Group Comprehensive Income and Expenditure Statement 2021/22

This Group statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation (or rents). Authorities raise taxation (and rents) to cover expenditure in accordance with statutory requirements; this may be different from the accounting cost. The taxation position is shown in both the Expenditure and Funding Analysis (Note 7) and the Movement in Reserves Statement. Intragroup balances are eliminated on consolidation.

*2020/21 figures have been restated due to a change in valuation basis for the Civic Office, increasing the value of this property. See note 1.4 for more details.

Group Balance Sheet 2021/22

The Group Balance Sheet shows the value at the Balance Sheet date of the assets and liabilities recognised by the entity and its subsidiaries. The net assets (assets less liabilities) are matched by the reserves. Reserves are reported in two categories. The first category of reserves is usable reserves, which the Authority may use to provide services subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves is those that the Authority is not able to use to provide services. This category of reserves includes those that hold unrealised gains and losses (for example the Revaluation Reserve), where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the Group Movement in Reserves Statement line ‘Adjustments between Accounting basis and funding basis under regulations’. Intragroup balances are eliminated on consolidation.

*2020/21 figures have been restated due to a change in valuation basis for the Civic Office, increasing the value of this property. See note 1.4 for more details.

Group Movement in Reserves Statement 2021/22

The Group Movement in Reserves Statement shows the movement from the start of the year to the end on different reserves held by the Authority and its subsidiaries, analysed into ‘Usable Reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other ‘Unusable Reserves’. This Statement shows how the movements in the year of the Authority’s and subsidiary's reserves are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return to the amounts chargeable to council tax (or rents) for the year. The net Increase/Decrease line shows the statutory General Fund Balance movements in the year following those adjustments. The General Fund also includes earmarked reserves.

*2020/21 figures have been restated due to a change in valuation basis for the Civic Office, increasing the value of this property. See note 1.4 for more details.

Group Cash Flow Statement 2021/22

The Group Cash Flow Statement shows the change in cash and cash equivalents of the Authority and its subsidiaries during the reporting period. The statement shows how the authority and its subsidiaries generate and uses cash and cash equivalents by classifying cash flows as operating, investing or financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Authority are funded by way of taxation and grant income or from the recipients of services provided by the Authority and its subsidiaries. Investing activities represent the extent to which cash outflows have been made for resources which intended to contribute to the Authority and its subsidiaries future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Authority and subsidiaries.

*2020/21 figures have been restated due to a change in valuation basis for the Civic Office, increasing the value of this property. See note 1.4 for more details.

Group Accounts - Disclosures 2021/22

Introduction

The Authority holds a 100% interest in BexleyCo Limited, a company limited by shares. The Authority has loans and equity with this subsidiary. The Company was incorporated in June 2017 and fulfils the strategic aims and objectives of the Council to generate additional income streams in line with the Asset Investment Strategy and for Housing Redevelopment both residential and a proportion of affordable housing. Voting rights are such that shares rank equally for voting purposes.

The London Borough of Bexley (the reporting authority) has one subsidiary company reported in the group accounts:

BexleyCo Limited

The London Borough of Bexley owns 100% of the share capital of BexleyCo and BexleyCo operates at the Civic Offices, 2 Watling Street, Bexleyheath DA6 7AT.

Basis of Consolidation

The group Financial Statements i.e the group balance sheet, group movement in reserves statement and group cash flow statement have been prepared by consolidating the accounts of the reporting authority (London Borough of Bexley) and its subsidiary (BexleyCo) on a line by line basis. The accounts of BexleyCo have been prepared in accordance with paragraph 9.1.2.60 of the Code, using uniform accounting policies for like transactions and other events in similar circumstances.

Financial Performance

In 2021/22 the company made an operating profit of £1,300k. (£218k loss in 2020/21). The turnover of BexleyCo was £10,282k (£4,228k in 2020/21) and the cost of sales was £8,062k (£4,032k in 2020/21).

Investment Properties

The Statement of Financial Position for BexleyCo includes £3,163k of Investment Properties at 31 March 2022 (£3,550k at 31 March 2021).

Inventories

Inventories include Work in Progress for BexleyCo of £11,115k in 2021/22 (2020/21 £10,755k) a movement of £780k over the previous year.

Creditors

Creditors include £934k for BexleyCo in 2021/22 (2020/21 £1,277k).

Operating Cash Flows

To arrive at the net cash flows from operating activities, the cash flow statement takes the surplus or deficit on provision of services and adjusts for non-cash movements and for items that are investing or financing activities.

Adjustments for items included in the net surplus or deficit on the provision of services that are non-cash movements:

The surplus or deficit on provision of services has been adjusted for the following items that are investing and financing activities:

Investing Activities

The group cash flow statement includes the following cash flows relating to investing activities:

Financing Activities

The group cash flow statement includes the following cash flows relating to financing activities: