Suffolk County Council

Statement of Accounts

2021 - 2022

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Suffolk County Council 
Statement of Accounts 
for the year ended 31 March 2022 
 
Contents 
 
                              Page 
 
Auditors Report……………………………………………………………………………………….i 
Statement of Responsibilities………………………………………………………………………vi 
Narrative Report .................................................................................................................... 1 
Comprehensive Income and Expenditure Statement .......................................................... 19 
Movement in Reserves Statement ...................................................................................... 20 
Expenditure and Funding Analysis ...................................................................................... 21 
Balance Sheet ..................................................................................................................... 25 
Cash Flow Statement .......................................................................................................... 26 
Notes to the Core Statements ............................................................................................. 28 
Group Accounts .................................................................................................................. 99 
Pension Fund Accounts .................................................................................................... 111 
Fire Pension Fund Statement ............................................................................................ 145 
Glossary of Terms ............................................................................................................. 146

Auditors Report

Suffolk County Council i Auditors Report

Auditors Report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SUFFOLK COUNTY COUNCIL

Opinion

We have audited the financial statements of Suffolk County Council (‘the Authority’) and its subsidiaries

(the ‘Group’) for the year ended 31 March 2022 under the Local Audit and Accountability Act 2014 (as

amended). The financial statements comprise the:

• Authority and Group Comprehensive Income and Expenditure Statement

• Authority and Group Movement in Reserves Statement,

• Authority and Group Balance Sheet,

• Authority and Group Cash Flow Statement, and the related notes CF1 to CF4

• the related notes 1 to 40 to the Authority Accounts, the Expenditure and Funding Analysis and

associates notes EFA Notes 1 to 5 on pages 21 to 24,

• the related notes G1 to G13 to the Group Accounts

• and includes the firefighters’ pension fund financial statements comprising the Fund Account, the

Net Assets Statement and the related notes 1 to 3.

The financial reporting framework that has been applied in their preparation is applicable law and the

CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2021/22 as

amended by the Update to the Code and Specifications for Future Codes for Infrastructure Assets

(November 2022).

In our opinion the financial statements:

• give a true and fair view of the financial position of Suffolk County Council and the Group as at 31

March 2022 and of its expenditure and income for the year then ended; and

• have been prepared properly in accordance with the CIPFA/LASAAC Code of Practice on Local

Authority Accounting in the United Kingdom 2021/22 as amended by the Update to the Code and

Specifications for Future Codes for Infrastructure Assets (November 2022).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the financial statements section of our report. We are independent of the

Authority and Group in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the FRC’s Ethical Standard and the Comptroller and Auditor

General’s AGN01, and we have fulfilled our other ethical responsibilities in accordance with these

requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Chief Financial Officer (S151 Officer) use

of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events

or conditions that, individually or collectively, may cast significant doubt on the Authority and Group’s ability

Auditors Report

Suffolk County Council ii Auditors Report

to continue as a going concern for a period of more than 12 months from when the financial statements are

authorised for issue.

Our responsibilities and the responsibilities of the Chief Financial Officer (S151 Officer) with respect to

going concern are described in the relevant sections of this report. However, because not all future events

or conditions can be predicted, this statement is not a guarantee as to the Authority and Group ability to

continue as a going concern.

Other information

The other information comprises the information included in the Statement of Accounts 2021-22, other than

the financial statements and our auditor’s report thereon. The Chief Financial Officer (S151 Officer) is

responsible for the other information contained within the Statement of Accounts 2021-22.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information

is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit

or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent

material misstatements, we are required to determine whether there is a material misstatement in the

financial statements themselves. If, based on the work we have performed, we conclude that there is a

material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we report by exception

We report to you if:

• in our opinion the annual governance statement is misleading or inconsistent with other information

forthcoming from the audit or our knowledge of the Authority and Group.

• we issue a report in the public interest under section 24 of the Local Audit and Accountability Act

2014 (as amended)

• we make written recommendations to the audited body under Section 24 of the Local Audit and

Accountability Act 2014 (as amended)

• we make an application to the court for a declaration that an item of account is contrary to law

under Section 28 of the Local Audit and Accountability Act 2014 (as amended)

• we issue an advisory notice under Section 29 of the Local Audit and Accountability Act 2014 (as

amended)

• we make an application for judicial review under Section 31 of the Local Audit and

• Accountability Act 2014 (as amended)

• we are not satisfied that the Authority and Group has made proper arrangements for securing

economy, efficiency and effectiveness in its use of resources for the year ended 31 March 2022.

We have nothing to report in these respects

Responsibility of the Chief Financial Officer (S151 Officer)

As explained more fully in the Statement of the Chief Financial Officer (S151 Officer) Responsibilities set

out on page v, the Chief Financial Officer (S151 Officer) is responsible for the preparation of the Statement

of Accounts, which includes the Group/Authority financial statements and the firefighters pension fund

financial statements, in accordance with proper practices as set out in the CIPFA/LASAAC Code of

Practice on Local Authority Accounting in the United Kingdom 2021/22 as amended by the Update to the

Auditors Report

Suffolk County Council iii Auditors Report

Code and Specifications for Future Codes for Infrastructure Assets (November 2022), and for being

satisfied that they give a true and fair view and for such internal control as the Chief Financial Officer (S151

Officer) determines is necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chief Financial Officer (S151 Officer) is responsible for assessing

the Authority and Group ability to continue as a going concern, disclosing, as applicable, matters related to

going concern and using the going concern basis of accounting unless the Authority and Group either

intends to cease operations, or has no realistic alternative but to do so.

The authority is responsible for putting in place proper arrangements to secure economy, efficiency and

effectiveness in its use of resources, to ensure proper stewardship and governance, and to review

regularly the adequacy and effectiveness of these arrangements.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of

these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk

of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting

from error, as fraud may involve deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion. The extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and

detection of fraud rests with both those charged with governance of the entity and management.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Authority

and Group and determined that the most significant are:

• Local Government Act 1972,

• Local Government Finance Act 1988 (as amended by the Local Government Finance Act 1992),

• Education Act 2002 and School Standards and Framework Act 1998 (England),

• Local Government Act 2003,

The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

• as amended in 2018, 2020, and 2022,

• National Health Service Act 2006,

• Planning Act 2008 and the Community Infrastructure Levy Regulations 2010 (SI 2010/948),

• The Local Government Finance Act 2012,

• The Local Audit and Accountability Act 2014 (as amended), and

• The Accounts and Audit Regulations 2015.

Auditors Report

Suffolk County Council iv Auditors Report

In addition, the Authority and Group has to comply with laws and regulations in the areas of anti-bribery

and corruption, data protection, employment Legislation, tax Legislation, general power of competence,

procurement and health & safety.

We understood how Suffolk County Council is complying with those frameworks by understanding the

incentive, opportunities and motives for non-compliance, including inquiring of management, the head of

internal audit and those charged with governance and obtaining and reading documentation relating to the

procedures in place to identify, evaluate and comply with laws and regulations, and whether they are

aware of instances of non-compliance. We corroborated this through our reading of the Group and the

Authority’s committee minutes, through enquiry of employees to confirm Group and the Authority policies,

and through the inspection of other information. Based on this understanding we designed our audit

procedures to identify non-compliance with such laws and regulations. Our procedures had a focus on

compliance with the accounting framework through obtaining sufficient audit evidence in line with the level

of risk identified and with relevant legislation.

We assessed the susceptibility of the Group and the Authority’s financial statements to material

misstatement, including how fraud might occur by understanding the potential incentives and pressures for

management to manipulate the financial statements, and performed procedures to understand the areas in

which this would most likely arise. Based on our risk assessment procedures, we identified we identified a

risk of inappropriate capitalisation of revenue expenditure and management override of controls to be our

fraud risks.

To address our fraud risk around management override of controls, we tested specific journal entries

identified by applying risk criteria to the entire population of journals. For each journal selected, we tested

specific transactions back to source documentation to confirm that the journals were authorised and

accounted for appropriately.

To address our fraud risk of inappropriate capitalisation of revenue expenditure we tested the Group and

the Authority’s capitalised expenditure and revenue expenditure financed from capital under statute to

ensure the capitalisation criteria were properly met and the expenditure has been incurred.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description

forms part of our auditor’s report.

Scope of the review of arrangements for securing economy, efficiency and effectiveness in the use

of resources

We have undertaken our review in accordance with the Code of Audit Practice 2020, having regard to the

guidance on the specified reporting criteria issued by the Comptroller and Auditor General in December

2021, as to whether Suffolk County Council had proper arrangements for financial sustainability,

governance and improving economy, efficiency and effectiveness. The Comptroller and Auditor General

determined these criteria as those necessary for us to consider under the Code of Audit Practice in

satisfying ourselves whether Suffolk County Council put in place proper arrangements for securing

economy, efficiency and effectiveness in its use of resources for the year ended 31 March 2022.

We planned our work in accordance with the Code of Audit Practice. Based on our risk assessment, we

undertook such work as we considered necessary to form a view on whether, in all significant respects,

Suffolk County Council had put in place proper arrangements to secure economy, efficiency and

effectiveness in its use of resources.

We are required under Section 20(1)(c) of the Local Audit and Accountability Act 2014 (as amended) to

satisfy ourselves that the Authority has made proper arrangements for securing economy, efficiency and

effectiveness in its use of resources.

Auditors Report

Suffolk County Council v Auditors Report

We are not required to consider, nor have we considered, whether all aspects of the Authority’s

arrangements for securing economy, efficiency and effectiveness in its use of resources are operating

effectively.

Pension Fund financial statements

On 5 June 2023 we issued our opinion on the Pension Fund financial statements for the year ended 31

March 2022 included within the Statement of Accounts.

Delay in certification of completion of the audit

We cannot formally conclude the audit and issue an audit certificate until we have completed the work

necessary to issue our assurance statement in respect of the Group Whole of Government Accounts

consolidation pack. We are satisfied that this work does not have a material effect on the financial

statements or on our work on value for money arrangements.

In addition, we cannot formally conclude the audit and issue an audit certificate until we have issued our

Auditor’s Annual Report for the year ended 31 March 2022. We have completed our work on the value for

money arrangements and will report the outcome of our work in our commentary on those arrangements

within the Auditor’s Annual Report.

Until we have completed these procedures, we are unable to certify that we have completed the audit of

the accounts in accordance with the requirements of the Local Audit and Accountability Act 2014 (as

amended) and the Code of Audit Practice issued by the National Audit Office.

Use of our report

This report is made solely to the members of Suffolk County Council, as a body, in accordance with Part 5

of the Local Audit and Accountability Act 2014 (as amended) and for no other purpose, as set out in

paragraph 43 of the Statement of Responsibilities of Auditors and Audited Bodies published by Public

Sector Audit Appointments Limited. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Authority and Group and the Authority’s members as a body, for our

audit work, for this report, or for the opinions we have formed.

Debbie Hanson (Key Audit Partner)

Ernst & Young LLP (Local Auditor)

Luton

5 June 2023

Auditors Report

Suffolk County Council vi Statement of Responsibilities

The Council’s Responsibilities

The Council is required to:

• make arrangements for the proper administration of its financial affairs and to secure that one of its

officers has the responsibility for the administration of those affairs. In this Council, that officer is the

Chief Financial Officer;

• manage its affairs to secure economic, efficient, and effective use of resources and to safeguard its

assets; and

• approve the statement of accounts

Certification

I confirm that these accounts were approved by the Audit Committee at its meeting on 5 June 2023 on behalf of

Suffolk County Council and have been authorised for issue.

The responsibilities of the Chief Financial Officer (Section 151 Officer)

The Chief Financial Officer is responsible for the preparation of the Council’s Statements of Accounts including

those of the Pension Fund. In order to comply with the Code of Practice on Local Authority Accounting in the

United Kingdom issued by the Chartered Institute of Public Finance and Accountancy (CIPFA), these

statements must present a true and fair view of our financial position and that of the Pension Fund at

31 March 2022, and the income and expenditure (spending) for the year to that date.

In preparing this Statement of Accounts, the Chief Financial Officer has:

• Selected suitable accounting policies and applied them consistently;

• Made judgements and estimates that were reasonable and prudent; and

• Complied with the Code of Practice on Local Authority Accounting.

The Chief Financial Officer has also:

• Kept proper accounting records which were up to date; and

• Taken reasonable steps to prevent and detect fraud and other irregularities.

Certification

I certify that this statement of accounts has been prepared in accordance with proper accounting practices

and presents a true and fair view of the Council at 31 March 2022 and its income and expenditure for the year

to that date.

Narrative Report

Suffolk County Council 1 Narrative Report

Narrative Report

1.0 An Introduction to Suffolk

This narrative report provides an overview of the Council’s corporate strategy, the services delivered, the

financial and non-financial performance in-year and the financial outlook for the Council.

Suffolk is a rural county in the East of England with a population of approximately 760,000. The natural

environment is a key asset for Suffolk and the countryside and coastline are a major tourist attraction and a

significant reason people want to live and work in the County. Rich in cultural heritage and landscape beauty,

the County has one of the warmest and driest climates in the country but being a rural county can provide

challenges to the Council in the provision of services. Life expectancy is higher than the national average and

levels of deprivation are generally low but there are small but significant pockets of deprivation in the major

towns and some rural areas. Employment levels overall were good prior to COVID-19 but average earnings are

below the national average.

1.1 Corporate Strategy

In September 2021, the Council adopted a new Corporate Strategy for the period 2022 to 2026. This

superseded the previous ‘Suffolk County Council: Our Priorities 2017 - 2021’ document. The document

provides a framework for future decision making, financial and business planning for the organisation. The

Strategy was developed following the County Council elections in May 2021, with its associated objectives

based on political priorities as well as the factors impacting on the current public services landscape at a national

and local level, in particular supporting the Government’s “Build Back Better” agenda to level up the UK, enable

the transition to net zero, and support the vision for a Global Britain.

Suffolk County Council - Corporate Strategy 2022- 2026

The four corporate objectives for 2022 – 2023 are:

a) To promote and support the health and wellbeing of all people in Suffolk;

b) To strengthen Suffolk’s local economy;

c) To protect and enhance Suffolk’s environment;

d) To provide value for money for the Suffolk taxpayer;

The Council has developed nearly 57 performance measures to assess success in delivering its objectives

which it reports against quarterly. These are detailed within the Council’s 2021-22 Business Plan.

Suffolk County Council - Business Plan 2021-22

A report detailing these performance measures will be published on the Corporate Performance Report section

of the Council’s website during July 2022. Corporate performance reports | Suffolk County Council

1.2 COVID-19

1.2.1 The impact of COVID-19 continued into 2021 - 2022 as Suffolk sought to manage further infection

waves. In total, £87.215 million of COVID-19 related grants and contributions were applied in 2021 -

2022 to manage to financial impact as outlined in Table 1 below. In addition to the un-ringfenced

COVID-19 Emergency Grant, a range of specific grants were made available by Government to manage

particular pressures. These £59.168 million specific grants were earmarked to support adult social care

providers (£22.716 million), the wider public health response (£32.077 million), with remaining £4.375

million earmarked to fund a variety of other Council services. The support provided to adult social care

providers was in recognition of the additional costs related to areas such as workforce pressures,

insurance and infection control. The additional costs relating to the wider public health response largely

related to the management of local outbreaks, support for local businesses, community testing and self-

isolation support. In addition, £5.744 million was provided in recognition of the loss of Council Tax

revenues resulting from the impact of the pandemic, and £12.196 million from the NHS to support timely

hospital discharges. In total, £14.682 million of COVID-19 funding has been carried forward into 2022

- 2023.

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Suffolk County Council 2 Narrative Report

Table 1 – COVID-19 Funding and Application

2.0 Service Provision

There have been no changes to Directorate structure over this period. There has been one significant

change of personnel at a senior level within the organisation with Jon Lacey joining as Executive

Director of Fire and Public Safety in November 2021.

The Council is organised into the following Directorates:

2.1 The Adult and Community Services Directorate is responsible for delivering the Council’s

responsibilities under the Care Act 2014. This includes providing high quality information and advice

about care and support to adults with social care needs; promoting independence by offering short term

re-ablement and support such as assistive technology or equipment; and providing or commissioning

ongoing social care and support for those adults who need it, either at home, in the community, or in

supported living or residential care accommodation. Key metrics within the Directorate for 2021 - 2022

include:

a. 9,418 customers were receiving purchased care;

b. 112,927 residential care bed-weeks, and 32,707 nursing care bed-weeks, provided;

c. 3.026 million hours of external homecare delivered;

d. 923 digital devices rolled out to assist with care provision;

2.2 The Children and Young People Directorate deliver a range of statutory duties in relation to the safety

and welfare of children and young people. These include Early Help services, 0-19 year Healthy Child

service, Education & Learning, Special Educational Needs and Disabilities, Social Care Services,

Fostering & Adoption, Disabled Children’s Services, and Youth Justice. Key metrics within the

Directorate as at the end of 2021 - 2022 include:

a. 104 maintained schools and 217 academies and free schools operated within the county;

b. 917 children were in care (CiC), of which 102 were unaccompanied asylum seeker children;

c. 451 children were subject to a Child Protection Plan;

d. 6,475 Education and Health Care Plans were in place;

2.3 The Public Health and Communities Directorate consists of the following service areas: Health

Improvement and Protection Services, Localities and Partnerships (which includes Libraries) and

Knowledge & Intelligence. Public Health provide and commission a wide range of services to improve

the health and lives of Suffolk people including healthy lifestyles, health protection and advice.

Alongside its business-as-usual activities, over the course of the COVID-19 pandemic the Directorate

led the Council’s response within the community, coordinating with the NHS and other partners. This

included ensuring there was effective testing and tracing for COVID-19 within Suffolk, and managing

and containing COVID-19 outbreaks where these occurred.

2.4 The Fire and Public Safety Directorate consists of the Suffolk Fire and Rescue Service, Trading

Standards and the Joint Emergency Planning Unit.

The Fire and Rescue Service vision is to work together to make Suffolk a place where people lead safe

and healthy lives. To do this it provides prevention, protection and emergency response services to

Balance

carried

forward

from 2020-

21 (£m)

2021-22

Allocations

(£m)

Total

Funding

Available

(£m)

COVID-19 Emergency Grant 9.862 14.718 24.579 19.448 5.132

Sales, Fees & Charges Compensation 0.000 0.116 0.116 0.116 0.000

Council Tax Support Grant 0.000 5.744 5.744 5.744 0.000

Specific Grants 15.441 43.727 59.168 49.712 9.457

NHS Hospital Discharge Funding 0.000 12.196 12.196 12.196 0.000

Total 25.303 76.501 101.804 87.215 14.588

Grant

Carried

Forward

into 2022-

23 (£m)

Grant Funding Available

Grant

Applied in

2021-22

(£m)

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Suffolk County Council 3 Narrative Report

local communities across the county and supports neighbouring and other fire services in the event of

larger incidents. Key metrics within the Service as at the end of 2021 - 2022 include:

a. 35 fire stations with 4 full time, 2 day-crewed and 37 on-call fire engines with associated 999

control, training and support functions.

b. 5,511 incidents were attended in 2021-22

Trading Standards vision is for a ‘Rogue-Free Suffolk’. The delivery objectives supporting this are: To

build resilient communities who say ‘no’ to scams and rogue traders, to support genuine Suffolk

business, to take action against rogue traders, and to carry out market surveillance and use intelligence

to target available resources most effectively.

The Emergency Planning and Business Continuity functions enable the Council to work in partnership

with other organisations during emergencies to protect the public, to ensure critical services continue

and to rebuild communities after any incident. These services are provided through a Joint Emergency

Planning partnership with Suffolk District and Borough Councils.

2.5 The Growth, Highways and Infrastructure Directorate is responsible for the provision of waste

disposal, transport, highways and planning services. It is also responsible for the protection,

enhancement and maintenance of the county’s natural and historical environment, and taking a lead on

the Council’s response to the Climate Emergency. In addition, it has a lead role in supporting Suffolk’s

economy and delivering sustainable infrastructure through key projects such as the Gullwing Bridge

and the promotion of more housing delivery. Key metrics within the Directorate in 2021 - 2022 include:

a. 4,271 miles of road maintained;

b. 10,793 children transported to and from school;

c. 80,001 passenger journeys supported via Connecting Communities

2.6 The Corporate Services Directorate is responsible for providing support functions to the Council

including Assets and Investment, Communications, Finance, Health and Safety, Human Resources, IT,

and Governance, Legal and Assurance, and Policy, to enable and support the delivery of effective and

efficient public services to the people of Suffolk. Corporate Services is also responsible for the front-line

delivery of the Coroner’s, Registration Services and Customer & Online Services.

3.0 Resident Satisfaction

The Council refrained from engaging in actively surveying resident satisfaction during 2021 - 2022 and

did not hold “We Are Listening” events across the County, due to the impact of the COVID-19 pandemic.

However, residents’ views were sought as part of the budget consultation held in last quarter of 2021,

with the results of this published alongside the 2021 – 2022 Budget approved by Council on 17 February

2022.

4.0 Financial Performance

4.0.1 The Cabinet received quarterly budget monitoring reports during the year and received a detailed report

of the outturn on 20 June 2022. The Council continues to operate at a moment of considerable

uncertainty and upheaval as the country continues to respond to the threat of COVID-19, whilst seeking

to emerge from restrictions that have impacted across society over the past two years. This rapidly

changing environment, and the associated uncertainty this brings, have ensured that budgeting and

forecasting have been particularly challenging during 2021-22.

4.1 Revenue

4.1.1 In February 2021, the Council set its 2021 - 2022 Revenue Budget. This consisted of a Net Expenditure

Budget of £597.877 million (i.e. the expenditure budget after fees, charges, contributions and some

specific grants have been deducted) and a corresponding £597.877 million Core Funding Budget

comprising Council Tax and Business Rates which fund 77% of the budget, a range of Government

grants which fund 20%, and contributions from corporate reserves which fund the remaining 3%.

4.1.2 Following the approval of the 2021 - 2022 Revenue Budget, the Department of Health & Social Care

finalised the ringfenced Public Health Grant for 2021 - 2022 at £30.805 million, £0.321 million higher

than the figure within the budget. To reflect this change, both the Public Health Grant budget within the

Core Funding Budget, and the Public Health Directorate budget within the Net Expenditure Budget were

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Suffolk County Council 4 Narrative Report

increased by £0.321 million, causing the 2021 - 2022 Net Expenditure and Core Funding Budgets both

to increase from £597.877 million to £598.198 million.

4.1.3 The Council set its 2021 - 2022 Revenue Budget in the midst of the COVID-19 pandemic with the

exceptional pressures and unprecedented uncertainty that has surrounded this. Whereas the

Government provided additional resources to support the Council’s response to, and recovery from, the

pandemic, certain funding, such as that relating to support from reduced Council Tax income, were

uncertain at the time of budget setting. Moreover plans indicated that expenditure pressures, including

£18.716 million of inflation, £38.789 million of general cost pressures and £15.260 million of COVID-19

cost pressures, would exceed core funding available during 2021 - 2022 despite mitigating actions

taken, which required a one-off £18.394 million draw down from corporate reserves to ensure that

budget balanced.

4.1.4 The Council’s final outturn for 2021 - 2022 is a £9.043 million underspend against budget. This

comprises and is summarised in Table 2:

a) a £12.125 million underspend against its core funding, comprising a £5.132 million underspend

in relation to expenditure and funding relating to COVID-19, and a £6.993 million underspend in

relation to its non-COVID-19 business-as-usual expenditure and funding;

b) a £5.251 million overspend against its Dedicated Schools Grant funding;

c) a £2.169 million increase in Business Rates funding against budget from its Business Rates

pool;

Table 2: 2021 - 2022 Revenue Budget Outturn Summary

2021-22

Budget

£ million

2021-22

Outturn

£ million

2021-22

Variance

£ million

Core Funding -12.125

DSG Funding 5.251

Core Funding 598.198 600.367 2.169

Total - 9.043 9.043

Variance Split by Funding

Source

£ million

Net Expenditure

-6.874

591.324

598.198

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4.1.5 Core Funding

Table 3 below compares the core funding budgeted to the core funding generated as at 31 March 2022.

Table 3: Core Funding Budget

4.1.6 In addition to the £0.321 million of additional Public Health grant outlined above in 4.1.2 the following

changes occurred since the 2021 – 2022 Budget was approved:

a. £5.744 million grant was announced to support the shortfall in Council Tax arising from the

impact of COVID-19;

b. £8.469 million of COVID-19 emergency grant received and unapplied in 2020 - 2021 was

available to support the 2021 - 2022 Budget;

c. £0.116 million was received through the COVID-19 Sales, Fees and Charges compensation

scheme, which was extended to the first three months in 2021 - 2022;

d. The Collection Fund Deficit was £1.393 million, £0.299 million less than the £1.692 million

budget.

4.1.7 These changes enabled the £16.522 million planned draw down from Risk Reserve to be reduced by

£14.329 million to £2.193 million.

4.1.8 £2.169 million more was received into its Business Rates Pool than the figure budgeted. This was due

to a decision for Suffolk Councils to retain a greater share of the county’s pool than was the case in

previous years to assist their recovery from COVID-19.

4.2 Net Expenditure Budget

Table 4 summarises the Net Expenditure Budget variance by Directorate, with Table 5 breaking this

variance down between COVID-19 and non-COVID-19 costs, and expenditure funded from Dedicated

Schools Grant.

2021-22

Budget

£ million

2021-22

Outturn

£ million

2021-22

Variance

£ million

Business Rates (& ass. S31 Grants) 113.018 115.187 2.169

Council Tax & Social Care Precept 351.681 351.681 -

Collection Fund Deficit -1.692 -1.393 0.299

Government Grants (Core Funding) - - -

Revenue Support Grant 16.636 16.636 -

Public Health Grant 30.805 30.805 -

Improved Better Care Fund 28.155 28.155 -

Social Care Grant 23.279 23.279 -

Rural Services Delivery Grant 2.280 2.280 -

New Homes Bonus 1.106 1.106 -

COVID-19 Grants - - -

COVID-19 Emergency Grant 14.718 14.718 -

Council Tax Support Grant - 5.744 5.744

Sales, Fees & Charges Compensation - 0.116 0.116

Reserve Transfer - - -

Risk Reserve (Transformation) 8.638 0.053 -8.585

Risk Reserve (Council Tax) 7.884 2.140 -5.744

COVID-19 (Collection Fund Deficit) 1.692 1.393 -0.299

COVID-19 (Remaining Balances) - 8.469 8.469

598.198 600.367 2.169

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Table 4: Actual Net Expenditure compared to the Final Net Expenditure Budget 2021 – 2022 by

Directorate

* Positive variance represents an overspend, and a negative variance represents an underspend

Table 5: 2021 – 2022 by Spending and Funding Type

* Positive variance represents an overspend, and a negative variance represents an underspend

4.2.1 The £6.993 million underspend in relation to non-COVID-19 business-as-usual expenditure is principally

due to underspends within Adult & Community Services (ACS) (£2.459 million), Growth, Highways &

Infrastructure (GHI) (£1.219 million), and Central Resources & Capital Financing (£1.989 million). The

reasons behind the variances are summarised below, with further detail provided in the Directorate

paragraphs later in the report:

a. The non-COVID-19 underspend within ACS is principally due to staff vacancies, primarily in social

care teams, but also other areas across the service. Despite the underlying expenditure on care

purchasing within ACS being substantially less than the budget due to a decrease in customer

numbers, the non-COVID-19 element of this budget overspent by £1.672 million. This was a result

of a contribution into reserves in preparation for the ending of Hospital Discharge programme

funding and adjustment to bring care payments accounted for in line with financial years;

b. The underspend within GHI is due to reduced spend in Passenger Transport, largely as a result of

a fall in demand;

c. The underspend within Central Resources & Capital Financing is due to a combination of

forecasting that only part of the corporate contingency created when setting the 2022- 2023 Budget

will be required, and a reduction in the costs related to premature pension payments.

4.2.3 There was a significant uncertainty over the continuing additional costs relating to COVID-19 in

2021 - 2022 when the budget was set in February 2021 due to the unpredictable nature of the

pandemic, with a budget of £15.260 million using the best information available at the time. In

2021-22 Budget

£ million

2021-22

Outturn

£ million

2021-22

Variance

£ million

Adult & Community Services 273.183 277.472 4.289

Children & Young People 126.193 131.706 5.513

Public Health & Communities 38.516 38.580 0.063

Fire & Public Safety 24.942 24.855 -0.088

Growth, Highways & Infrastructure 47.600 47.762 0.161

Corporate Services 35.073 34.598 -0.475

Central Resources & Capital Financing 52.690 36.352 -16.338

598.198 591.324 -6.874

Non-COVID-19 COVID-19

£ million £ million £ million £ million

Adult & Community Services -2.459 6.748 - 4.289

Children & Young People -0.160 0.422 5.251 5.513

Public Health & Communities 0.006 0.057 - 0.063

Fire & Public Safety -0.088 - - -0.088

Growth, Highways & Infrastructure -1.219 1.380 - 0.161

Corporate Services -1.084 0.609 - -0.475

Central Resources & Capital Financing -1.989 -14.349 - -16.338

-6.993 -5.132 5.251 -6.874

Budget Variance:

Funded by: Core Funding

Funded

by:DSG

Total

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2021 - 2022, there has been £10.128 million of additional costs and lost income resulting from

COVID-19, representing a £5.132 million underspend. The principal area where costs are less

than originally expected is within ACS, where £6.748 million was spent against an original

budgeted figure of £13.500 million. A significant contributory factor to this change has been the

continued provision of additional specific grants (totalling £22.716 million for ACS) which have

reduced the need for use of COVID-19 emergency grant funding. It should be noted that the

£15.260 million budget for COVID-19 pressures is held within Central Resources & Capital

Financing with associated expenditure being recorded against the relevant Directorate and

service. As a result, the COVID-19 variance reported by Directorates is equivalent to the financial

impact, with this being offset by the associated £15.260 million budget held in Central Resources

& Capital Financing against which no costs have been directly recorded.

4.2.4 The £5.251 million overspend against Dedicated Schools Grant funding is due to pressures within

Special Educational Needs and Disability (SEND) and reflects the level of underfunding Suffolk

receive through the Dedicated School Block (DSG) High Need Funding formula, which does not

fund the total cost of demand for services in this area. Further detail is provided in paragraph

4.2.7.3 below.

4.2.5 Paragraphs 4.2.6 to 4.2.12 provide further detail of financial performance against the 2021 - 2022

Net Expenditure Budget for each of the Council’s Directorates, and central and capital financing

expenditure.

4.2.6 Adult & Community Services (ACS) overspent by £4.289 million against its 2021 - 2022 Revenue

Budget. The overspend was due to additional spend of £6.748 million as a direct result of COVID-

19, with this mitigated by £2.459 million underspends elsewhere.

