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BEDFORD BOROUGH COUNCIL

Annual Statement of Accounts 2002-2003

Contents Page No Statement of Responsibilities for the Statement of Accounts

1

Statement on the System of Internal Financial Control

1

Explanatory Foreword

2

Independent Auditors Report 7 Statement of Accounting Policies

8

Consolidated Revenue Account - Notes to the Consolidated Revenue Account

20 21

Collection Fund - Notes to the Collection Fund

27 27

Consolidated Balance Sheet - Notes to the Consolidated Balance Sheet

30 31

Statement of Movement in Reserves

43

Cash Flow Statement - Notes to the Cash Flow Statement

44 45

Direct Labour Organisation Accounts

46

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Statement of Responsibilities for the Statement of Accounts 1. The Council’s Responsibilities

The Council is required to: - manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; and - make arrangements for the proper administration of its financial affairs and appoint an officer responsible for this function in accordance

with Section 151 of the Local Government Act 1972. 2. Responsibilities of the Director of Finance and Corporate Strategy and Deputy Chief Executive (DFCS/Dep. CEX)

This is the officer appointed under Section 151 of the Local Government Act 1972 to ensure that arrangements are in place for the proper administration of the Council’s financial affairs, irrespective of whether or not the related financial services are provided ‘in-house’ or externally (currently these services are provided ‘in-house’ under the Head of Financial Services). DFCS/Dep. CEX is responsible for certifying that the Annual Statement of Accounts presents fairly the financial position and transactions of the Authority.

3. Responsibilities of the Head of Financial Services Under the framework of arrangements required by the Director of Finance and Corporate Strategy and Deputy Chief Executive, the Head of Financial Services is responsible for providing the day to day management of the Council’s financial services. In this regard: The Head of Financial Services is responsible for the preparation of the Council’s Statement of Accounts which, in terms of the CIPFA/LASAAC Code of Practice on Local Authority Accounting in Great Britain (‘the Code’) is required to present fairly the financial position of the authority at the accounting date and the income and expenditure for the year (ended 31 March 2003). In preparing this Statement of Accounts, the Head of Financial Services has: - Selected suitable accounting policies and then applied them consistently; made judgements and estimates that were reasonable and

prudent; complied with the Code. - Ensured that proper accounting records have been kept up to date; taken reasonable steps relating to the prevention and detection of

fraud and other irregularities. 4. The Council has continued to apply all relevant public accounting practices during 2002/2003 and the accounts and

financial statements have been prepared within this context.

Statement on the System of Internal Financial Control As the Council’s statutory Chief Financial Officer, the Director of Finance & Corporate Strategy and Deputy Chief Executive is responsible for ensuring that adequate arrangements are in place to cover the internal financial control operations of the Council. A key feature is the rules and regulations under the Council’s Constitution which both Members and Officers must adhere to including:

Financial Procedure Rules Key Financial Decisions Framework Decision Making Protocol for the Mayor and Portfolio Holders (the Executive) Contract Procedure Rules.

The Constitution also clearly outlines the roles and responsibilities of the relevant statutory officers which is also important in respect of arrangements for sound internal financial control. A further feature is the establishment of a range of internal controls, having regard to risk, covering all of the Council’s key financial systems (ie main accounting system, loans and investments, creditors, debtors, payroll, local taxation and housing and council tax benefits). The Head of Financial Services, through line managers, ensures the ongoing operation of these internal control procedures relating to each system and Internal Audit undertake independent reviews of the operation of these controls at least annually. The Director of Finance & Corporate Strategy and Deputy Chief Executive monitors these arrangements and ensures that any identified breakdown in the control mechanisms is dealt with by way of appropriate and timely remedial action. The Council follows CIPFA best practice in respect of treasury management operations as independently assessed annually.

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The Council also has an independent, well trained and competent Internal Audit Unit. The Chief Audit & Control Officer following consultation with Director of Finance & Corporate Strategy and Deputy Chief Executive, identifies an annual work programme based on risk assessment relating to the Council’s services and function. In addition to testing key financial systems controls they review the adherence to Financial Procedure Rules and Contract Procedure Rules throughout the Council as well as undertaking regularity/probity test checks on expenditure, income and asset control. External Audit independently review the adequacy of Internal Audit and in December 2002 commented that “We carry out an annual review of Internal Audit’s work performance and status within the Council to confirm that we can rely on their work as part of our audit. We found that Internal Audit’s work was of a good standard and are grateful to the Chief Audit & Control Officer and his team for the co-operation and assistance they have provided to us over the year." The Chief Audit & Control Officer reports annually to the Council’s Corporate & Resource Policy Review & Development Committee on audit activities during the preceding financial year. Finally the Council has adopted a Risk Management policy and strategy which will be implemented during 2003/2004. The foregoing controls are designed to provide a reasonable level of assurance to the Council and the Council taxpayers. Alan Harris CPFA Director of Finance & Corporate Strategy & Deputy Chief Executive Dated 10 December 2003

Explanatory Foreword In 2002/2003 the Council introduced a new constitution with an elected Mayor and revised executive arrangements. This resulted in Members being appointed as portfolio holders to oversee the Council’s services, with a portfolio holder being given specific responsibility for finance. Local Taxation Accounting for the Council Tax is undertaken through the Collection Fund, which is a separate fund the Council must maintain under the Local Government Finance Act 1988. The Collection Fund accounts are shown separately from the General Fund but are included in the Consolidated Balance Sheet later in the Annual Statement. The Borough Council is responsible for Collection Fund accounting arrangements which include all income received relating to Council Tax, Residual Community Charge and also National Non-Domestic Rates (Business Rates). Payments from the fund are in respect of precepts to Bedfordshire County Council and Bedfordshire Police Authority and payments due to the National Non-Domestic Rate Pool, as well as the Council’s own demand on the Fund (for General Fund needs and also Parish precepts). Surpluses in the Collection Fund are paid to the precepting authorities. Council Tax surpluses are shared on the basis of precepts and demands levied and are offset against each authority’s total amount to be collected from local taxpayers. At 31 March 2003 the Collection Fund had a surplus of £376,395 in respect of Council Tax which is distributed as follows:

Council Tax Surplus Distribution 2003/2004 Estimate Actual £ £ Bedfordshire County Council 452,167 303,917 Bedford Borough Council 65,847 44,258 Bedfordshire Police Authority 41,986 28,220 TOTAL 560,000 376,395

The surplus on the Collection Fund relating to Council Tax to be distributed in 2003/2004 was based on the estimated position and comprised the final surplus for 2001/2002 of £875,373 plus the estimated surplus for 2002/2003, made in January 2003, of £684,627. After taking into account the £1,000,000 distributed during 2002/2003 the balance estimated for distribution in 2003/2004 was £560,000. There was a surplus of £18,137 at 31 March 2003, relating to Community Charge, which is offset against the Borough Council’s Council Tax requirement only. The surplus estimated in February 2003 was £20,000 and therefore the whole of the surplus will be offset against the 2003/2004 Council Tax requirement. The Office of the Deputy Prime Minister (ODPM) has published comparative collection rates in respect of Council Tax and National Non-Domestic Rates (NNDR) and this authority’s performance is as follows:

Council Tax NNDR 2001/2002 2002/2003 2001/2002 2002/2003 % % % % Bedford Borough Council 97.0 96.7 98.6 97.5 Shire Districts 97.4 97.6 98.2 98.5 Average English Authorities 96.1 96.4 97.9 98.2 Source: ODPM Statistics

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The figures represent the amount of Council Tax and NNDR collected in the year expressed as a percentage of the debit raised in the year. During 2002/2003 the Council installed a new system for recording Council Tax and Benefit administration. The changeover period has had an impact on the Council’s collection rate in 2002/2003. Whilst the Council Tax collection rate is again above the average for all English Authorities, the NNDR collection rate is lower for the first time in four years. It is anticipated that performance will improve in 2003/2004. In respect of Council Tax set for 2002/2003 the following analysis details how the Average Band D Council Tax for this area was made up:

Average Band D

Council Tax

Percentage Relating

to each Body

Average for Shire Districts Comparison

Percentage Relating

to each Body £ % £ %

Borough Council Requirement 109.78 10.46 120.30 12.13 Average Parish Requirement 13.63 1.30 20.33 2.05 Bedfordshire County Council Requirement 847.46 80.74 766.48 77.29 Bedfordshire Police Authority 78.69 7.50 84.58 8.53 1049.56 991.69

Comparative Council Tax Levels for District Council Services (per CIPFA Statistics) reveal that the Council maintained a below national average Council Tax requirement for Borough services.

Average Band D

Council Tax 1996/1997

Average Band D


Average Band D


Average Band D


Average Band D


Average Band D


Average Band D


£ £ £ £ £ £ £ Bedford Borough 73.76 84.93 92.08 96.21 100.32 105.08 109.78 Average District 82.57 88.30 94.08 98.93 103.80 110.52 120.30 Introduction of the Euro From 1 January 1999 organisations opting to join the European Monetary Union were able to choose whether to manage their financial affairs in a single European currency. From 1 January 2002 for those countries joining EMU the Euro became legal tender. The United Kingdom has indicated it will only join if the economic criteria it has set are achieved and a referendum has voted to join. The impact on this authority in the immediate and longer term will be considered in advance of any decisions being made as to the United Kingdom’s possible entry. It is anticipated that planning will reduce risks and costs involved and the Council is keeping the position under review. In June 2003 the Office of the Deputy Prime Minister, in conjunction with the Local Government Association issued the Local Authorities Euro Preparations Guidance. The Council as part of the preparations for the impact of the Euro continues to be a member of the CIPFA Euro Forum. This Forum aims to provide information and guidance to local authorities on the impact the Euro may have. This includes the effects of the Euro since inception on 1 January 1999, planning for the impact of the United Kingdom entering and the effects should the United Kingdom decide not to enter. Externally Invested Funds The Council’s policy is to maximise interest on capital and revenue balances pending their use on defined needs. In respect of capital balances as at 31 March 2003, the Council had £24 million externally invested with fund managers and the Council reviews the performance of fund managers against targets set. During 2002/2003 Dresdner RCM Global Investors notified the Council they were to be acquired by Morley Asset Management, this would have resulted in the Council’s £24 million all being managed by Morley. In line with previous policy to have two managers the Treasury Management Advisory Panel met on 28 November 2002 and following presentations by three Fund Managers appointed Alliance Capital to replace Dresdner. Targets were set for both Fund Managers for the 2003/2004 financial year. Interest rates remained lower than expected during 2002/2003,consequently, the return from externally managed funds was less than estimated. The Sub-Committee at their meeting in January 2003 decided to retain Morley, together with the recently appointed Alliance Capital, but to keep Morley’s performance under continuous review. At 31 March 2003 the Council had £32.33 million temporarily invested, managed internally by Council staff. This relates to General Fund revenue balances in hand pending use on defined needs and also Collection Fund balances in hand at that date. Revenue Provisions, Reserves and Balances Details of the movement and sums held in Revenue Provisions and Reserves are included in the notes to the Consolidated Balance Sheet and the purpose for each is recorded in the Statement of Accounting Policies.

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The total of Revenue Provisions, Reserves and Balances as at 31 March 2003 is set out below by comparison to the position shown in the 2002/2003 Statement of Accounts.

At 31 March 2003 At 31 March 2002 Consolidated Balance Sheet 2002/2003 2001/2002 £ £ Provisions (Excluding Bad Debts) 1,703,945 1,296,034 Reserves and Balances 34,628,920 35,261,520 TOTAL (Excluding Bad Debts) 36,332,865 36,557,554 Bad Debts Provision 1,441,055 1,489,129 TOTAL (Including Bad Debts) 37,773,920 38,046,683

As can be seen the total of Provisions, Reserves and Balances excluding Bad Debt Provisions has decreased by £272,763 to £37,773,920. The following points are material to explain movements over and above the charges to and against these during the year. (i) The Council undertook a complete review of Reserves and Provisions in 2002/2003 and the Executive Committee on 30 September 2002

released £1,015,877 from existing reserves. £300,000 was transferred to the Homeless Reserve to cover accelerating Bed and Breakfast costs and £665,877 to part fund a capital scheme for homelessness units. The transfers reflected the significant increase in the use of Bed and Breakfast accommodation, to alleviate homelessness, faced by the Council in 2002/2003. Further adjustments were made where considered appropriate including the creation of new earmarked reserves and provisions during the year.

(ii) The Executive has also reviewed the Provisions, Reserves and Balances held at 31 March 2003 and has identified further adjustments in 2003/2004 where considered appropriate. Adjustments approved by Council will be reflected in the 2003/2004 Statement of Accounts.

Note: The General Fund Bad Debts Provisions are netted off the Debtors figure on the Consolidated Balance Sheet. Capital Accounting Arrangements Under the capital accounting system the Council applies charges to all assets with a value in excess of £20,000. The Property Management and Development Unit in line with current valuation principles and CIPFA guidelines, undertake valuations of land and property. Mr D Joyce ARICS, the Council’s Service Manager (Land & Property) certifies the asset valuation. Vehicles, Plant and Equipment are included at purchase price and depreciated over the anticipated life of the asset. The 5-year programme to revalue Land and Property Assets was completed in 2001/2002 and is included in the Valuation Certificate as at 1 April 2001. In 2002/2003 the number of assets revalued as at 1 April 2002 was less than 20% of the total. The whole portfolio will, however, be completed in the five year period to 2006/2007. Pension Fund Liability The Pension Fund authority is the Bedfordshire County Council and the Pension Fund is in deficit owing to various factors including the fall in investment income resulting from the collapse in the Stock markets over the past two years. All contributory bodies to the Pension Fund have to meet this deficit in proportion to their assessed share of assets and liabilities. The deficit at 31 March 2003 in respect of the Council’s Pension Fund Liability was £36.7m, which is reduced to £32.9m after allowing for the Council’s additional contributions in respect of discretionary awards previously made. Full details can be found in Note 17 of the Consolidated Balance Sheet. The Council is currently paying additional contributions to meet the estimated deficit over time and the level of contribution will be reviewed at the next actuarial review of the Pension Fund following 31 March 2004. Property Renewal and Repairs Reserve The Council continued to repair and refurbish its properties in line with the planned maintenance schedule approved annually by the appropriate Council Committee so as to maintain the properties to a sufficient standard to prevent deterioration and devaluation. Additionally the Council maintains an Equipment, Plant and Vehicles Renewal Reserve to finance the cost of new and replacement requirements. Capital Investment The Council remains ‘debt free’ and therefore financed all of its capital investment during 2002/2003 from capital receipts, capital grants, revenue contributions or lease. Capital Expenditure in 2002/2003 totalled £9.58 million of which £6.74 million related to housing investment. The housing expenditure relates to schemes and initiatives for the provision of social housing and includes the Council’s continuing support for local authority sponsored housing association schemes, cost of private sector housing renovation grants and the Council’s share of the cost of disabled facilities grants. The remaining £2.84 million related to General Fund service schemes including the capital costs relating to footpath reconstruction works, environmental enhancement schemes, regeneration schemes, refurbishment of play areas and the repair of Queens Walk wall. The funded capital programme includes forecast work for further Town Centre regeneration schemes, refurbishment of Multi-Storey Car Parks and the provision of homelessness units. Further details of the Council’s capital expenditure are included in Note 1 to the Consolidated Balance Sheet.

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Commercial Services Department Following the replacement of Compulsory Competitive Tendering with Best Value legislation, there is no requirement to continue with Statutory DLO Accounts. However, the Council has determined that the Direct Service Organisation (Commercial Services Department) should continue to operate as a separate trading department. Consequently memorandum DLO accounts have been prepared for information purposes. Preparation of Accounts The Accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in Great Britain published by CIPFA. The Consolidated Revenue Account includes income and expenditure relating to the Direct Services Organisation net surplus. The reserves and provisions are listed in Notes 15 & 16 to the Consolidated Balance Sheet identifying the services for which the monies are held. The Council’s Accounts for the year 2002/2003 are set out on pages 20 to 48 and they consist of: 1. Consolidated Revenue Account

This statement sets out the gross expenditure and income relating to the various services and functions of the Council. Pages 20 to 26 show a detailed breakdown of income and expenditure.

2. Collection Fund

This account reflects the statutory obligation for the Council, as the billing authority for all local taxation, to maintain a separate Collection Fund. It shows transactions relating to Non-Domestic Rates, Council Tax and residual Community Charges and illustrates the way in which these are distributed to the County Council, Police Authority and Borough Council General Fund. Pages 27 to 29 give details of the account.

3. Consolidated Balance Sheet This sets out the financial position of the Council at 31 March 2003, excluding any trust funds. It shows the balances and reserves at the Authority’s disposal and the net fixed and net current assets employed in providing services, together with summarised information on the fixed assets held. The balance sheet and notes are shown on pages 30 to 42.

4. Statement of Movement in Reserves The purpose of this statement, Page 43, is to bring together all the gains and losses recognised in the year and not just those reported through the income and expenditure accounts.

5. Cash Flow Statement

This statement reflects the operation of the Authority as a whole and provides additional information on the activities of the Authority to that in the revenue account and balance sheets. This statement appears on pages 44 to 45 and summarises the movement of cash arising from transactions with third parties for revenue and capital purposes.

6. Direct Labour Organisation Accounts These accounts reflect the Council’s decision to account separately for direct service organisations operations. They give information about the operation of the Council’s direct labour force. Pages 46 to 48 provide more information on these memorandum accounts.

In addition to the above, the figures are supported by a Statement of Accounting Policies which is set out immediately following this foreword.

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Original 2002/2003 Budget Comparison to Probable and Actual Outturn The Council approved the original budget for 2002/2003 in February 2002 and the major components of this are set down below with comparative figures that indicate what the actual income and expenditure was and how this affected the Council’s overall financial position. Additionally the Probable Budget figures are set out to indicate how the Budget was adjusted during the year.

