Notes to the Accounts

1. Income and Expenditure Account comparative figures for 2005/06

Statement showing a comparison between the Income and Expenditure account for 2005/6 with the corresponding consolidated revenue account disclosed in the 2005/6 Statement of Accounts.

	Consolidated Revenue Account in 2005/06 Statement of Accounts	Removal of capital financing charges	Relocation of govt. grants deferred credits	Interest on trans-ferred debt	Net movem’t on GGD income and Enhancement Exp	Transfer to Reserves / Ind Properties trading a/c	Income and Expenditure Account 2005/06 comparatives
	£000s	£000s	£000s	£000s	£000s	£000s	£000s
EducationServices	359,543	(18,347)	(534)		13,652	(424)	353,889
Social Services	119,774	(882)	(8)		903	(148)	119,639
Highways, Roads and TransportServices	44,350	(7,110)	(163)		3,714	(46)	40,745
Cultural, Environmental & Planning Services	44,166	(1,986)	(70)		2,116	(52)	44,176
Central Services to the Public	1,230	(16)			22	(2)	1,234
Courts Services	460						460
Housing Services	105	(16)					89
Corporate & Democratic Core	6,692	(447)				(10)	6,234
Non Distributed Cost	1,043						1,043
Net Cost of Services	577,363	(28,804)	(775)	0	20,407	(682)	567,509
Asset Management revenue account/ Interest payable and similar charges	(14,282)	28,953	775	3,387			18,833
Food defence Levies	236						236
Net (surplus)/deficit on trading a/c's	(313)	(149)				(325)	(787)
Interest and investment income	(5,239)						(5,239)
Pensions - Interest cost & expected return on assets	2,100						2,100
Principal & Interest on transferred debt	(2,158)			(3,387)			(5,545)
Net Operating Expenditure	557,707	0	0	0	20,407	(1,007)	577,107

2. Dedicated Schools Grant

For 2006/07, the arrangements for government support for funding of schools changed. Previously funds were provided as part of the authority’s overall Revenue Support Grant. In 2006/7 the authority has received a specific grant – the Dedicated Schools Grant (DSG) from the DfES. The Education service outturn in the Income and Expenditure Account has been credited with £298m that would previously have been treated as part of the Revenue Support Grant in corporate income. The difference in Education spending between 2005/06 and 2006/07 is largely related to this change.

DSG is ring-fenced and can only be applied to meet expenditure properly included in the schools budget. The schools budget includes elements for a restricted range of services provided on an authority-wide basis and for the individual schools budget, which is divided into a budget share for each school. Over and underspends on the two elements are required to be accounted for separately. The council is able to supplement the schools budget from its own resource.

Details of the deployment of DSG receivable for 2006/07 are as follows:

	Schools Budget Funded by DSG
	Central Expenditure	Individual Schools Budget	Total
	£000	£000	£000
Original grant allocation to school budget for the current year in the authority's budget	33,209	265,217	298,426
Adjustment to finalised grant allocation	(379)	0	(379)
DSG Received for the year	32,830	265,217	298,047
Actual expenditure for the year	(32,099)	(266,073)	(298,172)
(Over)/underspend for the year	731	(856)	(125)
Planned top-up funding of indivieual schools budget from authority's resources	0	75	75
Use of schools balances b/fwd	0	0	0
(Over)/underspend from prior year	858	20,929	21,787
(Over)/underspend c/fwd	1,589	20,148	21,737

3. East Midlands Regional Assembly

East Midlands Regional Assembly (EMRA) is one of eight regional assemblies in England outside London. It was launched in 1999 and comprises 111 Members, with 2/3 being representatives of the region’s local authorities, and 1/3 nominations from the wider social, environmental and business community.

The Regional Assembly has three main roles:

Scrutiny of the East Midlands Development Agency (EMDA)

Coordination and Regeneration of Regional Policies

Undertaking the role of the Regional Housing, Planning and Transport Advisory Body

EMRA separated from the East Midlands Local Government Association with effect from 1^st April 2006 and the County Council became employer and accountable body with effect from that date.

The accounts for EMRA are included within the Income and Expenditure Account under the heading of Cultural, Environmental & Planning Services.

