death in service cover for employees who have council loans for the purchase
              of cars required for essential purposes.
       ·      Other small miscellaneous items which arise from time to time.

       External premiums are charged direct to the revenue accounts, as are the premiums of
       the internal Insurance Provision.

       There were claims on the Insurance provision estimated at £0.011m for Council
       property fires in respect of losses where remedial work had not been completed, and
       Liability Provision of £0.669m unpaid at 31st March 2002. These sums represent the
       balance on the Insurance Provision, with any surplus being transferred to the Insurance
       Reserve.




                                              43
       (b)    Maintenance of Graves

       The provision is to meet long term commitments for the maintenance of graves in
       perpetuity.

       (c)    Other Provisions

       The balance represents small provisions in respect of the Rent assistance and Rent
       Guarantee Schemes.

       A summary of the transactions on the Provisions for the year 2000/01 is shown below.
       A summary of the Reserve movements is given in section 9.

       Provisions                           Balance        Costs     Income     Balance
                                             1/4/01                             31/3/02
                                              £'000        £'000       £'000      £'000
       Insurance                                585          340         435        680
       Maintenance of Graves                      6            0           0          6
       Other                                      3            0           0          3
                                                594          340         435        689


8.13   Contingent Liabilities

       (i)     The Council has received Deposits under Section 106 agreements, which may
       be repayable if the conditions for each agreement are not met. No provision has been
       made in the Accounts for any interest that may become repayable under the terms of
       the individual agreements. In the event that each of these deposits becomes repayable
       with interest, the Council’s maximum liability for interest payable as at 31st March
       2002 was estimated to be £0.280m (£0.178m as at 31st March 2001).

       (ii)   In order to finance its refurbishment under a lottery scheme, The Roadmender
       took out a brewery loan of £130,000. The Council agreed to act as guarantor for that
       loan.

       (iii)   The Council has a covenant with the 78 Derngate Trust that, should the Trust
       make a revenue loss exceeding £20,000 in any calendar year 2003 to 2013, the Council
       shall meet the excess of that loss over £20,000, subject to a maximum grant of £5,000
       in any year.




                                             44
8.14   Net Pensions Asset / Liability

       As part of the terms and conditions of employment of its employees, the Council offers
       retirement benefits. Although these will not be payable until employees retire, the
       Council has a commitment to make the payments that needs to be disclosed at the time
       that employees earn their future entitlement.

       The Council participates in the Local Government Pension Scheme, a defined benefit
       scheme administered by Northamptonshire County Council. This is a funded scheme,
       meaning that the Council and employees pay contributions into a fund calculated at a
       level estimated to balance the pensions liabilities with investment assets.

       In 2001/02 pensions costs have been charged to the Consolidated Revenue Account as
       described in Note 5.11. The employer’s contributions (expressed as a percentage of
       member’s contributions) certified by the Fund’s actuary in respect of the period 1 April
       2002 to 31 March 2005 are :-

                                                   2002/03   2003/04     2004/05
       Employer’s Contribution                      248%      274%        299%

       There is no provision for unitising the assets of a Fund under the Local Government
       Pension Scheme. The Assets as a whole have been allocated to participating bodies on
       a consistent and reasonable basis. As a result, at 31 March 2002 the Council had the
       following overall Assets and Liabilities for pensions that have not been included in the
       Balance Sheet.

                                                                       2001/02
                                                                         £’000

       Estimated Liabilities in the Scheme                         148,011
       Estimated Assets in the Scheme                                113,184
       Estimated Deficit                                              34,827

       The figures disclosed in this note have been derived by approximate methods from the
       most recent full actuarial valuation of the fund carried out by Watson Wyatt, an
       independent firm of actuaries, as at 31 March 2001. The main assumptions used in
       their calculations are :-

                                                                  2001/02
                                                                      %
       Rate of Inflation                                              2.5
       Rate of Increase in Salaries                                   4.3
       Rate of Increase in Pensions and Deferred Pensions             2.5
       (Parts of pensions in payment representing guaranteed minimum
       pensions are not increased (pre-1998 accrual) or increased at 2%
       per annum (post-1998 accrual))
       Rate of Discounting Scheme Liabilities                         6.1




