About the Statement of Accounts
The Council is required to publish its Accounts each year and main content of the Statement of Accounts is prescribed by recommended practise that the Council has to follow.
The 2005/06 Statement of Accounts (that is still subject to audit) includes the following sections:
Foreword
The Foreword provides an introduction to the Statement of Accounts, setting out the basis of its preparation, an explanation of the statements that are included and some commentary on the financial results for the year and forward plans.
The Consolidated Revenue Account
The Consolidated Revenue Account reports on the net expenditure for the financial year in respect of all the functions for which the Council is responsible, except for the Pension Fund and certain Trust Funds that the Council administers but does not have ownership of the assets held in Trust.
Home Loans Unit Accounts
The Home Loans Unit manages the portfolio of mortgages previously made by the former Greater London Council on behalf of all London Boroughs.
The Collection Fund
There is a statutory requirement for local authorities that issue Council Tax bills (billing authorities) to maintain a separate Collection Fund that shows details of local tax raised and distributed.
The Consolidated Balance Sheet
The Consolidated Balance Sheet sets out the Council’s financial position at the year-end.
The Statement of Total Movement in Reserves
This statement summarises all the recognised gains and losses of the Council for the financial year.
The Cash Flow Statement
This statement shows cash flows to and from third parties for both revenue and capital purposes.
The Pension Fund Accounts
The Pension Fund Accounts are a separate entity and are not consolidated within the Council’s revenue account, balance sheet or other statements.
Statement of Accounting Policies
This statement sets out the basis on which all the accounting statements are prepared, except the Pension Fund, which has its own statement of accounting policies.
Statement of Responsibilities for the Statement of Accounts
This statement sets out the separate responsibilities that the Council and the Chief Finance Officer (the Director of Finance and Corporate Services) have in respect of the proper administration of the Council’s financial affairs. It also includes a certificate of approval by the relevant Council committee.
Report of the Council’s External Auditors
The independent auditor’s report is set out on pages 55 & 56 of the Statement.
Statement on the System of Internal Control
This statement sets out how the Council has exercised its responsibilities to ensure that an effective system of internal control is maintained throughout the Council.
Glossary of Terms
This section provides a guide to some of the technical terms that are used in this publication.