4.2.6.1 The £6.748 million of COVID-19 related expenditure mainly comprised of:

a. Provider Support Fund payments in recognition of COVID-19 related costs care providers

faced such as staffing, insurance and personal protectives equipment;

b. Transitional support for day centres for the first quarter of 2021 - 2022;

c. Additional costs resulting from discharged hospital patients that were not covered by the

national Hospital Discharge Programme;

d. Additional Deprivation of Liberty assessments to catch up on the backlog created by

COVID-19 alongside additional staffing within area teams.

4.2.6.2 The £2.459 million underspends on non-COVID-19 related expenditure mainly comprised of:

a. A continued fall in the number of customers receiving purchased care, with 9,418

customers compared to 9,701 at the end of 2020 - 2021, a 283 or 3% fall;

b. An increase from customer contributions towards care costs due to improvements in

recording and in the wider income processes despite the fall in customer numbers;

c. Better than anticipated delivery on its transformation programmes;

d. High levels of staffing vacancies within social work teams;

4.2.7 Children and Young People’s Services (CYP) overspent by £5.513 million against its 2021 - 2022

Revenue Budget. The overspend was due to additional spend of £0.422 million as a direct result of

COVID-19 and £5.251 million of expenditure in excess of budgets funded from Dedicated Schools

Grant, with this partly mitigated by £0.160 million underspends elsewhere.

4.2.7.1 The £0.422 million of COVID-19 related net expenditure mainly comprised of:

a. Lost income within the music and psychology services, and from fixed penalty notices

served following unauthorised pupil absences that support the cost of the education

attendance service;

b. Additional expenditure incurred in supporting care leavers and education services, mainly

in the first 6 months of the financial year;

4.2.7.2 The £0.160 million underspends on non-COVID-19 related expenditure funded from core funding (as

opposed to Dedicated Schools Grant) mainly comprised of:

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a. £1.685 million of overspends within School Travel and Commissioning, the bulk of which

related to continuing pressures within school transport provision to children with Special

Education Needs and Disabilities, offset by;

b. £1.845 million of underspends across other Directorate services with the principal reasons

for this being:

i. The numbers of Children in Care (CiC) reducing during the year from 947 to 917,

with the number of Unaccompanied Asylum Seeker Children (UASC) young

people within that number who are funded separately from Home Office grant

funding increasing from 71 to 102;

ii. Staffing vacancies, most significantly in the Early Help, Fostering, Adoption and

Community Health teams;

4.2.7.3 The £5.251 million overspend on budgets funded from Dedicated Schools Grant mainly comprised of:

a. £7.357 million of overspends against the High Needs Block (HNB) that supports Special

Educational Needs and Disability (SEND) services due largely to the rapid growth (18%)

in the number of children receiving a service over the last year that attracts High Needs

Funding, offset by;

b. £2.106 million of underspends across other Directorate services with this largely within the

Education and Learning Service relating to lower the budgeted costs within DSG funded

expenditure within Early Years and school growth budgets.

4.2.8 Public Health & Communities overspent by £0.063 million against its 2021 - 2022 Revenue Budget.

The overspend was due to additional spend of £0.057 million as a direct result of COVID-19, and £0.006

million as a result of non-COVID-19 causes. The £0.057 million overspend relates to corporately agreed

expenditure for providing support to foodbanks in relation to COVID-19. These additional COVID-19

costs fell outside of other Public Health and Communities specific COVID Grants but has been funded

through the COVID-19 Emergency Grant.

4.2.9 Fire and Public Safety underspent by £0.088 million against its 2021 - 2022 Revenue Budget. The

underspend was all a result non-COVID-19 related costs within Trading Standards due to lower than

expected legal costs.

4.2.10 Growth, Highways and Infrastructure overspent by £0.161 million against its 2021 - 2022 Revenue

Budget. The overspend was due to additional spend of £1.380 million as a direct result of COVID-19,

with this mitigated by £1.219 million underspends elsewhere.

4.2.10.1The £1.380 million of COVID-19 related expenditure mainly comprised:

a. Additional costs to support social distancing when working on sites; including a revenue

contribution to capital in relation to Eye Airfield. Waste and Environment incurred £0.6 million

of COVID related expenditure

b. Additional costs to enable the safe opening of Recycling Centres which are administered

through a booking system;

c. A significant increase in residual bin waste leading to increased tonnages needing to be

disposed due to COVID-19 related changes in behaviour.

4.2.10.2 The £1.219 million underspends on non-COVID-19 related expenditure mainly consisting of less

spend than budgeted on concessionary fares and community transport due to a reduction in the

number of people undertaking journeys on public transport.

4.2.11 Corporate Services underspent by £0.475 million against its 2021 - 2022 Revenue Budget. The

overspend was due to additional spend of £0.609 million as a direct result of COVID-19, with this

mitigated by £1.084 million underspends elsewhere.

4.2.11.1 The £0.609 million of COVID-19 related expenditure mainly comprises:

a. Using Saxon House as a ‘COVID-19 Hub’;

b. Holding and maintaining the Council’s pool car fleet;

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c. Additional security required at Registry Offices;

d. Additional counsel costs to deal with matters resulting from the pandemic;

4.2.11.2 The £1.084 million underspend mainly consisted of one-off income received for rents and lettings that

had been previously unaccounted for from previous financial years.

4.2.12 Central Resources & Capital Financing underspent by £16.338 million against its 2021 – 2022

Revenue Budget. £14.349 million of the underspend related to COVID-19 expenditure, whilst the

remaining £1.989 million did not.

4.2.12.1 The £14.349 million underspend relating to COVID-19 is largely a result of Central Resources holding

the £15.260 million of budget set aside to fund COVID-19 pressures across the Council’s Directorates.

This budget is offset within Central Resources by the £0.911 million relating to a reduction in dividend

income from Suffolk Group Holdings Ltd as a result of its business being impacted by COVID-19. The

remaining £9.217 million of COVID-19-related expenditure resourced from core funding was assigned

to Directorates and is covered in the above paragraphs and shown in Table 5, with the net result that

the Council is carrying forward £5.132 million of COVID-19 resources into 2022 - 2023.

4.2.12.2 The £1.989 million underspend mainly comprises:

a. £1.399 million of unused contingency budget;

b. An underspend on the Premature Retirement Pensions and Redundancy budget due to a reduction in

the number of individuals receiving pension payments on the premature retirement element;

4.3 Capital

4.3.1 Table 6 shows the Council’s capital programme for 2021 - 2022, the final expenditure against the

programme and how this has been funded.

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Table 6: Capital Programme 2021 - 2022

4.3.2 The capital budget for 2021 – 2022 was set at £107.613 million. Following carry forward of £118.607

million from 2020 – 2021, and the addition of £29.634 million of approved projects during the year, this

budget increased to £255.854 million by 31 March 2022. Against this budget, the Council spent

£155.276 million and carried forward the remaining £100.578 million into 2022- 2023. Due to the nature

of capital schemes and the external factors that influence their progress, some carry forward in the

programme will always be expected and it is often outside the Council’s control, with supply chain issues

exacerbating these challenges during 2021- 2022.

4.3.3 The outturn figure in Table 6 is £2.493 million lower than what was reported at the Cabinet meeting on

20th June 2022, with the carry forward figure being higher respectively. The original outturn figure

contained an estimate for the quarter four milestone payment for the rollout of superfast broadband.

Since that date, further information has become available which has required this estimate to be

reduced by this amount. The revised figure is therefore included in Table 6 and within the figures forming

the 2021 – 2022 Statement of Accounts.

4.3.4 Expenditure on the Adult & Community Services Capital Programme in 2021- 2022 included the

following key elements:

a. £7.002 million was passported to the Districts and Borough Councils from the Disabled Facilities

Grant, to provide support to people who require adaptations to their home;

b. £1.798 million was spent on community equipment. Both this and the Disabled Facility Grant

enable individuals to maximise their independence and remain in their home for longer;

c. The majority of the remaining spend relates to projects to develop digital care.

4.3.5 Expenditure on the Children & Young People Capital Programme in 2021- 2022 (excluding that funded

by Devolved Formula Capital) included the following key elements:

Directorate

Final Budget Outturn

Carry

Forward

£ million £ million £ million

Adult & Community Services 13.520 9.343 4.177

Children & Young People excluding DFC 60.326 35.483 24.843

Devolved Formula Capital - Schools 3.382 3.137 0.245

Fire & Rescue Service and Public Safety 11.249 6.489 4.760

Growth Highways and Infrustrcture 146.580 87.865 58.715

Corporate Services 20.719 12.881 7.838

Public health 0.078 0.078 0.000

255.854 155.276 100.578

Financed by:

Ringfenced Government Grant 89.326 56.407 32.919

Ringfenced Contributions 33.443 13.646 19.797

Non-Ringfenced Government Grant 51.612 50.449 1.163

Capital Receipts 13.061 8.509 4.552

Revenue Budgets or Reserves 12.412 8.145 4.267

Borrowing 55.999 18.119 37.880

255.854 155.276 100.578

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a. £9.220 million on basic need schemes which provide new school places in areas of pupil growth.

Key areas of expenditure in 2021 – 2022 were at Thurston Academy (£2.998 million), Grace Cook

Primary - Stowmarket (£2.761 million) and Bungay High School (£1.110 million);

b. £16.110 million on the Special Education Needs & Disabilities projects. Key areas of expenditure

in 2021 – 2022 included Sir Peter Hall School – Bury St Edmunds (£3.509 million), Bungay School

(£2.796 million) and Chantry High School (£1.624 million).

c. £9.460 million on school maintenance schemes covering planning health, safety and condition

works, and urgent sufficiency, security and safeguarding works;

4.3.6 Expenditure on the Fire & Public Safety Capital Programme in 2021- 2022 included the following key

elements:

a. £5.726 million on the Blue Light Integration Project is the refurbishment of the Fire and Police

station at Princes Street, with it due to become fully operational in Spring 2022.

b. £0.515 million on property improvement at the Wattisham Training Centre.

4.3.7 Expenditure on the Growth, Highways & Infrastructure Capital Programme in 2021- 2022 included

the following key elements:

a. £40.694 million on Highways works, of which £33.978 million was incurred on various highways

capital maintenance projects across the county, £6.332 million was spend on improvements,

in particular the street lighting LED upgrade, and £0.384 million from councillors’ local

highways budgets;

b. £1.547 million on Waste & Environment projects, including £0.220 million on the development

of recycling centres across the county, £0.496 million paid in Green Homes Grants, and £0.241

million on Public Rights of Way schemes;

c. £2.180 million on Housing projects, including £0.572 million on the Mildenhall West

development, £0.513 million on the North Lowestoft Garden Village, with the remainder on

various other sites across the county.

d. £4.991 million on Transport Strategy projects including £0.930 million on preliminary

expenditure on A12 East of Ipswich road improvement scheme; £1.295 million to complete the

Eye Airfield road project; with the remainder of various smaller schemes across the county;

e. £38.453 million on various other projects, the most significant being the Gullwing Bridge in

Lowestoft on which £38.002 million was incurred, with construction now well underway on the

project.

4.3.8 Expenditure on the Corporate Services Capital Programme in 2021- 2022 included the following key

elements:

a. £7.976 million on broadband and IT projects including £2.859 million to continue the rollout of

superfast broadband in the county, £2.855 million on the development of a Wide Area Network for

the Council, £1.839 million on IT infrastructure programmes and £0.423 million on Oracle Fusion;

b. £4.910 million on property schemes, including £2.591 million on a rolling programme of capital

maintenance on corporate buildings, £0.546 million on a rolling programme of capital maintenance

for county farms, and £0.755 million on projects to de-carbonise the corporate estate with works

focussed on three fire stations and The Waterloo Centre, Leiston.

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4.4 Balance Sheet

4.4.1 Table 7 summarises the Balance Sheet of the Council at 31 March 2021 and 31 March 2022. The full

Balance Sheet can be found on page 25 together with references to the notes that support each of the

figures.

Table 7: Balance Sheet as at 31 March 2022

4.4.2 The net increase in long term assets primarily relates to the £69.755 million increase in Property, Plant

and Equipment (PPE) (net after disposals, depreciation and other adjustments) during 2021 - 2022 as

a result of the addition of new infrastructure assets, either completed or under construction. This reflects

the Council’s ongoing capital investment in the county, in particular expenditure on the construction of

the Gullwing Bridge in Lowestoft. The increase in PPE is partly offset by a reduction in long-term

debtors, with the most significant reason behind this being due to debt relating to the sale of Chilton

Woods becoming short-term over 2021 - 2022.

4.4.4 Current Assets have increased by £6.153 million during 2021 - 2022, with this largely being due to an

increase in outstanding Council Tax debts and income due from the NHS in relation to adult social care.

4.4.5 The increase in current liabilities is principally due to the increase in short-term borrowing of £38.192

million over 2021 - 2022. This is due to a combination of the gap between actual short-term borrowing

entering into 2021 - 2022 and the target figure as specified in the Council’s Treasury Management

Strategy to optimise its exposure to interest rate fluctuations, ensuring that the focus was for new

borrowing to be short term in duration, and a reduction in reserves over 2021 - 2022 reducing the

capacity for internal borrowing. This is partially offset by a £16.461 million reduction in short-term

creditors.

4.4.6 Long term liabilities include the liabilities in relation to its long term borrowing to fund capital investment,

two Private Finance Initiative (PFI) schemes the Council has in place and the Council’s pension liability.

The PFI schemes relate to the construction and management of the Energy from Waste facility at Great

Blakenham and the upgrade and maintenance of fire stations for Suffolk Fire and Rescue (see note 29

of the core statements). The main reason for the decrease in long term liabilities is a £237.964 million

reduction in the liability related to the Defined Benefit Pension Scheme. The reasons for this are

covered further in section 4.5.

4.4.7 Usable reserves are cash reserves that can be used to fund the activities of the Council. Details of

the decrease in usable reserves of £10.664 million are shown in Table 8 below and in the paragraphs

beneath.

31 March 2021 31 March 2022

Increase /

Decrease (-)

from 2020-21

£ million £ million £ million

1,498.823 Long Term Assets 1,559.892 61.069

168.063 Current Assets 174.216 6.153

-280.585 Current Liabilities -301.717 -21.132

-1,436.741 Long Term Liabilities -1,204.862 231.879

-50.440 Net Assets 227.529 277.969

253.149 Usable Reserves 242.485 -10.664

-303.589 Unusable Reserves -14.956 288.633

-50.440 Total Reserves 227.529 277.969

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Table 8 summarises the Council’s usable reserves

4.4.8 General reserves are revenue reserves which are not ring-fenced and provide resources to support the

Council’s financial position, providing a buffer against risks, catastrophes, and emerging pressures that

have yet to be quantified. The £7.045 million rise during 2021 – 2022 is a result of:

a. a £5.212 million increase in the Risk Reserve, the principal movements being a £7.404 million

transfer of re-categorised earmarked reserves, offset by a £2.193 million application to fund the

2021 - 2022 Budget;

b. a £1.833 million increase in the General Fund to ensure this is maintained at 2.0% of the Council’s

gross budgeted expenditure;

4.4.9 Earmarked reserves are revenue reserves identified to support the delivery of Council’s duties and

objectives in 2021 – 2022 and beyond. The £4.186 million rise in earmarked reserves during 2021 –

2022 is mainly a result of the following combination of factors:

a. a net contribution into reserves held by Directorates of £2.102 million to support the provision of

services in 2022 – 2023 and future years;

b. a net application of £7.530 million from reserves to resources funding shortfalls in Council Tax

and Business Rates

c. a net application of £3.463 million from reserves to fund the impact of COVID-19 during 2021 –

2022;

d. a net application of £0.448 million from reserves held centrally to meet corporate priorities;

e. a £8.193 million net increase in the Service Reserve to help manage timing issues associated

with the application of Council resources, and to meet certain designated corporate priorities;

f. a £1.087 million net increase in the value of unrestricted short-term grants held by the Council;

g. a £1.644 million net increase in balances held by schools;

4.4.10 Capital reserves comprise capital receipts, grants and contributions that can only be applied to finance

capital expenditure. During 2021 - 2022, these reserves reduced by £21.895 million, largely as a result

of the application of grant funding that had been held in reserves at the end of 2020 - 2021 to fund major

projects in 2021 - 2022, in particular the Gullwing Bridge.

4.4.11 Unusable reserves are those which exist to comply with accounting practice and statute. Details of

the increase in unusable reserves of £308.150 million, from a negative £303.589 million to a positive

£4.561 million, are shown in note 19. The main movement relates to the debit balance on the Pension

Reserve, the changes of which is explained in further detail in section 4.5.

4.5 Pension Liabilities

4.5.1 Suffolk County Council participates in four pension schemes, the firefighters’, teachers’, National Health

Service (NHS) and Local Government pension schemes. These schemes are used to pay former

31 March 2021 31 March 2022

Increase /

Decrease (-)

from 2020-21

£ million £ million £ million

72.466 General Reserves (unallocated) 79.511 7.045

127.821 Earmarked Reserves (allocated) 132.007 4.186

200.287 Total Revenue reserves 211.518 11.231

52.862 Capital reserves 30.967 -21.895

253.149 Total Usable Reserves 242.485 -10.664

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employees their pension and other benefits when they retire. The liabilities of the Council in relation to

the schemes are reported on the balance sheet in accordance with International Financial Reporting

Standard 19 (IAS19). This showed a deficit at 31 March 2022 of £667.318 million (£905.282 million at

31 March 2021) in respect of the firefighters’ and the local government pension schemes. The decrease

in liability of £237.964 million, shown in note 33, in the pension fund liabilities is mainly due to:

• the increase in Pension Increase Rate (Consumer Price Index) at 31 March 2022 of 3.2% (31

March 2021 2.85%), increasing the employer liability. Market implied Retail Price Index has risen

over the period, which led to a 0.35% increase in the assumption.

• the Salary Increase Rate of 4.2% at 31 March 2022 (3.55% 31 March 2021), an increase in line

with Consumer Price Index (CPI) inflation. The CPI rate under pins the Pension Fund standard

salary increase assumption and increases the employer liability.

• the Discount Rate of 2.70% at 31 March 2022 (2.00% 31 March 2021), which is derived from the

corporate bond yield, increased in the period, which lead to a decrease in employer liabilities.

• the return on plan assets (excluding net interest expense) has occurred due to the investment return

achieved by the Pension Fund. The Fund achieved an investment return of 10.4% in 2021 - 2022

compared to an expected accounting return of 2.0%.

4.5.2 The Teachers’ Pension Scheme is administered nationally by the Department for Education and the

NHS scheme is administered by the NHS Business Service Authority. Their liabilities are not reported

separately in the accounts of individual local authorities.

4.5.3 The Suffolk Pension Fund is revalued every three years with the last full valuation in 2022. The valuation

showed that the Fund’s assets covered 107% of its liabilities at the valuation date, and the surplus

based on the actuarial valuation was £235 million.

5.0 Treasury Management & Cashflow

Table 9: Cash and Short Term Investments

The main factors that would affect cash and short-term investments in the future are:

• Acquisition and disposals relating to the capital programme;

• The value of reserve balances;

• Provisions;

• Grants and contributions unapplied.

5.0.1 The Council held £57.522 million of short term investments at 31 March 2022. These investments

consisted of £8.669 million in Lloyds’ deposit account, £43.275 million in money market funds, £5.423

million in Churches, Charities and Local Authorities (CCLA) Property Fund. £0.154 million of loans made

to divested organisations and due for repayment within one year are also included within short term

investments.

5.1 Borrowing

5.1.1 The Council’s total gross external debt was £592.465 million at 31 March 2022 (£556.430 million at 31

March 2021). This consisted of borrowing of £466.895 million and a Private Finance Initiative (PFI) and

donated asset liability of £125.570 million which are described further in note 29. This was substantially

below the Council’s capital financing requirement (£787.813 million at March 2022), which is the

statutory ceiling on external borrowing for capital purposes. This reflects the Council’s approach to

treasury management, which makes use of internal balances and other reserves where possible to

reduce the need for external borrowing.

5.1.2 The Council’s £466.895 million short and long term external borrowing at 31 March 2022 consisted of:

2020 - 2021 2021 - 2022

£ million £ million

0.710 Cash and Cash Equivalents 1.783

60.380 Short Term Investments 57.522

61.090 59.305

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a. Public Works Loan Board (PWLB) loans of £230.037 million (of which £20.625 million is short term due

in 2022 – 2023),

b. a an interest free loan provided by Salix Finance Ltd (see Salix Finance Ltd - GOV.UK (www.gov.uk)

for further details) of £8.172 million (of which £1.520 million is short term due in 2022 – 2023),

c. ‘Lender Option and Borrowing Option (LOBO)’ loans of £100.000 million,

d. Long term bank loans of £45.000 million,

e. Short term borrowing of £80.000 million,

f. Funds held in trust of £0.697 million, and

g. Accrued interest payable on these balances of £2.989 million.

The average rate of interest on the Council’s external borrowing at March 2022 was 2.54% (3.07% at

March 2021).

6.0 Financial Challenges in 2022 - 2023 and Medium-Term Outlook

6.1 Budget Strategy and Challenges

The Council approved its 2022 - 2023 Budget and Medium Term Financial Plan on 17 February 2022.

As part of this, a Budget Strategy was agreed based on a recognition that in order for the Council to

continue to deliver the best possible services within available resources in 2022 - 2023 , it is essential to

take a medium-term view of the Council’s budget; focus on meeting the Council’s Corporate Priorities

and associated Directorate Business Plans; and rise to the challenge presented by an ongoing response

to and recovery from COVID-19.

The four core objectives of the Council’s Corporate Strategy for 2022-26 provide the strategic foundation

for budget and service planning for the 2022- 2023 Budget and the 2022-26 Medium Term Financial Plan.

These are:

a. Promoting and supporting the health and wellbeing of all people in Suffolk;

b. Strengthening Suffolk’s local economy;

c. Protecting and enhancing Suffolk’s environment;

d. Providing value for money for the Suffolk taxpayer;

Also, the Council will focus both on completing the delivery of the Transformation Programmes launched

in 2018 in line with these priorities, alongside further programmes to be implemented from 2022. These

programmes are focused on how Council services can be delivered differently to provide better outcomes

for individuals and the community at lower cost and managing future demand. A key part of the Budget

Strategy is therefore to maximise the contribution from these programmes over the planned four-year

period as part of ensuring that the budget can be balanced over this period.

To ensure the Council lives within available resources, it produces a Medium-Term Financial Plan

(MTFP). The MTFP estimates the resources available to the Council over a four-year period covering

the period 2022 to 2026 and compares these with the expenditure estimated to be needed to meet its

legal duties and policy requirements over this period. The estimate will include forecast demand

pressures, alongside planned efficiencies from its Transformation Programmes and assumptions

concerning future funding based on expected flexibilities. The difference between forecast resources and

expenditure is termed the Budget Gap. The Council plans to bridge any Budget Gap on a sustainable

basis through the application of its 2022 - 2026 Transformation Programmes recognising that income and

expenditure must balance, using reserves only as required on a limited basis, and as a temporary one-

off measure, to achieve this. Any reductions in services would only be considered should transformation

programmes not be able to fully cover the Budget Gap on a sustainable basis. At present no such

reductions are planned or expected to be required, although these may be necessary if transformation

programmes do not deliver sufficiently to bridge the budget gap.

The 2022- 2023 Budget was set against a backdrop of considerable uncertainty as the country continues

to respond to the impact of COVID-19, whilst seeking to emerge from restrictions that have impacted

across society over the period since March 2020. Whereas the Spending Review 2021 (SR2021)

published on 27 October 2021 by Government announced funding at a national level for Local

Government for the period from 2022- 2023to 2024-25, the Provisional Local Government Finance

Narrative Report

Suffolk County Council 16 Narrative Report

Settlement only covers 2022- 2023 for individual Councils, pending funding reform that is expected to

take place prior to next year’s Settlement.

A further key element of the Budget Strategy is having adequate reserves available to manage any

unexpected changes to its spending and funding plans. This involves the Council assessing and, where

possible, quantifying the financial risks it is facing. A core principle is that reserves should not be used

to cover ongoing gaps between expenditure and funding and should be replenished as soon as

practicable when used.

6.1.1 2022 - 2023 Budget and Medium Term Financial Plan

6.1.2 The tables below summarise the 2022 - 2023 Budget and associated Medium Term Financial Plan,

providing details of the forecast budget gap for future years.

Table 10a - 2022 - 2023 to 2025 - 2026 Net Expenditure Budget

Table 10b - 2022 - 2023 to 2025 - 2026 Core Funding Budget

Table 10c – 2022 - 2023 to 2025 - 2026 Budget Gap

6.1.3 The Council set its 2022 - 2023 Budget in a period of particularly challenging circumstances. These

included the ongoing response to COVID-19, the one-year 2022 - 2023 Local Government Funding

Settlement, expected funding reform in Local Government, and policy changes relating to Adult and

Children’s Social Care and Special Educational Needs & Disabilities. This high level of uncertainty for

the Council has been further exacerbated since the budget was set by continuing rises in inflation and

the cost of living crisis. Nonetheless, the current plan is to work towards ensuring that Budget Gap

2022-2023

(£million)

2023-2024

(£million)

2024-2025

(£million)

2025-2026

(£million)

Budget brought forward 598.198 625.399 657.827 686.382

Reversal of prior year one-off items -16.915 -1.917

Base Budget 581.282 623.482 657.827 686.382

Inflation 24.177 19.377 16.532 10.306

Cost Pressures (net of direct mitigations) 29.470 22.631 16.986 15.316

Transformation Savings -9.067 -6.578 -5.000

Mitigating Actions -1.092 -1.604 -0.100

Service Reserves 0.628 0.519 0.137

Net Expenditure Budget (A) 625.399 657.827 686.382 712.004

2022-2023

(£million)

2023-2024

(£million)

2024-2025

(£million)

2025-2026

(£million)

Funding brought forward 598.198 625.399 642.117 656.461

Reversal of prior year one-off items (COVID-19 Grant) -14.718

Reversal of prior year one-off items (Reserves) -18.214 -7.107 -4.580

Reversal or prior year one-off items (Collection Fund) 1.692 -5.558

Base Budget 566.958 612.734 637.537 656.461

Local Taxation 30.648 18.191 18.322 18.998

Business Rates 3.973 3.206 2.742 2.784

Council Tax + Social Care Precept 21.118 14.985 15.581 16.214

Collection Fund Deficit / Surplus 5.558

Core Grants 20.687 6.612 0.601 0.381

Revenue Support Grant 0.519 0.566 0.408 0.381

Improved Better Care Fund 0.852

Social Care Grant 8.671

2022-23 Services Grant 7.080

New Homes Bonus 0.408 -0.953 -0.561

Market Sustainability & Fair Cost of Care Fund 2.201 5.951

Public Health Grant 0.955 1.048 0.755

Corporate Reserves 7.107 4.580 0.000 0.000

Core Funding Budget (B) 625.399 642.117 656.461 675.840

2022-2023

(£million)

2023-2024

(£million)

2024-2025

(£million)

2025-2026

(£million)

Net Expenditure Budget (A) 625.399 657.827 686.382 712.004

Core Funding Budget (B) 625.399 642.117 656.461 675.840

Budget Gap (A-B) 0.000 15.709 29.921 36.165

Narrative Report

Suffolk County Council 17 Narrative Report

from 2023 - 2024 onwards is covered through the continued development of more efficient ways of

working and delivering outcomes in order to avoid service cuts.

6.1.4 As part of its 2022 - 2023 Budget, the Council set a Capital Programme for the period 2022 to 2026.

Capital Programme totalling £322.580 million. This comprises £120.197 million on schemes that started

in 2021 - 2022 or earlier, £94.304 million on schemes starting in 2022-25, and £108.079 million on

rolling programmes. The financing of the 2022 - 2025 Capital Programme has been boosted through a

commitment to recognise sufficient budget in the 2022 - 2026 Medium Term Financial Plan (MTFP) to

finance an additional £10.000 million of capital investment for each of the four years of the MTFP.

7.0 Corporate Risk Management

7.1 The Council is responsible for ensuring that a risk and control environment is established as part of day-

to-day operations. Operational managers are responsible for, and thus should be adequately skilled in,

making risk assessments (including proactive review, update and modification).

7.2 The Corporate Risk Register (CRR) is a live system that responds to the fast-changing environment

and the new challenges and opportunities that the Council faces. Each risk is assessed as to its

likelihood and impact, based on scoring levels of very high, high, medium and low. The CRR is reviewed

annually by the Corporate Leadership Team (CLT) to ensure that all significant areas of risk are covered

and that mitigations are recorded adequately. As part of this annual review, an analysis of the corporate

risk profiles (heatmaps) is undertaken with the aim of informing decisions taken regarding the Council’s

risk appetite. Changes to the CRR are also covered in the corporate performance report that Corporate

Leadership Team and Cabinet receive on a quarterly basis. The Council’s risk governance

arrangements are subject to scrutiny from the Internal Audit service and the Audit Committee. The

recommendations from risk audit reviews (internal and external) are key contributory factors to the

continual improvement of the Council’s risk management approach.

8.0 Annual Governance Statement

8.1 The Council is required to conduct a review of the effectiveness of its system of internal control at least

once a year and report the findings to the Audit Committee. The Annual Governance Statement (AGS)

contains a review of the Council’s governance framework and the effectiveness of the Council’s internal

control and risk management systems, and reports on any significant governance issues during the

year.

8.2 The Annual Governance Statement shows that the Council’s high standards have been maintained and

no significant issues identified.

8.3 A copy of the Annual Governance Statement for 2021 – 2022 will be available on the Council’s website

from July 2022.

https://www.suffolk.gov.uk/Council-and-democracy/budget-Council-tax-and-finance/Council-accounts/

9.0 Explanation of the Financial Statements

The Statement of Accounts sets out the Council’s income and expenditure for the year, and its financial position

at 31 March 2022. It comprises core and supplementary statements, together with disclosure notes. The format

of the financial statements is prescribed by the CIPFA Code of Practice on Local Authority Accounting in the

United Kingdom 2021 - 2022, which in turn is underpinned by International Financial Reporting Standards.

The Core Statements are:

9.1 Comprehensive Income and Expenditure Statement

This 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. Councils raise taxation to

cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation

position is shown in the Movement in Reserves Statement.

9.2 Movement in Reserves Statement

This statement shows the movement in the year on the different reserves held by the Council, analysed into

Usable reserves (i.e. those that can be applied to fund expenditure or reduce local taxation) and Unusable

reserves. The Surplus or Deficit on the Provision of Services line shows the true economic cost of providing the

Council’s services, more details of which are shown in the Comprehensive Income and Expenditure Statement.

