Accounts
Local Authorities are required to maintain two, essentially separate categories of income and expenditure. One of these is Revenue - what is the other?
Capital. This money is only to be used on capital projects, as opposed to revenue, which is for the general day-to-day running of the organisation.
Income and expenditure budgeted and spent on certain defined activities and cannot be used elsewhere.
Ring-Fenced
Council Tax is charged based on the rough value of the property, originally the value in 1991. This evaluation was re-done in 2005 and 2017 in Wales and Scotland respectively - when was England's reevaluation?
Never/1991
A Section 106 grant was recently received, obligating the council to spend £500,000 over 10 years upgrading a shabby fence in CB4. What is the average spend per year on this project?
£50,000
Which term refers to monies specifically allocated to meet future liabilities?
Balance
Council tax and retained business rates contribute towards which major account?
Revenue. Other contributions here include income from fees and charges, new homes bonus, and various grants.
A budget estimating income and expenditure at a high level over at least three forward financial years.
Medium Term Financial Strategy
2.99% - NOT 3%!
A service has advertised for a role at grade 7, costing £66,000 per year. They have been unable to fill this post for several years, and have instead hired agency staff costing £90,000 per year. How much money could have been saved over 5 years had the position been filled?
£120,000
What major structural factor should be considered when setting a council's minimum level of reserves?
Risk in the council's incomes and holdings
Both revenue and capital accounts are part of the larger General Fund. There are two other major pots of money that authorities commonly hold - name either of them.
Housing Revenue Account and a Dedicated Schools Budget.
The proceeds of sale from the disposal of assets such as land and buildings.
Capital Reciept
In a two-tier (County and District) setting, what percentage of business rates collected is allocated to the district council?
40%
The Greater London Authority collects 20% of Council Tax collected in London. RB Kensington and Chelsea raised £5 billion in total last financial year. How much went to the GLA?
£1 billion
What mechanism exists to ensure that capital budgets are not continually depleted by equipment maintenance and replacement?
De-minimis level - a decision on what assets are small enough to be counted towards the revenue, rather than capital budget
Which budget(s) would the following contribute towards?
A) Monies earnt from the operating of a public toilet
B) The eventual sale of an underperforming toilet
A) Revenue
B) Capital
The annual amount established by central government used in the calculation of the business rates bill. This amount is multiplied by the businesses rateable value to derive the size of the business rates bill for the year.
Business Rates Multiplier
Business rates income is very exposed to the volatility of the market. How might a set of nearby local authorities seek to minimise this risk?
By entering into a Business Rates Pool sharing agreement, so spreading across a wider (and likely more diversified) base
The renovation of a beloved prison is expected to cost £3.2 million. The sale of assets has generated £0.7 million towards the project, and £2 million in grants has been applied for. Assuming 1/4 of the grants are approved, how much borrowing and/or use of council reserves will be required to fully fund the project?
£2 million
According to the Accounts and Audit Regulation, how often is an authority required to produce a statement overviewing their systems of internal control? This document is to be signed by the Chief Exec and the Leader of the Council.
Once per year - Annual Governance Statement
What bodies are required to hold a Housing Revenue Account?
Any Local Housing Authority maintaining a stock of over 200 socially rented units. Note that only district and unitaries fall in this category, not upper-tier (county) councils.
The amount which a local authority - which cannot bill the council tax directly - requires to be collected on its behalf by the relevant billing authority.
Precept
Other local authorities are able to raise council tax by 4.99% without referendum or permission - a higher rate than CCC is. What causes this discrepancy?
Social Care Responsibilities
CCC's total inputs into the revenue fund in 2022/23 was £50.60 15% of this was provided via various central government grants. What is the total value of this?
£7.59
A new main library will cost £5 million to construct. While there is no room whatsoever in the revenues budget for increased spending, the sale of an old civic building has provided the authority with £15 million of windfall. Can the authority afford to construct the centre and operate it for the next 10 years? Why?
No, as while the capital budget would allow construction, future operating costs would need to be financed from revenues.