Summary balance sheet 2020-21

The balance sheet shows the value of the authority’s assets and liabilities at the financial year-end. It shows what the authority owns, the money the authority is owed, and money that the authority owes to others.

Assets

Physical assets owned by the authority

• Land and buildings: this means land and buildings we own. It takes into account any fall or rise in value and any change in costs and condition.
• Vehicles, plant, and equipment: this means the value of these items, taking into account any drop in their value due to wear and tear, and age (depreciation) or those that have been sold, or purchased.
• Assets under construction: this means things we own that are currently being built or undergoing major works before they can be used and includes new fire engine chassis which we have bought and are being built into working fire engines.
• Surplus assets: this includes four houses and land we own in Medway and Thanet.

Stocks

Supplies and equipment that are available for use and distribution.

Amounts owed to the authority

Money that is due to us which can include the remaining balance of the Pension Fund top-up grant we receive and outstanding Council Tax and business rate money that Medway and district councils have still to collect and pay over. 

Deposits of money

This is money we put on deposit and includes treasury bills (money deposited with the government), fixed deposits with banks, and government Debt Management Office accounts.

Liabilities – what we owe to suppliers for goods and services

Amounts owed by the authority

There has been a small decrease in the amount we owe in the short term.

Loans from the Public Works Loan Board

A loan of £0.7m has repaid during this year.

Provisions

We set money aside to cover business rate appeals and existing insurance claims.

Pension long-term liabilities

We have an obligation (liability) and commitment to pay retirement benefits in relation to firefighters’ pensions, which reduced during the year.
We also have an obligation (liability) to the Local Government Pension Scheme which has increased during the year.

Net assets

Net assets for the year ended 31 March 2020 are -£674.5m (total assets of £161.2m minus total liabilities of £835.7m)
Net assets for the year ended 31 March 2021 are -£874.6m (total assets of £169.6m minus total liabilities of £1044.2m)

Reserves (money set aside)

General reserves

This is money we hold to meet the cost of exceptional unforeseen costs that arise but that cannot be met by any other budget.

Earmarked reserves

This is money we hold for specific purposes and includes such things as future station improvements, the replacement of large items of equipment, the purchase of vehicles, and information technology improvements.

Capital receipts reserve

This is money raised from the sale of assets. For example, the sale of the former Ramsgate fire station.

Unusable reserves

This reserve reflects accounting adjustments that the authority undertakes in relation to assets and liabilities so as not to affect Council Tax payers. This is not a cashable reserve and therefore is not available to cover expenditure.