These are different from the statutory amounts required to be charged to the General Fund Balance for Council

tax setting.

Narrative Report

Suffolk County Council 18 Narrative Report

9.3 Balance Sheet

The Balance Sheet shows the value as at the 31 March 2022 of the assets and liabilities recognised by the

Council. The net assets of the Council (assets less liabilities) are matched by the reserves held by the Council.

Reserves are reported in two categories:

• Useable reserves are those reserves that the Council 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 may only be used to fund capital expenditure or repay debt).

• Unusable reserves are those that the Council is not able to use to provide services. This includes

reserves 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 Movement in Reserves Statement line ‘Adjustments between accounting basis

and funding basis under regulations’.

9.4 Cash Flow Statement

The Cash Flow Statement shows the changes in cash and cash equivalents of the Council during the reporting

period. The statement shows how the Council generates and uses cash and cash equivalents by classifying

cash flows as operating, investing and 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 Council are funded by way of taxation

and grant income or from the recipients of services provided by the Council. Investing activities represent the

extent to which cash outflows have been made for resources which are intended to contribute to the Council’s

future service delivery. Cash flows arising from financing activities are used in predicting demand on future cash

flows by providers of capital (i.e. borrowing) to the Council.

The supplementary statements are:

9.5 Notes to the accounts

Accounting Policies - The accounting policies detail the principles, bases, conventions, rules and practices

applied by the Council that specify how the effect of transactions are to be reflected in the financial statements.

Notes 2 to 40 set out supplementary information to assist readers of the accounts.

9.6 Expenditure and Funding Analysis Statement

This statement shows how annual expenditure is used and funded from resources (government grants, Council

tax and business rates) by the local authority in comparison with those resources consumed or earned by the

authority in accordance with generally accepted accounting practices. It also shows how this expenditure is

allocated for decision making purposes between the Council’s Directorates/services/departments. Income and

expenditure accounted for under generally accepted accounting practices is presented more fully in the

Comprehensive Income and Expenditure Statement.

9.7 Group Accounts

Group Accounts are produced in the same format as the statements explained above. The Council is required

to reflect Suffolk County Council’s 100% shareholding of its subsidiary, Suffolk Group Holdings Limited.

The Council has not included Suffolk Norse Ltd, Suffolk Norse (Transport) Ltd, Sensing Change Ltd, Leading

Lives IPS Ltd, Suffolk Libraries IPS Ltd and Realise Futures CIC in the Group accounts as they are not material

either qualitatively or quantitatively.

9.8 Pension Fund Accounts

The objective of the Suffolk Pension Fund’s financial statements, from page 97, is to provide information about

the financial position, performance and financial sustainability of the Suffolk Pension Fund that is administered

on behalf of the Scheduled, Resolution and Admitted bodies. Scheduled bodies are local authorities, district and

borough Councils and other similar bodies such as academies whose staff are automatically entitled to be

members of the Fund. Admitted bodies are voluntary and charitable bodies or private contractors undertaking

a local authority function.

The Suffolk Pension Fund provides retirement benefits for employees who are members of the Local

Government Pension Scheme (LGPS). This excludes teachers, firefighters and former NHS staff as these

employees contribute to other government schemes (see note 33).

9.9 Fire Pension Scheme

The Fire Pension Scheme is administered by Suffolk County Council following financial guidance issued in April

2006 by the Ministry of Housing, Communities and Local Government. The fund for the pensions of firefighters

has no assets and is balanced each year by receipt of a pension top-up grant from the Home Office.

Comprehensive Income and Expenditure Statement

Suffolk County Council 19 Comprehensive Income & Expenditure Statement

Comprehensive Income and Expenditure Statement

2020 - 2021

2021 - 2022

Gross

Net

Gross

Net

Expenditure

Income

Expenditure

Notes

Expenditure

Income

Expenditure

£ million

385.031

-103.701

281.330

Adult & Community Services

398.925

-119.294

279.631

435.212

-281.989

153.223

Children & Young People

469.836

-283.458

186.378

52.301

-45.842

6.459

Public Health & Communities

69.887

-62.033

7.854

30.486

-6.588

23.898

Fire & Public Safety

30.402

-6.467

23.935

106.857

-37.519

69.338

Growth, Highways & Infrastructure

103.569

-38.971

64.598

59.613

-11.452

48.161

Corporate Services

71.038

-17.502

53.536

10.078

-0.204

9.874

Central Resources &

Capital Financing

6.151

-0.223

5.928

-1.128

0.000

-1.128

Pension Costs IAS 19 *

0.579

0.000

0.579

1,078.450

-487.295

591.155

Net cost of services

1,150.387

-527.948

622.438

25.086

-0.484

24.602

Other operating expenditure

12.416

-0.417

11.999

31.003

-1.126

29.877

Financing and investment income

and expenditure

54.331

-2.358

51.973

0.000

-658.282

Taxation and non-specific grant

income

0.000

-661.111

1,134.539

-1,147.187

-12.648

Deficit / Surplus (-) on Provision

of Services

1,217.134

-1,191.834

25.300

-14.183

Surplus (-) / deficit on revaluation

of non-current assets

-3.570

285.850

Remeasurements of the net

defined benefit liability**

-299.698

271.667

Other Comprehensive Income

and Expenditure

-303.268

259.019

Total Comprehensive Income (-)

and Expenditure (+)

-277.969

* The Pension Costs are in relation to accounting for Employee Benefits (IAS19) which are not allocated to

service areas. The negative expenditure in 2020 – 2021 is due to settlements identified by the Actuary, see note

33. The expenditure in 2021 – 2022 is due to the Current Service Cost on divested organisations.

** The remeasurements of the net defined benefit liability are in relation to increases in the actuarial gains and

(-) losses arises from changes in financial assumptions, see note 33.

Additional grant income of £60.649 million received in 2021 – 2022 from Central Government, in response to

the COVID-19 pandemic, is included across the directorates and in the Taxation and non-specific grant income

line. See note 25 for a breakdown of the grant income received. Expenditure on COVID-19 related service

delivery is included across the directorate headings in the Comprehensive Income and Expenditure statement

above.

Movement in Reserve Statement

Suffolk County Council 20 Movement in Reserve Statement

Movement in Reserves Statement

General

Fund

Reserves

Other

Earmarked

Reserves

Capital

Receipts

Reserve

Capital

Grants

Unapplied

Account

Capital

Contributions

Unapplied

Total Usable

Reserves

Unusable

Reserves

Total

Reserves

£ million £ million £ million £ million £ million £ million £ million £ million

Balance at 31 March 2020 49.749 110.122 3.027 4.469 2.031 169.398 39.181 208.579

Movement in reserves during 2020- 2021

Surplus or deficit (-) on provision of services 12.648 0.000 0.000 0.000 0.000

12.648 12.648

Other Comprehensive Expenditure and Income

-271.667 -271.667

Total Comprehensive Expenditure and Income 12.648 0.000 0.000 0.000 0.000 12.648 -271.667 -259.019

Adjustments between accounting basis and funding basis

under regulations (note 7)

27.768 0.000 0.188 40.405 2.742 71.103 -71.103 0.000

Net Increase/Decrease (-) before Transfers to Earmarked

Reserves

40.416 0.000 0.188 40.405 2.742 83.751 -342.770 -259.019

Transfer to (-)/from Earmarked Reserves (note 8) -17.699 17.699 0.000 0.000 0.000 0.000 0.001

Increase/Decrease (-) in Year 22.717 17.699 0.188 40.405 2.742 83.751 -342.770 -259.018

Balance at 31 March 2021 carried forward 72.466 127.821 3.215 44.874 4.773 253.149 -303.589 -50.440

Movement in reserves during 2021 - 2022

Surplus or deficit (-) on provision of services -25.300 0.000 0.000 0.000 0.000

-25.300 -25.300

Other Comprehensive Expenditure and Income

303.268 303.268

Total Comprehensive Expenditure and Income -25.300 0.000 0.000 0.000 0.000 -25.300 303.268 277.969

Adjustments between accounting basis and funding basis

under regulations (note 7)

36.531 0.000 0.852 -21.797 -0.950 14.636 -14.636 0.000

Net Increase/Decrease (-) before Transfers to Earmarked

Reserves

11.232 0.000 0.852 -21.797 -0.950 -10.664 288.632 277.969

Transfer to (-)/from Earmarked Reserves (note 8) -4.186 4.186 0.000 0.000 0.000 0.000 0.000

Increase/Decrease (-) in Year 7.046 4.186 0.852 -21.797 -0.950 -10.664 288.632 277.969

Balance at 31 March 2022 carried forward 79.512 132.007 4.067 23.077 3.823 242.485 -14.956 227.529

Expenditure and Funding Analysis

Suffolk County Council 21 Expenditure and Funding Analysis

Expenditure and Funding Analysis

The Expenditure and Funding Analysis is a note to the core statements, however it is positioned here as it provides a link from the figures reported in the Narrative Report

(Table 2) to the Comprehensive Income and Expenditure Statement. It shows the movement in net expenditure at Outturn (£591.324 million), as reported to the Council’s

Cabinet, to the net expenditure in the Comprehensive Income and Expenditure Statement. The outturn position is shown between COVID-19 net expenditure and non

COVID-19 net expenditure to provide a comparison to the prior year. It also shows the movement in the total revenue reserves from the deficit on the provision of services.

2021 – 2022

Outturn as reported to

Cabinet: non COVID-19

Net Expenditure

Outturn as reported to

Cabinet: COVID-19 Net

Expenditure

Outturn

as reported to

Cabinet

Adjustments

(EFA Note 1)

Net Expenditure

Chargeable to the

General Fund

Balance

Adjustments

for Capital

Purposes

(EFA Note 2)

Net Charge for

the Pensions

Adjustments

(EFA Note 3)

Other

Differences

(EFA Note 4)

Total

Adjustments

Net Expenditure in

the Comprehensive

Income &

Expenditure Account

£ million £ million £ million £ million £ million £ million £ million £ million

Adult and Community Services 270.724 6.748

277.472 -8.972 268.500 2.492 8.791 -0.151 11.131 279.631

Children & Young People 131.283 0.422 131.705 2.513 134.218 26.162 25.036 0.962 52.160 186.378

Public Health 38.522 0.057 38.579 -0.935 37.644 -0.169 1.152 -30.774 -29.790 7.854

Fire & Rescue Service and Public Safety 24.855 0.000 24.855 -0.153 24.702 0.558 -1.304 -0.021 -0.767 23.935

Growth, Highways and Infrastructure 46.381 1.380

47.761 -5.319 42.442 18.096 3.971 0.088 22.155 64.598

Corporate Services 33.989 0.609

34.598 1.578 36.176 12.335 5.049 -0.025 17.359 53.536

Central Resources and Capital Financing 50.702 -14.349

36.353 -22.493 13.860 -7.947 0.003 0.013 -7.931 5.928

Pension Costs IAS 19

0.000 0.000 0.000 0.000 0.000 0.000 0.579 0.000 0.579 0.579

Net Cost of Services 596.456 -5.132 591.324 -33.780 557.544 51.527 43.277 -29.909 64.895 622.438

Other Income and Expenditure (Note 9,10,11) -568.775 -84.146 18.457 37.324

-28.365 -597.139

Surplus (-) or Deficit on provision of services -11.231 36.530 25.300

Opening Revenue Reserve Balance 31 March 2021 (Note 8) 200.287

Less Surplus/Deficit (-) on Revenue Reserve Balances in Year 14.694

Less decrease in COVID-19 earmarked Revenue Reserve in Year -3.463

Closing Revenue Reserve Balance at 31 March 2022 (Note 8) 211.518

Adjustments between the Funding and Accounting basis

Expenditure and Funding Analysis

Suffolk County Council 22 Expenditure and Funding Analysis

EFA Note 1 – Adjustments – the reallocation of transactions to/from service areas, moving to below the Net

Cost of Services and then to/from Other Income and Expenditure, for example interest receivable and interest

payable moved from Central Resources and Capital Financing.

The removal of transfers to/from reserves included in Outturn, as these are not shown on the face of the

Comprehensive Income and Expenditure Statement. Other Income and Expenditure includes those items

shown in Notes 9, 10 and 11. The Net Expenditure Chargeable to the General Fund balance includes council

tax, non-domestic rates and government grant income which is utilised to fund the net expenditure in the Net

Cost of Services.

EFA Note 2 – Adjustments for Capital Purposes – the column adjusts for the minimum revenue provision,

depreciation, revaluation gains and losses, capital loss on disposal, along with capital grants recognised in the

Comprehensive Income and Expenditure Statement but not reflected in management reporting. Other Income

and Expenditure includes adjustments for capital grants which were receivable in the year, where conditions

were satisfied in the year, along with the transfer to reserves for capital receipts not used to finance capital

expenditure in year. The split of the capital transactions is shown in note 7.

EFA Note 3 – Net change for Pensions Adjustments – the removal of employer pension contributions made by

the Council as allowed by statute and the replacement with current service costs and past service costs in

relation to IAS 19 Employee Benefits. Within Other Income and Expenditure, the net interest on the defined

benefit liability is charged to the Comprehensive Income and Expenditure Statement.

EFA Note 4 – Other Differences –Removal or inclusion of revenue grants to or from services to ‘Taxation and

non-specific grant income and expenditure’ depending on whether the grants are ring fenced for specific

services or not. The Public Health line includes the movement of the specific grant of £30.805 million. Inclusion

of Accumulated Absences charged to services for absences earned but not taken in the year, i.e. annual leave

entitlement carried forward at 31 March. Within the Other Income and Expenditure line, the difference between

what is chargeable under statutory regulations for council tax and non-domestic rates compared to what was

projected to be received which is a timing difference. Any difference will be brought forward in future surplus or

deficits on the collection fund of the billing authorities in Suffolk. This adjustment also includes the movement

of Dedicated Schools Grant (DSG) deficit and Lenders Option Borrower Option (LOBO) premium, paid in

relation to restructuring of two loans, to unusable reserves, for more detail see Note 24 and 36 respectively.

Expenditure and Funding Analysis

Suffolk County Council 23 Expenditure and Funding Analysis

EFA Note 5 – Expenditure & Income Analysed by Nature

2020 - 2021 2021 - 2022

£ million £ million

Expenditure

315.520 Employee Expenses 328.320

672.328 Other Service Expenses 740.424

51.487 Depreciation, Amortisation & Impairments (note 7) 38.601

17.210 Interest Payments & Impairment Losses (note 10) 35.874

1.263 Levies (note 9) 1.280

23.823 Loss on the Disposal of Assets (note 9) 11.136

39.115 Revenue Expenditure Funded from Capital (note 27) 43.042

13.793 Net interest on the net defined benefit liability (note 10) 18.457

1,134.539 Total Expenditure 1,217.133

Income

-0.484 Gain on Traded Services (note 9) -0.417

-487.295 Fees, Charges & Others Service Income -527.948

-0.421 Interest and Investment Income (note 10) -1.169

-0.705 Dividend Income (note 10) -1.190

-340.286 Income from Council Tax (note 11) -361.330

-113.472 Income from Non-Domestic Rates (note 11) -117.106

-204.524 Government Grants, Contributions & Donated Assets (note 11) -182.676

-1,147.187 Total Income -1,191.834

-12.648 Surplus (-) / Deficit on Provision of Services 25.300

Expenditure and Funding Analysis

Suffolk County Council 24 Expenditure and Funding Analysis

2020 – 2021

Outturn as reported to

Cabinet: non COVID-19

Net Expenditure

Outturn as reported to

Cabinet: COVID-19 Net

Expenditure

Outturn

as reported to

Cabinet

Adjustments

(EFA Note 1)

Net Expenditure

Chargeable to the

General Fund

Balance

Adjustments for

Capital

Purposes

(EFA Note 2)

Net Charge for

the Pensions

Adjustments

(EFA Note 3)

Other

Differences

(EFA Note 4)

Total

Adjustments

Net Expenditure in

the Comprehensive

Income &

Expenditure Account

£ million £ million £ million £ million £ million £ million £ million £ million

Adult and Community Services 254.274 21.744

276.018 -0.845 275.173 2.953 2.826 0.379 6.158 281.330

Children & Young People 119.201 4.276 123.477 -2.166 121.311 24.215 7.873 -0.176 31.912 153.223

Public Health 38.091 0.000 38.091 -2.343 35.748 0.683 0.390 -30.361 -29.289 6.459

Fire & Rescue Service and Public Safety 24.196 0.066 24.262 -0.159 24.103 0.810 -1.101 0.086 -0.205 23.898

Growth, Highways and Infrastructure 45.424 3.234

48.658 -9.247 39.411 28.585 1.103 0.239 29.927 69.338

Corporate Services 29.429 3.750

33.179 1.046 34.225 11.941 1.576 0.417 13.935 48.161

Central Resources and Capital Financing 41.861 1.409

43.270 -26.269 17.001 -7.149 0.009 0.013 -7.128 9.874

Pension Costs IAS 19

0.000 0.000 0.000 0.000 0.000 0.000 -1.128 0.000 -1.128 -1.128

Net Cost of Services 552.476 34.479 586.955 -39.983 546.972 62.038 11.547 -29.404 44.181 591.155

Other Income and Expenditure (Note 9,10,11) -587.388 -95.058 13.793 64.850

-16.415 -603.802

Surplus (-) or Deficit on provision of services -40.416 27.768 -12.648

Opening Revenue Reserve Balance 31 March 2020 (Note 8) 159.871

Less Surplus/Deficit (-) on Revenue Reserve Balances in Year 52.266

Less decrease in COVID-19 earmarked Revenue Reserve in Year -11.850

Closing Revenue Reserve Balance at 31 March 2021 (Note 8) 200.287

Adjustments between the Funding and Accounting basis

Balance Sheet

Suffolk County Council 25 Balance Sheet

Balance Sheet

31 March 2021

31 March 2022

£ million

Notes

£ million

1,459.700

Property, Plant and Equipment

1,529.455

5.631

Intangible Assets

5.003

0.839

Heritage Assets

0.850

32.653

Long Term Debtors

24.584

1,498.823

Total Long Term Assets

1,559.892

60.380

Short Term Investments

57.522

8.347

Assets Held for Sale

5.749

0.091

Inventories

0.184

98.535

Short Term Debtors

108.978

0.710

Cash and Cash Equivalents

1.783

168.063

Current Assets

174.216

-67.640

Short Term Borrowing

-105.832

-198.214

Short Term Creditors

-179.260

-2.247

PFI Liability

-2.701

-4.755

Donated Asset Account

-4.755

-7.729

Provisions

-9.169

-280.585

Current Liabilities

-301.717

-3.871

Provisions

-4.061

-356.217

Long Term Borrowing

-361.063

-29.997

Other Long Term Liabilities

-34.767

-39.975

PFI Liability

-37.274

-85.596

Donated Asset Account

-80.840

-905.282

Liability related to Defined Benefit Pension Scheme

-667.318

-15.803

Capital Grants Receipts in Advance

-19.539

-1,436.741

Long Term Liabilities

-1,204.862

-50.440

Net Assets / Liabilities (-)

227.529

253.149

Usable Reserves

242.485

-303.589

Unusable Reserves

-14.956

-50.440

Total Reserves

227.529

Cash-flow statement

Suffolk County Council 26 Cash Flow Statement

Cash Flow Statement

This statement summarises the inflows and outflows of cash arising from transactions with third parties for

revenue and capital purposes. The inflows and outflows are purely on a cash basis excluding debtors and

creditors.

Notes to the Cash Flow Statement

CF1. Operating Activities

2020 - 2021 2021 - 2022

£ million £ million

-12.648 Net deficit / surplus (-) on the provision of services 25.300

-124.162

Adjust net surplus (-) / deficit on the provision of services for non cash

movements

CF1 -86.059

115.629

Adjust for items included in the net surplus (-) / deficit on the provision of

services that are investing and financing activities

CF1 86.634

-21.181 Net cash flows from Operating Activities 25.875

-48.689 Investing Activities

CF2 -5.915

69.281 Financing Activities

CF3 -21.033

-0.589 Net increase (-) or decrease in cash and cash equivalents -1.073

-0.121

Cash and cash equivalents at the beginning of the reporting period -0.710

-0.710 Cash and cash equivalents at the end of the reporting period -1.783

The cashflows for operating activities include the following items:

2020 - 2021 2021 - 2022

£ million £ million

-0.438 Interest received -0.347

17.391 Interest paid 36.186

-49.638

Depreciation and impairment -51.238

-1.910

Downward (-) / Upward revaluations 12.637

-1.254

Increase/decrease (-) in impairment for bad debts -0.936

-39.197

Increase (-)/decrease in creditors 24.954

51.673

Increase/decrease (-) in debtors -2.088

0.008

Increase/decrease(-) in inventories 0.093

-25.340

Movement in pension liabilities -61.734

-61.307

Carrying amount of non current assets and non current assets held for sale, sold or de-

recognised

-14.387

2.803

Other non cash items charged to the net deficit on the provision of services 6.640

-124.162

Total -86.059

The deficit on provision of services has been adjusted for the following

investing and financing activities:

7.781

Proceeds from the sale of property, plant and equipment and intangible assets 3.270

107.848

Any other items for which the cash effects are investing or financing cashflows 83.364

115.629

Total 86.634

Cash-flow statement

Suffolk County Council 27 Cash Flow Statement

CF2. Investing Activities

CF3. Financing Activities

The total of Cash receipts of short and long term borrowings (-£153.243 million), other cash payments (£0.041

million), cash payments from PFI (£3.585 million) and repayments of short and long term borrowing (£109.852

million) total -£39.765 million and can be seen in the Financing Cash Flows column in table CF4 below.

CF4. Reconciliation of Liabilities Arising from Financing Activities

* Only the element of Council Tax and Business Rates included in Short Term Debtors and Creditors is reflected

in the note above, rather than the full balance disclosed on the Balance Sheet. The total of £18.732 million is

part of ‘other payment for financing activities’ in CF3.

The Other Changes column reflects movements on long and short term borrowing and PFI which are not shown

in the financing activities note CF3. The changes are shown to allow the 31 March 2022 balance to reconcile to

the Balance Sheet.

2020 - 2021 2021 - 2022

£ million £ million

81.523

Purchase of property, plant and equipment 107.700

791.327

Purchase of short-term investments 741.809

-7.781

Proceeds from the sale of property, plant and equipment -3.270

-790.990

Proceeds from short-term activities -745.686

-122.768

Other receipts from investing activities -106.468

-48.689

Net cash flows from investing activities -5.915

2020 - 2021 2021 - 2022

£ million £ million

-118.500

Cash receipts of short and long term borrowings -153.243

-21.667

Other cash receipts from financing activities 0.000

3.357

Cash payments for the reduction of the outstanding liabilities relating to PFI contracts 3.585

206.091 Repayments of short term and long term borrowing 109.852

0.000

Other payments for financing activities 18.773

69.281

Net cash flows from financing activities -21.033

31 March 2021

Financing

Cash Flows

Non Cash

Financing

Activities

Other

Changes

31 March 2022

£ million £ million £ million £ million £ million

-356.217 Long Term Borrowing -8.391 3.545 -361.063

-67.640 Short Term Borrowing -34.959 -3.233 -105.832

-42.222 Long and Short Term PFI Liability 3.585 -1.338 -39.975

-16.305 Short Term Debtors/Creditors* 18.732 2.427

-482.384 -39.765 18.732 -1.026 -504.444

Notes to the Core Statements

Suffolk County Council 28 Notes to the Core Statements

Notes to the Core Statements

Note values throughout these accounts are presented rounded to whole numbers. Totals in supporting tables

and notes may not appear to cast, cross-cast, or exactly match to the core statements or other tables due to

rounding differences.

Note Note no. Page

Accounting Policies 1 29

Accounting Standards Issued, Not Adopted 2 39

Adjustments between Accounting Basis and Funding Basis under Regulations 7 44

Assets Held for Sale 14 53

Assumptions Made About the Future and Other Major Sources of Estimation and Uncertainty 4 42

Capital Expenditure and Capital Financing 27 77

Cash and Cash Equivalents 16 53

Contingent Assets 35 89

Contingent Liablilities 34 88

Councillors' Allowances 21 64

Creditors: Short Term 17 54

Critical Judgements in Applying Accounting Policies 3 40

Debtors: Short Term 15 53

Dedicated Schools Grant 24 68

Defined Benefit Pension Schemes 33 83

Events After the Balance Sheet Date 6 43

External Audit Costs 23 68

Financial Instruments 36 89

Financing and Investment Income and Expenditure 10 48

Going Concern 40 96

Grant Income 25 70

Impairment Losses 30 82

Intangible Assets 13 52

Interest in Companies 38 95

Leases 28 78

Material Items of Income and Expenditure 5 43

Nature and Extent of Risks Arising from Financial Instruments 37 93

Officers' Remuneration 22 64

Other Operating Expenditure 9 48

Pension Schemes Accounted for as Defined Contribution Schemes 32 82

PFI and Similar Contracts, including donated assets 29 79

Pooled Budgets 20 60

Property, Plant and Equipment 12 49

Provisions 18 55

Publicity 39 96

Related Parties 26 74

Taxation and Non-Specific Grant Income 11 48

Termination Benefits and Exit Packages 31 82

Transfers to/from Earmarked Reserves 8 46

Unusable Reserves 19 56

Notes to the Core Statements

Suffolk County Council 29 Notes to the Core Statements

The financial statements have been prepared in accordance with the Code of Practice on Local Authority

Accounting in the United Kingdom 2021 - 2022 (The Code) and the accounting policies set out in note 1. The

notes that follow (2 to 40) set out supplementary information to assist readers of the accounts.

1. Accounting Policies

i General principles

The Statement of Accounts summarises the Council’s transactions for the 2021 - 2022 financial year and its

position at the year end of 31 March 2022. The Council is required to prepare an annual Statement of Accounts

by the Accounts and Audit Regulations 2015 in accordance with proper accounting practices. These practices

primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2021 – 2022 (The

Code) supported by International Financial Reporting Standards and statutory guidance issued under section

12 of the Local Government Act 2003.

The accounting convention adopted is historical cost, modified by the revaluation of certain categories of non-

current assets and financial instruments.

The Statement of Accounts have been produced on a Going Concern basis.

ii Accruals of income and expenditure

The Council’s financial statements are prepared on an accruals basis. This means that, within material levels,

income and expenditure is recognised in the accounts in the accounting period in which the effect of the relevant

transactions take place and not in the period in which cash is received or paid.

This means that:

• Fees, charges and other receipts are accounted for as income at the date the Council provides the

relevant goods or services.

• Goods and services are accounted for as expenditure in the accounting period when they are received

or consumed.

• Interest payable on borrowings and receivable on investments is accounted for on the basis of the

effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined

by the contract. For instance, where the contract for a particular financial instrument requires low interest

rate payments in early years and then higher interest rate payments in later years, these are accounted

for as though equal for each year. That is, the total interest payable over the life of the contract is divided

by the number of years of the contract to give the amount of interest to account for each year.

• Where income and expenditure have been recognised but cash has not been received or paid, a debtor

or creditor for the relevant amount is recorded in the Balance Sheet. Where it is doubtful that debts will

be settled, the balance of debtors is written down and a charge made to revenue for the income that

might not be collected.

The Council applies a £1,000 de-minimis policy on accruals at year-end. This means the Council does not

record accruals for transactions under £1,000 except for the following:

• Transactions related to grant funding.

• Transactions going through the automated ordering system.

• Other minor exceptions.

The application of the £1,000 de-minimis policy does not materially affect the accounts of the Council.

iii Prior period adjustments, changes in accounting policies and estimates and errors

Prior period adjustments may arise as a result of a change in accounting policy or to correct a material error.

Changes in accounting estimates are accounted for in the current and future years affected by the change and

do not give rise to a prior year adjustment.

Notes to the Core Statements

Suffolk County Council 30 Notes to the Core Statements

Changes in accounting policies are only made when required by proper accounting practices or the change

provides more reliable or relevant information about the effect of transactions, other events and conditions on

the Council’s financial position or performance.

Where a change is made, it is applied retrospectively by adjusting opening balances and comparative amounts

for the prior period as if the new policy had always been applied.

Material errors discovered in the prior period figures are corrected retrospectively by amending opening

balances and comparative amounts for the prior period.

iv Events after reporting period

Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between

the end of the reporting period and the date when the Statement of Accounts are authorised for issue. Two

types of events can be identified:

• Those that provide evidence of conditions that existed at the end of the reporting period – the Statement

of Accounts is adjusted to reflect such events.

• Those that are indicative of conditions that arose after the reporting period – the Statement of Accounts

is not adjusted to reflect such events, but where a category of events would have a material effect,

disclosure is made in the notes of the nature of the events and their estimated financial effect.

Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts.

v Provisions, contingent liabilities and contingent assets

Provisions are made where an event has taken place that gives the Council an obligation that probably requires

settlement by a transfer of economic benefits, but where the timing of the transfer is uncertain.

The Council maintains a number of provisions as detailed within note 18 to the core statements. Provisions are

charged to the appropriate service revenue account in the year that the Council becomes aware of the

obligation, based on the best estimate of the likely settlement. When payments are eventually made, they are

charged to the provision set up in the Balance Sheet. The provisions are reviewed annually to ensure that the

amounts held on the Balance Sheet represent the best estimates of the expenditure required to settle the

obligations.

A contingent liability arises where an event has taken place that gives the Council a possible obligation whose

existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the

control of the Council. Contingent liabilities also arise in circumstances where a provision would otherwise be

made but either it is not probable that an outflow of resources will be required, or the amount of the obligation

cannot be measured with reliability.

A contingent asset arises where an event has taken place that gives the Council a possible asset whose

existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the

control of the Council.

Contingent liabilities and assets are not recognised in the Balance Sheet but disclosed in notes 34 and 35 to

the accounts.

vi Reserves

The Council sets aside specific amounts as reserves for future policy purposes or to cover contingencies.

Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves

Statement. When expenditure is to be financed from a reserve, it is charged to the appropriate service revenue

account in that year to count against the Net Cost of Services in the Comprehensive Income and Expenditure

Statement. The reserve is then appropriated back into the General Fund Balance so that there is no net charge

against council tax for the expenditure in that year.

Certain reserves are kept to manage the accounting processes for non-current assets, financial instruments

and retirement benefits that do not represent usable resources for the Council. In 2020 -2021 the Dedicated

Schools Reserve was first classed as an unusable reserve, rather than a usable reserve, due to its overdrawn

position. Details of unusable reserves held are shown in note 19 to the accounts.

