CONTENTS MESSAGE FROM THE LEADER OF THE - PDF document

CONTENTS Hertsmere Borough Council CONTENTS MESSAGE FROM THE LEADER OF THE COUNCIL.........................................................................2 EXPLANATORY FORWARD ...................................................................................................................3 CORPORATE GOVERNANCE.................................................................................................................4 I NTRODUCTION ................................................................................................................................................4 T HE E XECUTIVE ..............................................................................................................................................4 O VERVIEW & S CRUTINY .................................................................................................................................4 T HE S TANDARDS C OMMITTEE .........................................................................................................................5 C ITIZENS R IGHTS .............................................................................................................................................5 OVERVIEW FROM THE HEAD OF FINANCE.....................................................................................6 I NTRODUCTION ................................................................................................................................................6 H OW WE HAVE MANAGED THE C OUNCIL ’ S R ESOURCES IN 2001/02.................................................................6 I LLUSTRATIVE R EVIEW OF K EY C OMPONENTS . ...............................................................................................8 S TATEMENT OF R ESPONSIBILITIES .................................................................................................................10 S TATEMENT ON THE S YSTEM OF I NTERNAL F INANCIAL C ONTROL .................................................................11 A UDITORS ’ R EPORT TO H ERTSMERE B OROUGH C OUNCIL .............................................................................12 OUTLOOK STATEMENT .......................................................................................................................13 T HE NEW DEMANDS ON THE C OUNCIL ’ S FINANCES IN 2002/03......................................................................13 O UR SPENDING PLANS FOR 2002/03...............................................................................................................15 T HE IMPLICATIONS OF THE 2002/03 SPENDING PLANS FOR TAX PAYERS . .......................................................17 STATEMENT OF ACCOUNTING POLICIES......................................................................................19 MAIN FINANCIAL STATEMENTS .......................................................................................................23 C ONSOLIDATED R EVENUE A CCOUNT ............................................................................................................23 C ONSOLIDATED B ALANCE S HEET ..................................................................................................................25 S TATEMENT OF M OVEMENT IN R ESERVES .....................................................................................................26 C ASH F LOW S TATEMENT ...............................................................................................................................27 NOTES TO THE MAIN FINANCIAL STATEMENTS.........................................................................28 C ONSOLIDATED R EVENUE A CCOUNT N OTES .................................................................................................28 C ONSOLIDATED B ALANCE S HEET N OTES ......................................................................................................35 S TATEMENT OF M OVEMENT IN R ESERVES N OTES .........................................................................................45 C ASH F LOW S TATEMENT N OTES ...................................................................................................................47 ADDITIONAL FINANCIAL STATEMENTS.........................................................................................49 H OUSING R EVENUE A CCOUNT ......................................................................................................................49 T HE C OLLECTION F UND ................................................................................................................................52 GLOSSARY OF TERMS ..........................................................................................................................56 Page 1 of 63

LEADER’S MESSAGE Hertsmere Borough Council Message from the Leader of the Council Since becoming the Leader of the Council in October 2001, I have been very keen to develop a clear sense of direction and purpose for the organisation. One of the key criteria in being able to create this clear direction is establishing a sound financial position for the organisation. Therefore, I am pleased to contribute to the Statement of Accounts of the Council for the 2001/02 financial year. Achievements to celebrate in over the past year include: - • Adoption of new cabinet style government and the efficiency savings realised as a result. • The successful transfer of the Council’s leisure operations to a not-for-profit charitable trust. • Implementation of a corporate plan for the organisation that brings together common aims and priorities so that the Council will be able to provide a first-class range of services to the people of Hertsmere. • Launch of a new, state-of-the-art leisure facility in Bushey. We have been proactive in ascertaining the views of the local community on specific projects and initiatives. As a result, the following issues are considered to be of the highest importance and in most need of improvement according to the majority of our residents. • Safety / Low Crime • Facilities for Young People • Good Schools • Clean Environment • Public Transport / Road Creation & Maintenance • Affordable Housing Having a clear picture as to what the residents want the Council to achieve for them requires the organisation itself to have the capacity, skills and motivation necessary to perform the task. Some of these issues are outside the direct responsibility of this Council. However, through such mechanisms as our Local Strategic Partnership, we are aiming to ensure that both our direct and indirect responsibilities are met so that our residents receive the seamless high quality service they expect. Clearly these issues will require quite a significant amount of investment and our financial resources are, as always, very constrained. In addition, the new planning process of the Council has identified a number of ambitious targets that will need to be met if the Council is to achieve its five new aims as set out within the corporate plan which places further pressure on our limited resources. For this reason the format of this document has changed from previous years to help identify and explain how the organisation is planning to meet these challenges from a financial perspective. The document no longer solely concentrates on the financial performance for the past financial year but also reports a more forward-looking approach so that our residents can clearly see how our investment is linked to their priorities. This has meant that many officers throughout the Council, particularly the Head of Finance and her team, have completed a significant amount of work and I would therefore like to thank them sincerely for their time, effort and dedication to the process. Hertsmere is an attractive and diverse Borough with a thriving economy, and it is important that the Council plays a full and active role in protecting and enhancing that position. We have much to be proud of and with the assistance of the local community we will do our best to ensure that this trend continues into the future. Councillor Neil Payne Leader of Hertsmere Borough Council Page 2 of 63