                                              45
       Assets in the Northamptonshire County Council’s Pension Fund are valued at fair value
       and consist of the following categories by proportion :-

                                                                        2001/02
                                                                          %

       Equity Investments                                                  75.3
       Gilts                                                                3.9
       Other Bonds and Property                                            16.4
       Cash                                                                 4.4
                                                                          100.0


8.15   Euro Costs

       As the date for a potential decision on British participation in the Euro approaches, the
       Council has to consider its position, and make the appropriate preparations. The
       Council is drawing up an action plan based on an assumed timetable, to identify which
       actions need to be taken before any decision, and which actions may safely be left until
       after the decision to join.

       The possibility of joining the Eurozone, and the consequent conversion issues, is one of
       the factors to be taken into account in acquiring new equipment, or financial systems.

       Direct expenditure to date on Euro Conversion is £Nil

       It is not anticipated that any substantial conversion costs will be incurred until after a
       positive referendum result is achieved.




                                                46
9     STATEMENT OF TOTAL MOVEMENT IN RESERVES
                                   Balance  Surplus/ Latent Gains Impairments   Effects of   Financing     Balance
                                      As At   Deficit & Losses on               Disposals      of Fixed       As At
                                   1/4/2001  in Year   Valuation                                 Assets   31/3/2002
                                      £’000     £’000      £’000      £’000         £’000         £'000       £’000
             Capital Reserves
      Fixed Asset Restatement       139,055              122,337                  (15,505)                 245,887
      Capital Financing             201,027  (14,906)                               8,666        9,626     204,413
      Useable Capital Receipts        3,145        42                               3,257       (2,487)      3,957
      Major Repairs Reserve               0     7,002                                           (7,002)          0
                                    343,227    (7,862)   122,337          0        (3,582)         137     454,257
             Revenue Reserves
      General Fund Balance            3,247       (39)                                                       3,208
      HRA Balance                       794     1,102                                                        1,896
      Insurance Reserve               1,278       (78)                                                       1,200
      Capital Reserve                   747         0                                                          747
      HRA Reserve                        72        (8)                                                          64
      New Technology Reserve            372        10                                                          382
      Building Maintenance Reserve      405        62                                                          467
      General Reserve                   725      (303)                                                         422
      New Park Reserve                  128       (70)                                                          58
      TOPPs Reserve                       0       200                                                          200
      Arts Reserve                       33         2                                                           35
                                      7,801       878                                                        8,679
                                    351,028    (6,984)   122,337          0        (3,582)         137     462,936
9.1   Fund Analysis
             Capital Reserves
      Housing Revenue Account       247,363    (3,182)   123,053                   (2,092)           7     365,149
      General Fund                   95,864    (4,680)      (716)                  (1,490)         130      89,108
                                    343,227    (7,862)   122,337          0        (3,582)         137     454,257
             Revenue Reserves
      Housing Revenue Account         1,484     1,094                                                        2,578
      General Fund                    6,317      (216)                                                       6,101
                                      7,801       878                                                        8,679
      Total                         351,028    (6,984)   122,337          0        (3,582)         137     462,936
                                                       47
9.2   Revenue Reserves

      The various revenue reserves included in the statement were set up for the purposes
      described below :-

      (a)    General Fund Balance

      The General Fund is a statutory account that shire district councils are required to
      maintain. The balance on the General Fund represents the working balance of the
      authority.


      (b)    Housing Revenue Account Balance

      The Housing Revenue Account (HRA) is a statutory account that is required to be
      maintained by housing authorities for the provision of Council Housing. The balance
      on the HRA represents the working balance of the council housing operation.


      (c)    Insurance Reserve

      The Insurance Reserve represents the sums set aside to meet future insurance claims.
      The movements on the reserve are derived from the annual surplus or deficit on the
      Insurance Provision.


      (d)    Capital Reserve

      The Capital Reserve exists to enhance the Authority's ability to finance capital
      expenditure. It is made up of contributions from surpluses on the revenue accounts
      including the HRA.