Notes to the Core Statements

Suffolk County Council 31 Notes to the Core Statements

vii Government grants and contributions

Whether paid on account, by instalments or in arrears, government grants, third-party contributions and

donations are recognised as due to the Council when there is reasonable assurance that:

• The Council will comply with the conditions attached to the payments, and

• The grants or contributions will be received

Amounts recognised as due to the Council are not credited to the Comprehensive Income and Expenditure

Statement until conditions attached to the grant or contribution have been satisfied. Conditions are stipulations

that the grant or contributions are required to be consumed or must be returned to the transferor.

Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the

Balance Sheet as creditors. In 2021-2022 some COVID-19 specific grants have conditions attached, therefore

are held within Creditors on the Balance Sheet, see note 25 for further information. When conditions are

satisfied, the grant or contribution is credited to the relevant service or Taxation and Non-specific Grant Income

line in the Comprehensive Income and Expenditure Statement.

In 2021 – 2022 the Council acted as agent following the receipt of COVID-19 related grants from Central

Government. The Council was required under the grant conditions to transfer the grant into third parties,

therefore acting as the intermediary and had no control over its use. The grant income and the respective

expenditure have been reflected in the Balance Sheet rather than in the Income and Expenditure Statement.

Where capital grants and contributions are credited to the Comprehensive Income and Expenditure Statement

they are reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the grant

or contribution has yet to be used to finance capital expenditure, it is posted to the Capital Grants or

Contributions Unapplied reserves. Where it is applied, it is posted to the Capital Adjustment Account. Amounts

in the Capital Grants or Contributions Unapplied reserves are transferred to the Capital Adjustment Account

once they have been applied to fund capital expenditure.

viii Employee benefits

Post-employment benefits

Employees of the Council are members of four separate pension schemes. The schemes provide defined

benefits to members (retirement lump sums and pensions) earned as employees working for the Council.

• Teachers – The Teachers’ Pension Scheme is administered by Capita Teachers’ Pensions on behalf

of the Department for Education (DfE). It is a defined benefit final salary scheme. However, the

arrangements for the Teachers’ scheme mean that liabilities for these benefits cannot be identified to

the Council. The scheme is therefore accounted for as if it were a defined contributions scheme – no

liability for future payments of benefits is recognised in the Balance Sheet and the Children and Young

People Directorate revenue account is charged with the employer’s contributions payable to Teachers’

Pensions in the year. If a teacher has extra years added to their pension calculation, Suffolk County

Council pays the extra pension.

• Firefighters – The Firefighters’ Pension Scheme is administered by Suffolk County Council and

accounted for as an unfunded, defined benefit scheme. This means that there are no assets to meet

the pension liabilities and cash has to be generated to meet actual pension payments. The cost of

pensions and other benefits are provided from employer contributions paid to the scheme by Suffolk

County Council and contributions from firefighters. Any deficit on these payments is covered by a Top-

Up Grant from Central Government. The liabilities of the Firefighters’ Pension Scheme attributable to

the Council are included in the Balance Sheet on an actuarial basis using the projected unit credit

method.

• Local Government Pension Scheme - The Local Government Pension Scheme (LGPS) is

administered by Suffolk County Council and accounted for as a defined benefit scheme. This scheme

provides pensions and other benefits for staff other than teachers, firefighters and those previously

employed by the NHS. The cost of pensions and other benefits are met by the Suffolk Pension Fund,

Notes to the Core Statements

Suffolk County Council 32 Notes to the Core Statements

except for the extra costs the Council has to pay when an employee retires early or as a result of a

decision by the Council to terminate an officer’s employment before the normal retirement date.

• National Health Service – The National Health Service (NHS) Scheme is administered by the NHS

Business Service Authority and is a defined benefits scheme. However, the arrangement for the NHS

scheme means that liabilities for these benefits cannot be identified to the Council. The scheme is

therefore accounted for as if it were a defined contributions scheme. This means that no liability for

future payments of benefits is recognised in the Balance Sheet and the Comprehensive Income and

Expenditure Statement is charged with the employer’s contributions payable to NHS Pensions in the

year.

The Local Government Pension Scheme

The liabilities of the LGPS attributable to the Council are included in the Balance Sheet using the projected unit

credit method, i.e. an assessment of the future payments that will be made in relation to retirement benefits

earned to date by employees, based on assumptions about mortality rates, employee turnover rates, and

projections of earnings for current employees.

Liabilities are discounted to their value at current prices. The discount rate employed for the 2021 - 2022

accounts is 2.7%. The discount rate used is determined with reference to market returns of the corporate bond

yield at the balance sheet date.

The change in the net pension liability is analysed into the following components:

Service cost comprising:

- current service cost – the increase in liabilities is as a result of years of service earned this year. This

is allocated in the Comprehensive Income and Expenditure Statement to the revenue accounts of the

services for which the employees worked.

- past service cost – the increase in liabilities arising from current year decisions whose effect relates to

years of service earned in earlier years, debited to the Surplus or Deficit on the Provision of Services

in the Comprehensive Income and Expenditure Statement.

- net interest on the net defined benefit liability – the changes during the period, in the net defined benefit

liability, that arise through the passage of time are charged to Financing and Investment Income and

Expenditure in the Comprehensive Income and Expenditure Statement. This is calculated by applying

the discount rate used to measure the defined benefit obligation at the beginning of the period to the

net defined liability at the beginning of the period. It takes into account any changes in the net defined

benefit liability during the period as a result of contribution and benefit payments.

Re-measurement comprising:

- the return on plan assets – excluding amounts included in net interest on the net defined benefit liability

– charged to the Pension Reserve as Other Comprehensive Income and Expenditure.

- actuarial gains and losses - changes in the net pension liability that arise because events have not

coincided with assumptions made at the last actuarial valuation or because the actuaries have updated

their assumptions. These are charged to the Pension Reserve as Other Comprehensive Income and

Expenditure.

Contributions paid to the Suffolk Pension Fund:

- cash paid as employer’s contributions to the pension fund in settlement of liabilities.

In relation to retirement benefits, statutory provisions require the General Fund Balance to be charged with the

amount payable by the Council to the Pension Fund or directly to pensioners in the year, not the amount

calculated according to the relevant accounting standards. In the Movement in Reserves Statement, this means

that there are appropriations to and from the Pensions Reserve to remove the notional debits and credits for

retirement benefits and replace them with debits for the cash paid to the Pension Fund and any such amounts

payable but unpaid at the year-end. The negative balance that arises on the Pensions Reserve thereby

measures the beneficial impact to the General Fund of being required to account for retirement benefits on the

basis of cash flows, rather than as benefits are earned by employees.

For more information on Employee Benefits and International Accounting Standard (IAS19) please refer to notes

32 and 33 of the accounts.

Notes to the Core Statements

Suffolk County Council 33 Notes to the Core Statements

Benefits payable during employment

Short term employee benefits are those due to be settled within 12 months of the year-end. They include such

benefits as wages and salaries, paid annual leave, paid sick leave and non-monetary benefits (e.g., cars) for

current employees. These are recognised as an expense for services in the year in which employees render

service to the Council. An accrual is made for the cost of holiday entitlements earned by employees but not

taken before the year end, which employees can carry forward into the next financial year. The accrual is

charged to the Surplus or Deficit on the Provision of Services, but then reversed out through the Movement in

Reserves Statement so that holiday benefits are charged to revenue in the financial year in which the holiday

absence occurs.

Termination benefits

Termination benefits are amounts payable as a result of a decision by the Council to terminate an officer’s

employment before the normal retirement date or an officer’s decision to accept voluntary redundancy. These

costs are charged on an accruals basis to the relevant service lines in the Comprehensive Income and

Expenditure Statement when the Council is demonstrably committed to the termination of the employment of

an officer or group of officers. Ill health retirements or departures are not considered termination benefits and

voluntary early retirement is not a termination benefit.

Where termination benefits involve the enhancement of pensions, statutory provisions require the General Fund

Balance to be charged with the amount payable by the Council to the Pension Fund or pensioner in the year,

not the amount calculated according to the relevant accounting standards.

In the Movement in Reserves Statement, appropriations are required to and from the Pensions Reserve to

remove the notional debits and credits for pension enhancement termination benefits and replace them with

debits for the cash paid to the Pension Fund and pensioners and any such amounts payable but unpaid at the

year-end.

ix VAT

Income and expenditure exclude any amounts related to VAT, as all VAT collected is payable to HM Revenue

& Customs and all VAT paid is recoverable from them.

x Recognition of property, plant and equipment (PPE)

All expenditure on buying, creating, or enhancing PPE assets is classed as capital expenditure if the Council

will benefit from the asset for more than one year.

PPE can be:

• Operational assets (land, buildings, vehicles, plant and equipment, roads, and community assets such

as parks and open spaces); and

• Non-operational assets (such as land awaiting development and surplus assets held for disposal).

Expenditure on PPE is recognised in the Statement of Accounts when the work has been carried out or when

the asset has been delivered, rather than when the Council actually pays for it. In this year’s accounts the

Council has only included in the asset register new land and buildings over £20,000 and new vehicles, plant,

and equipment over £6,000, except for IT assets which have all been included. Enhancements to existing assets

have also been included.

In accordance with The Code’s adaptation of IAS16, any asset that is owned by the Council, but its use is not

controlled by the Council will not be recognised as an asset on the Balance Sheet. Any asset that is not owned

but is controlled by the Council will be recognised on the Balance Sheet providing it meets the recognition

criteria above. Therefore, Community and Voluntary Controlled schools are recognised on the Balance Sheet,

but Voluntary Aided, Foundation and Academy schools are not.

xi Measurement and depreciation of PPE

Property, plant and equipment are initially measured at cost. Assets are then carried in the Balance Sheet at

value, and where they have a limited useful life, are reduced in value (depreciated) according to the following

policies:

Notes to the Core Statements

Suffolk County Council 34 Notes to the Core Statements

Value in Balance Sheet

Depreciation period

Operational land &

buildings (excluding

community assets)

Existing use value if there is a market for the

asset. If not, the asset is valued at

depreciated replacement cost.

Variable - based on the

valuer’s assessment.

Land is not depreciated.

Vehicles, plant &

equipment

Depreciated historical cost.

Variable – based on the

estimated useful life for

the type of asset.

Community assets

Historical cost or valuation.

No depreciation charge

Assets under

construction

Historical cost

No depreciation charge

Surplus assets

Fair value, which is the price that would be

received to sell an asset or paid to transfer a

liability in an orderly transaction between

market participants at the measurement date

(IFRS13)

Variable - based on the

valuer’s assessment.

Land is not depreciated.

Intangible assets

Depreciated historical cost

Variable – all current

intangible assets have a

finite useful life which

varies depending on

type of asset.

Operational land &

buildings (excluding

community assets)

Existing use value if there is a market for the

asset. If not, the asset is valued at

depreciated replacement cost.

Variable - based on the

valuer’s assessment.

Land is not depreciated.

The valuation figures included in the accounts are the total of separate valuations of all Council properties, not

a valuation or estimation based on a proportion of the properties valued together.

Assets included in the Balance Sheet at current value are revalued sufficiently regularly to ensure that their

carrying amount is not materially different from their current value at the year end, but as a minimum every five

years. Increases in valuations are matched by credits to the Revaluation Reserve to recognise unrealised gains.

Exceptionally, gains might be credited to the Comprehensive Income and Expenditure Statement where they

arise from the reversal of an impairment loss previously charged to a service, adjusted for depreciation that

would have been charged had the loss not been recognised. Where decreases in value are identified, they are

accounted for in the Revaluation Reserve where there is a balance of revaluation gains for the asset. Where

there is no balance in the Revaluation Reserve or an insufficient balance, the carrying amount of the asset is

written down against the relevant service line(s) in the Comprehensive Income and Expenditure Statement.

The Revaluation Reserve contains revaluation gains recognised since 1 April 2007 only, the date of its formal

implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account.

Where appropriate, property assets have been valued on a component basis. This methodology accounts for

significant items of the property which have a different life span from the main fabric of the building. On this

basis the components will be depreciated individually, reflecting their operational life. The Council

componentises all assets with a total building value over £1.000 million.

Donated assets are measured initially at fair value. The difference between fair value and any consideration

paid is credited to the Comprehensive Income and Expenditure Statement unless the donation has been made

conditionally. Until conditions are satisfied, the gain is held in the Donated Assets Account. Where gains are

credited to the Comprehensive Income and Expenditure Statement, they are reversed out of the General Fund

Balance to the Capital Adjustment Account in the Movement in Reserves Statement.

Depreciation is calculated on a straight-line basis over the useful life of assets. Where new capital expenditure

is incurred, the enhancement or new asset is recognised from the 1 October in the year of purchase. Therefore,

six months of depreciation is calculated in the year of purchase and the asset continues to be depreciated until

the date of disposal.

xii Measurement and depreciation of infrastructure assets

The property, plant and equipment line of the balance sheet also includes infrastructure assets. Infrastructure

includes highways assets such as carriageways, footways and cycle tracks, structures (e.g. bridges), street

Notes to the Core Statements

Suffolk County Council 35 Notes to the Core Statements

lighting (e.g. illuminated traffic signals, bollards), traffic management systems and land which together form a

single integrated network.

Infrastructure assets are measured at a modified form of historic cost. Opening balances of infrastructure assets

were originally recorded on the balance sheet at the outstanding loan balance as at 1 April 1994, which was

deemed to be historical cost at the time. Subsequently, infrastructure assets are measured at depreciated

historical cost.

Depreciation of infrastructure assets is charged on a straight-line basis with new assets given a 40 year useful

life. Whilst different components of the infrastructure assets will have varying useful lives, analysis has been

completed to determine this would not differ materially from using 40 years for all assets.

For derecognition of infrastructure, where capital expenditure is replacing assets, the Council has determined

in accordance with Regulation 30M of the Local Authorities (Capital Finance and Accounting) (England/Wales)

(Amendment) Regulations 2022, that the carrying amounts to be derecognised is nil.

xiii Impairment of property, plant and equipment

Assets are reviewed at each year-end as to whether there is any indication that an asset may be impaired.

Where indications exist, and any possible differences are estimated to be material, the recoverable amount of

the asset is estimated and compared to the carrying amount of the asset.

Where impairment losses are identified, they are accounted for in the following way:

• Where there is a balance of revaluation gains for the asset in the Revaluation Reserve, the carrying

amount of the asset is written down against that balance (up to the amount of the accumulated gains).

• Where there is no balance in the Revaluation Reserve or an insufficient balance, the carrying amount

of the asset is written down against the relevant service in the Comprehensive Income and Expenditure

Statement.

Where an impairment loss previously charged to the Comprehensive Income and Expenditure Statement is

reversed, the reversal is credited to the relevant service line in the Comprehensive Income and Expenditure

Statement, but only up to the amount of the original loss adjusted for depreciation that would have been charged

had the loss not been recognised.

xiv Charges to revenue for the use of non-current assets

Service revenue accounts are debited with the following amounts to record the cost of holding assets during the

year:

• Depreciation attributable to the assets used by the relevant service.

• Revaluation and impairment losses on assets used by the service where there are not accumulated

gains in the Revaluation Reserve against which the losses can be written off.

The Council is not required to raise council tax to cover depreciation or revaluation and impairment losses.

However, the Council is required by law to make a provision for the repayment of debt, known as a Minimum

Revenue Provision (MRP). The Council makes an annual contribution from revenue towards provision for the

reduction in its overall borrowing requirement equal to either an amount calculated on a prudent basis or as

determined by the Council in accordance with statutory guidance. Depreciation, revaluation, and impairment

losses charged to the Comprehensive Income and Expenditure Statement are therefore replaced by MRP in

the Movement in Reserves Statement, by way of an adjusting transaction with the Capital Adjustment Account

for the difference between the two.

xv Disposals and Non-current Assets Held for Sale

When it becomes probable that the carrying amount of an asset will be recovered principally through a sale

rather than through its continuing use, and the asset is being actively marketed, it is reclassified as an Asset

Held for Sale. The asset is revalued immediately before reclassification and then carried at the lower of this

amount and fair value less costs to sell. Where there is a subsequent decrease to fair value less costs to sell,

the loss is posted to the Other Operating Expenditure line in the Comprehensive Income and Expenditure

Statement. Gains in fair value are recognised only up to the amount of any previous losses recognised in the

Notes to the Core Statements

Suffolk County Council 36 Notes to the Core Statements

Surplus or Deficit on Provision of Services. Depreciation is not charged on Assets Held for Sale. If assets no

longer meet the criteria to be classified as Assets Held for Sale, they are reclassified back to non-current assets

and valued at the lower of their carrying amount before they were classified as Assets Held for Sale and their

recoverable amount at the date of the decision not to sell. Assets that are to be abandoned or scrapped are not

reclassified as Assets Held for Sale.

When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance Sheet

(whether Property, Plant and Equipment or Assets Held for Sale) is written off to the Other Operating

Expenditure line in the Comprehensive Income and Expenditure Statement as part of the gain or loss on

disposal. Receipts from disposals (if any) are credited to the same line in the Comprehensive Income and

Expenditure Statement also as part of the gain or loss on disposal (i.e., netted off against the carrying value of

the asset at the time of disposal). Any revaluation gains accumulated for the asset in the Revaluation Reserve

are transferred to the Capital Adjustment Account.

Amounts received for a disposal in excess of £10,000 are categorised as capital receipts. The balance of

receipts is required to be credited to the Capital Receipts Reserve and will only be used for new capital

investment. Where capital receipts from a disposal are not expected in the same financial year as the

derecognition of the asset, for example when they are paid in installments, the full expected receipt is credited

to the Comprehensive Income and Expenditure Statement as described above. However, the element of the

capital receipt that is yet to be received is then reversed out in the Movement in Reserves Statement to the

Deferred Capital Receipts Reserve. This is an unusable reserve that will be transferred to the Capital Receipts

Reserve when the cash is received.

The written-off value of disposals is not a charge against council tax, as the cost of non-current assets is fully

provided for under separate arrangements for capital financing. Amounts are appropriated to the Capital

Adjustment Account from the General Fund Balance in the Movement in Reserves Statement.

xvi Revenue Expenditure Funded from Capital Under Statute (REFCUS) and de minimis

expenditure

Revenue Expenditure Funded from Capital Under Statute is capital spending that does not result in the creation

of an asset for the Council. Examples include capital grants that are made to other organisations and

expenditure on schools not owned by the Council. De minimis spending is where capital assets are bought

below the recognition value described in paragraph (x) above and are not recognised in the asset register. The

Council transfers REFCUS and de minimis expenditure to the Comprehensive Income and Expenditure

Statement in the year in which the money is spent. A transfer in the Movement in Reserves Statement from the

General Fund Balance to the Capital Adjustment Account then reverses out the amounts charged to avoid any

impact on council tax.

xvii Leases

Leases are classified as finance leases where the terms of the lease substantially transfer all the risks and

rewards incidental to ownership of the property, plant or equipment from the lessor to the lessee. All other

leases are classified as operating leases.

The Council as Lessee

The Council will recognise finance leases as assets in the Balance Sheet at the lower of fair value and the

present value of minimum lease payments. Property, plant and equipment recognised under finance leases are

accounted for using the policies applied generally to such assets, subject to depreciation being charged over

the lease term if this is shorter than the assets estimated useful life.

Rentals paid under operating leases are charged to the Comprehensive Income and Expenditure Statement as

an expense to the services benefiting from the use of the leased Property, Plant or Equipment.

The Council as Lessor

Any finance lease granted by the Council will have the relevant asset written out of the Balance Sheet as a

disposal. At the commencement of the lease, the carrying amount of the asset in the Balance Sheet is written

off to the Comprehensive Income and Expenditure Statement as part of the gain or loss on disposal.

Where the Council grants an operating lease, the asset is retained in the Balance Sheet and depreciated

accordingly. Rental income is credited to the Comprehensive Income and Expenditure Statement.

Notes to the Core Statements

Suffolk County Council 37 Notes to the Core Statements

xviii Financial liabilities

Financial liabilities are initially measured at fair value and carried at their amortised cost. Annual charges to the

Comprehensive Income and Expenditure Statement for interest payable are based on the carrying amount of

the liability, multiplied by (where applicable) the effective rate of interest for the instrument. For most of the

borrowings that the Council has, this means that the amount presented in the Balance Sheet is the outstanding

principal repayable and the interest charged to the Comprehensive Income and Expenditure Statement is the

amount payable for the year in the loan agreement.

Where premiums and discounts have been charged to the Comprehensive Income and Expenditure Statement,

regulations allow the impact on the General Fund Balance to be spread over future years. The Council has a

policy of spreading the gain or loss over the term that was outstanding on the loan against which the premium

was payable or discount receivable when it was repaid. The reconciliation of amounts charged to the

Comprehensive Income and Expenditure Statement to the net charge expected against the General Fund

Balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in

Reserves Statement.

xix Financial assets

Financial assets are classified in one of three ways, dependent on their cashflow characteristics and the

Council’s strategy for holding them.

a. Amortised cost,

b. Fair Value through Profit or Loss (FVPL), or

c. Fair Value through Other Comprehensive Income (FVOCI)

The Council’s strategy is to hold investments to maturity, in order to collect contractual cash flows, rather than

to trade in the underlying instruments.

The Council’s financial assets are principally formed of trade receivables (debtors), loans, and deposits with

banks and pooled funds.

Those loans and receivables, where cash flows are purely payments of principal and interest, are initially

measured at fair value and carried at their amortised cost. Annual credits to the Comprehensive Income and

Expenditure Statement for interest receivable are based on the carrying amount of the asset multiplied by the

effective rate of interest for the instrument. For loans the Council has made, it means the amount presented in

the Balance Sheet is the outstanding principal receivable and the interest credited to the Comprehensive Income

and Expenditure Statement, is the amount receivable for the year in the loan agreement.

Financial assets where the cash flows are not purely payments of principal and interest (e.g. dividends), are

initially measured and then carried at fair value through profit and loss. Where loans have been made for service

purposes, rather than for the purposes of collecting principal and interest, then these will also be classified as

FVPL.

Where an asset is recognised at FVPL, income (e.g. dividends) is credited to the Comprehensive Income and

Expenditure Statement when it becomes receivable by the Council. Fair value gains and losses are recognised

in the Financing and Investment Income and Expenditure line in the Comprehensive Income and Expenditure

Statement.

The Council recognises that financial assets bear a risk that future cash flows might not take place because the

counterparty could default on their obligation. The Council therefore recognises expected credit losses on all its

financial assets held at amortised cost, either on a 12-month or lifetime basis.

Where credit risk has increased significantly since an instrument was initially recognised, losses are assessed

across the lifetime of the asset. Where risk has not increased significantly or remains low, losses are assessed

on the basis of 12-month expected losses. For trade receivables the Council recognises Expected Credit Losses

on a lifetime basis.

xx Interests in companies and other entities

Notes to the Core Statements

Suffolk County Council 38 Notes to the Core Statements

The Council has a 100% shareholding in Suffolk Group Holdings Ltd. Suffolk Group Holdings Ltd owns Vertas

Group Ltd (Vertas), Concertus Design and Property Consultants Ltd (Concertus) and Opus People Solutions

Ltd (Opus). These interests require it to prepare group accounts. In the Council’s own single-entity accounts,

the interests in companies forming part of the group accounts are recorded as financial assets at cost and other

equity holdings are held at fair value.

xxi Private Finance Initiative (PFI)

PFI contracts are agreements to receive services, where the responsibility for making available the property,

plant and equipment needed to provide the services passes to the PFI contractor. As the Council is deemed to

control the services that are provided under its PFI schemes and as ownership of the non-current assets will

pass to the Council at the end of the contracts for no additional charge, the Council carries the non-current

assets used under the contracts on the Balance Sheet as part of Property, Plant and Equipment.

The original recognition of these assets at fair value is balanced by the recognition of a liability for amounts due

to the scheme operator to pay for the capital investment. Where the scheme operator has been granted the

right to use the scheme assets to generate their own income, in return for a reduction in payments due for the

asset, then the proportion funded by this income is recognised as a donated asset and is expensed over the life

of the scheme.

PFI assets recognised on the Balance Sheet are revalued and depreciated in the same way as Property, Plant

and Equipment owned by the Council.

The amounts payable to the PFI operators each year are analysed into five elements:

• Fair value of the services received during the year – debited to the relevant service in the

Comprehensive Income and Expenditure Statement.

• Finance cost – a percentage interest charge on the outstanding Balance Sheet liability, debited to

Interest payable and similar charges in the Comprehensive Income and Expenditure Statement.

• Contingent rent – increases in the amount to be paid for the property arising during the contract,

debited to Interest payable and similar charges in the Comprehensive Income and Expenditure

Statement.

• Payment towards liability – applied to write down the Balance Sheet liability towards the PFI operator.

• Lifecycle replacement costs – proportion of the amount payable is posted to the Balance Sheet as a

prepayment where works are not yet complete or recognised as additions to Property, Plant and

Equipment when the relevant works are carried out.

For details of 2021 - 2022 transactions please refer to note 29.

xxii Accounting for council tax and non-domestic rates

The council tax and non-domestic (business) rates income included in the Comprehensive Income and

Expenditure Statement, for both billing authorities and major preceptors, is the accrued income for the year.

The Council’s share of the accrued income is collated from the billing authorities’ information that is required to

be produced by them, to prepare their Collection Fund Statements.

The difference between the income included in the Comprehensive Income and Expenditure Statement and the

amount required by regulation to be credited to the General Fund is taken to a Collection Fund Adjustment

Account and is included as a reconciling item on the Movement in Reserves Statement.

The cash collected by the billing authorities from council tax debtors belongs proportionately to the Billing

Authorities, Police and Crime Commissioner for Suffolk and Suffolk County Council. Therefore, the Council

shows in the Balance Sheet their proportion of council tax debtors and corresponding creditors showing the

amount then owed to the Billing Authorities.

The cash collected by the billing authorities from business rates debtors belongs proportionately to the Billing

Authority (40%), Suffolk County Council (10%) and Central Government (50%).

The Council shows in the Income and Expenditure Statement and Balance Sheet the proportion of the business

rate gain from the Suffolk Pool, due from the billing authorities based upon the actual rates collected, above the

rates baseline, as set by Central Government.

Notes to the Core Statements

Suffolk County Council 39 Notes to the Core Statements

The Council shows in the Income and Expenditure Statement, the one-off income due from Central Government

in respect of COVID-19 related losses for council tax and business rates, in respect of 2020 – 2021, in response

to the pandemic.

xxiii Cash and cash equivalents

Cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment

or other purposes. Current account balances and cash held by the Council at the 31 March are therefore clearly

cash equivalent sums. Cash and cash equivalents are shown net of bank overdrafts that are repayable on

demand and form an integral part of the Council’s cash management.

The Council has an arrangement in place to hold funds on behalf of third parties. These amounts are included

within the cash figure and a corresponding amount is held as a creditor as the Council considers that it exerts

sufficient control over these funds.

For short term investments, there are no strict criteria to follow relating to the nature and maturity of these items.

The Council holds short term investments in a variety of forms such as money markets and deposit accounts

for the purpose of obtaining a gain or return, or to increase the security of these assets. The Council’s policy is

that deposits of any length should be classed as an investment and not a cash equivalent on the Balance Sheet.

xxiv Basis of consolidation for the group accounts

The Group Accounts have been prepared using the group accounts requirements of The Code of Practice on

Local Authority Accounting. Companies that are within the Council’s group boundary have been included in the

Council’s group accounts to the extent that they are either quantitatively or qualitatively material to users of the

financial statements. This will give the reader the ability to see the complete economic activities of the Council

and its exposure to risk through interests in other entities and participation in their activities.

The Council’s subsidiary, Suffolk Group Holdings Ltd and its subsidiaries have been consolidated on a line by

line basis, subject to the elimination of intra-group transactions from the statements, in accordance with The

Code. The Council has not included Leading Lives IPS Ltd, Suffolk Libraries IPS Ltd, and Realise Futures CIC

in the Group accounts as they are not material either qualitatively or quantitatively.

The only material differences arising from variations in accounting policies is in regard to IFRS 16 Leases which

requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months. IFRS 16

has not been adopted by the Code of Practice but is effective for other companies within the Group boundary.

The results of the other companies have been adjusted to bring them in line with the Councils policies on leases

during consolidation.

xxv Apprenticeship Levy

In 2017 – 2018 the Council started to make payments to Her Majesty’s Revenue and Customs (HMRC) in

relation to the Apprenticeship Levy. The cost of the levy is recognised as a direct cost of employment in the

Comprehensive Income and Expenditure Statement when it is paid to HMRC. When funds are transferred from

the Government's Digital Apprenticeship Account to an approved training provider, a training expense, up to the

value of the training provided, with a corresponding entry for a government grant, is recognised in the

Comprehensive Income and Expenditure Statement against the service benefiting from the training.

2. Accounting Standards Issued, Not Adopted

The Code of Practice on Local Authority Accounting in the United Kingdom 2021 - 2022 requires the disclosure

of information relating to the expected impact of an accounting change that will be required by a new standard,

that has been introduced but not yet adopted.

The following accounting standards have changes next year but are either not relevant to the Council or the

changes are expected to be minor and are not expected to materially impact the accounts. The standards

introduced by the 2022 - 2023 Code where disclosures are required in the 2021 - 2022 financial statements are:

• IFRS 16 Leases (but only for those local authorities that have decided to adopt IFRS 16 in the 2022 –

2023 financial year).

Notes to the Core Statements

Suffolk County Council 40 Notes to the Core Statements

• Annual Improvements to IFRS Standards 2018 – 2020. The annual IFRS improvement programme

notes 4 changed standards:

o IFRS 1 (First-time adoption) – amendment relates to foreign operations of acquired

subsidiaries transitioning to IFRS

o IAS 37 (Onerous contracts) – clarifies the intention of the standard

o IFRS 16 (Leases) – amendment removes a misleading example that is not referenced in the

Code material

o IAS 41 (Agriculture) – one of a small number of IFRSs that are only expected to apply to local

authorities in limited circumstances.

• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).

The IFRS 16 Leases standard has been deferred until 1 April 2024 following an emergency consultation

conducted by CIPFA/LASAAC therefore adoption will be required in 2024 – 2025. However, both the 2022 –

2023 and 2023 – 2024 codes will allow adoption should an authority consider it is able to do so. The Council

will not be adopting IFRS 16 in 2022 – 2023.

3. Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in note 1 the Council has had to make certain judgements about

complex transactions or those involving uncertainty about future events.

