10. Adjustments between accounting basis and funding basis under regulations - Notes to the core accounting statements

This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the Authority in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Authority to meet future capital and revenue expenditure.

The following sets out a description of the reserves that the adjustments are made against.

General Fund Balance

The General Fund is the statutory fund into which all the receipts of an authority are required to be paid and out of which all liabilities of the authority are to be met, except to the extent that statutory rules might provide otherwise. These rules can also specify the financial year in which liabilities and payments should impact on the General Fund balance, which is not necessarily in accordance with proper accounting practice. The General Fund balance therefore summarises the resources that the Authority is statutorily empowered to spend on its services or on capital investment (or the deficit of resources that the Authority is required to recover) at the end of the financial year.

Capital Receipts Reserve

The Capital Receipts Reserve holds the proceeds from the disposal of land or other assets, which are restricted by statute from being used other than to fund new capital expenditure or to be set aside to finance historical capital expenditure. The balance on the reserve shows the resources that have yet to be applied for these purposes at the year-end.

Capital Grants Unapplied

The Capital Grants Unapplied Account holds the grants and contributions received towards capital projects for which the Authority has met the conditions that would otherwise require repayment of the monies but which have yet to be applied to meet expenditure. The balance is restricted by grant terms as to the capital expenditure against which it can be applied and/or the financial year in which this can take place.

Usable Reserves

Usable Reserves
General Fund Balance £000	2019 / 20 Capital Receipts Reserve £000	Capital Grants Unapplied £000		General Fund Balance £000	2020 / 21 Capital Receipts Reserve £000	Capital Grants Unapplied £000
			Adjustments to the Revenue Resources Amounts by which income and expenditure included in the Comprehensive Income and Expenditure Statement are different from revenue for the year calculated in accordance with statutory requirements:
(10,851)			Pension costs (transferred to (or from) the Pensions Reserve)	(9,417)
(41)			Council tax and NDR (transfers to or from the Collection Fund Adjustment Account)	(2,090)
3			Holiday pay (transferred to the Accumulated Absences Reserve)	(89)
(4,127)		0	Reversal of entries included in the Surplus or Deficit on the Provision of Services in relation to capital expenditure (these items are charged to the Capital Adjustment Account)	(3,770)		0
(15,016)	0	0	Total Adjustments to Revenue	(15,366)	0	0
			Adjustments between Revenue and Capital Resources
15	(15)		Transfer of non-current asset sale proceeds from revenue to the Capital Receipts Reserve Administrative costs of non-current asset disposals (funded by a contribution from the Capital Receipts Reserve)	235	(235)
1541			Statutory provision for the repayment of debt (transfer from the Capital Adjustment Account)	1674
22			Capital expenditure financed from revenue balances (transfer to the Capital Adjustment Account)	691	0
1,578	(15)	0	Total Adjustments between Revenue and Capital Resources	2,600	(235)	0
			Adjustments to Capital Resources
	116		Use of the Capital Receipts Reserve to finance capital		235
		0	Application of capital grants to finance capital expenditure			0
			Cash payments in relation to deferred capital receipts
0	116	0	Total Adjustments to Capital Resources	0	235	0
(13,438)	101	0	Total Adjustments	(12,766)	0	0