Income and Expenditure

	2006/07
	£000
Income	(2,488)
Transfer from reserve	(91)
Expenditure	2,579
(Surplus)/deficit	0

Current Service pension costs under FRS17 are excluded from the expenditure above, but total £33,045.

4. Trading Accounts

Operations

During the year the authority operated three separate accounts, which undertake trading activities of a material nature.

a) Leicestershire Highways

Leicestershire Highways is a business unit of the Highways, Transportation and Waste Management Department and its principal activities cover the maintenance and improvement of principal and county roads, the maintenance and erection of street lighting and the operation and maintenance of vehicles and plant.

b) County Catering

The Leicestershire County Catering Service provides a catering service to staff within County Hall.

c) Industrial Properties

Leicestershire County Council property services provides direct services to the local economy through the letting of Industrial units to local businesses.

Income and Expenditure

	Leicestershire Highways £000	County Catering £000	Industrial Properties £000	Total £000
Income	(28,111)	(1,039)	(1,688)	(30,838)
Expenditure	27,577	1,055	1,096	29,728
(Surplus)/Deficit in 2006/07	(534)	16	(592)	(1,110)
(Surplus)/Deficit in 2005/06	(450)	(12)	(325)	(787)

In order to satisfy the requirements of competition, recharges for all work done by a trading operation in competition with the private sector have been priced to include a cost of capital recovery. The SORP does not permit charges for cost of capital to be debited to trading accounts. If the cost of capital had been charged to Leicestershire Highways the surplus would be have been £400k.

The County Catering service owns no fixed assets, therefore their accounts remain as above.

5. Pensions - Revenue Costs

Local Governmetn Pension Scheme

The cost of retirement benefits in the Net Cost of Services represents the cost of benefits earned during the year and past service costs which represent the estimated liability of discretionary benefits awarded in year, by the employer. The charge to Council Tax is based, however, upon the employers contribution paid in year to the Pension Fund, so the real cost of retirement benefits is reversed out in the Statement of Movement in the General County Fund.

The following transactions have been made in the Income and Expenditure Account.

	2005/06	2006/07
	£000	£000
Net Cost of Services
Current Service Cost	25,100	33,700
Past Service Cost	500	500

Net Operating Expenditure
Interest Cost	40,900	44,900
Expected return on assets	(38,800)	(47,300)

Statement of movement in the General Fund Balance
Reversal of net charges made for retirement benefits in accordance with FRS 17	(6,398)	(7,170)

Actual amount charged against the General Fund
Balance for Pensions in the year
Employers contributions	18,817	24,364
Unfunded benefits	2,485	2,666

Pension Assests and Liablilities

The underlying assets and liabilities of the County Council at 31^st March are as follows:

	31 March 2006	31 March 2007
	£000	£000
Share of assets in County Council Fund	695,000	769,400

Estimated liabilities in County Council Fund
Funded Benefits	(865,600)	(881,000)
Unfunded Benefits	(39,100)	(41,100)
Net Pensions liability	(209,700)	(152,700)

The liability shows the underlying commitment that the authority has in the long run to pay retirement benefits. This liability of £152.7m has a substantial impact on the net worth of the authority as recorded in the balance sheet. Statutory arrangements for funding the deficit will result in the deficit being made good by increased contributions by the employer, over the remaining working life of employees, as assessed by the actuary.

The figures in this note incorporate staff of the Eastern Shires Purchasing Organisation (ESPO) whose staff are employed by Leicestershire County Council but whose costs are excluded from these accounts as these costs are included in ESPO’s own accounts.

The significant reduction in the deficit has arisen from improved investment returns and an increase in the discount rate applied to liabilities.

Assets in the County Council Pension Fund are valued at fair value, principally market value for investments, and consist of the following categories:

	Long-term rate of return expected	31 March 2006	Long-term rate of return expected	31 March 2007
		£000		£000
Equity investments	7.4%	509,500	7.8%	546,900
Bonds	4.6%	104,700	4.9%	129,500
Property	5.5%	60,100	5.8%	65,800
Cash	4.6%	20,700	4.9%	27,200
		695,000		769,400

Liabilities of the fund have been based on the following assumptions

	31 March 2006	31 March 2007
Rate of inflation	3.1%	3.2%
Rate of increases in salaries	4.6%	4.7%
Rate of increase in pensions	3.1%	3.2%
Proportion of employees opting to take a commuted lump sum	0.0%	25.0%
Rate of discounting scheme liablilities	4.9%	5.4%