The critical judgements made in the Statement of Accounts are:

• The Council anticipates the pressures on public expenditure will worsen as inflation and interest rates

continue to rise and the economy deteriorates, and whilst current demographic trends remain ongoing

and the longer term impacts of the pandemic continue to emerge. These pressures are exacerbated

by an ongoing high degree of uncertainty about future levels of funding for local government following

a further one-year funding settlement for 2022 – 2023, and continued delays to the Fairer Funding

Review and Business Rates reform. In February 2022, the 2022 – 2023 Budget report to Council

included a Medium-Term Financial Planning (MTFP) forecasting costs and funding for the period to 31

March 2026. The MTFP indicates that a budget gap is expected to emerge in excess of £36 million by

2025 – 2026, with the additional pressures on public expenditure emerging since February 2022 likely

to cause this gap to further widen if no additional mitigation is taken. The Council is working on plans

to bridge this gap to continue to ensure sustainable finances over the medium term. Although the

Council recognises that this will be a challenging undertaking given the current situation and future

outlook, its track record of delivering savings coupled with substantial levels of available reserves

ensure that the Council remains sufficiently stable not to warrant an impairment of assets or other

accounting adjustments.

• Note 37, Nature and Extent of Risks arising from Financial Instruments, details the Council’s Investment

Strategy and approach to managing risk and the judgements made.

• The Council has two Private Finance Initiative (PFI) contracts. One for the provision/refurbishment of

Fire Stations and one for the provision of the Energy from Waste Facility. The accounting policies, Note

1, for PFI schemes have been applied to these arrangements and operational assets recognised in

Property Plant and Equipment on the Council’s Balance Sheet. Note 29 provides further detail.

• The Council recognises school assets for Community and Voluntary Controlled schools on its Balance

Sheet. The Council has not recognised assets relating to Academies, Voluntary Aided, Free or

Foundation schools, as it is of the opinion that these assets are not controlled by the Council. School

assets are recognised as a disposal from the Council’s Balance Sheet on the date on which a school

converts to Academy status, not on the date of any related announcement, nor is any impairment

recognised by the Council prior to conversion. The Education Act 2011 and The Free School

Presumption advice document (February 2016) state that for all new schools the local authority must

seek proposals for the establishment of an Academy. Therefore, in line with the recognition criteria

stated above, the Council will not include newly constructed schools in the Balance Sheet on the basis

that they will all be academies or free schools, and not controlled by the Council. Going forward, capital

expenditure on new school construction will be treated as revenue expenditure funded from capital

under statute (REFCUS) as it is for the construction of an asset that is not for the Council.

Notes to the Core Statements

Suffolk County Council 41 Notes to the Core Statements

• The Council has several interests in other entities which fall within the group boundary of the Council,

on the grounds of control and significant influence in line with the Code. However, the Council concluded

that it is only necessary to include Suffolk Group Holdings Limited in the consolidated statement, as the

others in aggregate are not sufficiently material to include. See note 38, Interest in Companies and the

Group accounts for further information.

Notes to the Core Statements

Suffolk County Council 42 Notes to the Core Statements

4. Assumptions Made About the Future and Other Major Sources of Estimation and Uncertainty

The preparation of the Statement of Accounts requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and

liabilities as at the balance sheet date and the amounts reported for the revenues and expenses during the year. However, the nature of estimation means that the actual

outcomes could differ from those estimates. The key judgements and estimation uncertainty that have a significant risk of causing adjustment to the carrying amount of

assets and liabilities within the next financial year are detailed below:

Item

Effect if actual results differ from assumptions

Pension

Liability

Uncertainty

Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement

ages, mortality rates and expected returns on pension fund assets. Hymans Robertson LLP is engaged to provide the Council with expert advice about the assumptions to be applied.

During 2021 - 2022, the Council's actuary advised that the net pensions liability had decreased by £237.964 million. Further sensitivity analysis on pension liabilities are in Note 33.

Fair Value

Measurement

Uncertainty

When the fair values of Surplus Assets and Assets Held for Sale cannot be measured based on quoted prices in active markets (Level 1 inputs), or other inputs that are observable for the asset, either

directly or indirectly (Level 2 inputs), their fair value is measured using unobservable (Level 3) inputs. Where it is not possible to base the valuation technique on observable data, judgement is required

in establishing fair values. These judgments typically include considerations such as uncertainty and risk. Changes in assumptions used could affect the fair value of assets and liabilities.

Lambert Smith Hampton carried out the valuation on the Council's Surplus Assets on behalf of Concertus Design and Property Consultants Ltd and advised that all the valuation inputs used were either

Level 2 or Level 3 inputs. Significant changes in any of the unobservable inputs would result in a significantly lower or higher fair value measurement of these assets.

Property, Plant

& Equipment

Uncertainty

Depreciation: If the useful life of an asset is reduced, depreciation increases and the carrying amount of the asset decreases. It is estimated that the annual depreciation for assets would increase by

£4.399 million for every year that useful lives had to be reduced. A reduction in estimated valuations would result in reductions in the Revaluation Reserve and/or a loss recognised in the

Comprehensive Income and Expenditure Account.

Valuation: If the asset categories subject to valuations (Other Land and Buildings, Surplus Assets and Assets Held For Sale) were to decrease in value by 10%, this would result in an approximate

charge of £37.655 million to the Comprehensive Income and Expenditure Account. An increase in estimated valuation would be an increase in the Revaluation Reserve and/or reversals of previous

revaluation losses charged to the Comprehensive Income and Expenditure Account. For the asset categories Other Land and Buildings and Surplus Assets, which are subject to depreciation, the

depreciation charge will change in direct relation to the value of those assets. The net book value of this asset base is £784.662 million. The Asset Held for Sale category is not subject to depreciation.

Depreciation: Assets are depreciated over useful lives that are dependant on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets.The current

economic climate makes it uncertain that the Council will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets. The depreciation

policy followed by the Council can be seen in note 1 to the Core Statements.

Valuation: Operational assets are valued on the basis of Value in Existing Use or on a Depreciated Replacement Cost (DRC) basis for assets (or part there of) which are considered to be of a specialist

nature because there is inadequate market evidence of value in existing use for these types of assets. Surplus Assets are valued on the basis of Fair Value (IFRS13). Asset values are reviewed

periodically to ensure the value is not materially mistated, with approximately 20% of assets valued as at 31 March 2022. The remaining assets were reviewed to ensure values were materially accurate,

which lead to a desktop review of the Great Blakenham Energy from Waste asset.

Notes to the Core Statements

Suffolk County Council 43 Notes to the Core Statements

5. Material Items of Income and Expenditure

The following material items were included within the Comprehensive Income and Expenditure Statement:

Included within the interest expense is a £20.072 million premium paid in relation to the restructuring of two

“Lenders Option Borrower Option” LOBO loans held with Commerzbank. More details of the restructuring can

be found in the Financial Instruments Gains and Losses section of note 36.

In 2021 – 2022, £11.043 million of non-current assets have been transferred to 6 Academies which opened

during the year. This is included within the loss on disposal reflected in note 9, Other Operating Expenditure in

the Comprehensive Income and Expenditure Statement.

6. Events After the Balance Sheet Date

The Statement of Accounts was authorised for issue by the Chief Financial Officer (S151 Officer) on 7th July

2022 Events taking place after this date are not reflected in the financial statements or notes. Where events

taking place before this date provided information about conditions existing at 31 March 2022, the figures in the

financial statements and notes have been adjusted in all material respects to reflect the impact of this

information. For 2021 – 2022 there have been no events that meet these criteria.

Notes to the Core Statements

Suffolk County Council 44 Notes to the Core Statements

7. Adjustments between Accounting Basis and Funding Basis under Regulations

This note details the adjustments that are made to the Comprehensive Income and Expenditure Statement

recognised by the Council within the year, to the resources that are specified by statutory provisions as being

available to the Council to meet future capital and revenue expenditure, in accordance with proper accounting

practice.

2021 - 2022

General

Fund

Balance

Capital

Receipts

Reserve

Capital Grant/

Contributions

Unapplied

Account

Movement in

Unusable

Reserves

£ million £ million £ million £ million

Adjustments to Revenue Resources

Amounts by which income and expenditure included in the

Comprehensive Income and Expenditure Statement are different

from revenue for the year calculated in accordance with statutory requirements:

Pension Costs (transferred to the Pensions Reserve) -61.734 61.734

Council Tax and Non Domestic Rates (transfers to Collection Fund Adjustment Account) 18.732 -18.732

Holiday Pay (transferred from the Accumulated Absences Reserve) -0.884 0.884

Impairment Gain (+) / Loss on the Pooled Investment Fund 0.803 -0.803

Dedicated School Grant (transferred to the Dedicated School Grant Adjustment Account) -5.639 5.639

Financial Instruments Adjustment Account -19.626 19.626

Reversal of entries included in the surplus or deficit on the provision of services in relation to

capital expenditure (these items are charged to the capital adjustment account)

Charges for depreciation, impairment of non-current assets and amortisation of intangible

assets

-51.238 51.238

Revaluation loss on Property, Plant and Equipment 12.637 -12.637

Capital grants and contributions that have been applied to capital financing 96.732 -96.732

Income in relation to Donated Assets 7.135 -7.135

Revenue expenditure funded from capital under statute -43.042 43.042

Amounts of non-current assets written off on disposal or sale as part of the gain/loss on

disposal to the Comprehensive Income and Expenditure Statement

-14.387 14.387

Total Adjustments to Revenue Resources -60.510 0.000 0.000 60.510

Adjustments between Revenue and Capital Resources

Transfer of non-current asset sale proceeds from revenue to the Capital Receipts Reserve 7.019 -7.019 0.000

Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) 10.194 -10.194

Capital expenditure financed from revenue balances (transfer to the Capital Adjustment

Account)

9.533 -9.533

Total Adjustments between Revenue and Capital Resources 26.746 -7.019 0.000 -19.727

Adjustments to Capital Resources

2.201 6.307 -8.508

Use of the Capital Receipts Reserve to finance capital expenditure -0.140 0.140

Long Term Debtor repayment in year 0.000

Application of capital grants to finance capital expenditure

Capital grants and contributions credited to the Comprehensive Income and Expenditure

Statement

0.982 -0.982 0.000

Application of grants and contributions to capital financing transferred to the Capital

Adjustment Account

23.729 -23.729

Cash payments in relation to deferred capital receipts -5.950 5.950

Total Adjustments to Capital Resources -2.767 6.167 22.748 -26.147

Total Adjustments -36.531 -0.852 22.748 14.636

Usable Reserves

Notes to the Core Statements

Suffolk County Council 45 Notes to the Core Statements

2020 – 2021 Adjustments between Accounting Basis and Funding Basis under Regulations:

2020 - 2021

General

Fund

Balance

Capital

Receipts

Reserve

Capital Grant/

Contributions

Unapplied

Account

Movement in

Unusable

Reserves

£ million £ million £ million £ million

Adjustments to Revenue Resources

Amounts by which income and expenditure included in the

Comprehensive Income and Expenditure Statement are different

from revenue for the year calculated in accordance with statutory requirements:

Pension Costs (transferred to the Pensions Reserve) -25.340 25.340

Council Tax and Non Domestic Rates (transfers to Collection Fund Adjustment Account) -21.668 21.668

Holiday Pay (transferred from the Accumulated Absences Reserve) -1.068 1.068

Impairment Gain (+) / Loss on the Pooled Investment Fund -0.033 0.033

Dedicated School Grant (transferred to the Dedicated School Grant Adjustment Account) -12.711 12.711

Reversal of entries included in the surplus or deficit on the provision of services in relation to

capital expenditure (these items are charged to the capital adjustment account)

Charges for depreciation, impairment of non-current assets and amortisation of intangible

assets

-49.638 49.638

Revaluation loss on Property, Plant and Equipment -1.910 1.910

Capital grants and contributions that have been applied to capital financing 76.169 -76.169

Income in relation to Donated Assets 4.755 -4.755

Revenue expenditure funded from capital under statute -39.115 39.115

Amounts of non-current assets written off on disposal or sale as part of the gain/loss on

disposal to the Comprehensive Income and Expenditure Statement

-61.307 61.307

Total Adjustments to Revenue Resources -131.866 0.000 0.000 131.866

Adjustments between Revenue and Capital Resources

Transfer of non-current asset sale proceeds from revenue to the Capital Receipts Reserve 2.697 -2.697 0.000

Statutory provision for the repayment of debt (transfer to the Capital Adjustment Account) 9.888 -9.888

Capital expenditure financed from revenue balances (transfer to the Capital Adjustment

Account)

11.287 -11.287

Total Adjustments between Revenue and Capital Resources 23.872 -2.697 0.000 -21.175

Adjustments to Capital Resources

5.084 2.643 -7.727

Use of the Capital Receipts Reserve to finance capital expenditure -0.133 0.133

Long Term Debtor repayment in year 0.000

Application of capital grants to finance capital expenditure

Capital grants and contributions credited to the Comprehensive Income and Expenditure

Statement

45.392 -45.392 0.000

Application of grants and contributions to capital financing transferred to the Capital

Adjustment Account

2.244 -2.244

Transfer of deferred sale proceeds. Part of the gain loss on disposal, transferred to the CAA 29.750 -29.750

Total Adjustments to Capital Resources 80.226 2.510 -43.148 -39.588

Total Adjustments -27.768 -0.188 -43.148 71.103

Usable Reserves

Notes to the Core Statements

Suffolk County Council 46 Notes to the Core Statements

8. Transfers to/from Earmarked Reserves

Balance at

1 April 2020

Transfers

between

Reserves

Transfer Out

to Unusable

Reserve

Transfers Out

2020 - 2021

Transfers in

2020 - 2021

Balance at 31

March 2021

Transfers

between

Reserves

Transfers Out

2021 - 2022

Transfers in

2021 - 2022

Balance at 31

March 2022

£ million £ million £ million £ million £ million £ million £ million £ million £ million £ million

General Fund

10.926 7.771 0.000 0.000 0.000 18.697 1.833 0.000 0.000 20.530

Risk Reserve 28.431 10.189 0.000 -0.026 15.175 53.769 7.404 -2.192 0.000 58.981

Council Tax/Business Rates Risk 10.393 -10.393 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Total General Fund Reserves 49.750 7.567 0.000 -0.026 15.175 72.466 9.237 -2.192 0.000 79.511

Earmarked Reserves

Adult & Community Services

4.898 0.000 0.000 -1.866 1.772 4.804 0.000 -0.001 7.750 12.553

Children & Young People

8.231 0.000 0.000 -1.385 0.455 7.301 0.000 -3.421 0.393 4.273

Public Health

0.280 0.000 0.000 -0.058 0.246 0.468 0.048 -0.155 0.004 0.365

Fire and Public Safety

2.779 0.000 0.000 -0.034 0.159 2.904 0.000 -0.564 0.340 2.680

Growth, Highways and Infrastructure 15.642 0.000 0.000 -0.759 3.142 18.025 -4.950 -1.755 3.366 14.685

Corporate Services

1.121 0.000 0.000 -0.057 0.211 1.274 0.000 -0.813 0.000 0.461

Central Resources

18.080 -1.290 0.000 -3.565 3.973 17.198 -0.613 -3.652 3.818 16.750

Capital Financing Reserve

19.641 0.000 0.000 -12.847 12.978 19.772 -3.754 -6.450 12.258 21.826

Renewals Reserves

1.337 0.000 0.000 -0.037 1.015 2.315 0.000 -0.551 1.097 2.862

Central Schools Reserves

-13.011 0.000 13.011 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Short Term Revenue Grants Reserve

5.257 0.000 0.000 -5.256 4.716 4.717 0.203 -4.788 5.673 5.805

Public Health (Grant)

3.013 0.000 0.000 0.000 1.455 4.468 0.000 0.000 1.860 6.328

Schools Balances

12.774 0.000 0.000 0.000 4.309 17.083 0.000 0.000 1.644 18.727

COVID-19 Reserve 20.445 0.000 0.000 -20.445 8.595 8.596 -0.012 -8.700 5.248 5.133

Council Tax/Business Rates Risk 0.000 0.003 0.000 0.000 15.067 15.070 -0.191 -12.766 5.426 7.540

Service Reserve 9.635 -6.279 0.000 -2.002 2.474 3.827 0.082 -1.216 9.327 12.020

Total Earmarked Reserves 110.122 -7.566 13.011 -48.312 60.567 127.821 -9.188 -44.832 58.206 132.007

Total Revenue Reserves 159.871 0.000 13.011 -48.338 75.742 200.287 0.050 -47.024 58.206 211.518

Capital Reserves

Capital Grants Unapplied (Reserve)

4.469 0.000 0.000 -2.066 42.472 44.874 0.000 -21.804 0.007 23.077

Capital Contributions Unapplied (Reserve)

2.031 0.000 0.000 -0.231 2.973 4.773 -0.050 -1.934 1.034 3.823

Capital Receipts Reserve

3.027 0.000 0.000 -2.643 2.831 3.215 0.000 -6.307 7.159 4.067

Total Capital Reserves 9.527 0.000 0.000 -4.940 48.275 52.862 -0.050 -30.045 8.200 30.967

Total Usable Reserves 169.398 0.000 13.011 -53.278 124.017 253.149 0.000 -77.069 66.406 242.485

Notes to the Core Statements

Suffolk County Council 47 Notes to the Core Statements

Purpose of the Reserves

The general fund is a ‘back-stop’ to the risk reserve, to be deployed by either Cabinet or the Council for any

purpose within the legal power of the Council. The risk reserve exists to enable the Council to deal with and

manage in-year financial pressures.

The earmarked reserves are used to fund specific commitments or set aside for anticipated projects and

programmes within services.

The earmarked reserves also include:

• In 2020 – 2021 and 2021 – 2022 the Council was in receipt of grants from the Department of Levelling

Up, Housing and Communities to fund costs in relation to the COVID-19 pandemic. The balance of the

grants were transferred into an earmarked reserve for use in 2022 - 2023.

• The capital financing revenue reserve held to finance future capital spend.

• The Council is required to disclose any unspent balances held by schools, which is shown as schools’

balances.

• The Central Schools Reserve is the Dedicated Schools Grant (DSG) overspend. The balance was

disclosed separately in line with statutory requirements in 2019 – 2020 and subsequently moved in

2020 - 2021 to a new unusable reserve following a change to legislation. The deficit balance is now

shown in note 19.

• Where grant income has been received for a specific purpose but has not yet been applied, this has

been transferred to the short term revenue grants reserve.

• Any unspent Public Health ring fenced grant is held in a reserve to support future Public Health

expenditure.

• Renewals reserves are held by each service that has assets, such as vehicles and equipment. These

reserves are used to finance the purchase of replacement vehicles and equipment.

The council tax and business rates risk reserve exist to manage uncertainty concerning the funding generated

from council tax and business rates. The funding raised from these sources are largely outside the Council’s

control, and risks exist with regards to the county’s Council Tax base, proposed future changes to the

methodology for allocating Business Rates and collection rates, where the Council is dependent on the county’s

Borough and District Councils.

Capital reserves are held to finance spend on non-current assets. They include:

• The Capital Receipts reserve which holds income from the sale of non-current assets.

• Capital grants and contributions that have been received and have not yet been used to finance capital

spend, are held in the capital contributions unapplied reserve and the capital grants unapplied reserve.

Notes to the Core Statements

Suffolk County Council 48 Notes to the Core Statements

9. Other Operating Expenditure

10. Financing and Investment Income and Expenditure

11. Taxation and Non-Specific Grant Income

2020 - 2021 2021 - 2022

£ million £ million

0.798 Payments to the Environment Agency 0.808

0.465 Payments to the Eastern Inshore Fisheries and Conservation Authority 0.472

-0.484 Gains(-)/losses on trading operations -0.417

23.823

Losses on the disposal of non-current assets 11.136

24.602 Total 11.999

2020 - 2021 2021 - 2022

£ million £ million

17.144 Interest payable and similar charges 35.874

13.793

Net Interest on the net defined benefit liability (note 33) 18.457

-0.421 Interest receivable and similar income -0.359

-0.705 Other investment income - dividend receivable -1.190

0.066

Impairment Gains (-)/ Losses on long & short term investments

and long term debtors

-0.810

29.877 Total 51.973

2020 - 2021 2021 - 2022

£ million £ million

-338.788 Council tax income -361.330

-1.498 Council tax income COVID-19 0.000

-101.486

Non domestic rates -112.229

-11.986

Non domestic rates COVID-19 -4.877

-67.980 Non-ringfenced government grants (note 25) -71.582

-23.894 COVID-19 Grant income (note 25) -20.578

-4.755 Donated Assets -7.135

-107.895

Capital grant and contributions (note 25) -83.382

-658.282 Total -661.111

Notes to the Core Statements

Suffolk County Council 49 Notes to the Core Statements

12. Property, Plant and Equipment

Movements in 2021 - 2022:

Other Land and

Buildings

Vehicles, Plant

& Equipment

Surplus Assets

Assets Under

Construction

Total Property,

Plant and

Equipment

£ million £ million £ million £ million £ million

Cost or Valuation

At 1 April 2021 777.904 55.163 16.384 22.811 872.260

Additions 23.830 2.697 0.200 39.883 66.610

Donations 2.380 2.380

Revaluation increases/(decreases)

recognised in the Revaluation Reserve

-6.582 0.049 -6.533

Revaluation increases / (decreases)

recognised in the Surplus/Deficit on the

Provision of Services

4.599 -0.438 4.161

Derecognition - Disposals -13.180 -7.526 -0.616 -21.322

Assets reclassified (to) / from Held for

Sale

-0.825 1.905 1.080

Other movements in Cost or Valuation 4.754 0.269 -4.801 0.222

At 31 March 2022 790.499 50.334 20.133 57.893 918.858

Accumulated Depreciation and

At 1 April 2021 23.232 35.248 0.056 0.000 58.533

Depreciation charge 21.334 5.118 0.026 26.479

Depreciation written out to the

Revaluation Reserve

-9.755 -0.251 -10.006

Depreciation written out to the

Surplus/Deficit on the Provision of

Services

-8.453 -0.023 -8.476

Derecognition - Disposals -1.034 -7.517 -8.550

Other movements in Depreciation and

Impairment

-0.262 0.262 0.000

At 31 March 2022 25.063 32.849 0.070 0.000 57.979

Net Book Value

At 31 March 2022 765.436 17.485 20.063 57.893 860.879

At 31 March 2021 754.672 19.915 16.328 22.811 813.727

Notes to the Core Statements

Suffolk County Council 50 Notes to the Core Statements

Capital commitments

At 31 March 2022, the Council has committed to a programme for the construction or enhancement of Property,

Plant and Equipment in 2022 - 2023 and future years budgeted to cost £220.750 million. Similar commitments

at 31 March 2021 were £269.881 million.

The commitments with a value greater than £5.000 million are:

Schools Basic Need schemes £71.260 million

Gull Wing bridge, Lowestoft £69.239 million

Recycling Centre improvements £14.210 million

Community Reablement £5.099 million

Valuations

The Council carries out a rolling programme that revalues all Property and Surplus assets on a five year basis.

However in 2015 - 2016, due to a change in valuation requirement of surplus assets, all assets in this category

were revalued so that as at 31st March 2016 they were all held at fair value in accordance with IFRS 13. Going

forward any assets newly classified in the surplus category must be valued to fair value in year all others have

been added to the five year cycle. Where valuations have taken place as part of the main valuation schedule,

properties have been valued as at 31st March 2022. The majority of valuations were carried out by Lambert

Smith Hampton on behalf of Concertus Design and Property Consultants in accordance with the methodologies

and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors.

Movements in 2020 - 2021:

Other Land and

Buildings

Vehicles, Plant

& Equipment

Surplus Assets

Assets Under

Construction

Total Property,

Plant and

Equipment

£ million £ million £ million £ million £ million

Cost or Valuation

At 1 April 2020 769.390 57.537 55.155 32.882 914.964

Additions 20.422 5.800 0.416 8.034 34.672

Donations 0.000

Revaluation increases/(decreases)

recognised in the Revaluation Reserve

3.025 -0.055 2.970

Revaluation increases / (decreases)

recognised in the Surplus/Deficit on the

Provision of Services

-10.046 -0.487 -10.533

Derecognition - Disposals -22.215 -8.175 -37.773 -68.163

Assets reclassified (to) / from Held for

Sale

-1.068 -0.579 -1.647

Other movements in Cost or Valuation 18.396 0.001 -0.293 -18.104 0.000

At 31 March 2021 777.904 55.163 16.384 22.811 872.263

Accumulated Depreciation and

Impairment

At 1 April 2020 23.688 37.695 0.036 0.000 61.419

Depreciation charge 20.810 5.648 0.020 26.477

Depreciation written out to the

Revaluation Reserve

-10.325

Depreciation written out to the

Surplus/Deficit on the Provision of

Services

-8.627

Derecognition - Disposals -2.314 -8.095 -0.001

-10.410

At 31 March 2021 23.232 35.248 0.056 0.000 58.535

Net Book Value

At 31 March 2021 754.672 19.915 16.328 22.811 813.727

At 31 March 2020 745.702 19.842 55.119 32.882 853.544

Notes to the Core Statements

Suffolk County Council 51 Notes to the Core Statements

In 2021 - 2022 there was also a full valuation of the County Farms estate by Bruton Knowles. Finally there was

a desktop valuation of the Great Blakenham Energy from Waste Facility which was assessed in the years

between formal valuations due to the material value of the asset.

All the valued operational properties have been on the Value in Existing Use method. In some cases where part

or all of a property is considered to be of a specialist nature, for which there is inadequate market evidence of

value in existing use, the value has been calculated on a Depreciated Replacement Cost (DRC) basis. The

DRC has been calculated having regard to the prospect and viability of the continuance of the use at the

valuation date.

All surplus assets (and Assets Held for Sale as per note 14) have been valued at Fair Value in accordance with

IFRS13. The fair value hierarchy categorises three levels of inputs to valuation techniques to measure fair value

as detailed below:

• Level 1 – fair value is only derived from quoted prices in active markets for identical assets or liabilities.

• Level 2 – fair value is calculated from inputs other than quoted prices that are observable for the asset or

liability.

• Level 3 – fair value is determined using unobservable inputs.

All surplus assets were valued using either Level 2 or Level 3 valuation inputs. The valuations were arrived at

by using the Comparison method or Residual method. The comparison method involves the use of existing

market data as a guide to the value of a similar asset and adjustments made to reflect the actual characteristics

of the property. The Residual method of valuation to support the valuation on development sites which means

identifying the potential use of the site, and then deducting the cost of development to identify the best bid that

a market participant could make for the site.

Vehicles, Plant and Equipment and Community assets are held at historic cost. The £0.831 million of Other

Land and Buildings held at historic cost relates to assets undergoing enhancement works and a valuation will

be undertaken once the works are complete in 2022 – 2023.

Assets under construction are not part of the valuation rolling programme until the asset becomes operational.

Infrastructure Assets

In accordance with the temporary relief offered by the Update to the Code on infrastructure assets, this note

does not include disclosure of gross cost and accumulated depreciation for infrastructure assets because

historical reporting practices and resultant information deficits mean that this would not faithfully represent the

asset position to the users of the financial statements.

The Council has chosen not to disclose this information as the previously reported practices and resultant

information deficits mean that gross cost and accumulated depreciation are not measured accurately and would

not provide the basis for the users of the financial statements to take economic or other decisions relating to

infrastructure assets.

Other land and

buildings

Vehicles, Plant,

Equipment

Surplus Assets Total

£ million £ million £ million £ million

Carried at historical cost 0.831 50.334 0.000 51.165

Value at fair value in:

2021-22 187.501 0.000 4.087 191.588

2020-21 109.062 0.000 2.200 111.262

2019-20 275.128 0.000 0.090 275.218

2018-19 148.216 0.000 2.490 150.706

2017-18 69.761 0.000 11.266 81.027

Prior to 2017 0.000 0.000 0.000 0.000

Total Cost or Valuation

790.499 50.334 20.133 860.966

Notes to the Core Statements

Suffolk County Council 52 Notes to the Core Statements

The Council has determined in accordance with Regulation 30M England of the Local Authorities (Capital

Finance and Accounting) (England/Wales) (Amendment) Regulations 2022 that the carrying amounts to be

derecognised for infrastructure assets when there is replacement expenditure is nil.

The table below shows the breakdown of the property, plant and equipment line of the balance sheet.

13. Intangible Assets

2020 - 2021 2021 - 2022

£ million £ million

Net book value (modified historical cost)

At 1 April 623.744 645.973

Additions 44.012 45.707

Depreciation -21.782 -22.882

Other movements in cost 0.000 -0.222

Net book value

At 31 March 645.973 668.577

31 March 2021 31 March 2022

£ million £ million

Net book value

At 31 March

Other PPE assets 813.727 860.879

Infrastructure assets 645.973 668.577

Total PPE assets 1,459.700 1,529.455

Intangible

Assets

Intangible

Assets Under

Construction

Total

Intangible

Assets

Intangible

Assets Under

Construction

Total

£ million £ million £ million £ million £ million £ million

Balance at start of year: comprising

8.069 0.844 8.913 Gross carrying amount 11.514 0.000 11.514

-4.567 0.000 -4.567 Accumulated amortisation -5.883 0.000 -5.883

3.502 0.844 4.346 Net carrying amount at start of year 5.631 0.000 5.631

0.841 1.760 2.601 Additions 1.250 0.000 1.250

2.604 -2.604 0.000 Assets transferred in/out 0.000 0.000 0.000

-1.316 0.000 -1.316 Amortisation for the period -1.878 0.000 -1.878

2.129 -0.844 1.285 Net movement during the year -0.628 0.000 -0.628

Balance at end of year: comprising

11.514 0.000 11.514 Gross carrying amount 12.764 0.000 12.764

-5.883 0.000 -5.883 Accumulated amortisation -7.761 0.000 -7.761

5.631 0.000 5.631 5.003 0.000 5.003

31 March 2021

31 March 2022

Notes to the Core Statements

Suffolk County Council 53 Notes to the Core Statements

14. Assets Held for Sale

15. Short Term Debtors

The other entities and individual’s category in 2021 – 2022 includes payments in relation to; income in relation

to homecare services, where individuals make contributions towards their care provision, plus prepayments

made to care providers. Homecare providers are paid on a four weekly bases, therefore the timing of the

payment spans over 31 March annually, hence a debtor shown at the balance sheet date.