Original Probable Difference Budget Budget Actual Original to

Actual

£’000 £’000 £’000 £’000 Gross Expenditure - Services (excluding Benefits) 34,062 33,918 34,341 279 - CSD profit on Borough Council functions and

services 365 365 395 30

- Benefits (including Administration) 37,736 38,165 37,748 12 Gross Income - Services (excluding Benefits) Cr 13,802 Cr 14,061 Cr 14,427 Cr 625 - Benefits (including Administration) Cr 35,290 Cr 35,702 Cr 35,696 Cr 406 Net Expenditure on General Fund Services 23,071 22,685 22,361 Cr 710 Contribution to/(from) Reserves/Provisions Cr 2,597 Cr 1,946 Cr 1,946 651 Parish Precepts 696 696 696 - Interest Received Cr 2,135 Cr 2,400 Cr 2,633 Cr 498 19,035 19,035 18,478 Cr 557 2.9% Contribution to Outturn Savings Reserve - - 384 384 Net General Fund Expenditure 19,035 19,035 18,862 Cr 173 0.9% Deduct Income from Collection Fund Cr 6,299 Cr 6,299 Cr 6,299 - Revenue Support Grant Cr 6,572 Cr 6,572 Cr 6,572 - National Non-Domestic Rates Cr 6,040 Cr 6,040 Cr 6,040 - Collection Fund Surpluses Cr 124 Cr 124 Cr 124 - Surplus to General Reserve - - 173

Notes (1) The above figures exclude movement in Asset Management Charges and Capital Accounting Adjustments as these are accounting entries only

and are not actual expenditure or income. (2) The Original Budget column includes the Highways Agency and an adjustment to reflect actual movement in reserves. (3) The CSD profit on Borough Council functions is a requirement of the Accounting Code of Practice. (4) At the time of closure of the Accounts there were outstanding National Non-Domestic Rate refunds due to the Council, in respect of leisure centres, which were dependant on final authorisation by the District Valuer that had not been received. Further Information Additional information about these accounts is available from the Head of Financial Services, Bedford Borough Council, Town Hall, St. Paul’s Square, Bedford, MK40 1SJ. This reflects the Council’s policy of providing as much information as it possibly can about the conduct of its affairs. In addition, members of the public have a statutory right to inspect the accounts before the audit is completed and the availability of the accounts for this inspection is advertised each year in the local press. Summary As the following accounts illustrate, the Council’s financial position remains healthy and sufficient reserves and provisions are available to ensure that all known liabilities and potential contingencies can be covered without significant effect on local taxpayers.

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INDEPENDENT AUDITORS’ REPORT TO BEDFORD BOROUGH COUNCIL We have audited the statement of accounts of Bedford Borough Council for the year ended 31 March 2003 which comprise the statement of accounting policies, the consolidated revenue account and the related notes, the collection fund and the related notes, the consolidated balance sheet and the related notes, the statement of total movements in reserves, and the cash flow statement and the related notes. This statement of accounts has been prepared under the accounting policies set out in the statement of accounting policies. This report is made solely to Bedford Borough Council in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 54 of the Statement of Responsibilities of Auditors and of Audited Bodies, prepared by the Audit Commission. To the fullest extent permitted by law, we do not accept or assume any responsibility to anyone other than the Council for our audit work, for this report, or for the opinion we have formed. Respective responsibilities of the Director of Finance and Corporate Strategy and Deputy Chief Executive As described in the statement of responsibilities for the statement of accounts, the Head of Financial Services is responsible for the preparation of the statement of accounts in accordance with applicable United Kingdom law and accounting standards. Our responsibility is to audit the statement of accounts in accordance with the Code of Audit Practice issued by the Audit Commission and relevant United Kingdom legal and regulatory requirements and auditing standards. We report to you our opinion as to whether the statement of accounts fairly present the Council’s financial position and its income and expenditure for the year then ended. Basis of audit opinion We conducted our audit in accordance with the Code of Audit Practice issued by the Audit Commission and United Kingdom auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the statement of accounts. It also includes an assessment of the significant estimates and judgements made by the Council in the preparation of the statement of accounts and of whether the accounting policies are appropriate to the Council’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the statement of accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the statement of accounts. Opinion In our opinion the statement of accounts presents fairly the financial position of Bedford Borough Council at 31 March 2003 and its income and expenditure for the year then ended. Certificate We certify that we have completed the audit of accounts in accordance with the requirements of the Audit Commission Act 1998 and Code of Audit Practice issued by the Audit Commission. Deloitte & Touche LLP Chartered Accountants St Albans December 2003

Statement of Accounting Policies

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1 General The accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting, issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). They are published as a requirement of the Accounts and Audit Regulations 2003, made under Section 27 of the Audit Commission Act 1998.

2 Fixed Assets

From 1 April 1994 all expenditure on the acquisition, creation or enhancement of fixed assets is capitalised on an accrual basis in the accounts. Expenditure on fixed assets is capitalised, provided the asset yields benefits to the Authority and the services it provides for more than one year. Fixed assets are valued on the basis recommended by CIPFA and in accordance with the Statements of Assets Valuation Principles and Guidance Notes issued by the Royal Institute of Chartered Surveyors. Fixed assets are classified into the groupings required by the Code of Practice on Local Authority Accounting. Changes arising from revaluation of the fixed assets have been taken to the fixed asset restatement reserve. The Council’s policy on Depreciation is set out in paragraph 19.

3 Deferred Charges

Deferred Charges are payments of a capital nature where no fixed asset is created, but which may properly be financed over a period of years. They include renovation grants issued. Deferred charges are written off in the year in which the expenditure is incurred.

4 Basis of Charges for Capital A charge to service revenue accounts is made to reflect the cost of fixed assets used in the provision of services.

5 Capital Receipts

Under the Local Government and Housing Act 1989, Capital Receipts are held in separate accounts, i) Usable Capital Receipts and ii) Reserved Capital Receipts which are held in the Capital Financing Reserve pending use to finance new capital expenditure or repay debt respectively. As the Council is debt free, from 6th September 1993 all Reserved Capital Receipts become released in the financial year following receipt. This enables the Authority to use these receipts to finance capital expenditure relating to any of its own services except for Local Authority sponsored Social Housing Grant schemes.

6 Debtors and Creditors

All accounts of the Council are maintained on an accruals basis in accordance with the Code of Practice and FRS18. That is, sums due to or from the Council during the year are included whether or not cash has actually been received or paid in the year. An exception to this principle relates to public utility quarterly payments which are charged at the date of meter reading rather than being apportioned between financial years. This policy is consistently applied each year and therefore does not have a material effect on the year’s accounts.

7 Provision for Bad Debts This provision is maintained to ensure the Council can finance any sums due to the Council which are subsequently deemed to

be irrecoverable after recovery measures have been exhausted. The level of the provision is reviewed annually.

8 Stock, Stores and Work in Progress Stores at the Council Depot’s are valued at latest invoice price, which is a departure from the requirements of the Code and SSAP 9 which stipulates that stocks should be shown at actual cost or net realisable value if lower, the effect of the different treatment is not material. Stocks in the Printing and Central Stationery Store are valued at cost price. Works in Progress relating to the internal Printing Section and all external rechargeable works are valued at cost price.

9 Costs of Support Services The basis of allocation used for the main cost of management and administration are outlined below. All costs have been fully allocated to services. Cost of Office Accommodation By floor area Printing By actual usage Information Technology By actual usage Telephone By extensions Technical Actual time spent by staff Staff Operating Accounts Estimated time spent by staff on services/function

10 Provisions The Council sets aside provisions for specific future expenses, provided: • there is a present obligation as a result of a past event; • it is probable that a transfer of economic benefits will

be necessary to settle the obligation; and • a reliable estimate of the amount of the obligation can

be made. The following provisions are maintained under the provisions of section 41 (3) (b) of the Local Government and Housing Act 1989. Cultural & Heritage

Orchestral Support - £174,103 This provision represents the costs associated with the agreement relating to the Philharmonia concert subsidy until June 2005.

Recreation & Sport

None

Housing Services

Black and Minority Ethnic Needs Housing Survey - £3,625 This is a three-year joint funded scheme in partnership with Housing Associations and Local Authorities across Bedfordshire. De Montfort University is carrying out the project.

Housing Stock Condition Survey - £ Nil This funded survey work of the condition of the housing stock in Bedford Borough and is now complete.

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Environmental Services

Healthier Bedford Partnership Board Contribution (HBPB) - £20,000 This provision was established as a £10,000 per annum contribution for three years to fund the Partnership Development Manager post for the HBPB.

Dog Litter Bin Emptying - £ Nil This provision covered the estimated committed costs relating to the extended emptying and cleaning service for dog bins until 31 March 2003

Commuted Sums – Open Spaces - £960,618 This provision relates to Section 106 commuted sums for maintaining open spaces and offsets the cost of ground maintenance for new developments, which have been transferred to the Local Authority for maintenance.

Concessionary Fares - £1,500 This sum is to cover the costs of the consultants who are contracted to undertake the review of Concessionary Fares Scheme.

Abandoned Vehicles - £10,288 This provision is funding a temporary part time support officer to deal with the increasing workload relating to abandoned vehicles.

Planning Services

St Cuthbert's Enhancement Scheme - £39,000 This is a committed grant, for works that will enhance the Conservation Area. Detailed timetables for the works and the release of funding are under discussion with English Heritage

Highways Roads & Transport

Commuted Sums - Soakaway Maintenance - £73,900 Commuted Sums received from developers to cover future costs in maintaining soakaways, under Highways Agency powers. NB: This is not available as a General Fund provision as it can only be used for the agency requirement.

Economic Development & Community Welfare

. SRB – Project Management - £54,502 SRB – Community Liaison Programme - £75,147 SRB – Community Support Programme - £59,766 SRB – Capital - £18,000 These sums represent unspent Council and partner contributions to SRB funded projects in hand and are currently ring fenced in support of this activity.

Economic Development Trainee - £23,159 This provision was established to fund the appointment of an Economic Development Graduate Trainee for a temporary period.

Disability Benefits Advisor - £ Nil This provision funded the contracted two-year extension of the Disability Benefits Advisor post.

Grants to Voluntary Bodies – Pre 2002/2003 - £64,107 Grants to Voluntary Bodies 2002/2003 - £4,000 These sums relate to outstanding one-off grant commitments.

Specialist Benefits Adviser - £29,425 This provision was established to fund the post to July 2004 to provide benefit promotion and focus on getting people back into employment, breaking the dependency upon benefits. Youth Convention - £20,224 This provision was established to fund the post of a part-time Youth Participation Officer until September 2004. One-Off Grant 2003/2004 - £50,000 This sum has been allocated to voluntary organisations in 2003/2004 as a one-off sum. Property Management

Maintenance of Unadopted Land - £ Nil Commitments were made against this provision in respect of works to ensure that the roads and sewers at Priory Business Park are adopted and Hammond Road. The remaining balance was transferred to Earmarked Reserves in 2002/2003.

Corporate Disaster Recovery (IT Systems) Contract - £16,971 This sum is to pay for the final year contractual commitment for the IT Unit Data Centre Disaster Recovery Programme. Miscellaneous Bequests - £4,662 These are sums held in trust by the Council and relate to historic donations for specific purposes.

Mayors Citizenship Awards Bequest - £948

This provision will be used to part fund the costs associated with the Civic Awards in 2003. Income Generation and Sponsorship Officer - £ Nil This provision funded the first year staffing costs in respect of the Income Generation and Sponsorship Officer. The ongoing cost of this post is now self-funding and the balance has been transferred to Earmarked Reserves. Mayoral Referendum - £ Nil The provision covered the commitments that arose from the Referendum held in February 2002. Bad Debts Provision - £1,441,055 The amount needed to provide for potential unpaid sundry debts (including commercial rents and Benefit overpayments). This sum is reduced annually by sums written off and increased by an annual contribution from revenue. This is netted off against debtors in the Consolidated Balance Sheet and not included in the provisions total.

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11 Earmarked Reserves and Balances

The Council maintains certain reserves to meet general rather than specific future expenditure.

Reserves include earmarked reserves set aside for specific policy purposes and balances, which represent resources set aside for purposes such as general contingencies and cash flow management.

Culture & Heritage

Arts (Museum Exhibits) - £27,682 These monies are for purchase of artefacts for Bedford Museum and for collection management, e.g. conservation and documentation of museum collections. It is added to annually from the revenue budget (£1,000) and from donations to the Museum. Monies are built up year on year to provide a contingency for purchase of items, often at short notice and sometimes of high value, which are of importance to Bedford’s heritage.

Museum - IT Facilities - £ Nil This reserve was used together with support funding from the Heritage Lottery Fund for the implementation of the collection management project.

Museum - Off Site Store/Incidentals - £8,341 The monies will allow installation of additional racking to store items securely and safely and accommodate archaeology deposits scheduled for 2003/2004.

Music Event Summer 2003 - £7,500

This reserve has been established to support a proposed music event.

Recreation & Sport

Amenity Grants - Arts & Sports - £ Nil This reserve covered specific approved Arts and Sports related grants.

Oasis - Structural Survey - £687 This reserve is to finance further structural survey work.

Bedford Athletic Stadium - Health & Safety Works - £ Nil The reserve was used to settle the final account for unavoidable improvement works.

River Festival - £7,195 This reserve represents the balance remaining of funding made available in respect of the 2002 Festival and will be rolled forward to the next Festival in 2004.

Boiler House - £35,574

To fund any losses incurred in respect of the Boiler House Gym up to 1 October 2004. Netball Centre Major Items - £12,406 This reserve provides for future renewal of major items of equipment or periodic resurfacing of the courts.

Oasis - One Off Replacements (Fixtures/Fittings) - £27,930 This reserve represents an annual contribution towards replacement of plant and equipment, which is ongoing. Work is

planned to reinstate the moat to working order, following work on the re-tiling of the Oasis building. Arts & Leisure – Minor Equipment - £ nil This reserve funded minor items of plant and equipment not covered either in Leisure Management Contracts or the Equipment, Vehicle and Plant Renewal Reserve

Housing Services

Homelessness Bed & Breakfast Accommodation - £425,991 This reserve funds new initiatives to reduce Homelessness and also finance Bed & Breakfast emergency accommodation costs over and above the available funding in the annual revenue budget.

Rent Deposit Guarantee - £12,991 This scheme enables Housing Benefit recipients to access private sector rented accommodation.

Land Compensation Payments - £4,500 This is to fund the serving of any Statutory Closing Orders and the provision of payments relating to those Notices in the private housing sector.

Private Sector Housing Enforcement - £5,334 This reserve provides funding for outstanding work in relation to statutory inspections of disrepair in houses in the private rented sector, predominantly those in multiple occupation. This outstanding enforcement work is identified as a requirement in the current Housing Best Value Action Plan.

Renovation Grants One-off Administration Costs - £3,006 The Best Value Plan resulting from the Fundamental Service Review identified the need to fund the setting up of a Grants Strategy to link into the Council’s Housing Strategy 2003 and beyond.

Housing Needs Survey - £2,970 The Housing Needs Survey is a Best Value Action Plan item and carrying out an assessment of housing need is a statutory duty of the Council. Empty Homes – Strategy Preparation - £16,639 Set up to fund additional support to provide an Empty Homes Strategy that will be presented to Committee in 2003/2004. Empty Homes is an initiative which aims to bring houses in the private sector back into use.

Homelessness Strategy - £100,000

The Council established this reserve to meet the statutory requirement to produce a Homelessness Strategy. The strategy will be reported to the Executive in July 2003 and if approved, a resultant series of short-term remedies to combat homelessness will be funded from this reserve. LASHG Revenue Cost Consequences - £278,000 This reserve was set to cover the costs of rising homelessness following Central Government discontinuing Local Authority Social Housing Grant (LASHG). The level of the reserve will be reviewed in 2003/2004.

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Environmental Services Air Quality - £60,413 This is required to fund the Review assessment of Local Air Quality and is a statutory requirement under the Environment Act 1995. The level of reserve was reviewed and increased in 2002/2003 to enable the Council to meet its anticipated statutory commitments until 2005/2006. Contaminated Land Survey - £14,833 District Councils are required under the Environment Act 1995 to have a Contaminated Land Strategy in place. This reserve has funded the setting up of a Strategy and the current implementation work will enable identification of sites, risk assessment of them and take any necessary action

Contaminated Land Expenses - £5,000

The Council is able to recover its costs where it undertakes work in default. This reserve was established to fund works where the costs are irrecoverable. Contaminated Land Investigations - £10,000 This reserve has been set up to pay for site investigations where alleged or likely contamination requires laboratory examination. Dog Kennelling - £6,750 This reserve has been earmarked to build 24-hour holding kennels, for stray dogs, within the Borough.

Stray Dogs Veterinary Fees - £900 This reserve provides funds for payment of veterinary fees in respect of stray dogs found injured when picked up by the Dog Warden prior to kennelling.

Community Safety Audit - £5,400 The Council has statutory responsibilities for Community Safety under the Crime and Disorder Act 1998. This reserve will fund the Council’s contribution to future Community Safety Audits carried out on a regular basis and to monitor progress of local perceptions on fear of crime.

Community Safety Support - £8,040 This reserve is required to cover the small community safety grants and subscription fees to such organisations as the Bedfordshire Police Partnership Trust etc as well as to pump prime activities.

CCTV Equipment - £98,558 This reserve was set up to cover additional funding for three new CCTV cameras, including five-year revenue costs, and updating the CCTV control room equipment. CCTV Staffing Support - £20,100 This reserve was established to fund the additional contracted hours required to maintain an effective CCTV system.

Recycling Banks Improvements - £15,152 This reserve covers improvements to the recycling sites, principally aimed at site access and signage, identified as an outcome of the Best Value review process.

Domestic Wheeled Bins - £210,000 This reserve is to provide part funding for the eventual replacement of the wheeled bins as they come to the end of their life and an annual contribution is made from the General Fund to increase this sum to meet future needs.

Home Composting Trial - £8,600 This reserve is used to encourage home composting in line with the Council's objectives of waste minimisation and waste recycling.

Reinforce Publicity/Awareness of Litter Problems - £15,463 This reserve is to promote publicity and litter awareness. A programme is being developed with ENCAMS (formerly Tidy Britain Group) and will involve them providing resource expertise to deliver several initiatives over a year.

Publicising/Extending Dog Fouling Laws/Education - £25,812 This is the final year of a three-year trial programme of enhanced priority for dealing with the problem of dog fouling in the Borough. Faraday Square Maintenance - £15,074 This is a commuted sum required to offset the ongoing revenue cost of maintaining the outdoor kickabout area.

Browns Wood Environmental Works - £13,247 This reserve is required to maintain the new woodland plantation delivered with the aid of Forestry Authority Grant and is to be used in accordance with grant conditions.

Increased Tree Maintenance over 3 years - £81,000 Council approved this reserve to assist tree maintenance within the Borough over a three-year programme, up to 2004/2005. The majority of the balance will be spent in 2003/2004.

Trees Landfill Tax - £166 Required to provide establishment maintenance for the newly planted trees including mulching and watering.

Storm Damage to Trees - £2,801

Established to allow tress felled and damaged by the October 2002 storms to be dealt with. Priory Country Park - Habitat/Fish Restock - £1,304 Work has progressed on this rolling programme to improve fish stocks at Priory.

Bedford Park Lake Restoration - £3,019 This is the Council’s contribution to secure the landfill tax money to help the restoration of Bedford Park Lake.

Cemeteries/Crematoria - Mausoleums and Garden of Remembrance Replanting, Crematoria Furniture, Cemeteries/Crematoria One-Off Works - £82,116 This reserve is earmarked for dealing with disrepair of the boundary fence, a health and tree survey to deal with dangerous trees and those causing problems to the public and ground maintenance staff, at Fosterhill Road Cemetery. It is also being used to move the cemetery to a permanent site of historical, botanical and arboricultural interest, both to local citizens and further afield in terms of genealogical interest. Tree planting and garden furniture at Norse Road Cemetery are also planned to enhance the Garden of Remembrance and the area around the new mausoleums. This reserve includes money set aside at the time of purchase of the mausoleum to finance the bricking up process when the mausoleum is eventually used.

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One-off works required under the Council’s responsibility for Closed Churchyards will also be funded from this reserve

Flood Response Measures - £18,672 This reserve covers the one-off costs of flood responses, the timing, extent and frequency of which cannot be predicted. Climate Levy Change Study - £2,000 Work has been completed by Bedford Design Group and further work will be undertaken in respect of renewable energy investigations. One-off Consultancy Works - £26,748 This reserve allows flexibility in bringing forward consultancy work related to one-off environmental projects that do not form part of the council’s approved works programmes, either because of their unforeseen nature and/or because of changed circumstances prevailing when budgets were set.

Hackney/Private Hire Licence Plates - £13,597 This reserve covers the cost of purchasing licence plates.

Pride in Bedford CSD Contribution - £8,652 This reserve will be used to help support local groups and organisations in promoting Pride in Bedford. It acts as a pump primer to supporting local events and is an essential part of this important Council initiative.

Enhancement Work in Rural Areas - £ Nil The reserve related to potential residual costs falling on the Council as a result of previous schemes and was released in 2002/2003.

Abandoned Vehicles - £ Nil This reserve was used to fund a temporary part –time support officer for two years to deal with the increasing workload relating to abandoned vehicles. In 2002/2003 the balance has been transferred to Provisions.

Neighbourhood Wardens Scheme - £132,844 This reserve covers a joint funded project with Bedfordshire Pilgrims Housing Association in establishing two neighbourhood wardens, initially for a two-year period, and other initiatives.

Three Street Wardens Posts - £66,000

Established following approval by the Mayor in October 2002 to extend the Street Ranger service for a one-year period. Call Centre Set Up Costs - £3,344 This reserve is to establish the CSD Customer Hotline that acts as a one-stop shop for receiving complaints relating to service areas provided by CSD Contracting. Health & Safety Works College St, Kempston - £11,706 This reserve was established to cover any shortfall in recovering costs incurred by the Council in respect of health and safety works at this site. Additional Dog Bins, Vehicle and Driver - £49,737 This reserve was approved for the purchase of a second specialist vehicle and the staff costs related to providing additional capacity to empty dog bins for two years. Anti-Graffiti - £19,257 This reserve will be used to acquire a vehicle as well as funding anti-graffiti paint, wipes and undertaking graffiti cleansing.

Allotment Improvements - £6,125 To provide additional security at Goldington Field and Haynes Avenue allotment sites together with the provision of a new water supply at Allen Park. Parks and Open spaces One-off Works - £65,000 Earmarked to fund essential maintenance and repair work and the reinstatement of damaged play equipment. Geese Management - £21,000 Ongoing work erecting fences, signs and reinstating grass areas on the Embankment and Batts Ford will be funded from this reserve. Staff Resources for Car Parks Cleaning - £19,516 Established to fund temporary enhanced cleaning of two of the four multi-storey car parks that are closed overnight Specialist Cleaning Public Conveniences - £20,000 This reserve will fund one-off specialist cleaning within the Council’s public conveniences. Cleansing Hit and Gold Squads - £114,355 Set up to cover the costs of providing additional staff and vehicles to contribute to improving the cleanliness of targeted areas in the Borough and the Embankment Gold Zone area as part of ‘Pride in Bedford’. It will also provide an enhanced standard of ground maintenance up to 31 March 2004. Removal of Litter on Land Adjoining Rail Network - £5,000 Intended to assist the Council cleaning peripheral areas to land adjoining the rail network as part of a wider joint clean-up with rail operators and owners. Rural Cleansing Squad - £22,714 This reserve currently provides for additional cleansing in rural areas on a one-year trial basis. Town Centre Cleansing Enhancement - £24,493 This provides, on a one-year trial basis, for additional cleaning in Town Centre areas. Cleansing Enhancement Main Distributor Routes - £7,333 Funding for one year, to provide additional litter picking on the main distributor routes into Bedford Enforcement Officer (Litter/Environment) - £22,000 This reserve will jointly fund an enforcement officer working in partnership with the Police on a one-year trial and deal with environmental crime such as graffiti and litter.

Highways & Transportation

East-West Rail Study - £20,290 This reserve enables the Borough to contribute to the annual costs of the East West Rail Consortium (EWRC). It also facilitates the dissemination of public information.

Concessionary Fares New Scheme - £45,508 The reserve was established to fund additional one-off costs relating to the review of the Council’s Concessionary Fares Scheme to be effective from 1 April 2003.

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Bus Shelters Reserve/Consultancy - £24,573 This covers any net costs borne by the Council relating to the provision of new or modified bus shelters over and above those provided in the Adshel agreement.

Borough Traffic Initiatives - £9,000 This reserve is intended to cover (a) contributions to lever County Council match funding on

minor works, and/or (b) Traffic Regulation Orders instigated by Borough

Members. E.g.Zig Zags for schools. Winter Gritting - £13,000 Approximately four years ago, the County Council reduced its specification and funding for winter gritting. The Borough Council then decided to establish this reserve to guarantee the former higher level of service when needed.

Transportation Services - General - £30,895 This reserve enables temporary staff to be engaged on transport matters and provides matched funding for transport related projects such as the Rural Transport Initiative and other strategic partnership agreements.

Highways/Verge Maintenance - £ Nil This was used to tackle increasing problems maintaining highway trees following reduced County Council funding.

Cardington Park & Ride Contribution - £60,000 The Council set up this reserve to cover the contribution to the County Council Park and Ride scheme.

Street Lighting Improvements - £10,000 This reserve enables Borough Members and Officers to instigate improvements to the street lighting network that are unlikely to receive County Council funding.

Harpur Street/Midland Road Enhancement - £ Nil This reserve was used to fund one-off refurbishment to Harpur Square/Midland Road to ensure high standards were maintained, e.g. work to repair damage to stone planters.

Transportation Matters Fees and Works - £25,900 The Council takes a pro-active role in transportation feasibility work and this reserve will be used to cover fees required in relation to any town centre transportation requirements following the results of the current transportation study. It may also be used for small-scale study work on general transportation issues.

Wheel Clamping - £3,406 This reserve enables signs etc to be replaced and covers one-off costs associated with reviewing and renewing the contract. On Street Parking Implementation - £16,265 This sum is the balance of the setting up costs of the Controlled Parking Zone (CPZ). It will be required during 2003/2004 for variations to the scheme. On Street Parking - Guarantee Against Loss - £47,235 A reserve of £50,000 was originally established to fund any initial losses. The surpluses from 2001/2002 and 2002/2003 have been added to the reserve.

River St Car Park Vandalism Damage Repercussions - £32,838 Executive Committee have authorised that methods of securing the car park from repeated vandalism be actioned. Work is due to start in 2003 to enable the Car Park to be physically secured.

Car Parks Direction Signs - £7,690 This reserve covers one-off costs relating to external and internal direction signs.

Controlled Parking Zone Surplus - £13,989 The reserve represents the surplus of income over expenditure in respect of Controlled Parking Zones after repayment of the guarantee against loss. It is ring-fenced to Bedford Joint Parking Board to determine its use. Integrated Town Centre Transport Scheme - £13,000 This reserve was established to provide support to public transport initiatives within the Town Centre. Footway Repairs - £14,793 Following a resolution by the Mayor, this reserve was set up to enable additional repairs to be made to the highway potholes and trips other than could be funded within existing County Council budget allocations. Borough Transportation Infrastructure - £42,000 This represents funding set aside for Borough Transportation Infrastructure studies. Planning Services

Local Plan Inquiry - £57,191 This reserve covers the outstanding commitments relating to the adoption of the Local Plan in respect of the update of a Health Impact Assessment at Shortstown required to underwrite the allocation in the adopted Local Plan and final printing costs.

Community Forest Initiative - £95,169 This is an ongoing scheme to improve the environment in the Marston Vale and is an integral part of the Community Plan.

Architectural Maintenance Grants - £47,723 This reserve allows the Council to demonstrate its commitment to the improvement of the Conservation Area and the regeneration of part of the Town Centre. It also provides a source of funding for the more recently established Bedfordshire Building Preservation Trust.

Planning Costs/Legal and Consultants - £30,247 This reserve was established to cater for one-off, legally unavoidable, costs and to engage consultants as necessary.

Local Plan Review 2006/2011 - £100,000 A review of the Local Plan will need to be commenced before 2006 to roll the plan forward to 2011. This reserve will provide for one-off costs in preparing that review.

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Economic Development & Community Welfare

Economic Development Strategy Initiatives- £43,245 Inward Investment Initiatives - £91,622 Bedford Development Agency, Thinking Bedford - £56,605 These reserves are available to provide the means to implement approved economic development initiatives. Amenity Lights - £44,607 Refurbishment of the Embankment Amenity Lighting, substantially completed, is funded from this reserve. Town Centre Events - £142,518 This represents one-off funding agreed for 2003/2004 events in the Town Centre. Tourism Signage - £14,562 A Town Centre and Tourism signage scheme has been completed. Variable message signing for car parks is being installed and the reserve may be used to further enhance Town Centre signing in line with the Town Centre Company’s key objectives to improve signing to and from the Town Centre.

Tourism Points - £9,000 This project involves the erection of Tourist Information Points at a number of locations within the Town following the recommendations of the Heritage Interpretation Strategy.

Castle Lane Feasibility Study - £70,402 This is an integral part of the Town Centre Development proposals and, as part of this, a Conservation Plan has already been undertaken. It is intended a development brief will be prepared to gauge both public opinion and the views of potential developers on the most appropriate scheme for this site. A feasibility review may also be commissioned in respect of the range of cultural services offered.

Town Centre Regeneration - £1,000,000 This reserve was set up to provide the initial years’ revenue support for the forthcoming Town Centre Regeneration schemes both in terms of short term reduction in income and additional one-off costs. ESF Global Grants - £49,451 This represents the balance of the matched funding committed by contract with Government Office and drawing down of European Social Fund cash. The grants support community groups in Bedford over a three-year period ending in December 2003.

Town Centre Project Management/Consultancy - £ Nil The reserve was used to fund essential project management and consultancy work in respect of Town Centre development proposals.

BDA Pride in Bedford Schemes - £14,400 The Bedford Development Agency (BDA) marketing study, now completed, recognises Bedford as top relocation destination for business. The balance in the reserve represents the final payment due in May 2003. Business Improvement District Set-up Costs - £60,000 The project is aimed at releasing substantial private sector sums to ensure the future vitality and viability of the Town Centre.

Community Related Services

Outreach Bus /Rural IT Initiatives - £12,364 This is the unspent balance of the Council’s "Connecting the Community" initiative for rural areas in partnership with BRCC using BRIAN bus. Following the abandonment of the project the money is held to fund other rural IT initiatives.

Anti Poverty Measures - £31,314 Needed to support various one-off costs in respect of the Council's Anti Poverty Policy and Strategy.

Voluntary Organisations Forum - £4,209 This sum is to be used to fund the bi-annual meetings held between the Council and the Voluntary Sector. Connecting the Community - £809 This provided funding for the Council’s commitment to increase access arrangements to Council services. The initiative is currently under review as part of the Best Value Fundamental Review of Customer Care/Customer Contact. Social Profiling - £2,700 This reserve is to facilitate a social profiling exercise to map poverty and deprivation and will be used to map the Borough for anti-poverty purposes.

Community Plan Preparation - £16,519 This reserve has been used to fund the preparation, printing and distribution costs of the 2001-2004 Community Plan. The cost of producing and publishing the 2004 Community Plan for the Borough will also be met from the reserve. Community Plan Projects - £170,970 The Council established this budget to provide a specific resource to facilitate the delivery of one-off projects in line with the published Community Plan 2001-2004.

Community Plan Pilot - Balliol & Wymington - £10,200 As part of the Community Plan this reserve was set up to facilitate the delivery of local pilot projects to improve the quality of life in both an urban and rural community.

Community Legal Services Partnership Costs - £4,500 The Community Legal Service is a statutory service controlled via the Lord Chancellor’s Department. Local Authorities have both a statutory partnership involvement and will be expected to achieve CLS Quality Mark standards for relevant advisory services. The reserve will facilitate both elements of CLS involvement. Rural Grants - £312,492 This reserve was earmarked by the Council to assist projects in the rural areas between 2001/2002 to 2004/2005, which complement the Council's approved Community Plan.

Assistance to Parishes - £ nil This reserve related to sums previously awarded to Parish Councils but where payment was held pending final authorisation.

Rural Initiatives - £3,973 This was an unspent balance redirected towards partnership working with Bedfordshire County Council, Parish Councils etc on rural initiatives.

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Community Centre Support - £4,866 This reserve was established to provide one-off support for Community Centre Management Committees including Health and Safety training and support.

Community Centre Development - £48,928 This reserve provides funding for community centre one-off development projects and works that are not eligible for funding from the Repairs and Renewals budget. Jubilation Centre - £15,529 This reserve is being held to cover any shortfall in the operating costs of this centre. Local Agenda 21 - £14,265 This reserve funds one-off projects linking LA21 into the community. Millennium Preparations - £6,319 £5,000 was allocated for tree planting and the balance of the reserve will comprise a commuted sum for maintenance of those trees. Archbishop Huddlestone Bust - £502 Following damage to the bust through vandalism, the cost of repairs will be met from this reserve. Southfields Community Centre Fencing & Security - £50,000 Recently established to fund security works at the centre, which will be undertaken following consultation with the Southfields Community Centre Management Committee. Travellers Removal Costs (including Legal) - £6,263 This reserve is used for the payment of external bailiffs (and where necessary external legal support) for service on travellers of the various legal notices and the requests for information necessary for their removal. Youth Convention - £ nil This Reserve was transferred to provisions in 2002/2003. Property Management

Maintenance of Unadopted Land - £6,597 This reserve allows for one-off maintenance needs for the Council’s unadopted land. At 31 March 2002 this sum was included in the Council’s Provisions (see paragraph 10 above). Property Development Advertising - £9,429 This reserve is earmarked for marketing of the land at Wootton, including the preparation of marketing packs and advertising.

General Maintenance Town Hall - £1,180 This reserve will fund final alterations to the Town Hall that will take place in 2003/2004.

Replace Halon Gas IT Suite - £20,000 This reserve will fund the replacement of the Halon Gas Fire Extinguishers, with an alternative Health & Safety system. Office Ergonomics (Health & Safety) - £56,960 This reserve covers all health and safety requirements relating to office accommodation and facilities that arise from regular workplace inspections.

Renewal & Repair of Property - Works - £2,366,603 Fees - £390,108 This reserve covers funding for all committed and outstanding work on the Council's property portfolio (which has been identified through annual planned maintenance programmes) and any emergency expenditure which has not been pre-planned.

Corporate

Supernumerary Trainees - £38,382 This reserve was established to pay for the training of Graduate and Supernumerary Trainees. Currently there are twelve Graduate and thirteen Supernumerary Trainees in post.

Staff Gratuities - £16,735 This reserve is to cover awards to staff for long service and appropriate presentations. It also provides funding for one off miscellaneous staff claims relating to loss or damage to personal property whilst at work. Job Evaluation - £4,548 The reserve was set up from surpluses accrued from the sale of the previous job evaluation packages to other public authorities. It is available to support one-off personnel cots not covered elsewhere. This will include purchase of IT systems associated with Human Resources and Job Evaluation Modules.

Honoraria Payments - £13,950 This allows Heads of Service to make honoraria payment to Officers for work over and above what is reasonable and where overtime is not paid.

Staff Training - £30,248 This reserve will cover one-off training needs and to support future Priority 3 training needs.

Market Premia/Single Status - £501,235 This is funding for essential market premia where the Council experiences difficulty in ensuring that key posts are filled. It will also provide for the effect of Single Status Review in terms of revised gradings following job evaluation and to supplement the Appraisal Scheme payments as one of the staff retention initiatives.

Legal Action by Employees - £31,815 Following the decision of Council to support the legal action by employees, this reserve was set up to meet legal related costs, including obtaining Counsel advice relating to this matter and defending Judicial Review proceedings. Operational Staffing Resources Support - £352,417 The reserves relates to unspent staffing budgets and is held to complete outstanding work and on-going additional one-off staffing support over and above core work loads.

Employment Appeals Legal Action - £49,743 Formerly entitled Restructure Costs, this reserve is held to cover costs that arise from the funding of external legal advice for Employment Tribunal claims that have been brought against the Council, some of which are on-going.