      (e)    HRA Reserve

      Formerly known as the HRA Environmental Enhancements Reserve, it was set up to
      take contributions from the HRA to finance improvements to the general environment
      relating to housing estates. During 1997/98 the scope of the reserve was increased to
      include all elements of reserves relating to the HRA, except the financing of capital
      projects.


      (f)    New Technology Reserve

      The New Technology Reserve was set up in 1983/84 to encourage departments,
      through the use of technology, to obtain reductions in expenditure and to streamline
      the administrative processes, in order to preserve or improve the level of services.




                                             48
(g)    Building Maintenance Reserve

This Reserve consists of balances set aside from revenue accounts for major
maintenance projects.


(h)    General Reserve

The General Reserve was set up in 1992/93 with monies set aside from revenue
accounts to finance individual projects.


(i)    New Park Reserve

A Section 106 Planning Agreement generated a sum of £1m for the laying out and
maintenance of the former Kettering Road Golf Course site as a public park. The site
forms part of the new park called Bradlaugh Fields, and the sum generated has been
placed in a Reserve to be drawn on as the site is developed and maintained.


(j)    TOPPs Reserve

The surplus on On-Street Parking activities is earmarked for financing transport issues.
The unutilised surplus at the year end is held in the TOPPs Reserve


(j)    Arts Reserve

The Reserve is used to finance the purchase of exhibits for the Museum and Art
Gallery.




                                       49
10   CASH FLOW STATEMENT
                                                           2001/02          2000/01
     Revenue Activities                                £'000     £'000        £'000
            Cash Outflows
     To and on behalf of Employees                    (33,772)              (31,802)
     Other Operating Costs                            (51,488)              (47,531)
     Housing Benefits Paid Out                         (9,894)               (9,117)
     Precepts paid Over (inc Parishes)                (45,297)              (42,573)
     NNDR paid to National Pool                       (82,676) (223,127)    (79,506)
            Cash Inflows
     Rents (after Rebates)                            15,398                 15,327
     Non-Domestic Ratepayers                          78,275                 76,784
     Council Tax Income                               47,765                 44,482
     Non-Domestic Rate Income                          7,359                  7,458
     Revenue Support Grant                             7,772                  7,249
     DWP Grants for Rebates                           15,916                 15,302
     Other Government Grants                          10,184                  2,780
     Other Revenue Cash Income                        37,837     220,506     40,215
                                                                  (2,621)      (932)
     Returns on Investment & Servicing of Finance
             Cash Outflows
     Interest Paid                                                (4,980)    (6,722)
             Cash Inflows
     Interest Received                                             4,056      5,406
                                                                    (924)    (1,316)
     Capital Activities
             Cash Outflows
     Purchase of Fixed Assets                         (10,846)               (8,965)
     Other Capital cash payments                       (2,179)   (13,025)    (2,426)
             Cash Inflows
     Sale of Fixed Assets                             11,923                 12,083
     Government Grants                                   528
     Other Capital Income                              3,289      15,740      3,338
                                                                   2,715      4,030
     Net Cash Inflow/(Outflow) before Financing                     (830)     1,782

     Management of Liquid Resources
     Net (Increase)/Decrease in Short Term Deposits               41,697     (4,439)

     Financing
           Cash Outflows
     Repayments of amounts borrowed                              (60,522)   (32,432)
           Cash Inflows
     New Loans Raised                                      0                      0
     New Short Term Loans                             17,687      17,687     36,311
                                                                 (42,835)     3,879
     Net Cash Movements                                           (1,968)     1,222




                                         50
                                                                  2001/02    2000/01
       Cash Equivalents                                             £'000      £'000

       Imprest Movements                                                0         (1)
       Cash Movements                                              (1,968)     1,223
       Total Cash Movement                                         (1,968)     1,222


Notes to The Cash Flow Statement

10.1   Revenue Reconciliation                                     2001/02    2000/01
                                                                    £’000      £'000
       Revenue Account Surplus/(Deficit)
       General Fund                                                   (53)      (439)
       Housing Revenue Account                                      1,102       (422)
       Collection Fund                                               (158)        43
                                                                      891       (818)