16. Cash and Cash Equivalents

The Council has an agency arrangement in place to hold funds on behalf of third parties. Details of the amounts

held at 31 March 2022 are detailed in the table overleaf:

31 March 2021 31 March 2022

£ million £ million

9.369 Balance at start of year 8.347

Assets newly classified as held for sale:

2.769 Property, Plant and Equipment 2.620

0.889

Revaluation increases/decreases (-) recognised in the

Revaluation Reserve

0.099

-0.004

Revaluation increases/decreases (-) recognised in the

Surplus/Deficit on the Provision of Services

0.000

Assets declassified as held for sale:

-1.122 Property, Plant and Equipment -3.700

-3.554 Assets sold -1.616

8.347 Balance at end of year 5.749

31 March 2021 31 March 2022

£ million £ million

22.912 Central government bodies 24.026

9.014 Other local authorities 8.467

9.737 NHS bodies 15.615

47.487 Other entities and individuals 45.904

8.761 Council Tax receivable from taxpayers 14.452

0.624 Business Rates receivable from ratepayers 0.514

98.535 Total 108.978

31 March 2021 31 March 2022

£ million £ million

0.710 Bank current accounts 1.783

0.710 Total 1.783

Notes to the Core Statements

Suffolk County Council 54 Notes to the Core Statements

17. Short Term Creditors

The balance of monies held on behalf of third parties £55.437 million, note 16, is included within other entities

and individuals. The other entities and individuals category also includes payments over £1.000 million to home

to school passenger transport providers, pension contributions due to the LGPS, IT licences and highways

maintenance. The category also includes monies due to contractors working on various capital schemes.

31 March 2021 31 March 2022

£ million £ million

0.000

Areas of Outstanding Natural Beauty Partnership 1.106

0.000

Collaborative Communities Board 0.166

0.000

Crisis and Home Treatment Service 0.555

0.000

CYP Health Alliance Projects Funding 4.642

0.000

Domestic Abuse Target Hardening 0.026

0.000

East Suffolk Lines Community Rail Partnership 0.150

0.982

Eastern Safeguarding Project 0.221

0.120

Emergency Planning 0.622

0.690

Environment Strategy Partnership 0.329

0.162

EU Withdrawl Funding 0.022

0.000

Historic Environment Partnership 0.501

1.182

Ipswich Opportunity Funding 0.000

0.105

Learning Disabilities and Transforming Care Pooled Fund 0.105

0.476

Mental Health Pooled Funds 0.078

0.000

Mental Health Psychiatric Liaison 0.398

0.000

Ministry of Defence 0.046

0.283

Monies held on behalf of looked after children 0.368

8.845

Monies held on behalf of vulnerable adults 6.958

0.768

Natural Environment Partnerships 0.112

55.799

New Anglia Local Enterprise Partnership 25.725

0.198

Nuclear Legacy Advisory Forum 0.132

0.000

Opportunity Development Funding 0.202

0.000

Reclaim the Rain 0.187

0.140

Social Worker Teaching Partnership 0.000

13.595

Suffolk Public Sector Leaders Business Rates Pool 11.127

0.389

Suffolk Relliance forum 0.000

0.147

Suffolk Waste Partnership 0.093

0.708

Transforming Suffolk 0.692

0.000

Transport East 0.857

0.009

Other (Balances less than £0.10 million) 0.014

84.598 55.434

31 March 2021 31 March 2022

£ million £ million

-25.043 Central government bodies -25.790

-19.072 Other local authorities -15.338

-6.609 NHS bodies -23.130

-121.801 Other entities and individuals -102.465

-12.410 Council Tax receivable from taxpayers -6.988

-13.279 Business Rates payable to ratepayers -5.549

-198.214 Total -179.260

Notes to the Core Statements

Suffolk County Council 55 Notes to the Core Statements

18. Provisions

Provisions are recognised where the Council has a legal or constructive obligation arising from a past event,

that will probably require settlement by a transfer of economic benefits and a reliable estimate can be made of

the amount of the obligation. The provisions are split into current (due within 12 month) and non-current in the

tables below.

Current

Other Provisions

There are seven provisions included within the current balance. Benefits Payable during Employment (£7.441

million), redundancy (£0.186 million), employment tribunals (£0.100 million), water hydrants (£0.045 million),

Early Years assets (£0.708 million), household waste recycling centres (£0.277 million) and travel

reimbursements (£0.412 million).

Benefits Payable during Employment refers to benefits that employees receive as part of their contract of

employment and entitlements, that are built up as they work for the Council. The most significant benefit covered

by this heading is holiday pay.

The Government has issued regulations that mean local authorities are only required to fund holiday pay and

similar benefits when they are used, rather than when employees earn the benefits. Therefore, amounts are

transferred to the Accumulated Absences Account on the Balance Sheet until the benefits are used. The accrual

is charged to the Deficit on the Provision of Services within the Comprehensive Income and Expenditure

Account, then reversed out through the Movement in Reserves Statement, in order that holiday benefits are

charged to revenue in the financial year in which the holiday absence occurs. The £7.441 million is made up of

£2.112 million which relates to teachers working in schools, which is governed by where the end of term falls in

relation to 31 March 2022 and £5.329 million which relates to all other Council employees.

The redundancy provision reflects the potential costs of redundancy settlements where individuals will be made

redundant or an offer of redundancy has been accepted prior to the end of the financial year but will not leave

the Council until the following financial year.

The employment tribunal provision relates to ongoing cases where there is expected to be a settlement in 2022

- 2023.

The provision for water hydrants, utilised by the Fire Service, relates to the potential cost of maintenance work

by water companies.

The provision in relation to Household Waste & Recycling Centres compensation claims, is due to the impact

of COVID-19 on waste service contractors.

The provision for Early Years assets, is a potential return of capital grant funding to the Department for Education

(DfE). The grant was utilised in line with grant conditions in prior years, but the change in use of assets within a

set time period, is under review with the DfE to determine if grant should be returned.

The provision for Travel Reimbursements relates to under claims by employees on work related travel.

Other Provisions

£ million

Balance at 1 April 2021 -7.729

Additional provisions made in 2021 - 2022 -8.414

Amounts used in 2021 - 2022 0.268

Unused amounts reversed in 2021 - 2022 6.706

Balance at 31 March 2022 -9.169

Notes to the Core Statements

Suffolk County Council 56 Notes to the Core Statements

Non-current

Injury and Damage Compensation Claims

The provision is an estimate of claims relating to motor, public liability and employers liability insurance. There

has been minimal change from 2020 – 2021 as expected, some older claims are concluded and new claims

received.

With the exception of one large group claim regarding the former Oakwood school, which any claims received

have now been settled, most of the claims on an individual basis are financially insignificant, however significant

claims are subject to a deductible (excess) which any costs above this will be reimbursed by the insurer if it is

breached.

19. Unusable Reserves

Revaluation Reserve

The Revaluation Reserve contains the gains made by the Council arising from increases in the value of its

Property, Plant and Equipment. The balance is reduced when assets with accumulated gains are:

• revalued downwards or impaired and the gains are lost

• used in the provision of services and the gains are consumed through depreciation, or

• disposed of and the gains are realised.

The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the reserve was

created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment

Account.

Injury and Damage

Compensation

Claims

£ million

Balance at 1 April 2021 -3.871

Additional provisions made in 2021 - 2022 -1.220

Unused amounts reversed in 2021 - 2022 1.030

Balance at 31 March 2022 -4.061

Unusable Reserves

£ million £ million

208.118 Revaluation Reserve 203.181

399.821 Capital Adjustment Account 467.991

-905.282 Pensions Reserve -667.318

-16.305 Collection Fund Adjustment Account 2.427

-6.557 Accumulated Absences Account -7.441

-0.423 Pooled Investment Fund Adjustment Account 0.380

-12.711 Dedicated Schools Grant Adjustment Account -18.349

29.750 Deferred capital receipts reserve 23.800

0.000 Financial Instrument Adjustment Account -19.626

-303.589 Total Unusable Reserves -14.956

31 March 2021

31 March 2022

Notes to the Core Statements

Suffolk County Council 57 Notes to the Core Statements

Capital Adjustment Account

The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for

accounting for the consumption of non-current assets and for financing the acquisition, construction or

enhancement of those assets under statutory provisions. The Account is debited with the cost of acquisition,

construction or enhancement as depreciation. Impairment losses and amortisations are charged to the

Comprehensive Income and Expenditure Statement (with reconciling postings from the Revaluation Reserve to

convert fair value figures to a historical cost basis). The Account is credited with the amounts set aside by the

Council as finance for the costs of acquisition, construction and enhancement. Note 7 provides details of the

source of all the transactions posted to the Account, apart from those involving the Revaluation Reserve.

Revaluation Reserve

£ million £ million

233.664 Balance at 1 April 208.118

14.183 Revaluation of assets 3.570

247.847

Surplus on revaluation of non-current assets not posted to the Deficit on the

Provision of Services

211.689

-5.078

Difference between fair value depreciation and historical cost depreciation -5.312

-34.651 Accumulated gains on assets sold or disposed of -3.196

-39.729 Amount written off to the Capital Adjustment Account -8.508

208.118 Balance at 31 March 203.181

31 March 2022

31 March 2021

Capital Adjustment Account

£ million £ million

400.125 Balance at 31 March 399.821

Reversal of items relating to capital expenditure debited or credited to the

Comprehensive Income and Expenditure Account:

-51.548 Charges for depreciation, revaluations and impairment of non-current assets -38.601

-39.115 Revenue expenditure funded from capital under statute -43.042

-61.307

Amounts of non-current assets written off on disposal or sale as part of the

gain/loss on disposal to the Comprehensive Income and Expenditure Account

-14.387

-151.970 -96.030

39.729 Adjusting amounts written out of the Revaluation Reserve 8.508

-112.241

Net written out amount of the cost of non-current assets consumed in the year -87.522

Capital financing applied in the year:

7.727

Use of the Capital Receipts to finance new capital expenditure 8.508

78.413

Capital grants and contributions credited to the Comprehensive Income and

Expenditure Account that have been applied to capital financing

120.461

9.888

Statutory provision for the financing of capital investment charged against the

General Fund

10.194

11.287

Capital expenditure charged against the General Fund 9.533

107.315 148.696

4.755

Income related to Donated Assets Account credited to the Comprehensive Income

and Expenditure Account

7.135

-0.133

Loan Principal Repayment -0.140

399.821 Balance at 31 March 467.991

31 March 2021

31 March 2022

Notes to the Core Statements

Suffolk County Council 58 Notes to the Core Statements

Pensions Reserve

The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for

post employment benefits and for funding benefits in accordance with statutory provisions. The Council

accounts for post employment benefits in the Comprehensive Income and Expenditure Statement as the

benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect

inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However,

statutory arrangements require benefits earned to be financed as the Council makes employer’s contributions

to the Pension Fund or eventually pays any pensions for which it is directly responsible. The debit balance on

the Pensions Reserve therefore shows a substantial shortfall in the benefits earned by past and current

employees and the resources the Council has set aside to meet them. The statutory arrangements will ensure

that funding will have been set aside by the time the benefits are to be paid.

Collection Fund Adjustment Account

The Collection Fund Adjustment Account manages the differences arising from the recognition of council tax

income and business rates in the Comprehensive Income and Expenditure Statement as it falls due from council

taxpayers and non-domestic rate payers compared with the statutory arrangements for paying across amounts

to the General Fund from the Collection Fund.

Accumulated Absences Account

The Accumulated Absences Account absorbs the differences that would otherwise arise on the General Fund

Balance from accruing for compensated absences earned but not taken in the year, e.g. annual leave

entitlement carried forward at 31 March 2022. Statutory arrangements require that the impact on the General

Fund Balance is neutralised by transfers to or from the Account.

Pensions Reserve

£ million £ million

-594.092 Balance at 1 April -905.282

-285.850 Remeasurement of the net defined benefit liability 299.698

-70.437

Reversal of items relating to retirement benefits debited or credited to the Surplus

or Deficit on the Provision of Services in the Comprehensive Income and

Expenditure Account

-110.428

45.097

Employer’s pensions contributions and direct payments to pensioners payable in

the year

48.694

-905.282 Balance at 31 March -667.318

31 March 2021

31 March 2022

Collection Fund Adjustment Account

£ million £ million

5.363 Balance at 1 April -16.305

-21.668

Amount by which council tax income and business rates are credited to the

Comprehensive Income and Expenditure Account is different from council tax

income and business rates calculated for the year in accordance with statutory

requirements

18.732

-16.305 Balance at 31 March 2.427

31 March 2021

31 March 2022

Accumulated Absences Account

£ million £ million

-5.489 Balance at 1 April -6.557

5.489 Settlement or cancellation of accrual made at the end of the preceding year 6.557

-6.557 Amounts accrued at the end of the current year -7.441

-1.068

Amount by which officer remuneration charged to the Comprehensive Income and

Expenditure Account on an accruals basis is different from remuneration

chargeable in the year in accordance with statutory requirements

-0.884

-6.557 Balance at 31 March -7.441

31 March 2021

31 March 2022

Notes to the Core Statements

Suffolk County Council 59 Notes to the Core Statements

Pooled Investment Fund Adjustment Account

The Pooled Investment Fund Adjustment Account is a revaluation reserve utilised to manage the fair value

changes in those financial assets held as interests in Pooled Investment Funds. Statutory arrangements require

that the impact on the General Fund Balance is neutralised by transfers to or from the account. The balance

reflects the gain or loss on those assets at 31 March 2022.

Dedicated Schools Grant Adjustment Account

In November 2020, the secretary of state for the Department for Levelling Up, Housing and Communities

(formerly Ministry of Housing, Communities and Local Government) laid before Parliament a statutory

instrument to amend The Local Authorities (Capital Finance and Accounting) Regulations (the 2003

Regulations). The instrument followed from the School and Early Years Finance (England) Regulations 2020,

applicable to local authority accounting periods beginning on 1 April 2020, that set out that a schools budget

deficit must be carried forward to be funded from future Dedicated Schools Grant (DSG) income, unless

permission is sought from the secretary of state for education to fund the deficit from general resources. The

instrument established new accounting practices in relation to the treatment of local authorities’ schools budget

deficits. Where a local authority has a deficit on its schools budget relating to its accounts for a financial year

beginning on 1 April 2020, 1 April 2021 or 1 April 2022, it must not charge the amount of that deficit to a revenue

account. The local authority must record any such deficit in a separate account established solely for the

purpose of recording deficits relating to its school’s budget. As a result, the deficit of £18.349 million at 31 March

2022 is held in an unusable reserve shown in the table below. Note 24 provides further detail on the DSG spend

in year.

Deferred Capital Receipts Reserve

The Deferred Capital Receipts Reserve details those capital receipts which were recognised in the gain or loss

on disposal, but where the cash is not to be received until a future year. The capital receipt cannot be used to

finance capital spend until the cash is received, which is why this unusable reserve is required. The reserve

was new for 2020 – 2021 as the sale of development land at Chilton Woods was the first material sale of this

nature with the receipt being paid in instalments over a number of years.

Pooled Investment Fund Adjustment Account

£ million £ million

-0.391 Balance at 1 April -0.423

-0.032

Change in Investments not charged to the Surplus/Deficit on Provision of Services 0.803

-0.423 Balance at 31 March 0.380

31 March 2021

31 March 2022

Dedicated Schools Grant Adjustment Account

£ million £ million

0.000 Balance at 1 April -12.711

-13.011

Transfer from Usable Reserve 0.000

0.300

Transfer of underspend (-) / overspend to Reserve -5.639

-12.711 Balance at 31 March -18.349

31 March 2021

31 March 2022

Deferred Capital Receipts Reserve

£ million £ million

0.000 Balance at 1 April 29.750

29.750

Transfer of deferred sale proceeds credited as part of the gain/loss on disposal to

the Comprehensive Income and Expenditure Statement

0.000

Transfer to the capital receipts reserve on receipt of cash -5.950

29.750 Balance at 31 March 23.800

31 March 2021

31 March 2022

Notes to the Core Statements

Suffolk County Council 60 Notes to the Core Statements

Financial Instrument Adjustment Account

Where premiums and discounts have been charged to the CIES, regulations allow the impact on the General

Fund Balance to be spread over future years. The Authority has a policy of spreading the gain or loss over the

term that was remaining on the loan against which the premium was payable or discount receivable when it was

repaid. The reconciliation of amounts charged to the CIES to the net charge required against the General Fund

Balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in

Reserves Statement. In 2021 – 2022 the Council arranged the repayment of £30.000 million of LOBO loans

with Commerzbank, resulting in a premium of £20.072 million. The remaining life of the loans was 45 years

giving an annual impact to the General Fund balance of £0.446 million. The table below shows the initial entry

of the premium and the first years amortisation to reconcile the current balance on the Financial Instruments

Adjustment Account.

20. Pooled Budgets

The Pooled Fund for services to people with Mental Health conditions

From 1 April 2002, Suffolk County Council and the Clinical Commissioning Groups (CCGs), operating in Suffolk

(Ipswich & East Suffolk, West Suffolk and Great Yarmouth & Waveney) have pooled money through the Section

75 agreement of the National Health Services Act 2006. This is spent on helping to put into practice the National

Service Framework for Mental Health and the best value review of mental health residential care, supported

housing and support work services.

The main aims are to:

• Increase the availability of community support, educational and work opportunities for service users

• Develop the range, quantity and quality of housing and support services for service users

• Develop alternatives to hospital and respite care facilities

• Improve the overall health and wellbeing of people with mental health conditions living in the community

• Train people, to give them skills to live more independently

The income and expenditure figures below reflect the overall position of the pooled fund, not just that of the

Council. The Mental Health Pooled Fund spent the full allocation of funding in 2021 – 2022.

The table below details income and expenditure for the year.

Financial Instrument Adjustment Account

£ million £ million

0.000 Balance at 1 April 0.000

0.000 Premiums on early repayment of loans -20.072

0.000 Amortised premiums 0.446

0.000 Balance at 31 March -19.626

31 March 2022

31 March 2021

Notes to the Core Statements

Suffolk County Council 61 Notes to the Core Statements

Learning Disabilities and Transforming Care Pooled Fund

The Learning Disabilities and Transforming Care Pooled Fund commenced on 21 March 2019. The Council

and the Clinical Commissioning Groups (CCGs) operating in Suffolk have pooled money through the Section

75 agreement of the National Health Services Act 2006. The aim of the fund was to improve services and the

experience of people with learning disabilities and/or autism in Suffolk. The Learning Disabilities and

Transforming Care Pooled Fund came to an end on 31 March 2021.

The Better Care Fund

The Better Care Fund was introduced by the Government to encourage more collaborative working. It brings

together funding and spending from Clinical Commissioning Groups (CCGs), the County Council and District &

Borough Councils. It is primarily an instrument for information sharing and planning, with funding and spending

maintained by the respective partners except in cases of agreed funding transfers. Each partner can retain any

underspends to be used in year or carried forward. Entries in the Council’s financial system relate only to the

share of the Pool that is controlled by the Council. The table below reflects all funding and spend across the

partners. All Better Care Fund schemes are signed off by the Health and Wellbeing Board and the Council has

a legal agreement with each of the CCG’s under Section 75 agreement of the National Health Services Act

2006. This gives powers to local authorities and CCGs to establish and maintain pooled funds to carry out local

authority and NHS functions.

£ million £ million £ million £ million

Income

-1.954 Suffolk County Council -1.964

-1.188 Clinical Commissioning Groups -1.194

-3.142 -3.158

0.037 Staffing 0.036

0.175 Support Work 0.175

2.596 Supported Housing 2.609

0.237 Advocacy 0.237

0.100 Direct Payments 0.100

3.145 3.158

0.003 0.000

2020 - 2021

2021 - 2022

Expenditure

Net under (-) or over spend

£ million £ million £ million £ million

Income

-0.110 Suffolk County Council 0.000

0.000 Clinical Commissioning Groups 0.000

-0.110 0.000

0.029 Special Educational Needs and Disability (SEND) 0.000

0.037 Market Development 0.000

0.066 0.000

-0.044 0.000

Expenditure

Net under (-) or over spend

2020 - 2021

2021 - 2022

Notes to the Core Statements

Suffolk County Council 62 Notes to the Core Statements

The capital expenditure related to Disabled Facilities Grant £7.002 million. Details of the revenue spend are

shown in the table overleaf.

Overall Summary

£ million £ million £ million £ million

Income Contribution to BCF

-81.811 Revenue -84.789

-7.002 Capital -7.002

-88.813 -91.791

80.702 Revenue 84.175

4.150 Capital 4.282

84.852 88.457

-3.961 -3.334

2020 - 2021

2021 - 2022

Expenditure

Net under (-) or overspend

Notes to the Core Statements

Suffolk County Council 63 Notes to the Core Statements

Summary of revenue spend by area:

* Norfolk & Waveney CCG replaced Great Yarmouth & Waveney CCG from April 2020

Revenue Summary

£ million £ million £ million £ million

Income Contribution to BCF Revenue

-47.824 Suffolk County Council -48.917

-16.885 Ipswich & East CCG -17.828

-10.781 West Suffolk CCG -11.379

-6.321 Norfolk & Waveney (N&W) CCG* -6.665

-81.811 -84.789

2.259 Admission prevention reablement services 2.446

0.314 Alliance pump priming initiatives 0.470

0.051 Buurtzorg/Neighbourhood Nursing & Care Team (NNCT) 0.052

0.132 Cardiac Rehab into the community away from acute 0.134

3.958 Care Act Commitments 4.066

2.194 Care at Home 2.249

2.005 Care Homes 0.000

21.482 Care purchasing demand and inflationary increases 21.821

0.206 Crisis in Action Team Plus Discharge to Access (D2A) team 0.210

1.623 Community Assessment Team & Frailty Assessment Base 1.655

0.250

Demand Management project costs 0.250

0.125 Dementia and Mental Health 0.125

0.061 Digital Solutions 0.061

1.047 Inpatient beds 1.067

0.794 Integrated Community Pain Contract 0.810

0.101 Integrated Community and Out of Hospital teams 0.216

4.600 Learning Disability demand pressures 4.600

0.050 Medicines Management 0.050

1.200 N&W Adult Community Health services 1.218

0.000 N&W Carers respite 0.035

1.805 N&W Continuing Health Care provision 3.859

0.000 N&W District Direct East 0.008

0.255 N&W Great Yarmouth and Waveney MIND 0.258

0.014 N&W Home From Hospital 0.014

0.930

N&W Integrated Community Equipment Service 0.986

0.000 N&W James Paget Hospital Discharge to Assess 0.014

0.020 N&W Mobility Aids 0.042

0.000 N&W Social prescribing 0.139

0.042 N&W Waveney Community Development 0.042

7.760 NHS-commissioned out-of-hospital services 7.423

0.719 Occupational Therapists, Physio & Short & Long Term Support 0.733

10.654 Out of Hospital Care 12.280

1.433 Providing proactive care in the community 2.211

0.153

Reactive Emergency Assessment Community Team (REACT)

recurrent out of hours investment for care home

0.156

13.502 Reactive Care 13.502

0.382 Short & Long Term Support 0.390

0.151 Short-Term Assessment, Reablement and Rehabilitation (STARR) 0.154

0.191 Support for Carers 0.191

0.240 Supporting Independence by community based interventions 0.240

80.702 84.175

-1.109 -0.614

Expenditure

Net under (-) or overspend

2020 - 2021

2021 - 2022

Notes to the Core Statements

Suffolk County Council 64 Notes to the Core Statements

21. Councillors’ Allowances

Amounts paid to the Council’s elected Councillors are shown below:

22. Officers’ Remuneration

The Accounts and Audit Regulations 2015 and paragraph 3.4.5.1 of the Code require the disclosure of the

remuneration of higher paid officers.

The regulations require a note showing the number of employees whose total remuneration is £50,000 or more,

in bands of £5,000. In addition, the regulations require a disclosure on individual remuneration for senior officers.

The Council defines senior officers to be statutory posts and directors.

Employees’ pay is defined in the latest Code of Practice on Local Authority Accounting in the United Kingdom

2021 - 2022. This definition includes the following:

• Gross pay (before the deduction of employees’ pension contributions)

• Payments in relation to the ending of employment

• Expense allowances chargeable to tax and other benefits (as declared on HM Revenue & Customs

form P11D)

The table overleaf details the pay of senior officers.

2020 - 2021 2021 - 2022

£ million £ million

0.815 Basic allowance 0.837

0.338 Special responsibility allowance 0.296

0.007 Expenses 0.026

1.159 Total 1.159

Notes to the Core Statements

Suffolk County Council 65 Notes to the Core Statements

Dates Job Title Notes

Salary, Fees &

Allowances

(Gross Pay)

Expense

Allowances

Chargeable to

Tax

End of

Employment

Payment

Pension

Contribution

(Employer)

Total

£ £ £ £ £

2021 - 2022

01/04/2021 - 31/03/2022 184,971 0 0 41,870 226,841

01/04/2021 - 31/03/2022 Deputy Chief Executive / Director of Corporate Services - Chris Bally 135,000 0 0 32,400 167,400

01/04/2021 - 31/03/2022 159,566 0 0 38,296 197,862

01/04/2021 - 31/03/2022 Executive Director of Growth, Highways and Infrastructure - Mark Ash 1 135,579 0 0 32,539 168,118

01/04/2021 - 31/03/2022 127,652 0 0 30,636 158,289

01/04/2021 - 31/03/2022 126,875 0 0 30,450 157,325

11/11/2021 - 31/03/2022 2 50,167 0 0 14,448 64,615

01/04/2021 - 01/06/2021 3 25,184 0 3,479 7,928 36,591

01/04/2021 - 31/03/2022 4 125,621 0 0 31,957 157,578

01/04/2021 - 31/03/2022 114,981 0 0 27,595 142,577

01/04/2021 - 31/03/2022 Chief Financial Officer (S151 Officer) - Louise Aynsley 99,139 0 0 23,673 122,812

01/04/2021 - 31/03/2022 100,717 0 0 24,172 124,889

Director of Fire & Public Safety / Chief Fire Officer; Deputy Chief Fire Officer - Daniel

Fearn

Director of Adult & Community Services - Georgia Chimbani

Director of Fire & Public Safety / Chief Fire Officer - Jonathan Lacey

Director of Fire & Public Safety / Chief Fire Officer - Mark Hardingham

Executive Director of People - Sue Cook

Corporate Director for Children and Young People - Allan Cadzow

Chief Executive - Nicola Beach

Director of Public Health - Stuart Keeble

Assistant Director (Governance, Legal & Assurance) (Monitoring Officer) - Tim Ryder

Notes to the Core Statements

Suffolk County Council 66 Notes to the Core Statements

Dates Job Title Notes

Salary, Fees &

Allowances

Expense

Allowances

End of

Employment

Pension

Contribution

Total

£ £ £ £ £

2020 - 2021

01/04/2020 - 31/03/2021 181,732 0 0 43,461 225,193

01/04/2020 - 31/03/2021 Deputy Chief Executive / Director of Corporate Services - Chris Bally 128,282 0 0 32,070 160,352

01/04/2020 - 31/03/2021 157,208 0 0 39,302 196,510

01/04/2020 - 31/03/2021 Executive Director of Growth, Highways and Infrastructure - Mark Ash 133,575 0 0 33,394 166,969

01/04/2020 - 31/03/2021 125,766 0 0 31,195 156,961

04/01/2021 - 31/03/2021 30,242 0 0 7,560 37,802

01/04/2020 - 31/03/2021 384,680 0 0 24,388 109,068

01/12/2020 - 31/03/2021 437,910 70 010,121 48,101

01/04/2020 - 31/03/2021 112,473 0 0 28,118 140,591

01/04/2020 - 31/03/2021 Head of Finance (S151 Officer) - Louise Aynsley 93,609 0 0 23,402 117,011

01/04/2020 - 31/03/2021 97,181 0 0 24,295 121,476

Assistant Director (Governance, Legal and Assurance) - Tim Ryder

Director of Public Health - Stuart Keeble

Corporate Director for Children and Young People - Allan Cadzow

Chief Executive - Nicola Beach

Executive Director of People - Sue Cook

Director of Adult & Community Services - Georgia Chimbani

Director of Fire & Public Safety / Chief Fire Officer - Mark Hardingham

Director of Fire & Public Safety / Chief Fire Officer - Daniel Fearn

Notes to the Core Statements

Suffolk County Council 67 Notes to the Core Statements

Where posts became part of the reporting requirement during the year 2021 – 2022, the total costs for the whole

year have been shown in the table.

• Note 1: Mark Ash left the Council on 31 March 2022. Andrew Cook started in April 2022 as the new

Executive Director of Growth, Highways and Infrastructure.

• Note 2: Jonathan Lacey was appointed Director of Fire & Public Safety / Chief Fire Office on 11

November 2021.

• Note 3: Mark Hardingham was elected Chair of the National Fire Chief Council (NFCC) from 01 April

2021 and was seconded to NFCC from 01 December 2020. Mark left Council employment on 01 June

2021.

• Note 4: Daniel Fearn was appointed Director of Fire & Public Safety / Chief Fire Officer on an interim

basis from 01 December 2020 to 10 November 2021, reverting to Deputy Chief Fire Officer from 11

November 2021.

The Local Government Pension Scheme (LGPS) is a statutory scheme and employer’s contributions are

assessed by the actuary at each triennial valuation. The employer’s contribution rate was 24% in 2021 – 2022

(2020 - 2021 25%).

The Firefighters’ Pension Scheme is a statutory scheme and employer contributions are assessed by the

Government Actuary Department. The 2021 – 2022 contribution rate was 37.3% for the 1992 scheme, 27.4%

for the 2006 scheme and 28.8% for the 2015 scheme, no change to the 2020 – 2021 rates. The scheme is

unfunded, meaning that there are no investments built up to meet the pension liabilities and cash needs to be

generated to meet actual pension payments as they fall due. Income is from employee’s and employer’s

contributions as well as funding from Central Government.

The Council’s other employees receiving more than £50,000 remuneration (excluding employer's pension

contributions) in 2021 - 2022 are detailed in the table below.

The pay bands required to be disclosed in the table above are not index linked, unlike individuals’ pay that may

be subject to annual pay awards. The bands have therefore remained unchanged at this level since they were

introduced in the Accounts and Audit Regulations 2003. The above numbers include officers who were made

redundant during the 2021 - 2022 financial year and whose remuneration may not have normally been included

within the limits of the above table, but who have received a redundancy payment which increased their earnings

to over the minimum of £50,000 or resulted in them being included in a higher band than their basic pay. In

2021 – 2022 Council employees were awarded a pay scale increment, therefore increasing the number of staff

over the £50,000 band.

Remuneration Band

2020 - 2021

No of employees

Non Schools

2021 - 2022

No of

employees Non

Schools

2020 - 2021

No of employees

Schools

2021 - 2022

No of

employees

Schools

£50,000 - £54,999 135 148 54 55

£55,000 - £59,999 51 74 48 44

£60,000 - £64,999 54 49 30 29

£65,000 - £69,999 17 36 26 23

£70,000 - £74,999 11 22 814

£75,000 - £79,999 12 6 9 8

£80,000 - £84,999 4 6 0 2

£85,000 - £89,999 5 6 0 1

£90,000 - £94,999 6 5 0 0

£95,000 - £99,999 2 2 1 0

£100,000 - £104,999 0 1 2 1

£105,000 - £109,999 1 1 0 1

£110,000 - £114,999 0 1 0 0

£115,000 - £119,999 0 0 0 0

£120,000 - £124,999 1 0 0 0

£125,000 - £129,999 0 0 0 0

£130,000 - £134,999 0 1 0 0

£135,000 - £139,999 0 0 0 0

£140,000 - £144,999 1 0 0 0

£145,000 - £149,999 0 1 0 0

Notes to the Core Statements

Suffolk County Council 68 Notes to the Core Statements

23. External Audit Costs

In 2021 - 2022 the Council incurred the following fees relating to external audit.