UCC Set Up and Election Costs - £23,585 The reserve was originally established to cover set up costs of two new Urban Community Councils. The reserve has been

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used to cover the costs of the Borough’s consultation exercise on the proposal to establish a Parish Council for the Brickhill area any further one-off costs relating to UCCs or the setting up of Urban Parish Councils.

Political Research Assistants - £ Nil This reserve originally funded the employment of political research assistants on a temporary basis. Following the staffing restructure these were included on the permanent staff establishment and as such are funded from the ongoing revenue. The reserve was then used to provide IT equipment for the Research Assistants and new furniture in the Political Group Rooms.

Scrutiny Support Expenses - £38,119

Established to provide additional scrutiny costs over and above the annual budget, including arrangements for external advisers, witnesses and research projects for the Scrutiny Committee and Policy Review and Development Committee. Election Fund – £3,538 This reserve is required to even out election expenditure between financial years (i.e. there is an annual contribution from the General Fund as well as recharges to other organisations).

Members Training/IT Needs - £33,125 This reserve funds Member training and IT needs including those of new Members following elections.

Ward Members Fund - £287,913 Established by the Full Council to provide one-off funding for each Member in respect of projects identified in their Wards that the Council can legally fund. Community Newspaper - £24,300 This sum was needed to supplement the cost of the Community Newspaper in the initial period of development of the Business Plan.

Citizens Panel/Consultation Costs - £22,843 This reserve allows the Council to undertake additional and necessary one-off consultation exercises in order to achieve the aims set out in the Corporate Consultation and Communication Strategy. These are over and above the Citizen Panel consultations, included in the revenue budget.

Best Value - £ Nil This reserve was used to cover various one-off costs relating to Best Value including publications, software and attendance at good practice seminars relating to Best Value.

Customer Survey (Performance Review) - £1,270 This reserve is required to undertake one-off user satisfaction surveys in order to comply with national performance indicators. This information will be relevant for the purpose of the Best Value Review into Customer Contact.

Emergency Fund - £33,810 This reserve is built up by annual contributions of up to £5,000 per year, representing the unspent proportion of the emergency planning revenue budget. The Reserve aims to cover the costs arising from major emergency responses, the timing, extent and frequency of which cannot be predicted.

Risk Management - £36,186 The Borough Council needs to undertake annual revisions of its risk management arrangements and also needs to address risk areas identified by its Insurers, Zurich Municipal. This reserve covers associated one-off costs. Sponsorship – Income Generation Officer - £4,768 This reserve was originally established to provide the first year staffing costs in respect of an Income Generation and Sponsorship Officer. Insurance Reserve - £1,338,031 This reserve covers: (a) any potential liability falling on the Council in respect of

outstanding claims relating to the period when MMI were the Council's Insurers (following the insolvency of MMI there is a Scheme of Arrangement which is not yet finalised);

(b) the need for a level of ongoing self insurance fund after

allowing for the portfolio held with the Council's current Insurers, Zurich Municipal, specifically:

’excesses’ which the Council has to cover on claims made to Zurich (e.g. the first £5,000 of any claim under Public Liability); where insurance is available, but given the risk and associated premium, it is not cost effective to insure externally; insurance settlements on Council vehicles that are less than the sum due to be paid under the lease or to replace the vehicle; other miscellaneous areas not covered by Zurich Municipal but which are considered to be risks to be insured against.

(c) any risk of the Council where the insurance market does

not provide cover e.g. contamination of land through seepage.

Benefit Subsidy/Regulation Adjustments - £575,238 This reserve provides funding to cover one-off software amendments resulting from the frequent changes in Benefits Legislation/Regulations and the Verification Framework. It also covers any changes in the level of Benefit Subsidies paid by Central Government (e.g. reduction in the Fraud Detection/Prevention Subsidy). Equipment, Vehicle & Plant Renewal Reserve - £749,811 This reserve covers the replacement cost of Council equipment, vehicles and plant where an operating lease is either unavailable or inappropriate, pending replenishment over the life of the asset by annual contributions from revenue made into the Reserve.

Commuted Sums (Previous Capital Scheme Revenue Costs) - £407,827 This reserve covers ongoing commuted revenue costs related to previous capital schemes and money is drawn down as necessary over and above that which is contained in the annual revenue budget.

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Rate Reliefs - £97,158 This funds applications for additional Hardship and Discretionary Rate Reliefs approved over and above the annual revenue budget, and this allows flexibility to cover additional one-off needs which are complementary to the Council's Economic Development Strategy. FMS System Modifications - £9,451 To provide modifications to the Financial Management Computerised System, which is externally provided.

External Financial Consultants - £ Nil This reserve funded one-off costs relating to external advice on specialist financial matters and has been combined with the VAT Partial Exemption and related Costs Reserve below. VAT Partial Exemption and Related Costs - £156,284 £150,000 of this reserve covers the Council in respect of the estimated potential VAT which cannot be reclaimed if the Council exceeds the 5% Partial Exemption Limit in any year. The other £6,284 provides funding for one-off consultancy advice on VAT issues.

Benefit Anti-Fraud Initiatives - £10,000 This is an ongoing reserve which pump primes pro-active benefit fraud related work to ensure maximum subsidy. It is currently utilised to fund the Hotline and Land Registry data link, together with an annual subscription to the National Anti-Fraud Network.

LOGOS Replacement First Software - £167,666 This reserve provides funding for one-off costs for the replacement of the Local Taxation and Benefits software system (LOGOS). Investment Income Contingency - £250,000 This reserve covers reduced investment income due to the loss of Local Authority Social Housing grant and any shortfall in investment income against budgeted amounts in any year given the fluctuation in interest rates in the money market. Town Twinning - Sports - £8,920 This reserve covers the Council's contribution towards the costs of Bedford Clubs' involvement in the four yearly Bamberg/Bedford Sports Festival, the next is to be held in September 2005 and the promotion of sporting exchanges between the twin towns.

Town Twinning - General - £18,956 The Council makes an annual contribution to this reserve which covers Town Twinning expenditure which can vary significantly from year to year as individual events can be expensive but do not take place each year.

Commemorative Feature 25th Anniversary Bamberg and Bedford - £1,868 This reserve was established to provide a commemorative feature to mark the 25th anniversary of the Twinning of Bedford with Bamberg.

Mayor's Discretionary Fund - £9,983 This fund covers the Mayor's approved donations to Appeal Funds that are established to alleviate suffering at times of major disasters.

Ceremonial Events - £9,254 This reserve has been established to meet the cost of ceremonial events that cannot be pre-planned.

Queen’s Festival of Light - £3,239 Reserve set up in 2000/01 to fund prospective schemes relating to the Golden Jubilee.

Software Fund - £74,127 This is required for the purchase of new software for Council systems or for major upgrades to existing systems. Specifically it will be used to support the upgrade of the Council’s legacy systems to conform to the e-Government standards of interoperability with more modern and new systems.

Microsoft Software - £13,326 This reserve is used as part of the Council’s upgrade plan to migrate to Microsoft XP and Microsoft Office XP that is to be finalised in 2003/2004. IT Training - £2,541 This reserve is required to provide IT Unit ‘Train the Trainer’ training on the Hyperwave Document imaging product to support the Council’s Risk Management program. Geographical Information System - £38,695 This reserve together with the 2003/2004 revenue budget and IEG e-Government grant will finance the GIS system and the upgrade to the Planning system. E-Government Administration -£13,500 This reserve will be required to support future e-Government initiatives that the Council may wish to participate in. Bedfordshire & Luton On-Line - £441,251 This reserve was set up as a mechanism to enable the Council to support the Bedfordshire and Luton On-Line Consortium. Benefits IT Equipment - £ Nil This reserve covered requirements under health and safety to replace workstation screens.

IT Technical Support Staff - £ Nil This reserve represented the sum required to provide adequate IT technical cover to Council departments during 2002/2003. Commercial Services

CSD Consultancy Cost - £31,478 This sum was received from Anglian Water Services as a contribution towards possible staffing costs in the future consequent to the ending of the Agency Agreement with the Anglian Water Authority.

CSD Appropriation Account - £1,166,529 Represents unspent accumulated surpluses on DSD and DSO activities. As well as providing working balances and a business reserve fund, it is used for investing in Commercial Services activities and transfers to support General Fund projects to enhance services for Council Taxpayers. CSD Reserve for Future Losses - £530,000 This is a prudent reserve against possible losses on external contracts.

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Art Gallery Funds - £37,691 This sum has been earmarked by the CSD Board to fund future projects with the Art Gallery. Museum Funds - £53,015 This sum has been earmarked by the CSD Board to fund future projects within the museum. Earmarked for Capital Investment Housing Investment Reserve (Earmarked for New Social Housing) - £12,872,596 This reserve was held to fund housing capital investment requirements including the advance funding of the former Local Authority Social Housing Grant (LASHG) schemes. The balance in hand includes a commitment of £1.2 million to fund Private Sector Renewal for 2003/2004 and Disabled Facilities Grants up to and including 2005/2006. The uncommitted balance in the reserve is retained to cover future housing investment and will be considered in 2003/2004. Housing Capital Fees - £15,452 This reserve relates to Legal, Accountancy and Valuer’s fees received by the Council on Housing Finance Opportunity Schemes. It is earmarked to pay for Fees to be incurred by the Council on any future Housing Capital Scheme. CCTV Rapid Deployment Camera - £14,000 CCTV Transmission Points - £46,459 These reserves cover the capital cost of providing an additional rapid deployment camera that can be deployed to tackle crime hotspots. St Paul’s/St Peter's Church Security Works and Closed Churchyards - £52,085 This reserve is for works to the railings of St. Peter's Church and also some footpath works at St. Paul's Church. These matters are statutory under the Local Government Act.

Mobile Homes - £1,650,000

Set up in 2002/2003 to cover the costs (works and fees) in providing mobile homes to help alleviate homelessness. General Reserves and Balances General Fund - General Reserve (£2,845,001) and Working Balance - (£700,000) These two reserves provide the minimum general reserve necessary for the prudent administration of Council affairs, and the financing of revenue expenditure pending receipt of revenues. Executive Committee reviews the level of the reserves each year.

General Fund Outturn Savings 2002/2003 - £383,648

This reserve represents the saving on General Fund budgeted expenditure for 2002/2003. The Council’s Revenue Provisions and Reserves are listed in the notes to the Consolidated Balance Sheet.

12 Trust Funds

The Council administers various Trust Funds, including legacies left by inhabitants of the Borough. Some of these Fund Balances are invested in gilt edged and equity securities. The main trusts and their purposes are summarised as follows:

(a) House of Industry Estate Set up under the Bedford Corporation Act 1964, the Estate owns significant land holdings, income from which (together with investment income) is used to provide financial assistance within the terms of the Act. The Charity Commissioners approved a new scheme with effect from 1 April 1988.

(b) Freeman’s Common

Maintained under an Order of the Charity Commissioners in 1970. The fund owns 32 acres of farmland and various investments, income from which is used to provide financial assistance within the terms of the Order.

(c) Bedford Tree Fund The Charity was registered in September 1997 and launched in December the same year. The objectives of the fund are to enhance and improve the environment of the Borough of Bedford, for the benefit of all its present and future inhabitants through the planting and maintenance of trees.

13 Investments Investments are shown in the Consolidated Balance Sheet at original cost.

14 Information Technology

Costs relating to the introduction of new and the development of Information Technology systems internally are charged against that system in the year the expenditure is incurred.

15 Pension Costs

The Pension costs charged to the Council’s accounts in respect of its employees are equal to the contribution paid to the funded pension fund for these employees. Further costs arise in respect of certain pensions paid to retired employees on an unfunded basis. These contributions have been determined on the basis of rates set to meet 100% of the liabilities of the Superannuation Fund, in accordance with relevant Government Regulations. At the actuarial valuation of the Superannuation Fund at 31 March 2001 it was determined that additional contributions were necessary from contributing bodies (including this Council) to bring the Fund up to a ‘100%’ funded scheme. The Council have been making additional contributions from 1 April 1999 and based on the latest actuarial valuation will continue to make additional contributions until 31 March 2005. Therefore contributions paid by the Council from 1999/2000 to 2001/2002 were lower than pension costs determined under the requirements of SSAP 24, ‘Accounting for Pension Costs’. For the years 2002/2003 to 2004/2005 the contribution will be greater than required in line with the decision in 1998 to increase contributions over the six-year period. In accordance with standard accounting practice for local authorities, any additional costs, which would have arisen over the relevant periods in order to comply with SSAP 24 are disclosed by way of a note to the accounts.

16 Government Grants

Revenue Grants are credited in the Council’s accounts in the same period in which the related expenditure is charged. A list of grants received is included in Note 3 to the Cash Flow Statement.. Where the amount receivable is not precisely known an estimate is made based on the known facts. Capital grants are credited to the Government Grants and Contributions Deferred Account and written back in accordance with the Accounting Code of Practice.

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17 Exceptional Items

These are items that derive from events that fall within the normal activities of the authority and are included within the service revenue accounts.

18 Charges to Revenue

From 1 April 1994, General Fund service revenue accounts, central support services and statutory trading accounts and the CSD are charged with a capital charge for all fixed assets used in the provision of services. The total charge covers the annual provision for depreciation, where appropriate, plus a capital financing charge determined by applying a specified notional rate of interest to net asset values. For 2002/2003 that rate was 6% for assets carried at current value i.e. Operational and Non-Operational Assets and 6% for assets at historic value i.e. Infrastructure and Community Assets. (2001/2002 comparable charges were also based on 6%.)

19 Depreciation

Fixed Assets, which have a finite life, are depreciated over their useful, economic life. However, prior to 31 March 2000 no depreciation was applied where regular repairs and maintenance were carried out which extended the assets useful life in existing use and the depreciation would have been immaterial. With the adoption of Financial Report Standard (FRS15) depreciation is applied to all operational assets, on the value of the asset excluding any land value, over their finite life, which is determined at the time of acquisition or revaluation. Depreciation has been applied from re-valuations undertaken in 2001/2002. Assets with a useful life in excess of 50 years are also subject to as an assessment for any Impairment loss. Depreciation is not applied where the asset is non-depreciable freehold land, is a non-operational investment property or where the depreciation charge would be immaterial. The annual depreciation charge forms part of the capital charge to the service revenue account. Where depreciation is provided for, the straight line method is used i.e. the asset value is reduced by equal amounts each year over the estimated life of the asset to leave a nil value in the accounts at the end of the asset’s anticipated useful life. The estimated useful life for buildings is generally up to 100 years, for Equipment, Plant and Vehicles between 5 – 7 years and for Infrastructure items 10 – 20 years.

20 Associated and Subsidiary Companies

The requirement to produce group accounts was introduced by the 1996 Code in response to the issue of Financial Reporting Standard 2, Accounting for Subsidiary Undertakings (FRS2). The Council is connected to four companies that would be required to be consolidated within the annual accounts under this Standard. However, the transactions between the Council and the individual companies would have no material effect on the presented accounts and therefore have not been consolidated. Details of those relationships are outlined below and also in the notes following the Consolidated Revenue Account. The Borough Council has an investment in Bedford Bereavement Care Ltd of £20,000 comprising the total of the company’s called up share capital. The company was established to carry out cremation activities and also manages

the Council’s cemetery administration function. The Council pays the company by way of a service level agreement to carry out the cemetery administration. These costs are included in the Council’s revenue accounts. The Council also has financial relationships with North Bedfordshire Community Transport Ltd, trading as Door to Door. The company is a non-profit making organisation with charitable status. Three Councillors represent the authority on the board, the same number as the company’s other main funding body, Bedfordshire County Council. The Council’s contribution is by way of grant and is therefore included in the revenue accounts of the authority. Further relationships have been established with Bedford Kempston Regeneration Partnership Ltd. The company is limited by guarantee. The Council together with the other ‘core partners’ (Bedfordshire County Council, Bedfordshire Health Authority, Barnfield College and Bedford College) established the company to receive Single Regeneration Bid grant from the East of England Development Agency (EEDA) and pay the grants to project leaders relating to approved projects being undertaken in the Urban areas of Bedford. The Council’s expenditure on these schemes and the grants received are included in the Council’s capital and revenue accounts depending on the nature of the project. As part of the Council’s initiative to promote and market Bedford Town Centre, the Council together with Bedford Traders Association and the Bedford Town Centre Steering Group, established Bedford Town Centre Company Ltd. The aims of the company are to promote, develop and co-ordinate all aspects of the Town Centre and to promote quality, safe and clean environments for all. The Company is limited by Guarantee and therefore has no share capital.

21 Leasing Lease rental payments made under leasing agreements have been accrued and accounted for in the period to which the payment relates. Note 20 to the Consolidated Revenue Account (Page 26) shows the value of outstanding obligations for both Finance and Operating Leases. Philip Simpkins IRRV CPFA Head of Financial Services

Dated 10 December 2003

Consolidated Revenue Account

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Income and Expenditure on all services, including one-off costs funded in the year from earmarked reserves, not otherwise charged to special accounts is shown below:

2001/2002 2002/2003

Expenditure £’000

Income

£’000

Net Expenditure

£’000

By Service (Including HRA) Expenditure

£’000

Income

£’000

NetExpenditure

£’0002,200 30 2,170 Cultural & Heritage 2,188 - 2,1885,704 1,220 4,484 Recreation & Sport 6,325 1,166 5,159

524 391 133 Tourism 691 516 175557 450 107 Cemeteries & Crematorium 589 444 145

5,673 418 5.255 Environmental Health 6,141 456 5,6852,452 965 1,487 Planning & Development 3,237 827 2,4104,531 3,702 829 Property Management 4,483 3,923 5602,267 1,676 591 Highways 2,096 1,736 3602,782 2,570 212 Parking Services 2,993 2,837 156

961 224 737 Public Transport 939 173 76636,105 32,860 3,245 Housing & Housing Benefits 38,444 34,413 4,0313,388 164 3,224 Corporate & Democratic 3,844 266 3,5782,184 894 1,290 Other Services To The Public 2,989 895 2,094

69,328 45,564 23,764 Net Cost of Services 74,959 47,652 27,307 Cr 1 Surplus on Market Undertaking (Note 3) Cr 12 Cr 574 Net Increase (Cr)/Decrease in CSD Appropriation & Reserves (Note 1) 246 Cr 290 Transfer from CSD Appropriation Account to General Fund Cr 977 474 CSD Internal Profit Transfer Reversal 395 671 Parish Precepts 696 Cr 1,263 Profit on sale of LAMIT Investment - Cr 2,816 Interest Receivable Cr 2,376 - Land Compensation Interest Cr 257 Cr 4,889 Asset Management Account (Note 4) Cr 4,827 15,076 Net Operating Expenditure 20,195 6,977 Contribution to Reserves (Note 1) 4,472 Cr 3,495 Contributions from Reserves (Note 1) Cr 5,303 Cr 1,349 Capital Accounting Appropriation Account (Note 5) Cr 502 17,209 Amount to be met by Local Taxpayers & Government

Grant 18,862

Cr 5,986 Precept on Collection Fund (Note 2) Cr 6,299 Cr 30 Community Charge Surplus in Aid of Council Tax (Note 2) - Cr 112 Council Tax Surplus in Aid of Council Tax (Note 2) Cr 124 Cr 6,807 Revenue Support Grant (Note 2) Cr 6,572 Cr 5,327 National Non-Domestic Rates from Pool (Note 2) Cr 6,040 Cr 1,053 Surplus for year Cr 173 326 Transfers from General Reserve in Year 982 Cr 2,927 Balance at 1 April Cr 3,654 Cr 3,654 General Reserve Balance at 31 March Cr 2,845

Shown separately above is the Profit the CSD made in the year on works and services carried out for the Council. This is a requirement of the Best Value Accounting Code of Practice from the 2000/2001 accounts; the service expenditure has been reduced to credit back this 'profit' element. Expenditure from Earmarked Reserves and contributions to Provisions also produces fluctuations in the year on year comparative figures.