The movement in the pension deficit for the year to 31 March 2007 is as follows

	31 March 2006	31 March 2007
	£000	£000
Net (deficit) at beginning of year	(203,460)	(209,700)
Adjustment to opening balance
Magistrates courts pension deficit transferred to HM Court Service	4,760	0
Movement in year
Current Service costs	(25,100)	(33,700)
Contributions	21,302	27,030
Past service costs	(300)	(700)
Impact of settlements and curtailments	(200)	(2,200)
Net return on assets	(2,100)	2,400
Actaurial (loss)/gain	(4,602)	64,170
Net deficit at end of year	(209,700)	(152,700)

Movement on the Pensions Reserve

	2002/03		2003/04		2004/05		2005/06		200607
	£000	%	£000	%	£000	%	£000	%	£000	%
Difference between the expected and actual reurn on assets	(133,666)	(32.9)	76,630	15.0	19,270	3.4	96,200	13.8	14,000	1.8
Difference between actaurial assumptions about liabilities and actual experience	(268)	(0.3)	(2,180)	(0.3)	16,204	2.1	(902)	(0.1)	(2,330)	(0.2)
Changes in the demographic and financial assumptions used to estimate liabilities					(124,970)	(16.2)	(99,900)	(11.0)	52.500	5.7
Gain/(loss)	(133,934)		74,450		(89,496)		(4,602)		64,170

Teachers and Lecturer

In 2006/07 the County Council paid £23.812m (2005/06 £22.673m) to the Teachers Pensions Agency in respect of teachers’ pension costs, which represents 13.65% (2005/06 13.5%) of teachers’ pensionable pay. In addition, the County Council is responsible for all pension payments relating to pension enhancements for added years service it has awarded, together with the related increases. In 2006/07 these amounted to £1.8m (2005/06 £1.564m), representing 0.95% (2005/06 0.84%) of pensionable pay.

6. Movement of fixed assets during the year

	Intangible Assets (Software Licences)	Land and Buildings	Vehicles Plant & Equipment	Infrastructure	Community Assets	Non Operational Assets	Total
	£000	£000	£000	£000	£000	£000	£000
Net Book value as at 31 March 2006	798	596,899	3,609	155,856	9,966	12,021	779,149
Revaluations & restatements	0	40,588	26	0	797	1,218	42,629
Disposals	0	(5,688)	0	0	0	0	(5,688)
Additions	305	28,621	5,496	19,727	468	16,553	71,170
Transfers between asset categories	0	4,809	0	0	0	(4,809)	0
Impairment	0	0	0	0	0	0	0
Expenditure not increasing value	(305)	(19,233)	(4,247)	0	0	0	(23,785)
Book value as at 31 March 2007	798	645,996	4,884	175,583	11,231	24,983	863,475
Less: Depreciation this year	(167)	(13,160)	(974)	(4,444)	0	0	(18,745)
Less; Writing down leased assets	0	(52)	0	0	0	0	(52)
Net book value as at 31 March 2007	631	632,784	3,910	171,139	11,231	24,983	844,678

The table below breaks down the non-operational assets.

	Non Operational Assets
	Investment Properties	Assets Under Construction	Assets held for Disposal	Total
	£000	£000	£000	£000
Net book value as at 31 March 2006	3,301	5,704	3,016	12,021
Revaluations and restatements	(291)	0	1,509	1,218
Additions	0	16,553	0	16,553
Disposals	0	0	0	0
Transfers between asset categories	91	(3,506)	(1,394)	(4,809)
Impairment	0	0	0	0
Expenditure not increasing value	0	0	0	0
Net book value as at 31 March 2007	3,101	18,751	3,131	24,983

7. Valuations of fixed assets carried at current value

The following statement shows the progress of the Council’s rolling programme for the revaluation of fixed assets. The basis for valuation is set out in the statement of accounting policies in note 4. These values differ from note 6 above as these represent the gross values of the Fixed Assets as at the last revaluation whereas note 6 includes depreciation.