The fee payable to external audit services, is required by auditors to meet statutory responsibilities under the

Local Audit and Accountability Act 2014 in accordance with the requirements of the Code of Audit Practice and

supporting guidance published by the National Audit Office, the financial reporting requirements as set out in

the Code of Practice on Local Authority Accounting published by CIPFA/LASAAC, and the professional

standards applicable to auditors’ work.

In 2020 - 2021 additional fees were proposed to the Council following the audit and therefore not included in

the table above in the 2020 – 2021 statement of accounts. The additional fees were due to changes in work

required to address professional and regulatory requirements and scope associated with risk, including COVD-

19. The final 2020 - 2021 fee was £0.136 million. The 2021 - 2022 fee of £0.140 million includes the forecast

additional fees notified by the auditor for work required to address professional and regulatory requirements and

scope associated with risk, which would be reviewed and approved by the PSAA.

24. Dedicated Schools Grant

The Council’s expenditure on schools’ budgets (as defined in the School and Early Years finance (England)

Regulations 2020) is funded by grant monies provided by the Department for Education (DfE), through the

Dedicated Schools Grant (DSG). DSG is ring-fenced and can only be applied to meet expenditure included in

a 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 (ISB), which is divided into a budget share for each

school. Over and underspends on the two elements are required to be accounted for separately. An element of

DSG is recouped when schools convert to academy status during the financial year.

Details of the deployment of DSG receivable for 2021 – 2022 are as follows:

Note 1 DSG is split in to four blocks of funding when distributed to Local Authorities. These are Schools, High

Needs, Early Years and Central Services blocks. Growth Funding and De-delegation funding are part of the

schools block total, but the amounts are not distributed to schools. Instead, schools agree at Schools Forum

that budgets can be allocated to support centrally provided services, where it is more cost efficient for the service

to be provided centrally rather than by individual schools.

2020 - 2021 2021 - 2022

£ million £ million

0.128

Fees payable to external audit services carried out by the appointed auditor

for the year

0.140

0.128 Total 0.140

Central

expenditure

Individual

School Budget

Total

£ million £ million £ million

Final DSG for 2021 - 2022 before academy and high needs recoupment 595.462

Academy and high needs recoupment for 2021 - 2022 -369.263

Total DSG after academy and high needs recoupment for 2021 -2022

226.199

In year adjustments 0.042

Agreed initial budgeted distribution in 2021 - 2022 107.385 118.858 226.241

Final budget distribution for 2021 - 2022 107.385 118.858 226.241

Less: Actual central expenditure 113.877 113.877

Less: Actual ISB deployed to schools 118.003 118.003

In Year Carry-forward to 2022 - 2023 -6.492 0.855 -5.639

DSG unusable reserve at the end of 2020 - 2021 -12.711

Addition to DSG unusable reserve at the end of 2021 - 2022 -5.639

Total of DSG unusable reserve at the end of 2021 - 2022 -18.349

Notes to the Core Statements

Suffolk County Council 69 Notes to the Core Statements

Note 2 The new regulations from the DfE mandate that a DSG deficit may only be funded and recovered through

DfE financial support and recovery arrangements. Any accumulated DSG deficit should be disclosed as an

unusable reserve (note 19, Dedicated School Grant Adjustment Account). Therefore, the DSG deficit at 31

March 2021 of £18.349 million is held in the unusable reserve.

Note 3 In 2021 - 2022 the DfE’s safety valve intervention programme continued to target local authorities with

the highest DSG deficits. The programme requires the authorities involved to develop substantial plans for

reform to their high-needs systems, with support and challenge from the department, to rapidly place them on

a sustainable footing. Those local authorities with less severe but substantial deficits (Suffolk) have been invited

to join the Delivering Better Value programme which will commence in 2022 - 2023. There are currently no

timeframes involved to recover, however it is crucial that authorities’ high-needs systems move to a more

sustainable position, and DfE encourages authorities to fully engage with the support on offer through the safety

valve, Delivering Better Value and Education and Skills Funding Agency programmes.

Notes to the Core Statements

Suffolk County Council 70 Notes to the Core Statements

25. Grant Income

The Council recognised the following revenue grants and contributions (not related to COVID-19) to the

Comprehensive Income and Expenditure Statement. The table includes capital grants used to fund revenue

expenditure funded from capital under statute, therefore included in the Net Cost of Services:

2020 - 2021 2021 - 2022

£ million £ million

Credited to Taxation and Non Specific Grant Income

Revenue Support Grant -16.544 -16.636

New Homes Bonus -1.798 -1.106

Improved Better Care Fund -28.155 -28.155

Adult Social Care Support Grant -19.184 -23.279

Rural Services Delivery Grant -2.172 -2.280

Eastern Inshore Fisheries Conservation Authority Support Grant -0.114 -0.114

Transparency Code -0.013 -0.013

Total -67.980 -71.582

Credited to Services

Apprenticeship Levy -0.666 -0.763

Basic Need - Capital 0.000 -4.863

Bikeability -0.089 -0.162

Bus Subsidy -0.615 -0.615

Community Discharge -0.197 -0.145

Community Renewal Fund 0.000 -0.290

Dedicated Schools -217.773 -225.405

Devolved Formula - Capital -0.052 -0.106

Disabled Facilities - Capital -7.002 -7.002

Domestic Abuse Duty Capacity Building Fund -0.050 -0.952

Energy from Waste Contract (Private Finance Initiative) -7.864 -7.864

Extended Personal Adviser Duty Implementation -0.085 -0.114

Extended Rights for Home to Schools Travel -0.739 -1.007

Extension of the Role of Virtual School Heads to Certain Previously Looked after Children -0.077 -0.215

Fire - Private Finance Initiative -2.193 -2.193

Fire and Rescue (Revenue) Firelink -0.250 -0.216

Fire Pensions -1.342 -1.342

Fire Protection Uplift -0.079 -0.112

Former Independent Living Fund -2.324 -2.324

Funded Adult Education Budget 16 to 19 Education -2.798 -2.815

Holiday Activities and Food Programme -0.958 -1.087

Ipswich Free School - Capital -4.514 0.000

Local Reform and Community Voices -0.467 -0.467

Local Transport Authority Bus Capacity 0.000 -0.667

Music Education Hubs -0.944 -0.941

Opportunity Areas -1.450 -1.470

Physical Education and Sport Premium -1.902 -1.814

Public Health -30.484 -30.805

Pupil Premium -7.533 -7.099

Remands to Youth Secure Accommodation of Children and Young People -0.287 -0.313

School Condition Allocation - Capital -1.533 0.000

School Improvement Monitoring and Brokering -0.441 -0.396

School Led Tutoring 0.000 -0.320

School Nurseries Fund - Capital -0.583 0.000

Schools Sixth Form -3.906 -4.144

Social Care in Prisons -0.256 -0.223

Staying Close Children’s Social Care Innovation Programme -0.488 -0.478

Staying Put Implementation -0.332 -0.332

Supported Bus Services -0.581 0.000

Teacher Pay Grant -1.782 -0.037

Teacher Pension Scheme -5.331 -0.328

Troubled Families Programme -1.662 -1.685

Unaccompanied Asylum Seeking Children (including Care Leavers) -4.633 -5.883

Universal Drug Treatment Grant 0.000 -0.137

Universal Infant Free School Meals -3.341 -2.752

War Pensions Disregard -0.169 -0.170

Water Environment Grant 0.000 -0.106

Wider Area Network Grant - Capital 0.000 -2.457

Youth Justice -0.681 -0.738

Other Revenue -0.523 -1.091

Total -318.975 -324.443

Notes to the Core Statements

Suffolk County Council 71 Notes to the Core Statements

The Council recognised the following COVID-19 related revenue grants to the Comprehensive Income and

Expenditure Statement:

The Council received a total of £5.959 million of Adult Social Care Rapid Testing Fund from the Department of

Health and Social Care (DHSC) in 2021 – 2022 (£2.328 million 2020 - 2021) and passed £3.892 million to care

providers, to support with testing capacity. A total of £9.251 million of Infection Control Grant was received from

the DHSC, of which £6.476 million was passed to care providers. A total of £0.406 million of Vaccine Funding

was received from the DHSC, of which £0.284 million was passed to care providers.

The Council acted as an agent for those elements of the grants which were passed straight onto care homes,

therefore these were reflected in the balance sheet not the Comprehensive Income and Expenditure Statement.

The Council received the following COVID-19 grants which have yet to be spent. As the grants state conditions

of use, they are reflected in short term creditors on the balance sheet:

2020 - 2021 2021 - 2022

£ million £ million

Credited to Taxation and Non Specific Grant Income

Emergency Funding -22.517 -14.718

Local Tax Income Guarantee 0.000 -5.744

Sales, Fees and Charges -1.377 -0.116

Total -23.894 -20.578

Credited to Services

Additional Dedicated Home to School and College Transport -0.455 -0.246

Adult Social Care Rapid Testing Fund -0.466 -2.067

Bus Services Support -0.417 0.000

Bus Service Support Restart Scheme -1.131 -1.384

Catch-up Premium -1.261 -0.875

Clinically Extremely Vulnerable Support -1.249 -1.515

Community Testing Funding -0.777 -2.520

Contain Outbreak Management Fund -2.952 -11.629

Emergency Active Travel Fund -0.427 0.000

Emergency Assistance Grant for Food and Essential Supplies -0.770 0.000

Fire Contingency Fund 0.000 -0.076

Free School Meals Additional Costs 0.000 -0.042

Household Support Fund 0.000 -5.106

Infection Control -3.951 -2.775

Local Support Grant 0.000 -2.445

Local Transport Authority Bus Recovery Funding (LTA BRG) 0.000 -0.889

Omicron Support Fund 0.000 -0.815

Practical Support for Those Self Isolating 0.000 -0.279

Recovery Premium 0.000 -0.359

Schools Fund -0.359 0.000

Schools Mass Testing 0.000 -0.279

Test and Trace Service Support -2.789 0.000

Travel Demand Management -0.037 -0.113

Vaccine Funding 0.000 -0.122

Wellbeing for Education Return -0.113 -0.097

Winter Grant Scheme -2.663 -0.138

Workforce Capacity for Adult Social Care -1.631 -0.015

Workforce Recruitment & Retention (Adult Social Care) 0.000 -6.285

Total -21.448 -40.071

31 March 2021 31 March 2022

£ million £ million

COVID-19 Grants With Conditions

Additional Dedicated Home to School and College Transport -0.340 0.000

Community Testing Funding -0.102 -0.439

Contain Outbreak Management Fund -14.885 -7.055

Selt Isolation 0.000 -1.001

Travel Demand Management -0.113 0.000

Total -15.440 -8.494

Notes to the Core Statements

Suffolk County Council 72 Notes to the Core Statements

The Council has received revenue grants which relate to the 2022 - 2023 financial year which are yet to be

recognised as income. The balances at the year end are:

31 March 2021 31 March 2022

£ million £ million

Revenue Grants Receipts in Advance

Accreditation and Learning Suffolk Fire and Rescue Authority -0.018 0.000

Afghan Interpreter Resettlement 0.000 -0.002

Assessed and Supported Year in Employment (ASYE) Programme 0.000 -0.024

Better Care Fund Small Grant Programme -0.015 0.000

Capability Fund - Active Travel 0.000 -0.165

Community Renewal Fund 0.000 -0.301

Dementia Friendly Environments - Capital -0.004 0.000

Domestic Abuse Duty Capacity Building Fund 0.000 -0.460

Drug Treatment - Crime and Harm Reduction 0.000 -0.165

Fire Protection Accreditation 0.000 -0.013

Fire Protection Uplift 0.000 -0.036

Free School - Limes Academy - Capital 0.000 -1.333

Holiday Activities and Food Programme 0.000 -0.499

Mini Holland Feasibility 0.000 -0.079

Total -0.037 -3.078

Notes to the Core Statements

Suffolk County Council 73 Notes to the Core Statements

The Council recognised the following capital grants and contributions in the Comprehensive Income and

Expenditure Statement:

* The Association of Directors of Environment, Economy, Planning and Transport.

The Council has received several capital grants and contributions that have yet to be recognised as income as

they have conditions attached to them that may require the monies to be returned to the grantor or they relate

to 2022 - 2023. The balances at the year end are:

2020 - 2021 2021 - 2022

£ million £ million

Capital Grants and Contributions

Anderson Group Ltd -0.157 -0.028

Barratt David Wilson Homes -0.208 -0.271

BT PLC -2.396 1.234

Bovis Homes Ltd -0.511 -0.189

Countryside Properties Ltd 0.000 -0.962

City Living Developments (Ipswich) Ltd -0.448 0.000

Countryside Properties (UK) Ltd -0.201 0.000

Department for Education - Devolved Formula Capital -0.819 -0.843

Department for Education - Free School 0.000 -1.677

Department for Education - High Needs 0.000 -2.112

Department for Education - School Condition Allocation Grant -6.763 -5.665

Department for Education - School Nurseries Capital Fund -0.220 0.000

Department for Transport - A12 Outline Business Case -0.586 -0.574

Department for Transport - Active Travel Fund -0.105 -0.327

Department for Transport - Highway Maintenance Block -21.209 -15.132

Department for Transport - Emergency Active Travel Fund -0.287 0.000

Department for Transport - Integrated Transport -3.246 -3.271

Department for Transport - Gull Wing -39.960 -25.830

Department for Transport - National Productivity Fund -2.725 0.000

Department for Transport - Pothole and Challenge Fund -15.620 -12.106

Department for Transport/ADEPT* - Live Labs -2.305 -0.251

East Suffolk and North Essex Foundation Trust -0.250 0.000

Forestry Commission 0.000 -0.041

Galloper Offshore Wind Farm -0.012 -0.012

Heritage Developments Ltd -0.161 -0.157

Hopkins Homes Ltd -1.507 -0.850

IPSERV 0.000 -0.150

Laurence Homes Ltd -0.217 -0.213

Local Authorities Contributions -4.266 -2.624

New Anglia Local Enterprise Partnership -1.396 -2.561

NHS Commissioning Board -0.121 -0.465

Orbit Homes -0.004 0.000

Persimmon Homes -0.772 -1.289

Salix - decarbonisation grant 0.000 -2.301

Taylor Woodrow 0.000 -0.139

Taylor Wimpey UK Ltd -0.145 -2.743

Vistry Homes Ltd -0.516 -0.326

Wharfside Regeneration (Ipswich) Ltd -0.305 0.000

Other -0.457 -1.505

Total -107.895 -83.382

Notes to the Core Statements

Suffolk County Council 74 Notes to the Core Statements

* Now known as the Department for Levelling Up, Housing and Communities

26. Related Parties

The Council is required to disclose significant transactions with related parties – bodies or individuals that have

the potential to control or influence the Council or to be controlled or influenced by the Council. Disclosure of

these transactions allows readers to assess the extent to which the Council might have been constrained in its

ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely

with the Council. The Council have set a de-minimis limit of £0.100 million for items to disclose.

Individuals who are deemed to be related parties are members and senior officers of the Council. Grants and

payments to organisations, or goods and services supplied by businesses with which a county councillor or

officer (or a member of his/her immediate family) was involved are detailed below.

Wholly Owned Companies, Joint Ventures, and Divested Organisations:

Suffolk Group Holdings Ltd

Suffolk Group Holdings is a wholly owned subsidiary of Suffolk County Council. The principal activity of the

company is to hold the shares in, and provide governance structures for, the other subsidiary organisations of

the Council. Currently this includes Vertas Group Ltd, Concertus Design and Property Consultants Ltd, and

Opus People Solutions Group Ltd.

Suffolk Group Holdings Ltd, is not a trading company.

Vertas Group Ltd (Vertas)

Vertas is a wholly-owned subsidiary of Suffolk County Council. Its principal activities are the provision of

Grounds maintenance, Catering, Caretaking, Facilities Management and Print and Design services. Vertas

became a wholly owned subsidiary on 1 November 2011. Companies including; IEM Caterquip Ltd, Oakpark

Security Systems Ltd, Churchill Catering Ltd, Vertas Environmental Ltd, Verse Facilities Management Ltd,

Vertas (Ipswich) Ltd, Diamond View Cleaning Solutions Ltd, Suffolk Skills Academy Ltd, Vertas Suffolk Larder

Ltd, and Vertas (Derbyshire) Ltd are subsidiaries of Vertas Group Ltd. The company is involved in Joint Venture

companies principally with Derbyshire County Council, and West Suffolk Council.

Suffolk County Council made a loan of £2.430 million to Vertas upon inception, the Council also made a loan of

£1.000 million to Schools Choice upon inception, which was amalgamated with the earlier loan when School’s

Choice became part of the Vertas Group, the outstanding balance of the loans was satisfied during the year

(£1.130 million at 31 March 2021)

31 March 2021 31 March 2022

£ million £ million

Capital Grants Receipts in Advance

Cambridgeshire and Peterbourgh combined Authority 0.000 -2.210

Department for Education - Devolved Formula Capital -2.721 -2.500

Department for Education - Special Education Need Provision -1.157 -1.157

Department for Education - Ipswich Special Free School -1.677 0.000

Department for Education -Healthy Pupils Capital Fund -0.005 0.000

Department for Education -Early years Nursery funding 0.000 -0.146

Department for Education -Sixth form funding 0.000 -0.042

Department for Transport - Pot Hole Action Fund -3.632 -6.158

Department for Transport - Live Labs/ADEPT fund -1.255 -1.004

Department for Transport - Active Travel Fund - Tranche 2 -1.243 -4.756

Department for Transport - A12 East of Ipswich -0.244 0.000

Forestry Commission 0.000 -0.007

NHS Commissioning Board -0.319 -0.311

Salix - Decarbonisation Fund -3.112 -0.811

Ministry of Housing, Communities & Local Government * - Land Release -0.438 -0.438

Total -15.803 -19.539

Notes to the Core Statements

Suffolk County Council 75 Notes to the Core Statements

During 2021 - 2022 the Council incurred expenditure from the Vertas Group of companies of £24.671 million

(2020 - 2021 £24.085 million). The Council also received income from the Vertas Group of £1.865 million (2020

- 2021 £2.305 million). The Council has a creditor balance of £1.508 million and a debtor balance of £0.858

million at 31 March 2022. Of the debtor balance £0.132 million is outstanding for over 30 days. The Council has

made a payment in advance of £1.724 million (2020 – 2021 £1.964 million) for services to be provided within

2022 – 2023.

Included in the income above Vertas declared a dividend of £0.500 million due to the Council for the year 2021

– 2022, which was unpaid at 31 March 2022.

Concertus Design and Property Consultants Ltd (Concertus)

Concertus is a wholly-owned subsidiary of Suffolk County Council. Its principal activities are the provision of

design, estate management, and project management services within the property sector. The companies

Concertus Suffolk Ltd, The Energy Practice, Carbon Chain Ltd and Concertus Derbyshire Ltd are subsidiaries

of Concertus. Concertus became a wholly owned subsidiary on 1 April 2013. The company is involved in a Joint

Venture with Derbyshire County Council.

The Council made a loan of £2.500 million to Concertus in 2016 - 2017. This was for the purchase of, and

secured against, property, the outstanding balance of the loan is £1.864 million.

During 2021 - 2022 the Council incurred expenditure from Concertus of £11.618 million (2020 - 2021 £8.745

million). The Council also received income from Concertus of £0.627 million (2020 - 2021 £0.707 million). The

Council has a creditor balance of £0.373 million and a debtor balance of £0.014 million at 31 March 2022. Of

the debtor balance, none is outstanding for more than 30 days.

Included in the income above Concertus declared a dividend of £0.450 million due to the Council for the year

2021 – 2022, which was unpaid at 31 March 2022.

Opus People Solutions Ltd (Opus)

Opus is a wholly-owned subsidiary of Suffolk County Council. Its principal activity is the provision of temporary

staff. Opus became a wholly owned subsidiary on 1 June 2014. The company Opus Teach Ltd is a subsidiary

of Opus. The company has a joint venture with Cambridgeshire County Council, Northamptonshire County

Council, and Milton Keynes Council; Opus LGSS People Solutions Ltd.

During 2021 - 2022 the Council incurred expenditure from Opus of £6.097 million (2020 - 2021 £5.450 million).

The Council also received income from Opus of £0.183 million (2020 - 2021 £0.109 million). The Council has

a creditor balance of £0.462 million and a debtor balance of £0.009 million at 31 March 2022. Of the debtor

balance, none is outstanding for more than 30 days.

Included in the income above Opus declared a dividend of £0.170 million due to the Council for the year 2021

– 2022, which was unpaid at 31 March 2022.

Realise Futures CIC (Realise Futures)

Realise Futures is a Community Interest Company providing employment support and adult learning, including

therapeutic care and funded placements to people with learning disabilities. Realise Futures and the Council

entered into a contract commencing 1 November 2012 for Realise Futures to provide the services previously

provided by the Council.

During 2021 - 2022 the Council incurred expenditure from Realise Futures of £4.663 million (2020 - 2021 £4.954

million). The Council also received income from Realise Futures of £0.235 million (2020 - 2021 £0.331 million).

The Council has a creditor balance of nil and a debtor balance of £0.021 million at 31 March 2022. Of the debtor

balance, none is outstanding for more than 30 days.

Leading Lives IPS Ltd (Leading Lives)

Leading Lives is an Industrial and Provident Society providing day and residential services for people with

learning disabilities. Leading Lives and the Council entered a contract covering the period 1 July 2012 to 30

June 2015 initially, for Leading Lives to provide the services previously provided by the Council. This contract

has subsequently been extended.

Notes to the Core Statements

Suffolk County Council 76 Notes to the Core Statements

During 2021 - 2022 the Council incurred expenditure from Leading Lives of £7.929 million (2020 - 2021 £9.050

million). The Council also received income from Leading Lives of £0.111 million (2020 - 2021 £0.197 million).

The Council has a creditor balance of £0.360 million and a debtor balance of £0.033 million at 31 March 2022.

Of the debtor balance, none is outstanding for more than 30 days.

Norse Group (Norse)

Suffolk Norse Limited and Suffolk Norse Transport Limited are both Limited companies which during early 2021

- 2022 had a service agreement with the Council to provide transportation for school pupils and swimming

services, delivering such services primarily, although not exclusively, to the Council and schools within the

administrative boundaries of the Council. The service was transferred to Vertas Group in 2021 – 2022, at which

point Suffolk Norse ceased trading.

The shareholders of Suffolk Norse Limited are Norse Commercial Services Ltd (80%) and Suffolk County

Council (20%). There were no shares for Suffolk Norse Transport Limited as it was a not for profit company

limited by guarantee and was wholly owned by Suffolk Norse Ltd.

Suffolk Libraries IPS Ltd (Libraries)

Suffolk Libraries is an Industrial and Provident Society (IPS) and was registered as a charitable organisation on

27 June 2012. The IPS was formed to provide comprehensive and efficient library services principally, but not

exclusively for, the people of Suffolk. The provision of library services transferred from the Council to Libraries

on 1 August 2012.

During 2021 - 2022 the Council incurred expenditure from Libraries of £6.474 million (2020 - 2021 £6.427

million). The Council also received income from Libraries of £0.178 million (2020 – 2021 £0.066 million). The

Council has a creditor balance of £0.307 million and a £0.074 million debtor balance at 31 March 2022. Of the

debtor balance, none is outstanding for more than 30 days.

Other Organisations

Eastern Inshore Fisheries and Conservation Authority

There are two councillors that represent the Council on the Eastern Inshore Fisheries and Conservation

Authority (EIFCA). At 31 March 2022, the total amount invested by the Council on behalf of the EIFCA, including

accumulated interest, was £0.586 million (31 March 2021 £0.585 million).

Ipswich Buses Ltd

Two of the non-executive directors of Ipswich Buses Ltd are also County Councillors. In 2021 - 2022 the Council

made payments to Ipswich Buses Ltd totalling £2.776 million (2020 - 2021 £2.947 million). The Council also

received income from Ipswich Buses of £0.002 million (2020 – 2021 £0.002 million). The council has a creditor

balance of £0.099m and a debtor balance of £0.001 million. Of the debtor balance none is outstanding for more

than 30 days.

Excluding the above, the total grants and payments to other related party organisations that exceeded the de-

minimis level are set out in the table below:

2020 - 2021 2021 - 2022

£ million £ million

3.055 Other Related Transactions (Members) 1.211

0.460 Other Related Transactions (Officers) 0.413

3.515 1.624

Notes to the Core Statements

Suffolk County Council 77 Notes to the Core Statements

With these exceptions, there were no significant transactions with members and their families other than

payments falling within the adopted scales of members’ allowances or within normal conditions of employment.

Other Public Bodies subject to common control by central government

The Council has entered into a pooled budget arrangement for the provision of mental health services and also

a wider Better Care Fund pooling agreement with Clinical Commissioning Groups (CCGs) operating in Suffolk.

Several Councillors sit on the boards of these CCGs. Transactions related to these are detailed in Note 21. In

addition, the CCGs part funds some elements of care related spend when there is a health requirement.

Pension Fund

The table below shows the amount charged to the Pension Fund for expenses incurred in administering the

fund:

27. Capital Expenditure and Capital Financing

The total amount of capital expenditure incurred in the year is shown in the table below, together with the

resources that have been used to finance it. Where capital expenditure is to be financed in future years by

charges to revenue as assets are used by the Council, the expenditure results in an increase in the Capital

Financing Requirement (CFR), a measure of the capital expenditure incurred historically by the Council that has

yet to be financed.

2020 - 2021 2021 - 2022

Income Income

£ million £ million

1.067 Administration Expenses charged to Pension Fund 1.219

1.067 1.219

2020 - 2021 2021 - 2022

£ million £ million

Opening Capital Financing Requirement 765.122 778.207

Capital investment

Property, Plant and Equipment - Operational Assets 70.233 72.234

Property, Plant and Equipment - Non Operational Assets 8.451 40.083

Intangible Assets 2.601 1.250

Heritage Assets 0.000 0.011

Revenue Expenditure Funded from Capital under Statute 39.115 43.043

Sources of finance

Capital receipts -7.727 -8.508

Government grants and other contributions -78.413 -120.461

Sums set aside from revenue:

-11.287 -9.533

-9.888 -10.194

Closing Capital Financing Requirement 778.207 786.131

Explanation of movements in year

Increase/decrease (-) in underlying need to borrow 13.085 7.924

Increase/ Decrease (-) in Capital Financing Requirement 13.085 7.924

Direct revenue contributions

Minimum revenue provision

Notes to the Core Statements

Suffolk County Council 78 Notes to the Core Statements

Operational assets are: Other Land and Buildings; Vehicles, Plant and Equipment and Infrastructure Assets.

Non-Operational Assets are Surplus Assets and Assets Under Construction (note 12).

28. Leases

Authority as Lessee

Finance Leases

The Council has 10 buildings recognised on the Balance Sheet as a result of being finance leases.

The assets acquired under these leases are carried as Property, Plant and Equipment in the Balance Sheet at

the following net amounts:

The minimum payments under these leases are immaterial and therefore no liability is recognised in the Balance

Sheet. The small payments that are made are charged to the Comprehensive Income and Expenditure

Statement.

Operating Leases

The future minimum lease payments due under non-cancellable leases in future years are:

Authority as Lessor

Finance Leases

The Council has leased out 200 school properties. These are schools that have converted to Academies (or

Free Schools) and had the lease agreement finalised. There are also the leases for Fen Alder Car Park and

Local Nature Reserve, a resource centre, recreational land, a youth centre, a community centre, a sports centre

and a theatre building. The Council therefore does not recognise these assets on the Balance Sheet.

The future minimum lease payments to be received are immaterial, therefore there is no debtor to be recognised

on the Balance Sheet.

Operating Leases

The Council leases out a number of properties and land under operating leases. The table below shows the

lease payments due over the period shown:

31 March 2021 31 March 2022

£ million £ million

Other Land and Buildings 5.976 4.997

5.976 4.997

31 March 2021 31 March 2022 31 March 2022 31 March 2022

Total

Land and

Buildings

Vehicles, Plant

and Equipment

Total

£ million £ million £ million £ million

Not later than one year 1.379 0.953 0.286 1.239

Later than one year and not later than five years 2.901 2.267 0.414 2.681

Later than five years 5.209 5.148 0.061 5.209

9.489 8.368 0.761 9.129

Notes to the Core Statements

Suffolk County Council 79 Notes to the Core Statements

The minimum lease payments receivable does not include rents that are contingent on events taking place after

the lease was entered into, such as adjustments following rent reviews. In 2021 - 2022 £1.540 million was

receivable by the Council in relation to County Farms (£1.528 million in 2020 - 2021).

29. PFI and Similar Contracts, including Donated Assets

The private finance initiative (PFI) provides a way of funding major capital investments by working with private

consortia that are contracted to design, build, finance and manage new projects.

The Council currently has two PFI schemes, one relating to the Fire & Rescue Service and the other relating to

waste disposal, details of which are set out below.

Fire & Rescue Service

The Council has a PFI contract in relation to the upgrade and maintenance of 10 fire stations. The project

reached financial close on 11 June 2008 having been awarded PFI credits of £27.100 million (a specific grant

paid over the life of the contract towards the capital element of the scheme). The contract originally covered the

rebuilding of six new fire stations and the refurbishment of four further fire stations.

During the construction phase which completed during 2011 – 2012, there was one change to the original

construction arrangement where a new Ipswich East Fire Station was constructed as opposed to the

refurbishment of the existing asset.

All PFI stations are now operational and the facilities management aspects of the contract are now operational.

The following tables show the movement in value of the fire stations included in the PFI contract during 2021 –

2022 with comparators and the movement in the value of the liability.

Movement in the value of Fire Stations

Liability outstanding on the Fire PFI Contract

31 March 2021 31 March 2022

£ million £ million

Not later than one year 1.995 2.137

Later than one year and not later than five years 4.477 3.846

Later than five years 4.581 4.851

11.053 10.834

2020 - 2021 2021 - 2022

£ million £ million

Value at start of year 15.391 14.136

Revaluations -0.818 0.718

Depreciation -0.437 -0.415

Value at end of year 14.136 14.439

2020 - 2021 2021 - 2022

£ million £ million

Balance outstanding at start of year 12.188 11.801

Payments during the year -0.387 -0.431

Balance outstanding at end of year 11.801 11.370

Notes to the Core Statements

Suffolk County Council 80 Notes to the Core Statements

The following table shows the payments due under the PFI contract (current and future liabilities). The payments

shown are at current cost and do not include inflation which will be included when the payments are made in

future years.

