AUDIT COMMITTEE 29TH SEPTEMBER 2009

REVISED STATEMENT OF ACCOUNTS 2008-09

APPENDIX 1

SIGNIFICANT AMENDMENTS TO THE DRAFT STATEMENT OF ACCOUNTS 2008-09

Material Amendments

1

Fixed Assets

Fixed assets totalling £124.207 million were written out of the Councils' accounts in 2008-09 in the draft Statement of

Accounts. This relates to voluntary and special aided schools, which are formally owned by the religious organisations or

charitable trusts charged with running the school. The revised Statement of Accounts restates the 2007-08 and 2008-09

position, as almost all of the assets were subject to write off either in 2006-07 or before, or 2007-08.

2

Deferred Considerations

Deferred considerations are mainly in respect of initial capital contributions by the Council under Private Finance Initiative

schemes. The amounts are charged to the appropriate service revenue accounts over the lifetime of the contracts, and are

accounted for as debtors. The debtors need to be split between short term (the next financial year) and long term (a longer

period). This amendment does that, moving £24.4 million from short term to long term debtors. The treatment in the draft

accounts was in accordance with previous years.

3

Pension Fund Accounts

In the Pension Fund "Net Assets Statement", oversees fixed interest securities were understated, and debtors less creditors

overstated, by £10.7 million pounds. This is corrected in the revised Statement of Accounts.

Other Significant Amendments

4

Treatment of Lease Equalisation amount

The Council was paid an incentive (reverse premium) to enter into the lease of an administrative building. This amount is

released to revenue over the term of the lease to show the real cost of the lease each year. In previous years the balance

remaining at the year end has been treated as a "provision". Following review, the amount (£11 million) has been reclassified

as "deferred income".

5

Treatment of premiums on the premature repayment of debt

The accounting treatment of premiums paid in 2003 was reviewed and an adjustment of £2.849 million identified. This was a

technical adjustment only. In the draft Statement of Accounts the adjustment was shown separately in the Statement of

Recognised Gains and Losses (STRGL). The revised Statement of Accounts incorporates the amount in the reported Income

and Expenditure Account surplus or deficit line in the STRGL.

6

Pension Fund Accounts

Minor adjustments have been made to disclosure notes.

7

Explanatory Foreword

The Foreword by the Corporate Director of Resources and the Review of the Year have been combined into one "Explanatory

Foreword"