	Land and Buildings	Infrastructure	Community Asets	Vehicles Plant & Equipment	Non-Operational Assets	Total
	£000	£000	£000	£000	£000	£000
Valued at historical cost	0	177,763	11,756	4,185	0	193,704
Valued at current value in: Current year	320,159	0	0	0	3,021	323,180
Valued at current value in: Previous years	310,938	0	0	0	3,211	314,149
Total	631,097	177,763	11,756	4,185	6,232	831,033

8. Details of assets owned by the County Council

	31 March 2006	31 March 2007
Land
This figure excludes highways land	4,612 ha	4,597 ha
Number of properties held by services - Education (incl Voluntary Aided & Controlled)
Nursery School	1	1
Primary Schools	226	225
Secondary Schools (excl 4 foundation schools)	50	50
Special schools	6	7
Outdoor Pursuits Centres	3	3
Teachers Centres	1	1
Free standing Youth and Communtiy Centres	5	9
Client and Technical Support offices and Depots	8	8
Common playing fields	1	1
Social Services
Childrens homes and hostels	3	3
Homes for the elderly	10	10
Homes for adults with learning difficulties	6	5
Homes for the recovering mentally ill	1	1
Day nurseries and family centres	3	3
Day centres for people with learning difficulties	5	5
Day centres for the phisicalyy handicapped	2	2
Local offices	4	4
Highways and Transport
Principal and other roads	4,294 km	4,306 km
Highways/DLO depots	9	8
Waste Disposal
Household refuse and recycling sites and transfer stations (domestic and trade)	14	14
Other Properties
County Hall	1	1
Administrative offices	5	5
Castle House	1	1
County Farms	85	83
School caretakers houses	62	54
Properties acquired in advanced of future developments and properties awaiting disposal	72	78
Industrial units	228	226
Travellers sites	2	2
Community Assets
Country parks	18	17
Libraries and Information
Libraries	52	52
Heritage Services
Museums	3	3
Record office	1	1
Resources centre	1	1
Regulatory Services
Offices for the Registration of Births, Deaths and Marriages	3	3

9.Foundation, church and other schools

Foundation schools remain vested in the Governing Bodies of the individual Foundation School, therefore these assets have not been included in the balance sheet. In this authority, there are four Foundation Schools with a fixed asset valuation of £26.980m as at 31^st March 2007 (2005/6 £15.140m). The main reason for the significantincrease this year is due to the re-build of Bushloe High School, Wigston.

Church and other schools, which are not owned by the authority, have not been included in the balance sheet, and therefore no capital charges will have been applied to the accounts.

10.Deferred charges

	2005/06	2006/07
	£000	£000
Balance at 31 March	0	0
Gross Expenditure	8,889	5,878*
Income recieved	(574)	(1,449)
Amount charged to Income and Expenditure Account	(8,315)	(4,429)
Amount written off to Capital Financing Account	0	0
Balance at 31 March	0	0

* includes capital expenditure of £2.94m on the replacement of a foundation school

11. Financing of capital expenditure on fixed assets and deferred charges during the year

	2005/06	2006/07
	£000	£000
Total Capital Expenditure	88,686	77,048
Financed by:
Usable Capital Receipts	(5,967)	(5,968)
Government Grants & Contributions from external bodies	(28,140)	(33,057)
Reserves	(345)	(514)
Revenue Funding	(1,187)	(206)
Balance representing borrowing requirement	53,047	37,303
Opening Capital Financing Requirement	286,227	325,864
Add: Borrowing requirement	53,047	37,303
Less: Minimum Revenue Provision	(11,798)	(13,399)
Other Movements	(1,612)	(201)
Closing Capital Financing Requirement	325,864	349,567
Increase in underlying need to borrow:
Support by government financial assistance	46,617	26,808
Unsupported by government financial assistance	6,430	10,495

12. Capital commitments

The County Council allocates and controls its available resources for capital expenditure via a rolling three year capital programme. The extent to which expenditure will be incurred in future years for schemes in the various annual programmes is as follows:

	2007/08	2008/09 and later
	£000	£000
2006/07 and earlier year schemes	20,470	17,794

Major contracts entered into during 2006/07 and earlier, where significant payments remain to be made to contractors, include:

