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Format of Accounts

This foreword provides an explanation, in overall terms, of the Council’s financial position and will assist in the interpretation of the accounting statements.

It is not the purpose of this foreword to comment on the policies of the Council, rather to explain the financial facts. The Statement of Accounts has been prepared on the basis that the Authority is a going concern.

Explanation of the format of the statements within these accounts 

This Statement of Accounts comprises: 

  • An Explanatory Foreword 
  • A Statement of Responsibilities for the Statement of Accounts 
  • Accounting Statements 
  • Notes to the Accounts (including pension disclosures and a Statement of Accounting Policies setting out policies adopted for the preparation of the accounts)

The accounting statements contain the ‘core’ financial statements grouped together, the supplementary single entity financial statements relevant to this Council, and Group Accounts. 

The Core Financial Statements comprise:

  • Movement in Reserves Statement – shows the movement in the year on the different reserves held by the authority, analysed into ‘usable reserves’ (those that can be applied to fund expenditure or reduce taxation) and other reserves
  • Comprehensive Income and Expenditure Statement – a summary of the resources generated and consumed by the Council in the year
  • Balance Sheet - highlights the Council’s financial position as at 31 March 2011, in particular what we own versus what we owe 
  • Cash Flow Statement - illustrates the Council’s total cash transactions in the financial year, split between revenue (day to day) expenditure, capital (long term investment in assets) expenditure and financing (how we pay for the expenditure) transactions

The Supplementary Financial Statements applicable to Islington Council comprise: 

  • Housing Revenue Account Income and Expenditure Account– shows transactions relating to Council dwellings 
  • Collection Fund – receipts and payments relating to Council Tax and business rates 

The Group Accounts comprise: 

  • Group Income and Expenditure Account - a summary of the resources generated and consumed by the Council and Homes for Islington (HFI) in the year
  • Reconciliation of the Single Entity Income and Expenditure Account Surplus or Deficit – splits the group income and expenditure deficit between the Council and HFI 
  • Group Balance Sheet - shows the Group’s financial position as at 31 March 2011 
  • Group Cash Flow Statement - illustrates the Group’s total cash transactions in the financial year, split between revenue (day to day) expenditure, capital (long term investment in assets) expenditure and financing (how we pay for the expenditure) transactions 

The Pension Fund Account and amounts attributable to Trust Funds are shown separately because they are not part of the entity accounts of the Council. For the Pension Fund administered by Islington Council, these include:

  • Fund Account - a summary of the resources generated and consumed by the fund in the year; 
  • And Net Assets Statement - shows the fund’s financial position as at 31 March 2011
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