Explanatory Foreword

The Accounts comprise the following statements:

The Report by the Head of ICT summarises the financial performance of South Ayrshire Council during the year and highlights any major financial issues.

The Statement of Accounting Policies sets out the basis on which the accounts have been prepared.

The Consolidated Revenue Account shows the income raised by the Council during the year and how it was spent on services, financing costs and contributions to or from reserves. The surplus or deficit is carried to the Consolidated Balance Sheet.

The Notes to the Consolidated Revenue Account provide additional information on some costs and income included within the Consolidated Revenue Account. The Council's expenditure has also been analysed in the Departmental Service Expenditure format. The Council's trading accounts' performance is shown as a note to the Consolidated Revenue Account.

The Council Tax Income Account explains how the council tax income shown for the financial year in the Consolidated Revenue Account is made up.

The Non Domestic Rate Income Account shows the build up of non-domestic rate income, the contribution to or from the national pool and the resulting net income for the financial year to the Council which is shown in the Consolidated Revenue Account.

The Housing Revenue Account shows how income raised in relation to council houses was utilised during the year. A comparison with budget is made. This explains in more detail me entries for the Housing Revenue Account shown in the Consolidated Revenue Account. The surplus or deficit is carried to the Consolidated Balance Sheet.

The Consolidated Balance Sheet brings together all the assets and liabilities of the Council's General Fund, Housing Revenue Account and Loans Fund. It is the statement of the resources of the Council and the means by which they have been financed. It is also a report on the Council's financial position at one particular point in time, a snapshot of its financial affairs at the close of the year expressed in accounting terms.

The Notes to the Balance Sheet give further information on the make up of certain assets and liabilities.

The Statement of Total Movement on Reserves gives details of the balances on each reserve at the start of the financial year, movements during the financial year by source and the balance at the end of the financial year as shown in the Consolidated Balance Sheet.

The Cash Flow Statement summarises the inflows and outflows of cash arising from the transactions with third parties on both day to day revenue transactions and expenditure on capital activities.

The Statement of Sundry Accounts summarises the financial performance of Trust and Other Funds administered by the Council.

The Common Good Funds are used for the benefit of specific communities and the statement provides a summary of the financial status of the funds administered by the Council.

The Capital Account shows the major areas of expenditure and the sources of financing.

The Statement of Responsibilities for the Statement of Accounts sets out the respective responsibilities of the authority and the Head of Finance and ICT, as the Council's Section 95 Officer, for the accounts.

The Statement on the System of Internal Financial Control sets out the framework within which financial control is managed and reviewed and the main components of the system, including the arrangements for internal audit. The statement reports on significant identified weaknesses and the action undertaken to rectify these.

Download The Annual Accounts Document (3,511KB)

July 2006