Notes to the Consolidated Revenue Account

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1 Contributions to / Expenditure from Reserves Movement to and from Reserves during 2001/2002 and 2002/2003 is shown in Note 16 to the Consolidated Balance Sheet.

2 Collection Fund Precept

From 1 April 1990 the method of financing Local Government changed. The Council now precept on the Collection Fund (see page 26) for income obtained previously via General Rate Collection and Block Grant. From 1 April 1993 the introduction of Council Tax replaced Community Charges as the means of local taxation. Monies due to the Council for National Non-Domestic Rates and Revenue Support Grants are received direct into the General Fund and not the Collection Fund. Parish Councils precept on the General Fund and not the Collection Fund. Sums collected in excess of the sums needed to pay the demands on the Collection Fund are also used to set off against the Council Tax demand. Surpluses relating to Community Charges, under regulations are set against the Borough Council Tax, whereas surpluses on the Council Tax element are shared between all the Authorities precepting on the Fund.

3 Market Undertaking

The Council operates a twice-weekly market in Bedford Town Centre and a weekly market at Saxon Centre, Kempston. During 2000/2001 a Farmers Market was introduced into the Bedford Town Centre. The financial results were as follows.

2001/2002 2002/2003 £’000 £’000 153 Income from Stallholders 143 152 Expenditure 131 1 Surplus 12

4 Transactions on the Asset Management Revenue Account

The transactions on the Asset Management Revenue and the Capital Accounting Appropriation Account were: 2001/2002 Asset Management Revenue Account 2002/2003

£ £ £ Capital Charges 62,752 Equipment, Vehicles & Plant 60,798 5,220,683 Land & Property 5,256,238 11,625 CSD Stores 11,107 11,554 Gypsy Site 11,202 5,339,345 136,513 Capital Grants Applied * 51,797 5,443,127 5,391,142 Less 5,928 Finance Leases 5,051 548,148 Depreciation 559,055 564,106 CR 4,889,051 CR 4,827,036

* Capital Grants Applied relates to grants and contributions written down towards works as follows: 2001/2002 2002/2003 £ £ £ 136,313 Single Regeneration Bid 397 - E-Government 51,400 200 Traffic Calming - 51,797

136,513 51,797

The Single Regeneration Bid schemes include contributions towards CCTV and are being applied over the life of the assets, a total of £12,314 remains to be applied.

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5 Transactions on the Capital Accounting Appropriation Account

2001/2002 Capital Accounting Appropriation Account 2002/2003 £ £ £

Income 983,891 Amortisation 1,194,992 548,148 Depreciation Adjustments 559,055 1,754,047 CR 1,532,039 1,754,047 Expenditure 46,351 Renewal Contributions* - 136,513 Capital Grants Applied 51,797 - Revenue Contributions to Capital 1,199,600 1,251,397 CR 1,349,175 CR 502,650

*In 2002/2003 the Consolidated Revenue Account has been adjusted to reflect transfers to reserves made from this account, therefore the renewal contribution of £46,370 has not been included in this account. 6 Section 137 Expenditure

Section 137 of the Local Government Act 1972, subject to various conditions and limits, empowers the Council to incur expenditure which is in the interest and benefit of the people in the area on projects not specifically authorised by other powers. This does not constitute additional monies, only a limit as to how part of the Budget may be spent where a specific enabling power is not available. The Council was permitted to spend £278,160 in 2002/2003 (£269,581 in 2001/2002) under this power and its actual expenditure was £116,679 (£128,538 in 2001/2002).

7 Publicity & Promotions

The following has been prepared as a requirement under Section 5 of the Local Government Act 1986. Under this Section local authorities must produce a separate account of their expenditure on publicity.

2001/2002 2002/2003 Net Expenditure Expenditure on Publicity Net Expenditure

£ £ 154,749 Advertising Staff Vacancies 106,856185,893 Advertising excluding Staff 225,308132,591 Tourist Information and Development 171,151207,035 Public Relations & Marketing 163,616680,268 666,931

8 Economic Development

During 2002/2003 the Council incurred net expenditure of £662,075 (£552,654 in 2001/2002) under its Economic Development powers promoting the prosperity and quality of life in Bedford, including providing events and attractions in the Town Centre for visitors and regular users and establishing partnerships to carry out agreed projects.

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9 Local Government Goods and Services Act 1970 As authorised by Section 1 of the above Act this authority carries out work and maintenance in connection with land and buildings on behalf of Bedfordshire County Council, Bedfordshire Pilgrims and other Housing Associations, Mid Bedfordshire District Council and Anglian Water Services. Works undertaken also include refuse collection and vehicle maintenance. The value of work undertaken is estimated at £5.27 million (28% of turnover) and is detailed below.

10 Pension Costs In 2002/2003 the Council paid an employer’s contribution of £2,306,833 (£1,920,981 in 2001/2002) representing 13.50% (12.49% in 2001/2002) of the employees' pensionable pay into the Bedfordshire County Council's Superannuation Fund, which provides members with defined benefits related to pay and service. The Fund Actuary, based on triennial actuarial valuations, determines the contribution rate. The last review was at 31 March 2001 and was effective from 1 April 2002. That review identified that assets held at the valuation date were sufficient to cover 87% of accrued liabilities assessed at that date. To ensure the fund meets its future liabilities the actuary recommended increasing employers contributions each year as a percentage of employees’ contributions. In 2002/2003 the Council paid contributions to the fund of £2,306,833 based on 315% of employees contributions. The 2001/2002 comparable figures were £1,920,981 and 285%. The Funds Actuary has advised that the contributions it would have been necessary to provide in the year in accordance with SSAP 24 'Accounting for Pension Costs' are £2,032,815 (£1,719,624 in 2001/2002) representing 11.90% (11.18% on 2001/2002) of pensionable pay. In addition the Council is responsible for all pension payments relating to added years benefits it has awarded, together with the related increases. In 2002/2003 these amounted to £255,746 (£252,225 in 2001/2002) representing 1.50% of pensionable pay (1.64% in 2001/2002). The capital value of discretionary pension increases, relating to early retirement of staff agreed in 2002/2003 and prior years is estimated at £4,600,000. For comparison the capital value of the increases agreed in 2001/2002 was £198,868 and those agreed prior to 2001/2002 was £4,363,701, a total of £4,562,569. Further information can be found in the Bedfordshire County Council Superannuation Funds Annual Report which is available from the Chief Finance Officer, Bedfordshire County Council, County Hall, Bedford MK42 9AP.

11 Housing Benefits

At 31 March 2003 the Council’s Housing Benefit Subsidy (HBS) system reconciled with the Council’s Financial Management System (FMS) using the First Software system introduced in November 2002. In previous years there was a variation between control totals produced by the HBS and FMS systems. When the original system was closed in November the HBS system showed benefits of £5,680 (£9,950 in 2001/2002) greater than FMS. This represented 0.02% (0.03% in 2001/2002) of the total. A variation to the figures in the accounts may occur on settlement of the Council's Housing Benefit claim. The amount of any variation is unlikely to be material.

12 Agency Services

The Council carries out certain work on an agency basis for which, other than administration costs, it is fully reimbursed. The principal area of work is as highways agent for Bedfordshire County Council. The Council's Commercial Services Department (CSD) undertakes the ongoing maintenance of the urban highways, traffic control and street lighting maintenance, although the CSD does have to compete with private contractors for work over £25,000 and for 60% of the total value of the jobs under that figure. Total recoverable expenditure of a revenue nature in 2002/2003 was £1,454,341 (£1,559,667 in 2001/2002).

13 Exceptional Items

In 2001/2002 the Council received £1,479,081 from the sale of its investment in Local Authorities Mutual Investment Trust (LAMIT). This represented £1,262,530 over and above the original purchase price of the investments. The decision to sell the investment was made following notification that the Trust would be wound up in 2002/2003, 98% of investors redeemed their investment at the same time as the Council. In 2002/2003 the Council received £256,518 from the Highway Agency being interest on the delayed payment of land compensation following the Compulsory Purchase by the Highways Agency of land used for the Bedford Bypass.

2001/2002 2002/2003 Other Other

Bodies Total Works and Maintenance Bodies Total £'000 £'000 % £'000 £'000 %

234 2,573 10 Highways and Sewerage 418 3,686 11 1,366 1,959 70 General Maintenance 1,654 2,579 64

364 1,889 19 Ground Maintenance 450 2,159 21 2,388 4,224 57 Refuse Collection 2,675 4,703 57

85 1,711 5 Cleansing 69 1,920 4 - 3,846 - Leisure - 3,942 -

4,437 16,202 27 5,266 18,989 28

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14 Associated and Subsidiary Companies

The Council is associated with a number of companies whose assets and liabilities are not included in the Council's accounts. (i) Bedford Bereavement Care Ltd – Company Registration No. 3033404 The Council holds all £20,000 of issued share capital, and wholly owns this company. The principal activity of the company is to provide

crematorium services and the administration of the Council's cemeteries. The company commenced trading on 1 July 1995, in premises at Norse Road, Bedford leased from the Borough Council. The registered office for the company is 104 Norse Road, Bedford, MK41 0RL. The company made a profit on its activities for the period to 31 March 2003 of £68,258 (£54,202 for the period to 31 March 2002) and a dividend of £47,400 was paid (£28,300 in 2001/2002). At 31 March 2003 the Council was due to receive £20,688 (£33,133 at 31 March 2002) from the company and also was due to pay to the company £5,508 (£33,148 at 31 March 2002). The Company also had £51,000 invested temporarily with the Borough Council at 31 March 2003 (£58,009 at 31 March 2002). Interest received on investments with the Borough Council in 2002/2003 totalled £3,403 (£3,070 in 2001/2002). Copies of the company's accounts are available from the Service Manager, Accountancy, Bedford Borough Council, Town Hall, St Paul's Square, Bedford MK40 1SJ.

(ii) Bedford Kempston Regeneration Partnership Ltd – Company Registration No. 3953095

This is a company limited by guarantee and has no share capital. It receives monies from the East of England Development Agency (EEDA)

and pays grants to the appropriate project leader for each of the projects comprising the Single Regeneration Bid approved by EEDA. This company was formally incorporated on 16 March 2000.

The company made a financial surplus of £6,910 in 2002/2003 (£6,806 in 2001/2002). At 31 March 2003 the company held £96,304

(£173,633 at 31 March 2002) of grant monies due to be paid to the Borough Council. During 2002/2003 the Council received £145,122 of grant (£213,346 in 2001/2002) via the company. At 31 March 2003 the company had £80,564 temporarily invested with the Borough Council (£426,118 at 31 March 2002). Interest received on investments in 2002/2003 totalled £7,741 (£9,440 in 2001/2002). The 2002/2003 figures have been included subject to audit. Copies of the company’s financial accounts can be obtained from the Service Manager, Accountancy, Bedford Borough Council, Town Hall, St Paul's Square, Bedford MK40 1SJ.

(iii) Bedford Town Centre Company Ltd – Company Registration No, 3949008 This is a company limited by guarantee and has no share capital. Its main object is to promote and develop Bedford Town Centre. This

company was formally incorporated on 16 March 2000. The company operates from premises at 1 Lurke Street, Bedford, MK40 3TN. The companies registered office is Town Hall, St Paul’s Square, Bedford MK40 1SJ.

The company made a profit on its activities to 31 March 2003 of £2,581 (£6,862 loss for the period to 31 March 2002). The company had no

monies invested with the Borough Council during 2002/2003 or in 2001/2002 and therefore received no interest. At 31 March 2003 the Council was due to receive £3,337 (£8,081 at 31 March 2002) from the company and the amount outstanding to the Company was £ nil at 31 March 2002 and 2003. Copies of the company’s accounts are available from the Service Manager, Accountancy, Town Hall, St Paul’s Square, Bedford, MK40 1SJ.

(iv) North Bedfordshire Community Transport Ltd - Company Registration No. 27716R This is a non-profit making organisation with charitable status, trading as Door to Door. The North Bedfordshire Community Transport Ltd

reached a break even position in 2002/2003 compared to a deficit of £29,771 in 2001/2002. The company provides transport services for those who find the use of ordinary bus services difficult because of disability. The services are provided via the Dial a Ride service, or Group and Private Hire, which makes transport available to non-profit making groups. The Borough Council made grants to the company totalling £26,500 in 2002/2003 (£36,000 in 2001/2002) and payments under the council’s Concessionary Fare Scheme of £30,244 (£26,538 in 2001/2002). Copies of the company's accounts are available from North Bedfordshire Community Transport Ltd, c/o County Commercial Service, London Road, Bedford MK42 0QG.

15 Officers Remuneration

The number of employees whose total remuneration (excluding pension contributions but including gross taxable benefits) was £50,000 or more in bands of £10,000 were:

2001/2002 2002/2003 Employees Remuneration Band Employees

6 £50,000 - £59,999 7 2 £60,000 - £69,999 2 1 £70,000 - £79,999 1 1 £80,000 - £89,999 1

Nil £90,000 - £99,999 Nil 1 £100,000 - £109,999 1

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16 Members Allowances The total of Members allowances paid in 2002/2003 was £300,587 compared to £281,684 paid in 2001/2002, this reflects the approved revised Members Allowance Scheme effective from 1 April 2001. Further details relating to Members Allowances can be obtained from the Service Manager (Exchequer Services), Town Hall, St Paul’s Square, Bedford MK40 1SJ

17 Related Party Transactions

The Council is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the Council or be controlled or influenced by the Council Information in respect of material transactions with related parties not disclosed elsewhere within the Statement of Accounts is shown below. The Elected Mayor, Council Members, Chief Officers, their close relatives or members of the same household had no material declarable transactions with the Council. However, during the year the Council made payments totalling £65,891 to companies where an interest was held. The Council provides material financial assistance to various Voluntary Organisations and Community Centres the total of those payments are listed below. Payment to Bedfordshire and River Ivel Drainage Board is a levy on the Council by that authority. 2001/2002 2002/200

3 £’000 £’000 Grants to Voluntary Organisations (Note 1)

590 676

Bedfordshire & River Ivel Drainage Board

291 304

Payments to Community Centres 36 31 Members Discretionary Fund (Note 2)

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917 1,220 Note 1 This includes one-off funding in each year. Note 2 In 2002/2003 the Council established a Reserve to provide for one-off funding for each member in respect of projects identified in their Wards that the Council was able to fund. The balance remaining is included in the list of Reserves in Note 16 to the Consolidated Balance Sheet. Members represent the Council on various organisations. The appointments are reviewed annually unless a specific termination date for the term of office applies.

18 Building Control Trading Account

The Local Authority Building Control Regulations require the disclosure of information regarding the setting of charges for the administration of the building control function. However, certain activities performed by the Building Control Unit cannot be charged for, such as providing general advice and liasing with other statutory authorities. The statement below shows the total cost of operating the building control unit divided between chargeable and non-chargeable activities. Non Total Non TotalChargeable Chargeable Chargeable Chargeable

2001/2002 2001/2002 2001/2002 2002/2003 2002/2003 2002/2003 £ £ £ £ £ £

Expenditure 262,549 56,156 318,705 Employee Expenses 302,769 64,758 367,527

9,949 2,128 12,077 Premises 10,899 2,331 13,23015,922 3,405 19,327 Transport 16,936 3,622 20,55811,962 2,559 14,521 Supplies & Services 12,771 2,732 15,50333,210 15,442 48,652 Central & Support Service Charges 35,166 16,352 51,518

333,592 79,690 413,282 Total Expenditure 378,541 89,795 468,336 Income

424,089 - 424,089 Building Regulation Charges 470,120 - 470,1208,082 85,400 93,482 Miscellaneous Income 7,757 87,500 95,257

432,171 85,400 517,571 Total Income 477,877 87,500 565,377

98,579 5,710 104,289 Surplus/(Deficit) for Year 99,336 (2,295) 97,041

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19 Discontinued Activities None.

20 Leases

Finance Leases (i) Vehicles and Equipment

Between 1975 and 1990, the Council acquired the majority of vehicles and equipment through Finance Leases. Lease payments for the year amounted to £4,730 (£5,607 in 2001/2002). All of these lease payments relate to secondary period rentals.

(ii) Industrial Buildings In 1982, the Council financed 16 unit factories through a Finance Lease, the annual payment made in 2002/2003 was £321 (£321 in 2001/2002) and related to secondary period lease rentals.