	£000
Schools
Oadby Gartree JHigh - Replacement	3,592
Shepshed High - Replacement	2,098
Hinckley Dorothy Goodman - Adaptations to Special School	162
Community Services
Bosworth Battlefield Visitor Centre	463
Mountsorrel Library	582
Braunstone Library	485

13. Grants and contributions deferred

	2005/06	2006/07
	£000	£000
Balance at 31 March	43,504	52,195
Transfer of Magistrates Courts assets to HMCS	(1,627)	0
Grants and contributions received to finance capital expenditure	25,697	36,517
Transfer (to) / from Capital Contributions unapplied	2,443	(3,460)
Write off to Capital Financing Account - income received on assets not increasing value	(16,472)	(22,060)
Release t Income & Expenditure Account	(775)	(923)
Income relating to expenditure on Deferred Charges	(575)	(1,449)
Balance at 31 March	52,195	60,820

14. Publicity

Section 5 of the Local Government Act 1986 requires the Authority to maintain a separate account of expenditure on a wide range of publicity activities.

This expenditure is included within service totals and is given below:

	2005/06	2006/07
	£000	£000
Staff advertising	1,438	1,237
Other advertising	289	244
Public relations	360	426
Other publicity (including tourism)	1,087	1,188
Total	3,174	3,095

15. Agency work

The County Council acts as agent to the various Primary Care Trusts in the County for the payment of the nursing care element of accommodation charges in care homes. Payments reimbursed total £3.2m (2005/06 £3.2m).

16. Local Authorities Goods and Services Act 1970

The Council provides services to other local authorities and public bodies under the Local Authorities (Goods and Services) Act 1970. The services provided consist of financial, forestry and arboriculture, agricultural planning appraisals and caretaking. The organisations to whom these activities are provided, together with the income generated, are listed below. Charges for these services are set at a level to ensure the full recovery of cost.

	2005/06	2006/07
	£000	£000
Services to the Leicestershire Police Authority	11	0
Services to Combined Fire Authority	97	101
Services to Probation Board	92	88
Property Services to other bodies	155	173
Total	355	362

The Council also administers the Concessionary Travel Fees Scheme for areas covered by the Leicester City Council and the District Councils in Leicestershire for which income and expenditure is shown below:

	2005/06	2006/07
	£000	£000
Income	(1,751)	(7,288)
Expenditure	1751	7322
Net Cost	0	34

17. Pooled Budgets

The Council’s Adult and Social Care department participates in two pooled budget arrangements with health authorities as set out below:

a )The supply of aids for daily living with Leicester City Council, Rutland County Council and the six primary care trusts. Leicester City West P.C.T acts as the host authority. This authority contributed £0.716m (2005/06 £0.624m) to the pool. The Memorandum account shows total expenditure of £2.642m and gross income of £2.642.

b) The provision of services for adults with learning difficulties, commenced in December 2005. The other members of the pool are the four County primary care trusts and Rutland County Council. This authority acts as host to the arrangement.

The memorandum account shows total expenditure of £46.297m and gross income of £45.411m. The overspend will be recovered from the various partners. The County Council’s share of this overspend is £549,000 which has been incorporated in the accounts.

18. Officers Emoluments

The number of employees (including teachers) whose remuneration, excluding pension contributions was £50,000 or more in bands of £10,000 is detailed below, together with last year’s comparative figures:

Remuneration Band	Number of employees 2005/06	Number of Employees 2006/07
£50,000 - £59,999	78	97
£60,000 - £69,999	38	43
£70,000 - £79,999	7	8
£80,000 - £89,999	6	5
£90,000 - £99,999	4	6
£100,000 - £109,999	1	3
£110,000 - £119,999	0	2
£120,000 - £129,999	0	0
£130,000 - £139,999	1	1
Total	135	165

19. Members Allowances

Amounts were paid to members of the County Council as follows:

	2005/06	2006/07
	£000	£000
Members Allowances	735	767

20. Related Party Transactions

Details of the total Government grants received are shown in the Cash Flow Statement. The employers contribution paid to the Pension Fund are shown in note 5. Interests in consortia and other organisations is disclosed in note 37.

From the information currently available, no members of the council or senior officers have undertaken any material related party transactions requiring disclosure.

