Introduction
Summary Statement of Accounts 2010/11
This set of summary accounts has been designed to give an introduction into how the council presents its accounts – where the money comes from, what the money is spent on, what we own and what we owe.
The full statement was approved by the Audit Committee on 29th September 2011 and received our auditors’ unqualified opinion on 30th September 2011. For the purposes of this document, some modifications have been made in an attempt to provide more meaningful and useful information to non-technical users.
Clicking on the tabs above will take you to the different pages. Click the question marks ( 
) for a brief explanation of the relevant information.
Director’s Statement and Financial Review 2010/11
The Council has a proven track record of efficiently managing its spend against budget and as a result of this, year on year underspends have allowed the Council to use the flexibility of balances to help maintain low Council Tax rises, enhance services and provide valuable additional funding to the capital programme when necessary.
As the level of balances held fall, then this can place stress on the financial framework and potentially create instability and difficulties for the medium term forecast.
Over the last two years, the Council has been taking measures to deal with the number of pressures which have been emerging and to put the Council in a position where it was better able to meet the future financial pressures that have been introduced by the Government.
The Council has traditionally operated with balances at or about 5% of the net budget requirement for many years and this has proved to be appropriate in light of the many challenges the Council has faced. The position on balances will be reviewed to ensure a prudent level is maintained.
At Wigan Council we value the input and views of our stakeholders and would welcome any comments regarding this summary. Is the information contained useful? Is there anything you did not understand? Is there anything else that you would wish to see? Contact us at Corporate.Accountancy@wigan.gov.uk or 01942 827272.
Paul McKevitt, BA (Hons), ACMA
Director of Corporate Services
Services
All in all, the council delivers over 700 services for less than £3 a day per Council Tax payer. Not all residents will access every council service every day.
Council spend is used to pay for essential services like education, refuse collection and child protection, as well as a number of services our residents may not be aware of.
| Where the money is spent |
£’000 |
% |
| Children’s and Education Services |
387,389 |
Children’s and Education Services
Includes the provision of early years development, childcare services, healthy schools, activities for teenagers, special educational needs, adoption and fostering services.
42.2 |
| Economy, Environmental, Culture and Housing |
231,018 |
Economy, Environmental, Culture and Housing
Areas include community safety, street cleaning, refuse collection and disposal, regeneration, highways maintenance, transport initiatives, sports centres and play areas, countryside parks and open spaces.
25.2 |
| Adult Social Care |
141,323 |
Adult Social Care
This service is not just concerned with statutory social care but also includes adult abuse, alcohol and drug misuse, adult disabilities and mental health care.
15.4 |
| Central Services to the Public, Governance, Policy and Support |
128,005 |
Central Services to the Public, Governance, Policy and Support
This includes Financial Services, Information Technology, Legal Services, Insurance and Democratic Services.
14.0 |
| Other Services |
29,654 |
Other Services
This relates to smaller services including Building Safer Stronger Communities and Direct Service Organisation Tradings (DSOs)
3.2 |
| Total |
917,389 |
100.0 |
Housing Services – the Housing Revenue Account (HRA)
The Council is required to maintain a separate account for items relating to council dwellings which shows income to the Council and expenditure spent managing and maintaining properties.
The day to day operation of the Council's housing stock is undertaken by Wigan and Leigh Housing Company Ltd, which is an Arms Length Management Organisation (ALMO).
| Income |
£’000 |
% |
| Rents |
69,063 |
95.3 |
| Service & Facility Charges |
3,375 |
4.7 |
| Total Income |
72,438 |
100.0 |
| Expenditure |
£’000 |
% |
| Repair & Maintenance |
21,516 |
29.7 |
| Supervision & Management |
17,514 |
24.2 |
| Fixed Asset Depreciation |
14,116 |
19.5 |
| Interest Payments |
13,472 |
18.6 |
| Capital Expenditure funded by HRA |
2,417 |
3.3 |
| Other Costs |
3,403 |
4.7 |
| Total Expenditure |
72,438 |
100.0 |
Capital
What is Capital Spending?
Capital spending represents money spent by the Council to purchase, upgrade or improve assets such as buildings and roads. The distinction from revenue expenditure is that the Council and its residents essentially receive the benefit from capital expenditure over a longer period of time.
The Council spent over £55m on its capital programme in 2010/11. The programme underpins the Council’s objectives and provides for investment in long term assets which are used to deliver the Council’s services. The largest spending areas were :-
|
£’000 |
% |
| Housing Services |
25,346 |
Housing Services
Major spend included within this figure is the Achieving Decent Homes scheme, the development of new council houses and the renewal of areas of the borough.
45.3 |
| Children’s and Education Services |
16,336 |
Children’s and Education Services
This includes the build of new schools, refurbishment of school kitchens and spend on Basic Needs schemes.
29.2 |
| Highways and Transport Services |
8,250 |
Highways and Transport Services
The main spend relates to the structural maintenance of roads and bridges, but also includes the replacement of vehicles and implementation of pedestrian, cycling and congestion schemes.
14.7 |
| Cultural, Environmental, Regulatory and Planning Services |
4,933 |
Cultural, Environmental, Regulatory and Planning Services
Spend in this area includes the restoration of parkland, the refurbishment of play areas and the implementation of a new HR and Payroll system.
8.8 |
| Adult Social Care |
1,080 |
Adult Social Care
The major items relate to disabled persons adaptations and the Integrated Community Equipment Service.
2.0 |
| Total |
55,945 |
100.0 |