During 2002/2003 the Council entered into a 5-year Finance Lease for Radio Equipment to be used in the Controlled Parking Zone. The capital cost of the equipment was £8,276 and the annual lease payment £1,943. Operating Leases The Council also acquires equipment, vehicles and plant through Operating Leases. The current capital value of the assets held under these outstanding obligations is £4,188,452 (£3,464,280 in 2001/2002). Lease payments for the year amounted to £625,422 (£582,738 in 2001/2002). The increase in capital values and expenditure in the year reflects the lease of On-street Parking Equipment and Refuse and Cleansing vehicles. The Council is committed to making payments under these Operating Leases in future years, as follows: 2003/2004 £404,180 2004/2005 £317,080 2005/2006 £189,218 2006/2007 £139,592 2007/2008 and after £149,009

21 Transport Act 2000

The Council operated a Concessionary Travel Scheme which enabled the over 60’s and people with disabilities, who are resident in the Borough, to travel for half the adult single or return fare subject to a maximum of 40p and 80p respectively. The permit enabled travel on local bus services for journeys starting or finishing in Bedfordshire or Luton. The Council provided Park & Ride services, one operated from Aspects Car Park to Mill Street and Corn Exchange in the Town Centre. The service operated Monday to Friday. The second service operated from Melbourne Street Car Park to the Corn Exchange on Saturdays. The fares for both services were 30p per adult and 20p per child.

Expend Income Net £’000 £’000 £’000 Concessionary Fare 526 - 526 Park & Ride 76 13 63

Collection Fund

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Income and Expenditure Account

2001/2002 Income 2002/2003

£ £ £ 43,999,718 Business Rates (Note 1) 42,662,434

Dr 783 Community Charges (Note 3) 374 - Community Charge Benefits Dr 374 44,055,748 Council Tax (Note 2) 48,594,193 5,660,946 Council Tax Benefits 6,120,120 46,926 C.Tax Benefit Subsidy Limitation Contribution - 97,376,747 93,762,555 97,376,747 Expenditure £ Precepts and Demands £ £ 39,017,064 Bedfordshire County Council 43,256,901 5,985,900 Bedford Borough Council 6,299,300 3,553,821 Bedfordshire Police Authority 4,016,573 53,572,774 National Non-Domestic Rate Pool 43,778,196 - Contribution to NNDR Pool 42,440,764 221,522 - Cost of Collection 221,670 42,662,434 30,000 Community Charge in Aid of Council Tax Distributed - 896,815 Council Tax Surplus in Aid of Council Tax Distributed 1,000,000

188,611 Provision for Uncollectable Amounts (Note 5) 338,460 93,671,929 97,573,668 Cr 90,626 Balance for Year Dr 196,921 2,396,314 Balance at 1 April 2002 2,486,940

2,486,940 Fund Balance at 31 March 2003 2,290,019 These accounts represent the transactions of the Collection Fund, which is a statutory fund under the provisions of the Local Government Finance Acts 1988 and 1992. The fund is maintained separately from the main accounts of the Council, but from 1 April 1993 it has been included in the Consolidated Balance Sheet (see page 30). Prior to this date the Collection Fund Balance Sheet appeared as a separate account. The 1988 Act and the relevant regulations, directions and specifications issued as Statutory Instruments under the Act prescribe Income and Expenditure to the fund. The Collection Fund covers all Council Tax, residual Community Charges and National Non-domestic Rates (NNDR) collected in the Bedford Borough area. The estimated surplus on the Fund for each year (plus or minus any adjustments relating to the previous years surplus compared to the estimate for that year) is required to be distributed between Bedford Borough Council, Bedfordshire County Council and Bedfordshire Police Authority, in proportion to their precepts for that year. Any deficits are recovered by contributions from those authorities. Council Tax Benefit Subsidy Limitation was introduced under Section 31 of the Local Government Act 1999. Under this Section, from financial year 1999/2000 authorities setting budgets in excess of Government guidelines are required to contribute to the resultant additional Council Tax benefit costs. Notes 1 Business Rates

Under the arrangements for uniform business rates, the Council collects non-domestic rates for the area based on local rateable values multiplied by a uniform rate (the Multiplier) set by Central Government and applied across the country. Certain reliefs are available and the figure shown as collectable is net of these reliefs.

The total amount less deductions for the cost of collection and bad and doubtful debts is paid to a central pool (NNDR Pool) managed by Central Government. The NNDR Pool distributes to authorities their share based on a standard amount per head of population. The total non-domestic rateable value at 31 March 2003 was £114.31 million compared to £113.82 million at 31 March 2002. The rate in the pound for business rates in 2002/2003 was 43.7p and 43.0p in 2001/2002.

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2 Council Tax

Council Tax income derives from charges raised according to the value of residential properties, which have been classified into 8 valuation bands on estimated values at 1 April 1991. Individual charges are calculated by estimating the amount of income required by the Collection Fund to pay the County, Police and Borough precept requirements for the forthcoming year and divided by the Council Tax Base. The total number of properties adjusted by a proportion to convert the number to a Band D equivalent and adjusted for discounts was 51,042.98 for 2002/03 (50,580.86 for 2001/2002). This figure, the Council Tax Base, is estimated for the next financial year based on the number of properties on the Valuation List at 30 November. Prior to discounts etc the number in each Property Band were:

No. of Properties 2001/2002 2002/2003 Band A 5,619 5,657 Band B 11,997 12,038 Band C 13,720 13,846 Band D 8,351 8,425 Band E 8,020 8,129 Band F 5,863 5,987 Band G 3,625 3,745 Band H 380 394

TOTAL 57,575 58,221

The average Council Tax for Borough (including Parishes), County and Police services at Band D was £1,049.56 (£959.98 in 2001/2002). However, the effect of special item charges and parish precepts results in a variation in the average Band D Tax in all areas of the Borough.

Council Tax bills are based on the following proportions of Band D Council Tax

Band A 0.67 Band E 1.22 Band B 0.78 Band F 1.44 Band C 0.89 Band G 1.67 Band D 1.00 Band H 2.00

Income from Council Tax

2001/2002 2002/2003 £ £ 55,541,584 Council Tax Levied 61,236,524

387,072 Amended liability 555,780Dr 64,039 Disabled Relief Dr 70,301Dr 4,556,387 Discounts Dr 5,429,855Dr 1,592,125 Property Exemptions Dr 1,577,816

49,716,105 54,714,332 Less

5,660,946 Council Tax Benefits 6,120,120Cr 589 Transitional Reduction 19

44,055,748 48,594,193

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3 Community Charges

From 1 April 1993 Community Charges were replaced as the method of Local Taxation by Council Tax. The Community Charge figures below represent the adjustments identified after 31 March 1993.

2001/2002 2002/2003£ Income from Community Charges £ £

Dr 934 Amended Liabilities – PCC - Dr 934 -

Less - Community Charge Benefits Cr 374

Cr 151 Transitional Relief - Cr 374Dr 783 Cr 374

4 Interest Paid and Received

These are sums of money paid to Non-Domestic Ratepayers relating to backdated reductions in Rateable Values after appeals. The monies are recovered from the Office of the Deputy Prime Minister and are included as a debtor within the Collection Fund. In 2002/2003 £98,183 was paid out and will be recovered in 2003/2004, (the interest paid in 2001/2002 totalled £92,859)

5 Provision for Uncollectable Amounts Council Tax Community

ChargesTotal Non-Domestic

Rates £ £ £ £

Balance at 1 April 2002 1,355,850 200,716 1,556,566 667,021 Less Write (Off)/On)in Year (72,096) (165,075) (237,171) (122,750) Contribution Made 339,417 (957) 338,460 218,476 Balance 31 March 2003 1,623,171 34,684 1,657,855 762,747

Consolidated Balance Sheet as at 31 March 2003

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31.3.2002 31.3.2003

£ £ £ £ Net Fixed Assets (Note 1) Operational Assets

60,498,499 - Other Land and Buildings 60,231,444 3,858,839 - Community Assets 3,811,963

605,277 - Infrastructure 579,832 250,172 - Equipment, Plant and Vehicles 228,302

65,212,787 64,851,541 590,165 Under Construction 2,216,785 37,302,376 Non Operational Assets 36,208,198 103,105,328 103,276,524 - Deferred Charges (Note 2) - 24,139,616 Long Term Investments (Note 3) 24,118,051 1,721,946 Long Term Debtors (Note 14) 1,305,641 128,966,890 Total Long Term Assets 128,700,216 Current Assets

838,776 Stocks, Stores and W.I.P (Note 5) 976,852 10,299,609 Debtors (Note 6) 11,726,314 33,060,158 Short Term Investments 32,326,533

44,198,543 45,029,699 173,165,433 173,729,915 Less Current Liabilities

1,405,047 Temporary Loans & Money Held for Third Parties 1,398,204 12,155,457 Creditors (Note 7) 10,181,464

24,596 Deposits 24,627 1,601,750 Cash Overdrawn 2,145,228

15,186,850 13,749,523 157,978,583 Net Current Assets 159,980,392

1,296,034 Less Provisions (Note 15) 1,703,945 - Less Deferred Liabilities (Note 13) - - Less Long Term Borrowing (Note 9) - 156,682,549 Total Assets less Liabilities 158,276,447 Financed By: 71,352,662 Fixed Asset Restatement Reserve (Note 11) 70,216,955 44,203,228 Capital Financing Reserve (Note 11) 47,692,037 1,314,377 Capital Contributions Deferred (Note 8) 1,441,379 341,876 Capital Contributions Unapplied (Note 10) 701,496 1,721,946 Deferred Capital Receipts (Note 12) 1,305,641 35,261,520 Reserves and Balances (Note 16) 34,628,920 2,486,940 Collection Fund Balances 2,290,019 156,682,549 Total Equity 158,276,447

Prepared by: Philip Simpkins IRRV CPFA Head of Financial Services Dated 10 December 2003 This Statement of Accounts, Revenue Accounts and Consolidated Balance Sheet present fairly the financial position of Bedford Borough Council at 31 March 2003, in relation to its income and expenditure for the financial year 2002/2003. Certified by: Alan Harris CPFA Director of Finance & Corporate Strategy & Deputy Chief Executive Dated 10 December 2003

Councillor John Mingay Speaker of the Council Dated 10 December 2003

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1 Fixed Assets The valuation of the Council’s assets has been carried out in accordance with the Royal Institute of Chartered Surveyors, Statements of Asset Valuation Practice and Guidance Notes. The valuation report for 2002/2003 has been prepared and certified by the Council’s Service Manager (Land & Property), Mr D Joyce ARICS reflecting valuations undertaken in 2002/2003 as the position at 1 April 2002. The properties have been valued using open market value for existing use or depreciated replacement cost as appropriate. Operational properties are depreciated over 100 years, the estimated finite life, using the straight-line method. The properties are re-valued on a five-year rolling programme, in this way every property is re-valued once in every five years. A property is also re-valued in any year significant capital works are completed or when a disposal of part of the asset occurs. Vehicles, Plant and Equipment are depreciated, using the straight line method, over the life of the asset, usually five years, based on the original purchase price. Movements in fixed assets during the year were as follows:

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£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Gross Book Value 31.3.2002 60,877 448 3,859 1,399 37,302 590 - 104,475 Revaluations & Restatements 111 - - - 2,491 - - 2,602 Value at 1.4.2002 60,988 448 3,859 1,399 39,793 590 - 107,077 Additions/Expenditure - 24 - - - 1,842 - 1,866 Transfers - - -47 109 - -215 153 0 Disposals - - - - -3,585 - - -3,585 Revaluations & Restatements during year - - - - - - -153 -153 Gross Book Value 31.3.2003 60,988 472 3,812 1,508 36,208 2,217 0 105,205 Cumulative Depreciation at 1.4.02 -378 -198 - -794 - - - -1,370 Depreciation for this Year -378 -46 - -134 - - - -558 60,232 228 3,812 580 36,208 2,217 - 103,277 *Expenditure on items such as traffic calming which is immediately adopted by the Highway Authority on completion and items which maintain the value of the authority’s assets. The Council has transferred to the General Fund or disposed of all its Housing Revenue Account property. The Local Government and Housing Act 1989 introduced new arrangements for the control of capital expenditure by Local Authorities. From 1990/91 onwards the Government issues credit approvals each year with respect to the Council’s credit arrangements and expenditure for capital purposes.

In addition authorities are permitted to supplement these approvals with prescribed proportions of capital receipts. Method of Finance: Expenditure Usable Capital Reserved Grants And for Year Receipts Capital Receipts Revenue Contributions £’000 £’000 £’000 £’000 £’000 Housing Investment Programme - General Fund 6,740 4,675 859 891 315 Other Services 2,843 - 1,690 974 179 TOTAL 9,583 4,675 2,549 1,865 494

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Represented By: £’000 Fixed Assets 1,842 Deferred Charges 7,075 Capital Items from Revenue 666 TOTAL 9,583

Major Items of Capital Expenditure Attributable to ‘Other Services’ in 2002/2003 were: £’000 £’000 Footpath Reconstruction 270 Bedford Park Lake Restoration 65 Lurke St Multi-Storey Car Park Refurbishment 195 Harpur St & Lime St Environmental Improvements 60 Regeneration Schemes 161 Amenity Lighting 56 Play Area Refurbishment 147 Council Owned Bridges Improvements 56 Queens Walk Wall Repair 121 Hillgrounds Traffic Calming 53 Wootton Development 84 North River Wall & Weir Repair 52 Significant Projects for Continuing and Future Capital Expenditure at 31 March include: £’000 £’000 Town Centre Regeneration 2,762 Estate Roads Improvement 133 Provision of Homelessness Units 1,650 Lurke St Multi-Storey Car Park Security Work 102 Multi-Storey Car Parks Refurbishment 1,110 Embankment Renaissance Works 93 Footpath Reconstruction 530 Multi-Storey Car Parks Structural Investigations 80 Berry Farm, Wootton – Infrastructure 250 Oasis Pool Refurbishment Works 75 Disability Discrimination Remedial Works 196 Council Owned Bridges Refurbishment 70 Provision of Recycling Containers 150 St Paul’s Railings Repair 70 Museum & Art Gallery Refurbishment 135 The above schemes relate to items within the Council’s Capital Programme at 31 March 2003 for which finance has been made available and shows anticipated expenditure in 2003/2004 A Summary of the Council’s Assets is shown below:

31.3.2002 31.3.2003 1 Town Hall Complex 1 2 Depots and Workshops 2 4 Multi-storey Car Parks 4 5 Surface Car Parks 5

435 Parks and Recreation Grounds (Hectares) 435 1 Leisure Centre 1 3 Swimming Pools 3 1 Golf Course 1 1 Museum 1 1 Art Gallery 1 2 Cemeteries 2 9 Community Centres 9

93 Industrial Units 93 128 Shops on Lease 128

A more detailed breakdown of individual General Fund assets and the Capital Programme can be obtained from the Head of Financial Services, Town Hall, St Paul’s Square, Bedford, MK40 1SJ. 2 Deferred Charges

Balance at 1 April

Expenditure Amounts Written Off

Balance at31 March

£'000 £'000 £'000 £'000Housing Association Grants - 5,566 5,566 -Improvement Grants - 1,173 1,173 -Parish Grants - 265 265 -Section 106 Meadowsweet - 43 43 -Conservation Area Grants - 17 17 -Access Grants - 11 11 -

- 7,075 7,075 -

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3 Schedule of Investments

2001/2002 2002/2003 Cost Price Approx Cost Price Approx

or Estimated Market or Estimated Market Value at Date Value Nominal Value at Date Value Nominal

of Acquisition at 31/3/2002 Value of Acquisition at 31/3/2003 Value £ £ £ EXTERNAL INVESTMENT £ £ £

24,000,000 24,000,000 23,820,551 Fund Managers (Capital Receipts) 24,000,000 24,000,000 23,955,370 General Fund

12,704 13,067 12,823 - 8% Treasury Stock 2002/2006 - - -83 176 252 - 3 1/2% Conversion Stock 83 200 252

2,983 5,640 8,566 - 3 1/2% War Stock 2,983 6,532 8,566272 125 272 Parish Councils - 2 1/2% Consol Stk 272 143 272

107,574 107,574 107,574 Harrowden Leisure Facilities a/c 98,713 98,713 98,71316,000 16,000 16,000 5% Bedford Citizen Housing Assoc Stk 16,000 16,000 16,000

24,139,616 24,142,582 23,966,038 24,118,051 24,121,588 24,079,173 TRUST FUND INVESTMENTS House of Industry

662 337 662 - 2 1/2% Consolidated Stock 662 349 662259,307 259,307 259,307 - Borough Council 83,105 83,105 83,105602,990 596,880 454,316 - COIF Charities Fixed Interest Fund 602,990 624,094 454,316

- - - - COIF Charities Investment Fund 250,000 246,173 33,340 Freemans Common

11,746 11,746 11,746 - Borough Council 11,746 11,746 11,746687 780 583 - COIF Charities Fixed Interest Fund 687 801 583

Bedford Tree Fund 12,340 12,340 12,340 - Borough Council 12,494 12,494 12,494

887,732 881,390 961,684 978,762

The difference in value between the market value and the nominal value of Investments held by Fund Managers and of Government Stocks held reflects the interest likely to be earned over the life of the investment, if held to maturity. Where current interest rates are lower than the interest rate on the investment the nominal value will be lower and vice versa. COIF (Charities Official Investment Fund) investments are Unit based, therefore the Nominal Value shows the number of Units held. The Value of the Acquisition and the Market Value are shown as a monetary value. House of Industry held 454,316 units in the COIF Charities Fixed Interest Fund at 31 March 2002 and 31 March 2003 and purchased 33,340 units on 20 March 2003 in the COIF Charities Investment Fund. Freemans Common held 583 units in the COIF Charities Fixed Interest Fund at 31 March 2002 and 31 March 2003. 4 Contingent Liability

A liability existed, at 31 March 2002, relating to £5,500 received in 1977 held in relation to land at Meadway, Harrold. The liability was resolved during 2002/2003.