21. Audit Costs

	2005/06	2006/07
	£000	£000
Fees payable to external auditor
Annual split	190	192
Statutory inspection	10	11
Certification of grant claims*	71	40
Total	271	243

* Grant claims continue to be accounted for on the basis of actual payments in year, rather than an estimation of costs relating to 2006/07 grant claims.

22. Investments

Surplus cash balances are mainly invested in short term deposits with a range of banks and other financial institutions. Included within this amount is £3.049m (2005/06 £3.884m) which is invested on behalf of ESPO and £2.152m (2005/06 £1.605m) on behalf of residents in care homes.

23. Debtors

	31 March 2006	31 March 2007
	£000	£000
Long Term Debtors (amounts falling due after one year)
Outstanding debt relating to transferred services (e.g. Unitary Authority, Higher Education establishments, Police, ESPO)	57,174	54,613
Long Term Investments	0	3,447
Accommodation charges at Elderly Persons Homes	2,068	2,069
Car loans to employees	87	49
Other long term debtors	67	69
Less: Provision for bad debts	(258)	(290)
Total	59,138	59,957

Current Debtors
Sundry Debtors	34,503	31,299
Government Departments:
HM Revenue & Customs	3,535	3,137
Other government departments	790	442
Less: Provision foe bad debts	(768)	(609)
Total	38,060	34,269

24. Net deferred premium / discounts on early repayment of debt

	2005/06	2006/07
	£000	£000
Deferred premium	6,818	6,086
Deferred discounts	(180)	(173)
Net balance at 31 March bought forward	6,638	5,913
In Year:
Premiums paid	0	1,699
Discount received	0	(3,617)
Income received from third parties	(479)	0
Amounts charged to revenue account	(246)	(121)
Balance at 31 March	5,913	3,874
Deferred premium	6,086	7,447
Deferred discounts	(173)	(3,573)
	5,913	3,874

25. Stocks and work in progress

	31 March 2006	31 March 2007
	£000	£000
Stocks
Highways	440	791
Client and Technical Support Service	90	41
Museums	24	43
Catering	52	53
Other items	55	57
Sub Total	661	985
Work in Progress
Highways	116	13
Total	777	998

26. Cash

	31 March 2006	31 March 2007
	£000	£000
Net Cash Balance at year end
School & Imprest accounts	5,223	4,211
Main bank accounts	(6,546)	(9,673)
Cash in hand / (cash overdrawn)	(1,323)	(5,462)

Although the balance sheet shows an overdrawn position this is not reflected at the bank due to un-presented cheques and intra account transfers. These figures include un-invested cash held on behalf of residents in Care Homes £0.200m (2005/06 £0.632m)

27. Creditors

	31 March 2006	31 March 2007
	£000	£000
Sundry Creditors	56,842	61,100
Government Departments
Inland Revenue	5,558	5,761
Other government departments	11,744	10,998
Total	74,144	77.859

28. Long term borrowing

	Total outstanding at 31 March	Total outstanding at 31 March
	2006	2007
	£000	£000
Lender
Public Works Loan Band	289,279	288,844
Banks and Building Societies	72,450	72,300
Total	361,729	361,144
Analysis of maturity of these loans:
Maturing -
Between 1 and 2 years	650	650
Between 2 and 5 years	1,800	1,650
Between 5 and 10 years	22,500	2,500
Between 10 and 15 years	4,500	4,500
More than 15 years	332,279	351,844
Total	361,729	361,144

29. Provisions - Movements during the year

	Balance at 31 March 2006	Excess Repaid to I & E Account	Income arising during the year	Expenditure utilised during the year	Balance at 31 March 2007
	£000	£000	£000	£000	£000
Insurance	3,155	0	1,913	(1,394,0	3,674
Landfill allowances	2,992	(53)	2,530	(2,939)	2,530
Leased car	433	0	1,322	(1,082)	673
Social Services Mental Health Refunds	249	0	0	(92)	157
Employment Tribunal	4,500	(4,068)	0	(361)	71
Other	170	0	286	(325)	131
RSG Amending Reports	673	0	0	(673)	0
Education Restructuring	360	0	0	(360)	0
Total	12,532	(4,121)	6,051	(7,226)	7,236

Insurance

The insurance policies held by the County Council require a significant level of self insurance, the level of this being recommended by independent advisers. The monies set aside for self insurance are split between a provision representing outstanding, unsettled claims at 31 March 2007 and a reserve to meet future claims. The provision is expected to be used within the next seven years.