       Interest                                                      924       1,316

       Contributions to Reserves                                       95        574
       Contributions to Provisions                                   (185)      (235)
       Financing Transactions                                      (1,068)       474

       Accruals
       Changes in Stock & Work in Progress                            114         65
       Changes in Debtors                                           1,105     (2,153)
       Changes in Creditors                                        (4,497)      (155)
                                                                   (2,621)      (932)

10.2   Specific Grant Receivable           Balance   Grants      Cash        Balance
                                            1.4.01 Receivable Received        31.3.02
                                             £'000     £'000     £'000         £'000
       DWP Grants - Rebates
       Rent Allowances                            248     9,349     9,501         96
       Non-HRA Rebates                              8       243       243          8
       Council Tax Benefit                        (97)    6,030     5,619        314
       Benefit Administration                      24       491       553        (38)
       Challenge Funding                          (30)                           (30)
                                                  153    16,113    15,916        350
       Other Grants
       Housing Subsidy                            166     9,770    10,095       (159)
       Crime Reduction                             11                  11          0
       CCTV                                        78                  78          0
                                                  255     9,770    10,184       (159)
                                                  408    25,883    26,100        191




                                             51
10.3   Financing Reconciliation                                  2001/02     2000/01
                                                                   £’000       £'000
       Balances Brought Forward
       Long Term Borrowing                                        85,337      92,152
       Temporary Borrowing                                        22,594      11,900
                                                                 107,931     104,052
       Balances Carried Forward
       Long Term Borrowing                                         58,948     85,337
       Temporary Borrowing                                          6,148     22,594
                                                                   65,096    107,931

       Increase (Decrease) in Total Borrowing                     (42,835)     3,879


10.4   Management of Liquid Resources Reconciliation

       For the purposes of the Cash Flow statement, the Management of Liquid Resources is
       limited to Short Term Investments, i.e. Investments of less than 1 year.

                                                                 2001/02     2000/01
                                                                   £’000       £'000
       Short Term Investments
       Balance Brought Forward 1 April                             95,226     90,787
       Balance Carried Forward 31 March                            53,529     95,226
                                                                   41,697     (4,439)




                                            52
11   AUDITOR’S REPORT TO NORTHAMPTON BOROUGH COUNCIL

     I have audited the statement of accounts on pages 13 to 52 which has been
     prepared in accordance with the accounting policies applicable to local
     authorities as set out on pages 6 to 10

     Respective Responsibilities of Director of Strategic Resources and Auditor

     As described on page 12, the Director of Strategic Resources is responsible for the
     preparation of the statement of accounts. My responsibilities as independent auditor
     are established by statute, the Code of Audit Practice issued by the Audit Commission
     and my profession’s ethical guidance.

     I report to you my opinion as to whether the statement of accounts presents fairly the
     financial position and results of operations of the Council.

     Basis of Opinion

     I carried out my audit in accordance with the Audit Commission Act 1998 and the
     Code of Audit Practice issued by the Audit Commission, which requires compliance
     with relevant auditing standards.

     My audit included examination, on a test basis, of evidence relevant to the amounts
     and disclosures in the statement of accounts. It also included an assessment of the
     significant estimates and judgements made by the authority in the preparation of the
     statement of accounts and of whether the accounting policies are appropriate to the
     authority’s circumstances, consistently applied and adequately disclosed.

     I planned and performed my audit so as to obtain all the information and explanations
     which I consider necessary in order to provide me with sufficient evidence to give
     reasonable assurance that the statement of accounts is free from material misstatement,
     whether caused by fraud or other irregularity or error. In forming my opinion I also
     evaluated the overall adequacy of the presentation of information in the statement of
     accounts.

     Opinion
     In my opinion the statement of accounts presents fairly the financial position of
     Northampton Borough Council as at 31 March 2002 and its income and expenditure
     for the year then ended.

     Certificate

     I certify that I have completed the audit of accounts in accordance with the
     requirements of the Audit Commission Act 1998 and the Code of Audit Practice issued
     by the Audit Commission.




     John Gregory
     District Auditor
     23 December 2002




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