5 Stocks and Work in Progress 31.3.2002 31.3.2003

£ £ Work in Progress

541,644 Rechargeable Works (inc. D.S.O) 638,225 Stocks

209,642 Commercial Services Department 202,23810,074 Printing and Central Stationery Stores 7,78626,079 Tourist Information 42,26237,801 Mausoleums 68,6235,245 Controlled Parking Zone 1,3148,291 Other 16,404

838,776 976,852

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6 Debtors

31.3.2002 31.3.2003 £ £

Amounts Falling Due in One Year 304,162 Government Departments 164,140

1,360,090 Other Local Authorities 1,803,2225,287,766 Local Taxpayers 6,490,1924,334,319 Sundry Debtors 5,088,5011,472,387 Accrued Interest re Investments 973,8721,171,768 Prepaid Creditors 976,962

Amounts Falling Due After One Year 81,833 Car Loans to Employees 91,082

14,012,325 15,587,971 Less Provision for Bad Debts

2,223,587 Local Taxpayers 2,420,6021,489,129 Sundry Debtors 1,441,055

10,299,609 11,726,314 7 Creditors

31.3.2002 31.3.2003 £ £ 6,065,543 Government Departments 2,110,249

904,522 Other Local Authorities 810,9283,516,186 Sundry Creditors 5,261,2411,669,206 Prepayments 1,999,046

12,155,457 10,181,464 8 Capital Contributions Deferred This represents capital expenditure or depreciable items financed from capital grants e.g. Netball Centre. 9 Long Term Borrowing

The Council has repaid all its outstanding long-term debt and became debt-free on 31 March 1991. 10 Provision For Credit Liabilities, Usable Capital Receipts and Grants and Contributions Unapplied

The Provision for Credit Liabilities (PCL) now forms part of the Capital Financing Reserve. The Council maintains a memorandum PCL account that is shown below. Usable Capital Receipts are available to finance future capital expenditure and Grants and Contributions are written down to the Asset Management Revenue Account over the useful life of the asset to which it relates. 2001/2002 2002/2003 Provision Usable Grants &

for Credit Capital Contributions Liabilities Receipts Unapplied

£'000 Sources £'000 £'000 £'000 1,131 Sales of Land and Property - 4,245 -

178 Repayment of Advances (incl Social Housing Grants) - 430 - 6,636 Contributions, Grants etc 5,566 - 595 7,945 5,566 4,675 595

Application 8,082 Financing of New Capital Expenditure 2,549 4,675 179

- Transfers to Reserves & Provisions - - 57 715 Adjustments re Commuted Sums 708 - -

8,797 3,257 4,675 236

-852 Net Movement for Year 2,309 - 359 14,943 Balance at Beginning of Year 13,749 - 342 14,091 Balance at End of Year 16,058 - 701

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Grants and Contributions Unapplied balance at 31 March relates to : 2002 2003 £ £

- E-Government 148,600 147,500 Oasis Decennial Insurance 147,500

- Sports Facilities – Kempston 27,800 - Sports Facilities – Elstow 112,500 - Elstow Road – Barretts 100,000

50,000 ASDA Marsh Leys Landscaping 50,000 47,000 Eagle Works – Harrold 47,000 97,156 Harrowden Planning Gain 43,275

- Play Equipment – Bedford Rd, Kempston 12,000 Land – West Elstow 10,000

220 Single Regeneration Budget 2,821 341,876 701,496

11 Capital Financing and Fixed Asset Restatement Reserves

Capital Financing Reserve £'000 £'000 Balance at 1 April 2002 44,203

Social Housing Grants 5,566 Other Capital Grants 52 RCCO Equipment, Vehicles & Plant 333 5,951 50,154

Less Asset Depreciation 559

Commutation Adjustment 708 Grant Amortisation 1,195 2,462

Balance at 31 March 2003 47,692 Of the balance of £47,692,037 at 31 March 2003 (£44,203,228 at 31 March 2002), £16,057,847 (£13,748,938) is available to finance expenditure and has been earmarked to finance the approved funded and committed Capital Programme. The remaining £31,634,190 (£30,454,290) represents the financing of capital expenditure incurred in previous years and is not available for spending.

Fixed Asset Restatement Reserve £'000

Balance at 1 April 2002 71,353 Revaluation of Land and Property 2,602 Write Out of Assets -3,585 Expenditure which adds no value to the Asset -120 Expenditure on Adopted Items -33 Balance at 31 March 2003 70,217

12 Deferred Capital Receipts

Deferred Capital Receipts are amounts derived from the sales of assets, which will be received in instalments over agreed periods of time. They arise principally from mortgages on sales of Council Houses, which form the main part of mortgages under Long Term Debtors.

13 Deferred Liabilities

The 1993 Code of Practice required assets acquired under finance leases to be capitalised and included in the Accounts together with an equivalent liability to pay future rentals. During 2002/2003 the Council entered into a 5-year Finance Lease for radio equipment to be used in the Controlled Parking Zone. The capital cost of the equipment was £8,276 and the annual lease payment £1,943.

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14 Long Term Debtors

Long Term Debtors consist of mortgage loans to Housing Associations and house buyers and long term loans to Star Rowing Club, and Oakley Parish Council. Details of the number of Mortgage and other loans to Housing Associations and house buyers at 31 March are:

31 March 2002 31 March 2003 GRF Mortgages 5 3 Housing Associations 15 11 Housing Mortgages 75 61 Hire Purchase 9 8

15 Provisions

Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003

Cultural & Heritage £ £ £ £ Orchestral Support 205,353 - 31,250 174,103

Recreation & Sport - - - -

- Housing Services Housing Survey Ethnic Needs 6,710 248 3,333 3,625 Housing Stock Condition Survey 7,773 - 7,773 - Environmental Services Bedford Healthier Partnership Board Contribution 20,000 - - 20,000 Dog Litter Bin Emptying 9,790 - 9,790 - Commuted Sums - Grassed Areas 407,259 553,359 - 960,618 Concessionary Fares 1,500 - - 1,500 Abandoned Vehicles - 19,735 9,447 10,288 Planning Services St Cuthbert’s Enhancement Scheme 43,400 - 4,400 39,000 Highways Roads & Transport Commuted Sums – Soakaway Maintenance 66,400 7,500 - 73,900

Economic Development & Community Welfare SRB - Project Management 48,425 6,754 677 54,502 SRB - Community Liaison Programme 82,678 18,086 25,617 75,147 SRB - Community Support Programme 51,878 10,300 2,412 59,766 SRB - Capital 18,000 - - 18,000 Economic Development Trainee 8,670 30,000 15,511 23,159 Disability Benefits Advisor 30,455 - 30,455 - Grants to Voluntary Bodies Pre 2001/2002 64,107 - - 64,107 Grants to Voluntary Bodies 2002/2003 102,505 - 98,505 4,000 Specialist Benefits Adviser 47,821 12,537 30,933 29,425 Youth Convention - 27,000 6,776 20,224 One-Off Grant 2003/2004 - 50,000 - 50,000

Property Management Maintenance of Unadopted Land 6,597 - 6,597 -

Corporate Disaster Recovery (IT Systems) Contract 15,213 2,286 528 16,971 Miscellaneous Bequests 4,495 167 - 4,662 Mayors Citizenship Awards Bequest - 1,025 77 948 Income Generation & Sponsorship Officer 34,450 - 34,450 - Mayoral Referendum 12,555 - 12,555 -

1,296,034 738,997 331,086 1,703,945

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16 Reserves

Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003

Cultural & Heritage £ £ £ £ Arts (Museum Exhibits) 31,227 2,078 5,623 27,682 Museum & CHAG IT Facilities 19,884 15,200 35,084 - Museum Off Site Store/Incidentals 9,268 - 927 8,341 Music Event Summer 2003 - 7,500 - 7,500 Recreation & Sport Amenity Grants - Arts & Sports 8,838 - 8,838 - Oasis Structural Survey 1,251 - 564 687 Bedford Athletic Stadium Health & Safety Works 4,441 - 4,441 - River Festival 136,864 135,628 265,297 7,195 Boiler House - 56,234 20,660 35,574 Netball Centre Major Items 9,600 4,900 2,094 12,406 Oasis 'One-Off' Replacements (Fixtures & Fittings) 38,712 10,000 20,782 27,930 Arts & Leisure – Minor Equipment - 9,700 9,700 - Housing Services Homelessness Bed & Breakfast Accommodation 38,121 794,585 406,715 425,991 Rent Deposit Guarantee 14,935 - 1,944 12,991 Land Compensation Payments 5,000 - 500 4,500 Private Sector Housing Enforcement 15,608 - 10,274 5,334 Renovation Grants One-Off Administration Costs 3,340 - 334 3,006 Housing Needs Survey 3,300 - 330 2,970 Empty Homes – Strategy Preparation 30,000 - 13,361 16,639 Homelessness Strategy - 100,000 - 100,000 LASHG Revenue Cost Consequences - 278,000 - 278,000 Environmental Services Air Quality 5,056 60,300 4,943 60,413 Contaminated Land Survey 21,815 - 6,982 14,833 Contaminated Land Expenses - 5,000 - 5,000 Contaminated Land Investigations - 10,000 - 10,000 Dog Kennelling 7,500 - 750 6,750 Stray Dogs – Veterinary Fees 1,000 - 100 900 Community Safety Audit 6,000 - 600 5,400 Community Safety Support 10,635 - 2,595 8,040 CCTV Equipment 17,046 95,500 13,988 98,558 CCTV Staffing Support - 20,100 - 20,100 Recycling Bank Improvements 18,156 - 3,004 15,152 Domestic Wheeled Bins 160,000 50,000 - 210,000 Home Composting Trial 20,000 - 11,400 8,600 Reinforce Publicity /Awareness of Litter Problems 20,000 - 4,537 15,463 Publicising/Extending Dog Fouling Laws 25,812 - - 25,812 Faraday Square Maintenance 16,749 - 1,675 15,074 Browns Wood Environmental Works 13,427 - 180 13,247 Increased Tree Maintenance 90,000 - 9,000 81,000 Trees (Landfill Tax Funding) 166 - - 166 Storm Damage to Trees - 20,000 17,199 2,801 Priory Country Park - Habitat Fish Restock 1,304 - - 1,304 Bedford Park Lake Restoration 8,000 - 4,981 3,019 Cemeteries and Crematoria Health & Safety 62,982 19,134 - 82,116 Flood Response Measures 37,343 - 18,671 18,672 Climate Levy Change Study 2,000 - - 2,000 One-Off' Consultancy Projects 29,720 - 2,972 26,748 Hackney/Private Hire License Plates 15,123 2,200 3,726 13,597

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Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003 £ £ £ £ Pride in Bedford CSD Contribution 36,283 47 27,678 8,652 Enhancement Work in Rural Areas 16,000 - 16,000 - Abandoned Vehicles 19,735 - 19,735 - Neighbourhood Wardens Scheme 147,051 - 14,207 132,844 Three Street Wardens Posts - 66,000 - 66,000 Call Centre Set Up Costs 22,812 - 19,468 3,344 Health & Safety Works College Street 12,000 949 1,243 11,706 Additional Dog Bins, Vehicle & Driver 50,000 5,206 5,469 49,737 Anti-Graffiti - 55,000 35,743 19,257 Allotment Improvements - 18,200 12,075 6,125 Parks and Open Spaces One-off Works - 65,000 - 65,000 Geese Management - 21,000 - 21,000 Staff Resource for Car Park Cleaning - 50,000 30,484 19,516 Specialist Cleaning Public Conveniences - 20,000 - 20,000 Cleansing Hit & Gold Squads 180,534 20,000 86,179 114,355 Removal of Litter on Land Adjoining Rail Network - 5,000 - 5,000 Rural Cleansing Squad - 45,000 22,286 22,714 Town Centre Cleansing Enhancement - 30,280 5,787 24,493 Cleansing Enhancement Main Distributor Routes - 11,000 3,667 7,333 Enforcement Officer – Litter/Environment - 22,000 - 22,000 Highways Roads & Transport East-West Rail Study 28,574 - 8,284 20,290 Concessionary Fares - New Scheme 61,590 - 16,082 45,508 Bus Shelter Consultancy 27,303 - 2,730 24,573 Borough Traffic Initiatives 10,000 - 1,000 9,000 Winter Gritting 13,000 - - 13,000 Borough Transport Initiatives 38,240 - 7,345 30,895 Highway Verge Maintenance 1,751 - 1,751 - Cardington Park & Ride Contribution 60,000 - - 60,000 Street Lighting Improvements 10,000 - - 10,000 Harpur Street/Midland Road Enhancement 16,776 - 16,776 - Transportation Matters - Fees & Works 28,778 - 2,878 25,900 Wheel Clamping 3,785 - 379 3,406 On-Street Parking Implementation 30,812 - 14,547 16,265 On-Street Parking Guarantee 27,645 22,355 2,765 47,235 River St Car Park Vandalism Damage 72,187 - 39,349 32,838 Car Park Direction Signs 6,544 2,000 854 7,690 Controlled Parking Zone Surplus - 13,989 - 13,989 Integrated Town Centre Transport Scheme - 13,000 - 13,000 Footway Repairs - 50,000 35,207 14,793 Borough Transport Infrastructure - 42,000 - 42,000 Car Park Cleaning of Stairwells - 25,000 25,000 - Planning Services Local Plan Inquiry 104,609 - 47,418 57,191 Community Forest Initiative 112,126 - 16,957 95,169 Architectural Maintenance Grants 53,025 - 5,302 47,723 Planning Reception Alterations 65,785 - 35,538 30,247 Local Plan Review 2006/2011 100,000 - - 100,000

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Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003 £ £ £ £

Economic Development Economic Development Strategy Initiatives 50,097 - 6,852 43,245 Inward Investment Initiatives 101,802 - 10,180 91,622 Bedford Development Agency Thinking Bedford 69,000 - 12,395 56,605 Amenity Lighting 74,462 - 29,855 44,607 Town Centre Events 178,135 113,700 149,317 142,518 Tourism Signage 16,180 - 1,618 14,562 Tourism Points 10,000 - 1,000 9,000 Castle Lane Feasibility Study 77,581 - 7,179 70,402 Town Centre Regeneration 500,000 500,000 - 1,000,000 ESF Global Grants 75,000 - 25,549 49,451 Town Centre Project Management 81,778 - 81,778 - BDA Pride in Bedford Schemes 40,000 - 25,600 14,400 Business Improvement District Set-up Costs - 60,000 - 60,000 Community Related Services Outreach Bus/Rural IT Initiatives 13,738 - 1,374 12,364 Anti-poverty Measures 49,071 - 17,757 31,314 Voluntary Organisations Forum 5,175 - 966 4,209 Connecting the Community 13,704 - 12,895 809 Social Profiling 3,000 - 300 2,700 Community Plan Preparation 4,531 15,000 3,012 16,519 Community Plan Projects 240,000 - 69,030 170,970 Community Plan Pilot - Balliol & Wymington 13,000 - 2,800 10,200 Community Legal Service Partnership Costs 5,000 - 500 4,500 Rural Grants 576,200 384 264,092 312,492 Assistance to Parishes 17,384 - 17,384 - Rural Initiatives 4,464 - 491 3,973 Community Centre Support 8,704 - 3,838 4,866 Community Centre Development 26,788 25,046 2,906 48,928 Jubilation Centre 23,000 - 7,471 15,529 Local Agenda 21 15,850 - 1,585 14,265 Millennium Preparations 7,021 - 702 6,319 Archbishop Huddleston's Bust 1,587 - 1,085 502 Southfields Community Centre Fencing & Security - 50,000 - 50,000 Travellers Removal Costs 6,959 - 696 6,263 Youth Convention 30,000 - 30,000 - Property Management Maintenance of Unadopted Land - 6,597 - 6,597 Property Development Advertising 10,477 - 1,048 9,429 General Maintenance - Town Hall 1,180 - - 1,180 Replace Halon Gas - IT Suite 20,000 - - 20,000 Office Ergonomics (Health & Safety) 81,214 - 24,254 56,960 Renewal & Repair of Property - Works 2,358,431 894,269 886,097 2,366,603 Renewal & Repair of Property - Fees 378,753 178,000 166,645 390,108

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Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003 £ £ £ £ Corporate Supernumerary Trainees 54,699 - 16,317 38,382 Staff Gratuities 19,332 - 2,597 16,735 Job Evaluation 6,626 - 2,078 4,548 Honoraria Payments 15,500 - 1,550 13,950 Staff Training 40,766 - 10,518 30,248 Market Premia/Single Status 538,650 - 37,415 501,235 Legal Action by Employees 41,793 14,822 24,800 31,815 Operational Staffing Resources Support 338,726 140,129 126,438 352,417 Employment Appeals Legal Action 62,388 20,000 32,645 49,743 UCCs Set Up and Election Costs 28,081 - 4,496 23,585 Political Research Assistants 4,752 - 4,752 - Scrutiny Support Expenses - 38,119 - 38,119 Election Fund 26,457 67,800 90,719 3,538 Member Training/ IT Needs 50,900 5,000 22,775 33,125 Ward Members Fund 496,423 - 208,510 287,913 Community Newspaper 27,000 - 2,700 24,300 Citizens Panel/Consultation Costs 46,239 - 23,396 22,843 Best Value Bid 2,073 - 2,073 - Customer Survey (Performance Review) 1,270 - - 1,270 Emergency Fund 34,059 3,157 3,406 33,810 Risk Management General 40,207 - 4,021 36,186 Sponsorship – Income Generation Officer - 4,768 - 4,768 Insurance Reserve 1,119,467 218,564 - 1,338,031 Benefit Subsidy Regulation and Verification 347,992 310,006 82,760 575,238 Equipment, Vehicle & Plant Renewal 908,526 227,448 386,163 749,811 Commuted Sums 453,141 - 45,314 407,827 Hardship Rate Relief 89,618 16,502 8,962 97,158 Financial Management System Modification 13,834 - 4,383 9,451 External Financial Consultants 2,350 - 2,350 - VAT Partial Exemption and Related Costs 305,519 765 150,000 156,284 Benefit Anti-Fraud Initiatives 10,000 5,170 5,170 10,000 LOGOS Replacement - First Software 251,933 30,446 114,713 167,666 Investment Income Contingency 194,198 55,802 - 250,000 Town Twinning – Sports 8,920 - - 8,920 Town Twinning – General 39,252 15,177 35,473 18,956 Commemorative 25th Anniversary Bamberg 10,000 - 8,132 1,868 Mayor's Discretionary Fund 9,603 380 - 9,983 Ceremonial Events 16,099 - 6,845 9,254 Queen's Festival of Light 18,824 1,000 16,585 3,239 Software Fund 78,321 30,720 34,914 74,127 Microsoft Software 100,000 - 86,674 13,326 IT Training 2,541 - - 2,541 Geographical Information System 51,685 - 12,990 38,695 E Government Administration 15,000 - 1,500 13,500 Bedfordshire & Luton On-line - 500,000 58,749 441,251 Benefits IT Equipment 8,000 - 8,000 - IT Technical Support 15,000 - 15,000 -