Landfill Allowances

See accounting policies note 18 for details of the Landfill Allowance Trading Scheme (LATS).

Leased Cars

Sum to match costs to the benefits that departments receive from the leasing arrangement as actual payments are geared towards the last year of the agreement.

Adult and Social Care Mental Health: Refunds

Provides for refunds to people with mental health difficulties, who have been charged for residential and nursing care, for which a legal judgement has been made to repay the levy charged.

Employment Tribunal

The provision created in 2005/06 was based upon a ‘worst case’ scenario. The main settlement with the trade unions ultimately proved to be significantly less than this sum, thus the excess provision has been returned to the Income and Expenditure Account

30. Capital contributions unapplied

	2005/06	2006/07
	£000	£000
Balance at 31 March	9,572	7,660
Less sums applied to finance capital expenditure incurred	(630)	0
Less sums received reclassified as creditors	(1,282)	0
Income and interest received not yet applied to finance expenditure	0	2,915
Balance at 31 March	7,660	10,575

31. Movement in Reserves

General County Fund

The balance of the fund as at 31 March 2007, £32.689m (2005/06 £34.355m), contains the following earmarked sums:

	2005/06	2006/07
	£000	£000
Delegated Funding for Schools	20,574	19,771
Other Education establishments with devolved budgets	(444)	0
Carry forward of underspendings across other services	6,668	4,307
Carry forward of resources for funding of Capital	132	132
Earmarked Reserves as at 31 March	26,930	24,210

Thus, the uncommitted balance is restricted to £8.479m (2005/06 £7.425m)

Cash Backed Reserves

Reserve	Balance 1 April 2006	Net Movement in Year	Balance 31 March 2007
	£000	£000	£000
Capital Receipts Unapplied	2,358	(280)	2,078
County Fund	34,355	(1,666)	32,689
Other Revenue Reserves	19,229	17,304	36,533
Total	55,942	15,358	71,300

non-Cash backed Reserves

Reserve	Balance 1 April 2006	Net Movement in Year	Balance 31 March 2007
	£000	£000	£000
Fixed Asset Restatement Account	334,087	36,941	371,028
Capital Financing Account	124,864	(6367)	118,497
Pension Reserve	(209,700)	57,000	(152,700)
Total	249,251	87,574	336,825

Details of other revenue earmarked reserves

		Appropriations	Appropriations
	Balance at 31 march 2006	From Revenue	To Revenue/Capital	Balance at 31 March 2007
	£000	£000	£000	£000
Insurance	6,007	600	(237)	6,370
Renewals of vehicles and equipment	4,957	786	(1,157)	4,586
Organisational Change	695	3,468	(57)	4,106
Corporate Severance	500	2,250	0	2,750
Adult Social Care Developments	0	2,251	0	2,251
Local Area Agreement	1,650	0	(428)	1,222
Industrial Properties Trading	1,390	592	(300)	1,682
Central Maintenance fund	905	144	0	1,049
Childrens and Young Peoples Service
Sure Start	0	1,752	0	1,752
Dedicated Schools Grant	0	1,589	0	1,589
BSF/Melton & Vale of Belvoir Review	0	670	0	670
Highways and Waste Management
Waste Strategy Implementation - revenue	0	2,435	0	2,435
Waste Strategy Implementation - capital	0	750	0	750
Highways Maintenance	0	500	0	500
Civil Parking Enforcement	0	400	0	400
Advanced Design/Major Projects	0	450	0	450
Commuted Sums	226	198	(4)	420
Concessionary Travel	500	0	(129)	371
Shire Grants	678	96	(165)	609
Equal Pay	0	500	0	500
Job Evaluation Appeals	250	0	(250)	0
Other	725	99	(116)	708
Sub Total	18,483	19,530	(2,843)	35,170
Non Cash
Waste Disposal - Landfill Allowances	746	706	(89)	1,363
Total	19,229	20,236	(2,932)	36,533

Renewal of Vehicles and Equipment

Resources for the funding of replacement vehicles and equipment.

Organisational Change

A programme consisting initially of 4 strands to improve services by delivering efficiency savings, improve public access to information and services, implement the creation of new departments f