13,452,198 5,847,856 5,069,088 14,230,966

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Balance at Receipts/ Expend/ Balance at 1 April 2002 Transfers in Transfers Out 31 March 2003 £ £ £ £ Commercial Services CSD Consultancy Costs 31,478 - - 31,478 CSD Appropriation Account Balance 1,443,145 1,181,946 1,458,562 1,166,529 CSD Reserve for Future Losses 530,000 - - 530,000 CSD Appropriation Account Capital Fund - 21,850 21,850 - Art Gallery Funds 29,846 7,845 - 37,691 Museum Funds 30,302 22,713 - 53,015

15,516,969 7,082,210 6,549,500 16,049,679 Capital Investment Housing Investment Reserve (Social Housing) 15,225,759 - 2,353,163 12,872,596 Housing Capital Fees 17,169 - 1,717 15,452 CCTV Rapid Deployment Camera 14,000 - - 14,000 CCTV Transmission Points 79,420 - 32,961 46,459 St Paul’s Church Security Works 53,827 - 1,742 52,085 Mobile Homes - 1,650,000 - 1,650,000 General General Fund - General Reserve 3,654,376 173,142 982,517 2,845,001 General Fund - Working Balance 700,000 - - 700,000 General Fund – Outturn Savings 2002/2003 - 383,648 - 383,648

35,261,520 9,289,000 9,921,600 34,628,920

17 Disclosure of Net Pensions Liability The pension cost figures used in these accounts comply with the current pension cost accounting standard SSAP24. A new standard FRS17 is to be implemented from a date to be determined by the Accounting Standards Board. Under transitional arrangements the council is required to disclose the following information about the scheme and the figures that would have been shown under FRS17 in the current balance sheet. As part of the terms and conditions of employment the Council offers its employees retirement benefits. Although these benefits will not actually be payable until employees retire, the Council has a commitment to make the payments that needs to be disclosed at the time the employees earn their future entitlement. The Council participates in the Local Government Pension Scheme, the Bedfordshire Pension Fund (‘the Fund’), that is administered by the Bedfordshire County Council under the Regulations governing the Local Government Pension Scheme. This is a defined benefit, funded scheme, meaning that the Council and employees pay contributions into a fund, calculated at a level intended to balance the pensions liabilities with investment assets. In 2002/2003 pension costs have been charged to the Consolidated Revenue Account on the basis of contributions payable for the year to the Fund (based on a formal actuarial valuation for 31 March 2001). However, at 31 March 2003, the Council had the following overall assets and liabilities for pensions that have not been included in the Consolidated Balance Sheet.

31 March 2003 31 March 2002 £m £m Estimated liabilities in scheme 83.8 79.9 Estimated assets in scheme 47.1 59.4 Net liability 36.7 20.5

In respect of the above valuation for this Council:

- separate annual contributions are being made for discretionary pensions previously awarded and by eliminating this from the above figures (i.e. to accord with the same basis as the triennial actuarial valuation) the Council’s liabilities are £80.0m (£75.9m at 31 March 2002) and hence the net liability is £32.9m (£16.5m).

- it should be noted that the calculation is based on the market value of assets at 31 March each year. The triennial actuarial review, which determines the contributions is based on estimated future performance of the investment market and is thus a different valuation basis.

- The reduction in the value of assets year on year reflects the same percentage reduction as in the total Pension Fund (see table below). There is no provision for unitising the assets of a Fund under the Local Government Pension Scheme. The above assets as a whole are allocated to participating bodies on a consistent and reasonable basis.

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Liabilities have been assessed on an actuarial basis using the projected unit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels etc. Watson Wyatt LLP, an independent firm of actuaries appointed by the Superannuation Authority, Bedfordshire County Council, has assessed the Fund liabilities. The main financial assumptions used in their calculations for both years were:

a) retail price inflation : 2.5% per annum b) increases in salaries : 4.3% per annum c) increases in pensions and deferred pensions : 2.5% per annum d) discount rate : 6.1% (NB. Based on 3.5% real)

The movement in net pension liability for the year to 31 March 2003 is as follows:

£m Net Pensions liability at 1 April 2002 (20.5) Movement in year: - Current service cost (1.8) - Employers contributions payable to scheme 3.0 - Past service costs 0.0 - Interest cost (4.2) - Expected return on assets in scheme 4.2 - Actuarial losses (17.4) Net pensions liability at 31 March 2003 (36.7)

The actuarial losses of £17.4 million (36.9% of the value of assets at 31 March 2003) relate to differences between the expected and the actual return on assets for the year which reflected stock market falls during the year. Differences between actuarial assumptions about liabilities and actual experience, and changes in the demographic and financial assumptions used to estimate liabilities were both nil. The fair values of each main class of assets held by the Fund as at 31 March and the expected rates of return for the ensuing year are set out in the following table: Bedfordshire County Council Pension Fund – Fair value of each main class of asset

31 March 2002 31 March 2003 Market Expected Rate Market Expected Rate Value Of Return Value Of Return £m % £m % Equities – UK 370.50 7.50 282.50 8.50 Equities – Overseas 156.20 7.50 111.00 8.50 Property 18.50 6.00 42.40 7.00 Fixed interest gilts 37.20 5.25 36.20 4.50 Index linked gilts 5.10 5.25 11.80 4.50 Other bonds 68.00 6.00 53.30 5.50 Cash 48.30 4.50 25.80 4.00 Total 703.80 6.97 563.00 7.56

18 Trust Funds The Council administers various Trust Funds, including legacies left by inhabitants of the Borough. The assets held by the Trusts are not included in the Consolidated Balance Sheet, as they are not Borough Council assets. House of Industry Estate Income for 2002/2003 totalled £118,817 compared to £461,292 in 2001/2202. The income for 2001/2002 included the redemption of the Local Authorities Mutual Investment Trust investment. The funds were subsequently invested in the Charities Official Investment Fund. Expenditure for the year was £94,158, compared to £78,570. Assets at 31 March 2003 totalled £1,058,583, including £83,105 invested with the Borough Council, and liabilities £28,980. At 31 March 2002 the figures were £1,034,034, including £259,307 invested with the Borough Council, and £29,089 respectively. Freemans Common Charity Income for 2002/2003 totalled £1,312 compared to £1,279 in 2001/2002. Expenditure for the year was £1,180 compared to £1,197. Assets at 31 March 2003 totalled £16,163, including £11,746 invested with the Borough Council, and liabilities £ nil. At 31 March 2002 the figures were £16,031, including £11,746 invested with the Borough Council and £ nil respectively. Bedford Tree Fund Charity Income for 2002/2003 totalled £4,085 compared to £3,995 in 2001/2002. Expenditure for the year was £8,080 compared to £682. Assets at 31 March 2003 totalled £13,597, including £12,494 invested with the Borough Council and liabilities £ nil. At 31 March 2002 the figures were £17,591, including £12,340 invested with the Borough Council and £ nil respectively..

Statement of Movement in Reserves

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The Statement of Movements in Reserves brings together the recognised gains and losses to the authority during the year and identifies those which have and have not been recognised in the Consolidated Revenue Account. The Statement identifies separately the movements in Revenue and Capital Reserves. The inclusion of the Statement reflects the requirement for organisations to present a primary statement of total gains and losses.

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(£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000)

Balance as at 1 April 2002

Cr 71,353 Cr 44,203 Cr 1,314 - Cr 3,654 Cr 700 Cr 29,465 Cr 1,443 Cr 152,132

Revaluation of Assets at 1 April 2002

Cr 2,602 - - - - - - - Cr 2,602

Balance as at 1 April 2002


Receipt/Transfer to Reserve

- - - - Cr 173 - Cr 7,934 Cr 1,182 Cr 9,289

Payment/Transfers from Reserve

- 1,903 - - 982 - 7,481 1,459 11,825

Depreciation of Assets - 559 52 - - - - - 611 Cost or Value of Assets Sold

3,585 - - - - - - - 3,585

Expenditure Not Adding Value

153 - - - - - - - 153

Proceeds of Disposal & Repayments

- Cr 5,951 Cr 179 Cr 4,675 - - - - Cr 10,805

Financing of Fixed Assets

- - - 4,675 - - - - 4,675

Balance as at 31 March 2003


Cash Flow Statement

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2001/2002 2002/2003

£'000 £'000 £'000 Cash Outflows

18,024 Cash paid to and behalf of Employees 19,80126,363 Housing Benefit 28,13220,301 Other Expenditure 21,97642,612 Precepts 47,969

785 Collection Fund Surpluses 1,00034,077 Payments to Non-Domestic Rate Pool 35,277

142,162 154,155 Cash Inflows

3,691 Rent 3,82744,101 Council Tax 48,38451,373 National Non-Domestic Rates 45,010

738 Revenue Support Grant 734 Department of Social Security Grants

31,514 for Housing & Council Tax Benefits 33,5579,422 Cash for Goods and Services 10,528

324 Other Grants 50722 Community Charges 9

2,622 Agency & Joint Funding 3,797143,807 146,353

CR 1,645 Net Cash Flow on Revenue Activity 7,802

RETURNS on INVESTMENTS and

SERVICING OF FINANCE Cash Outflows

51 Interest paid 716 Finance Leases 5 76

Cash Inflows CR 4,417 Interest Received CR 3,129

CAPITAL ACTIVITIES Cash Outflows

891 Purchase of Fixed Assets 6277,485 Other Capital Cash Payments 7,067

11,833 Purchase of Long Term Investments - 7,694 Cash Inflows

- Sale of Long Term Investments CR 22CR 1,131 Sale of Fixed Assets CR 4,245CR 6,883 Capital Grants and Contributions CR 6,476

CR 178 Other Capital Income CR 430 CR 11,1736,012 Net Cash inflow (CR)/outflow before

financing 1,270

MANAGEMENT OF LIQUID RESOURCESCR 4,646 Net decrease (CR)/increase in short term

deposits CR 734

CR 286 Net increase (CR)/decrease in short term borrowing

7

1,080 Net Cash inflow (CR)/outflow 543

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Note 1. Reconciliation of Surplus/Deficit on Revenue Activities to Revenue Activities Net Cash Flow

2001/2002 2002/2003

£'000 £'000 1,144 (Deficit)/Surplus (24)

NON CASH TRANSACTIONS

2,620 Contributions to/(from) Reserves/Provisions (249) (715) Transfer of Capital to Revenue (765)

ITEMS ON ACCRUALS BASIS 6,306 Decrease/(Increase) in Debtors (2,270) (120) Decrease/(Increase) in Accrued Interest 500

Change in Prepayments 644 Debtors and Creditors 525

(3,779) (Decrease)/Increase in Creditors (2,328) (96) Decrease/(Increase) in Stocks (138)

1 Increase/(Decrease) in Deposits - ITEMS IN OTHER CLASSIFICATION ON

CASH FLOW STATEMENT

(4,417) Investment Income (3,129) 57 Interest Paid 76

1,645 Net Cash Flow (from)/to Revenue (7,802)

Note 2. Movement in Cash Balances

1.4.2003 31.3.2003 Movement £'000 £'000 £'000 Cash (1,602) (2,145) (543)

Note 3. Analysis of Grants 2001/2002 2002/2003

£'000 £'000 £’000 738 Revenue Support Grant 734

Housing and Council Tax Grants 30,880 Housing and Council Tax Benefit Grant 32,913

423 Housing Benefit Admin Grant 461 33 Weekly Benefit Saving Grant -

139 Benefit Verification Framework Grants 132 9 Fraud Incentive Grant 16

30 Discretionary Housing Payments Grant 35 33,557 Other Grants

198 Disabled Facilities Grant 308 19 Home Improvement Agency 33

- Housing Priority Needs Grant 31 36 Farming Set Aside Grant 31

6 Countryside Commission Grant 1 11 Defective Premises Grant 11 54 Single Regeneration Budget Grant 92 507

32,576 34,798

Direct Labour Organisation – Memorandum Account

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Revenue Account 2001/2002 2002/2003

H'ways & General Ground Refuse H'ways & General Ground Refuse Sewerage M'tce M'tce Collect Cleansing Sewerage M'tce M'tce Collect Cleansing

£'000 £'000 £'000 £'000 £'000 EXPENDITURE £'000 £'000 £'000 £'000 £'000

237 325 585 360 320 Labour 285 438 625 391 3311,505 1,170 505 1,707 561 Materials &

Contracted Services 1,667 1,433 743 2,245 725

285 100 217 1,541 327 Transport & Plant 278 164 306 1,506 338226 135 6 68 42 Stores 193 128 11 114 44

2,253 1,730 1,313 3,676 1,250 Direct Costs 2,423 2,163 1,685 4,256 1,438

392 433 467 405 348 Overheads 381 459 423 416 3412,645 2,163 1,780 4,081 1,598 2,804 2,622 2,108 4,672 1,779

392 77 - - - Plus – WIP b/fwd 572 372 - - 34572 372 - - 34 Less – WIP c/fwd 66 505 - - -

2,465 1,868 1,780 4,081 1,564 3,310 2,489 2,108 4,672 1,813 INCOME Charges

847 593 1,525 1,836 1,626 - Recharges to Service Accounts

962 925 1,709 2,028 1,851

1,492 - - - - - Recharge to Agency Accounts

2,304 - - - -

234 1,366 364 2,388 85 - Works Contracts 421 1,654 450 2,675 692,573 1,959 1,889 4,224 1,711 3,687 2,579 2,159 4,703 1,920

108 91 109 143 147 Surplus Appropriated

to DLO Reserve 377 90 51 31 107

Notes 1 Operations

The Council operates six Direct Labour Organisations, within its Commercial Services Department: - Highways & Sewerage and General Maintenance - Ground Maintenance, Refuse Collection, Cleansing and Management of Sports & Leisure Facilities The General Maintenance DLO carries out building and repair work on Council property and for other clients. The work ranges from day to day maintenance schemes with a value in excess of £10,000. The Highways and Sewerage DLO carries out work under the Highways Agency agreement with Bedfordshire County Council. The work ranges from cleaning street lamps to major carriageway reconstruction and repair and maintenance of sewers. Ground Maintenance DLO carries out grass cutting and provides horticultural services for the Council. The Refuse DLO provides a refuse collection service to domestic properties in both this Council's area and also in Mid Bedfordshire District Council. The DLO also provides a trade refuse collection service in both areas. The cleansing DLO provides Street and Environmental Cleansing throughout the Borough. Sports and Leisure Management includes the management of the Council owned Swimming Pools and Athletic Stadium. The Commercial Services Department has also managed the Council's Car Parks and Mowsbury Golf Course since 1 April 1993, and the management of the Controlled Parking Zone (CPZ) in the Town Centre from its inception on 13 November 2000.

2 Rate of Return Following the replacement of Compulsory Competitive Tendering with Best Value legislation, there is no requirement to continue with Statutory DLO Accounts. However, the Council has determined the Direct Service Organisation (Commercial Services Department) should continue to operate as a separate trading department, consequently the DLO accounts have been prepared for information and to enable comparison to be made with previous years.

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Sports and Leisure Facilities Management Revenue Account Note Facilities managed in this account are: 2001/2002 2002/2003 £ Expenditure £ £ Kempston Pool - from 28 December 1991 1,648 Employees 1,828 Robinson Pool - from 1 October 1992 963 Premises 944 Oasis Pool – from 1 October 1996 793 Supplies & Services 778 Bedford Athletics Stadium - from 1 January 1993 3,404 Operating Expenditure 3,550 Mowsbury Golf Complex - from 1 April 1993 Contribution to 291 Management Costs 285 3,695 3,835 Income 2,086 Sales & Charges 2,115 Charges to other accounts of 1,760 the Council 1,827 3,942 151 Surplus for the Year 107 Direct Labour Organisation Appropriation Account 2001/2002 2002/2003

£'000 £'000 £'0001,459 Balance brought forward 1,443

ADD: Revenue Account Surplus 108 Highways & Sewerage 377

91 General Maintenance 90109 Grounds Maintenance 51143 Refuse Collection 31147 Cleansing 107151 Sport & Leisure 107294 Surplus on Non DSO Activity 419 1,182

2,502 2,625

- General Fund Contribution re Boiler House 14 LESS: Applied in Year

- Contribution to the Council Reserves 249- Council Dividend 220

20 Contribution to Local Agenda 21 - 9 Corn Exchange - Air Conditioning -

25 Pride in Bedford Campaign -18 50% Funding for Lottery Officer -

100 Contribution to Environment Maintenance/Cleansing Squads 2000/2001 -

100 Contribution to Environment Maintenance/Cleansing Squads 2001/2002 -

2 East Region Launch of National Museums & Galleries -2 Images Works New Gallery Space -

228 Relocate Robinson Pool Café & Redevelop 1st Floor -47 Bunyan Centre – Extend Bar -18 Mowsbury Golf Course – Refurbish Locker Room -10 Twin Town Sports Contribution -

4 Install CCTV Cameras at Tourist Information -20 Contribution to Hillgrounds Changing Rooms -14 Boiler House Gym Deficit -

- New Town Hall Sign 2- Leisure Investigation Works 1- Mowsbury Golf Course – Upgrade Lighting 22- New Street Washing Machine 81- Bedfordshire and Luton Online Project 500

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- Pride in Bedford – Blues & Kayak Club 7 Provision for Past and Future Liabilities

369 Pension Back Funding 378 Investment into CSD Trading Operations

2 New Portacabin - Barkers Lane Depot - IT Systems

9 - Central Box Office -116 - Vehicle Fleet Management 220 - Building Control 1

- IT Improvements – Hardware & Networking 93 Environmental Unit Real Time Recording -5 Building Works 1

18 Bedford Design Group - 1,4721,443 Balance carried forward at 31 March 1,167

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