Waste Service

The Council has a PFI contract, with Suez Recycling and Recovery Suffolk Ltd in relation to the construction

and management of an Energy-from-Waste facility on Council land in Great Blakenham. The project reached

financial close in October 2010 and was awarded £102 million in Waste Infrastructure Credits (formerly known

as PFI credits) which provide an income stream of £199 million over the 25 year operational span of the contract.

Following the construction and testing phase of the project full operation began, on schedule, in December

2014. In broad terms the contract is for the treatment of between 170,000 and 240,000 tonnes of residual waste

(i.e. waste remaining after recycling or composting). The treatment of this waste represents an environmentally

better solution than the previous disposal method, which was landfill.

Actual payments by the Council will depend on the number of tonnes of waste processed under this contract at

the plant which has an annual capacity of around 269,000 tonnes. At the end of the 25 year operational phase

of the contract, the plant will either be handed over to the Council, with a minimum of 5 years useful life

remaining, or a new operating contract may be agreed either with Suez or another operator. At the lowest level

(170,000 tonnes) the estimated savings, when compared to projected landfill costs, were £350 million over the

contract period.

The plant receives income directly from third parties, both for the treatment of waste and for electricity exported

to the National Grid. As part of the contract Suez retains this income and the price otherwise payable by the

Council under the agreement has been reduced to reflect this. As the contract payments to be made by the

Council do not meet the full cost of the asset, the Council receives the proportion of the asset not funded by

contractual payments as a donated asset. A liability is recognised on the balance sheet for this proportion of the

asset and is reduced over the life of the contract.

Within 2016 - 2017 there were two events which adjusted the liabilities due under the contract. Firstly, the

Government ended the relief allowable via Levy Exemption Certificates (LECs) against Climate Change Levy

liabilities for producers of renewably sourced power. This reduced income from electricity generation and was

a relevant change in law under the PFI contract. The Unitary Charge payable by the Council was adjusted to

allow for this change, reducing the future value of the donated asset and increasing the liability under the PFI

contract.

Secondly, the Council and Suez negotiated a contract variation whereby the Council made a Capital

Contribution of £37.785 million, reducing the outstanding liability on the PFI contract, in return for a reduction in

the price of waste processing over the future life of the contract.

Within 2018 – 2019 a second Capital Contribution of £10.179 million was negotiated by the Council further

reducing both the outstanding liability and the price of waste processing over the future life of the contract.

The following tables show the movement in value of the Energy-from-Waste facility included in the PFI contract

during 2021 – 2022 with comparators and the movements in the value of the liability and the donated asset.

Repayment of

liability

Interest

Service

charges

PFI Grant Net Cost

£ million £ million £ million £ million £ million

Payments due - received;

During 2022 - 2023 0.480 1.281 1.174 -1.097 1.838

Payable within two to five years 2.526 4.521 4.697 -4.385 7.359

Payable within six to ten years 5.126 3.681 5.871 -5.483 9.195

Payable within eleven to fifteen years 3.238 0.578 2.544 -2.147 4.213

Total 11.370 10.061 14.286 -13.112 22.605

Notes to the Core Statements

Suffolk County Council 81 Notes to the Core Statements

Movement in the value of the Energy from Waste Facility

Liability outstanding on the Waste PFI contract

Donated Asset Account within the Waste PFI Contract

The following table shows the payments due under the PFI contract (current and future liabilities). The payments

shown are at current cost and do not include inflation which will be included when the payments are made in

future years.

2020 - 2021 2021 - 2022

£ million £ million

Value at start of year 174.000 164.319

Additions 0.617 1.338

Revaluation -3.507 10.178

Depreciation -6.791 -6.689

Value at end of year 164.319 169.146

2020 - 2021 2021 - 2022

£ million £ million

Balance outstanding at start of year 32.773 30.422

Payments during the year -2.968 -3.155

Capital expenditure incurred in the year 0.617 1.338

Balance outstanding at end of year 30.422 28.605

2020 - 2021 2021 - 2022

£ million £ million

Balance outstanding at start of year 95.107 90.351

Payments during the year -4.756 -4.755

Balance outstanding at end of year 90.351 85.596

Short Term Donated Asset Account 4.755 4.755

Long Term Donated Asset Account 85.596 80.840

90.351 85.595

Notes to the Core Statements

Suffolk County Council 82 Notes to the Core Statements

The repayment of the liability of both the Fire and Waste schemes amounts to £39.975 million, which is

reflected as the short and long term PFI liability figures on the Balance Sheet.

30. Impairment Losses

During 2021 - 2022 the Council did not recognise any loss due to impairment on non-current assets.

During 2021 – 2022 there was an upwards trend to valuations. Therefore, there was a reversal of previous

valuation losses charged to the Comprehensive Income and Expenditure Statement of £12.637 million.

The total revaluation charged to the Comprehensive Income and Expenditure Statement is not a complete

reflection of the change in asset values in the year, there was also upwards valuations charged to the

Revaluation Reserve of £3.570 million. In 2021 – 2022 the total change due to valuation is an increase in value

of £16.207 million (note 12 and note 14).

31. Termination Benefits and Exit Packages

The 2021 - 2022 code of practice on local authority accounting requires local authorities to disclose in bands,

(separated between compulsory and other redundancies) the number of exit packages agreed during the year

and the cost of those packages to the Council. Exit costs relating to ill health retirements or departures are

excluded in accordance with the Code.

Exit costs include all relevant compulsory and voluntary redundancy costs, pension contributions in respect of

added years, ex gratia payments and other departure costs e.g. accrued holiday. It should be noted that the

number of exit packages also includes individuals for whom there was no exit cost.

The number of exit packages with total cost per band and total cost of the compulsory and other departures

payments are set out in the table below.

The total cost of £0.525 million in the table above includes exit packages that have been paid in 2021 - 2022

using £0.078 million of the provision which was set up as at 31 March 2021. In addition, the Comprehensive

Income and Expenditure Statement includes a provision for £0.127 million as at 31 March 2022 which is set

aside to pay officers in 2022 - 2023. These costs are not included in the bands but will be in 2022 - 2023 when

the exit packages can be allocated into bands.

Repayment

of liability

Interest

Service

charges

Lifecycle

Works

Waste

Infrastructure

Grant

Net Cost

£ million £ million £ million £ million £ million £ million

Payments due - received;

During 2022 - 2023 2.221 1.829 4.166 0.932 -7.864 1.284

Payable within two to five years 5.804 6.148 16.723 7.707 -31.455 4.927

Payable within six to ten years 5.646 5.997 21.026 12.462 -39.319 5.812

Payable within eleven to fifteen years 9.093 3.611 21.236 11.170 -39.319 5.791

Payable within sixteen to twenty years 5.841 0.638 11.314 6.290 -20.643 3.440

Total 28.605 18.223 74.465 38.561 -138.599 21.254

2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

£0 - £20,000 17 18 10 727 25 0.212 0.152

£20,001 - £40,000 2 1 3 3 5 4 0.137 0.111

£40,001 - £60,000 2 0 0 2 2 2 0.094 0.096

£60,001 - £80,000 1 0 0 1 1 1 0.068 0.071

£80,001 - £200,000 1 0 0 1 1 1 0.080 0.095

Total - excluding provision 23 19 13 14 36 33 0.592 0.525

Exit Package Cost Band

Number of compulsory

redundancies

Number of other departures

agreed

Total number of exit

packages by cost band

Total cost of exit packages

in each band (£ million)

Notes to the Core Statements

Suffolk County Council 83 Notes to the Core Statements

32. Pension Schemes accounted for as Defined Contribution Schemes

Teachers’ Pension Scheme

Teachers employed by the Council are members of the Teachers’ Pension Scheme, administered by the

Department for Education. The Scheme provides teachers with specified benefits upon their retirement, and the

Council contributes towards the costs by making contributions based on a percentage of members’ pensionable

salaries.

The Scheme is technically a defined benefit scheme. However, the Scheme is unfunded and the Department

for Education uses a notional fund as the basis for calculating the employers’ contribution rate paid by local

authorities. The Council is not able to identify its share of the underlying financial position and performance of

the Scheme with sufficient reliability for accounting purposes. For the purposes of this Statement of Accounts,

it is therefore accounted for on the same basis as a defined contribution scheme. In 2021 - 2022, the Council

paid £14.151 million of employer contributions to the Teachers’ Pension Scheme in respect of teachers’

retirement benefits (2020 – 2021 £14.475 million), representing 23.68% of pensionable pay from 1 April 2021

to 31 March 2022 (2020 - 2021 23.68%). The Council is responsible for the costs of any additional benefits

awarded upon early retirement outside of the terms of the Teachers’ scheme.

NHS Staff Pension Scheme

A number of NHS Staff transferred to the Council in April 2013. These staff maintained their membership in the

NHS Pension Scheme, administered by the NHS Business Service Authority. The Scheme provides these staff

with specified benefits upon their retirement and the Council contributes towards the costs by making

contributions based on a percentage of members’ pensionable salaries.

The scheme is an unfunded defined benefit scheme. However, the Council is not able to identify its share of the

underlying financial position and performance of the Scheme with sufficient reliability for accounting purposes.

For the purposes of this Statement of Accounts, it is therefore accounted for on the same basis as a defined

contribution scheme.

In 2021 - 2022, the Council paid £0.353 million of employer contributions (2020 – 2021 £0.409 million) in respect

of retirement benefits to NHS Pensions in respect of staff who transferred into the Council from the NHS. The

scheme has different employer contribution rates, depending on which element of the scheme staff are within,

representing 14.38% or 16.88% of pensionable pay (2020 – 2021 14.38% and 16.88%).

33. Defined Benefit Pension Schemes

Participation in Pension Schemes

As part of the terms and conditions of employment of its officers and other employees, the Council offers

retirement benefits. Although these benefits will not be payable until employees retire, the Council has a

commitment to make the payments into the fund needed to cover both current and future pension liabilities.

The Council participates in two defined benefit pension schemes (excluding Teachers and National Health

Service):

• the Local Government Pension Scheme for civilian employees, administered by Suffolk County Council - this

is a funded scheme, meaning that the Council and employees pay contributions into a fund, calculated at a level

intended to balance the pension liabilities with investment assets.

• The Fire Pension Scheme for Firefighters - this is an unfunded scheme, meaning that there are no investments

built up to meet the pension liabilities, and cash needs to be generated to meet actual pensions payments as

they fall due. Under the Fire Pension Scheme Regulations 2007, if the amounts receivable by the pension

scheme for the year are less than the amounts payable, the fire authority must annually transfer an amount

required to meet the deficit to the pension scheme. Subject to parliamentary scrutiny and approval, up to 100%

of this cost is met by a central government pension top-up grant. If, however, the pension scheme is in surplus

for the year, the surplus is required to be transferred to the fire authority which then must repay the amount to

central government. The Fire Pension Fund statement can be seen on page 143 of the accounts.

Notes to the Core Statements

Suffolk County Council 84 Notes to the Core Statements

Transactions Relating to Post-Employment Benefits

The Council recognises the cost of retirement benefits in the Net Cost of Services when they are earned by

employees, rather than when the benefits are eventually paid as pensions. However, the charge required to be

made against council tax is based on the cash payable in the year, so the real cost of retirement benefits is

reversed out of the General Fund via the Movement in Reserves Statement. The following transactions have

been made in the Comprehensive Income and Expenditure Statement and the General Fund Balance via the

Movement in Reserves Statement during the year:

The Total Post Employment Benefits Charged to the Comprehensive Income and Expenditure Accounts of -

£279.710 million and -£19.989 million are shown on the face of the CIES as -£299.689 million.

Pension Assets and Liabilities Recognised in the Balance Sheet

The amount included in the Balance Sheet arising from the Council’s obligation in respect of its defined plans

is as follows:

2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

£ million £ million £ million £ million

Comprehensive Income and Expenditure Account

Cost of Services:

Current service cost 53.800 87.880 4.200 6.100

Past Service cost/(-)gain 0.032 0.129 0.000 0.000

Settlements and Curtailments cost/(-)gain -1.388 -2.138 0.000 0.000

Financing and Investment Income and Expenditure

Net interest 8.193 12.357 5.600 6.100

60.637 98.228 9.800 12.200

Remeasurement of the net defined benefit liability

comprising:

Return on plan assets (excluding net interest) -251.738 -146.288 0.000 0.000

Actuarial gains (-) and losses arising on changes in demographic assumptions 29.252 -17.669 3.200 -3.000

Actuarial gains (-) and losses arising on changes in financial assumptions 470.231 -134.263 56.800 -17.700

Other experience -19.475 18.510 -2.420 0.711

228.270 -279.710 57.580 -19.989

Movement in Reserves Statement

-60.637 -98.228 -9.800 -12.200

Employers' contributions payable to the scheme

39.417 40.083 5.680 8.611

Unfunded Liabilities Uniformed

Fire Fighters

Actual amount charged against the General Fund Balance for pensions in

the year:

Local Government

Pension Scheme

Total Post Employment Benefits Charged to the Surplus or Deficit on the

Provision of Services

Other Post Employment Benefits Charged to the Comprehensive Income

and Expenditure Statement

Total Post Employment Benefits Charged to the Comprehensive Income

and Expenditure Account

Reversal of net charges made to the Surplus or Deficit for the Provision

of Services for post employment benefits in accordance with the Code

Reconciliation of present value of the scheme

liabilities (defined benefit obligation):

2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

£ million £ million £ million £ million

Present value of the defined benefit obligation -2,275.456 -2,208.022 0.000 0.000

Fair value of plan assets 1,688.589 1,840.850 0.000 0.000

-586.867 -367.172 0.000 0.000

Present value of unfunded liabilities -13.215 -11.346 -281.500 -266.300

Present value of injury liabilities 0.000 0.000 -23.700 -22.500

Net liability arising from defined benefit obligation -600.082 -378.518 -305.200 -288.800

Unfunded Liabilities

Uniformed Fire Fighters

Local Government Pension

Scheme

Notes to the Core Statements

Suffolk County Council 85 Notes to the Core Statements

Reconciliation of the movements in the fair value of Scheme Assets

The return on plan assets (excluding net interest expense) of £146.288 million has occurred due to the

investment return achieved by the Pension Fund. The Fund achieved an investment return of 10.4% in 2021 -

2022 compared to an expected accounting return of 2.0%.

Reconciliation of Present Value of the Scheme Liabilities (Defined Benefit Obligation)

Since the prior accounting period the longevity assumptions have changed, which can be seen in the significant

assumptions used by the actuary table on page 86, reflecting the latest available mortality improvement tables.

The change led to a decrease in the employer liabilities of £17.669 million.

The increase by £134.263 million in actuarial gains and (-) losses in the table above, arises from changes in

financial assumptions is due to:

2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

£ million £ million £ million £ million

Opening fair value of scheme assets 1,408.904 1,688.589 0.000 0.000

Interest income 32.311 33.750 0.000 0.000

Remeasurement gain/(loss)

Effect of settlements -2.148 -3.544 0.000 0.000

Remeasurement gain/loss

Return on plan assets (excluding net interest expense) 251.738 146.288 0.000 0.000

Other -0.097 -22.851 0.520 -0.111

Contributions from employer 38.501 39.261 5.180 8.111

Contributions in respect of unfunded benefits 0.916 0.822 0.500 0.500

Transfers out to other authorities 0.000 0.000 0.000 -0.100

Transfers in from other authorities 0.000 0.000 0.000 0.100

Contributions from employees 9.361 10.650 1.300 1.300

Benefits paid -49.981 -51.293 -7.000 -9.300

Unfunded benefits paid -0.916 -0.822 -0.500 -0.500

Closing fair value of scheme assets 1,688.589 1,840.850 0.000 0.000

Uniformed Fire Fighters

Local Government Pension

Scheme

2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

£ million £ million £ million £ million

Opening balance 1 April -1,759.496 -2,288.671 -243.500 -305.200

Current service cost -53.800 -87.880 -4.200 -6.100

Interest cost -40.504 -46.107 -5.600 -6.100

Contributions by scheme participants -9.361 -10.650 -1.300 -1.300

Transfers in from other authorities 0.000 0.000 0.000 -0.100

Transfers out to other authorities 0.000 0.000 0.000 0.100

Remeasurement gains and losses:

Actuarial gains and losses arising from changes in

demographic assumptions

-29.252 17.669 -3.200 3.000

Actuarial gains and losses arising from changes in

financial assumptions

-470.231 134.263 -56.800 17.700

Other experience 19.572 4.340 1.900 -0.600

Past service costs -0.032 -0.129 0.000 0.000

Benefits paid 49.981 51.293 7.000 9.300

Unfunded benefits paid 0.916 0.822 0.500 0.500

Liabilities extinguished on settlements 3.536 5.682 0.000 0.000

Closing balance at 31 March -2,288.671 -2,219.368 -305.200 -288.800

Local Government Pension

Scheme

Uniformed Fire Fighters

Notes to the Core Statements

Suffolk County Council 86 Notes to the Core Statements

• the increase in Pension Increase Rate (Consumer Price Index) at 31 March 2022 of 3.2% (31 March

2021 2.85%), increasing the employer. Market implied Retail Price Index has risen over the period,

which led to a 0.35% increase in the assumption.

• the Salary Increase Rate of 4.2% at 31 March 2022 (3.55% 31 March 2021), an increase in line with

Consumer Price Index (CPI) inflation. The CPI rate under pins the Pension Fund standard salary

increase assumption and increases the employer liability.

• the Discount Rate of 2.70% at 31 March 2022 (2.00% 31 March 2021), which is derived from the

corporate bond yield, increased in the period, which lead to a decrease in employer liabilities.

Other experience, in the table on the prior page, captures the actual pension increase of 3.2%, which is higher

than the pension increase rate assumption of 2.85%, which was built into the obligations at the start of the

accounting period. The impact of applying the higher assumption serves to increase the employer obligations

by 0.5%.

The change in employer liabilities reflected in the accounting position on the balance sheet do not affect the

cash contribution the employer pays to the Pension Fund. The cash contribution is set by the Fund with

reference to the employers funding position as part of the Triennial valuation.

Local Government Pension Scheme assets comprised:

Quoted prices in

active markets

Quoted

prices not in

active

markets

Quoted

prices in

active

markets

Quoted

prices not in

active

markets

2020 - 2021 2020 - 2021 2021 - 2022 2021 - 2022

£ million £ million £ million £ million

Cash and Cash Equivalents

Cash 25.018 0.000 19.031 0.000

Total Cash and Cash Equivalents 25.018 0.000 19.031 0.000

Equity Instruments (by industry)

Consumer 40.914 0.000 0.000 0.000

Manufacturing 23.416 0.000 0.000 0.000

Energy and utilities 5.488 0.000 0.000 0.000

Financial institutions 22.310 0.000 0.000 0.000

Health and care 10.788 0.000 0.000 0.000

Information Technology 9.108 0.000 0.000 0.000

Other 22.650 0.000 0.000 0.000

Total Equity 134.674 0.000 0.000 0.000

Bonds (by sector)

Corporate 369.761 0.000 391.014 0.000

Government 65.663 0.000 71.636 0.000

Total Bonds 435.424 0.000 462.650 0.000

Private Equity

All 17.082 50.428 21.060 64.291

Total Private Equity 17.082 50.428 21.060 64.291

Property

UK Property 131.812 0.000 156.311 0.000

Total Property 131.812 0.000 156.311 0.000

Other Investment Funds

Equities 720.561 0.000 836.920 0.000

Hedge Funds 91.228 0.000 89.411 0.000

Infrastructure 0.000 44.110 0.000 138.195

Other 0.000 38.397 0.000 52.981

Total Other Investment Funds 811.789 82.507 926.331 191.177

Derivatives

Foreign Exchange -0.144 0.000 0.000 0.000

Total Derivatives -0.144 0.000 0.000 0.000

Total Assets 1,555.655 132.935 1,585.382 255.468

Fair value of scheme assets

Notes to the Core Statements

Suffolk County Council 87 Notes to the Core Statements

Basis for Estimating Assets and Liabilities

Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the

pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels and

other relevant factors.

Both the Local Government Pension Scheme and discretionary benefits liabilities have been assessed by

Hymans Robertson LLP, an independent firm of actuaries. Estimates for the Suffolk County Council Pension

Fund are based on the latest full valuation of the scheme as at 31 March 2022.

The significant assumptions used by the actuary have been:

The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table

above. The sensitivity analysis below has been determined based on possible changes of the assumptions

occurring at the end of the reporting period and for each change, the assumption analysed could then change,

while all the other assumptions remain constant. The assumptions in longevity, for example, assume the life

expectancy increases or decreases for men and women. In practice, this is unlikely to occur, and changes in

some of the assumptions may be interrelated. The estimations in the sensitivity analysis have followed the

accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The

methods and types of assumptions used in preparing the sensitivity analysis below did not change from those

used in the previous period.

Local Government Pension Scheme

This estimates that a one-year increase in life expectancy would approximately increase the Employer's Defined

Benefit Obligation by approximately 3% to 5%.

The principal assumptions used by the actuary have been: 2020 - 2021 2021 - 2022 2020 - 2021 2021 - 2022

Mortality assumptions:

Longevity at retirement for current pensioners:

Men 22.1 22.0 26.6 26.3

Women 24.5 24.6 28.9 28.7

Longevity at retirement for future pensioners:

Men 23.2 22.7 27.9 27.7

Women 26.4 26.2 30.3 30.1

Rate of inflation 2.9% 3.2% 3.3% 3.7%

Rate of increase in pensions 2.9% 3.2% 2.9% 3.2%

Rate of increase in salaries 3.6% 4.2% 3.3% 3.7%

Rate for discounting scheme liabilities 2.0% 2.7% 2.0% 2.7%

Local Government Pension

Scheme

Uniformed Fire Fighters

Change in assumptions at year ended 31 March 2022:

Approximate %

increase to

Employer Liability

Increase in

Assumption

Decrease in

Assumption

£ million £ million

0.1% increase in Salary Increase Rate 0% 16.068 -16.068

0.1% increase in Pension Increase Rate (CPI) 2% 49.822 -49.822

1 year increase in member life expectancy 4% 88.775 -88.775

0.1% decrease in Real Discount Rate 2% 54.934 -54.934

Notes to the Core Statements

Suffolk County Council 88 Notes to the Core Statements

Uniformed Fire Fighters Scheme

Impact on the Council’s Cash Flows

The objectives of the scheme are to keep the employer’s contribution rate stable. Suffolk Pension Fund has

agreed a strategy with the scheme's actuary to achieve a funding level of 100% over the next 20 years. Funding

levels are monitored on an annual basis. A triennial valuation exercise is carried out every three years, the last

one was based on the figures as at 31 March 2022.

Suffolk County Council anticipated to pay £37.548 million expected contributions to the scheme for 2022 - 2023.

The weighted average duration of the defined benefit obligation for scheme members is 20 years in 2021 –

2022.

34. Contingent Liabilities

At 31 March 2022, the Council had 3 contingent liabilities:

Municipal Mutual Insurance (MMI)

In 1992 Municipal Mutual Insurance (MMI), one of the Council’s insurers at the time, stopped accepting new

business. MMI and its policy holders, including local authorities, organised a scheme of arrangement which

provided for the company to be wound up in an orderly manner in the event that there was a shortfall in the

amount of assets held by MMI. Under the scheme of arrangement MMI could claim back from its major policy

holders part of any claims which it had paid them from 1 October 1993 onwards by way of a levy.

Following a meeting of the Board of Directors of MMI on 13 November 2012, MMI wrote to its policy holders to

advise that the Board had decided to trigger the scheme of arrangement and control of the company then

passed to the administrators, Ernst and Young LLP. Ernst and Young LLP have advised that an initial levy of

15% of claims paid since October 1993. In addition, any future claims that it settles on behalf of MMI will also

be subject to a 15% reduction, with the shortfall being met by the respective policyholders. The Council settled

the initial Ernst and Young LLP levy in 2013 - 2014 in respect of the past MMI claims which have been paid and

for the shortfall in the future settlement of the claims which had been received up to March 2014, based on the

initial levy percentage of 15%. Each month MMI issue a statement and invoice for 15% of any claims paid.

In November 2015 Ernst and Young indicated that a second levy will be implemented in the 2016 - 2017 financial

year and the amount of the levy will be subject to further upward revision. On 1 April 2016 Ernst and Young

confirmed the levy will be increased by 10% to a total 25%. An invoice for the backdated 10% was paid in May

2016 and the monthly invoices will be increased from 15% to 25%.

Whereas the latest published set of accounts from MMI (dated 30 June 2021) confirmed that “no further changes

to the payment percentage are currently anticipated.”, there is the potential for percentage levied against past

schemes could increase above 25% at some point in the future. There is sufficient cover in the Council’s

reserves to fund reasonable increases in the amount of any further levy that may be imposed by Ernst and

Young LLP.

Adult Social Care - Provider Transition Payments

As part of the Council’s programme of support to adult social care providers over the period of the COVID-19

pandemic, providers were invited to submit claims under a transitional payments scheme. The deadline for

submitting such claims was 1 July 2021. However, a claim was submitted subsequent to this deadline. Whereas

there is no obligation for the Council to honour this claim, and the Council has not given any commitment to do

so, there is the potential for the claim to be fully or partially paid during 2022-23 if it is assessed over the coming

months that this is necessary to ensure supplier and market stability.

Change in assumptions at year ended 31 March 2022:

Approximate %

increase to

Employer Liability

Increase in

Assumption

Decrease in

Assumption

£ million £ million

1 year increase in member life expectancy 3% 8.631 -8.631

0.5% increase in Salary Increase Rate <1% 0.867 -0.867

0.5% increase in Pension Increase Rate (CPI) 8% 22.178 -22.178

0.5% decrease in Real Discount Rate 9% 26.300 -26.300

Notes to the Core Statements

Suffolk County Council 89 Notes to the Core Statements

Adult Social Care – Contract Disputes

Further to the termination of a block contract for adult social care, an amount remains in dispute with the

provider. Following legal advice, the Council has paid the element of the disputed amount for which it

understands it is liable. Although the remaining amount is not being actively pursued at this stage by the

provider, it remains unresolved, with the potential for the Council be required to make payment should the

provider choose to take this matter further and be successful in its claim.

35. Contingent Assets

At 31 March 2022, the Council had no contingent assets.

36. Financial Instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or

equity instrument of another entity. Non-exchange transactions, such as those relating to taxes and government

grants, do not give rise to financial instruments.

Financial Liabilities

A financial liability is an obligation to transfer economic benefits controlled by the Council and can be

represented by a contractual obligation to deliver cash or financial assets or an obligation to exchange financial

assets and liabilities with another entity that is potentially unfavourable to the Council.

The Council’s financial liabilities held during the year are measured at amortised cost and comprised:

• Long term loans from the Public Works Loan Board (PWLB) and commercial lenders

• Short term loans from other local authorities

• Private Finance Initiative contracts detailed in note 29

• Trade payables for goods and services received

Financial Assets

A financial asset is a right to future economic benefits controlled by the Council that is represented by cash,

equity instruments or a contractual right to receive cash or other financial assets or a right to exchange financial

assets and liabilities with another entity that is potentially favourable to the Council. The financial assets held

by the Council during the year are accounted for under the following classifications:

• Amortised cost (where cash flows are solely payments of principal and interest and the Council’s

strategy is to collect those cash flows) comprising:

o Cash in hand

o Bank current and deposit accounts with Lloyds Bank PLC

o Loans to divested organisations and local education providers

o Loans to service users made for service purposes

o Trade receivables for goods and services provided

• Fair value through profit and loss comprising:

o Money market funds

o The Churches, Charities, and Local Authorities Property Fund (CCLA)

Financial assets held at amortised cost are shown net of a loss allowance, reflecting the statistical likelihood

that the borrower or debtor will be unable to meet their contractual commitments to the Council.

The financial assets and liabilities disclosed in the Balance Sheet are analysed across the following

categories:

Notes to the Core Statements

Suffolk County Council 90 Notes to the Core Statements

*The Council has adjusted for grants, council tax, business rates, HM Revenue and Customs balances and the

bad debt provision. The debtor figure on the Balance Sheet has been reduced by £46.572 million (£54.264

million 2020 - 2021) and the creditors figure on the Balance Sheet has been reduced by £67.959 million (£68.682

million 2020 - 2021) in 2021 – 2022.

** The total short-term borrowing includes £25.119 million (2020 - 2021: £21.812 million) representing accrued

interest and principal repayments due within 12 months on long-term borrowing

Offsetting Financial Assets and Liabilities

Financial assets and liabilities are off set against each other where the Council has a legally enforceable right

to offset and it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

The Council operates its bank accounts with Lloyds Bank PLC on a pooled basis and offsets overdrawn and in

hand bank accounts. The table below shows the effect of this offsetting arrangement on the balance sheet.

31 March 2021 31 March 2022 31 March 2021 31 March 2022

£ million £ million £ million £ million

Investments

Assets at amortised cost

Loans and Receivables 13.516 8.817

Assets at Fair Value through profit and loss

Loans and Receivables 0.006 0.006

Equity Investment

Investments in Pooled Funds 46.858 48.698

Total Investments 0.000 0.000 60.380 57.521

Debtors

Assets at amortised cost

Loans and Receivables 2.042 1.851

Trade Receivables and similar instruments 30.451 22.579 44.271 62.406

Assets at Fair Value through profit and loss

Loans and Receivables 0.160 0.154

Total included in Debtors * 32.653 24.584 44.271 62.406

Assets at amortised cost

Cash and Cash Equivalents 0.710 1.783

Total Cash and Cash Equivalents 0.000 0.000 0.710 1.783

Total Financial Assets 32.653 24.584 105.361 121.710

Borrowings

Loans at amortised cost 356.217 361.063 67.640 105.832

Total Borrowings** 356.217 361.063 67.640 105.832

Other Liabilities

Liabilities at Amortised Cost:

PFI Liabilities 39.975 37.273 2.247 2.701

Other Long Term Liabilities 29.997 34.767

Total Liabilities 69.972 72.040 2.247 2.701

Creditors

Liabilities at Amortised Cost

Trade Payables and similar instruments 129.532 111.301

Total included in Creditors * 0.000 0.000 129.532 111.301

Total Financial Liabilities 426.189 433.103 199.419 219.834

Long Term Assets & Liabilities

Current Assets & Liabilities

Notes to the Core Statements

Suffolk County Council 91 Notes to the Core Statements

Financial Instrument Gains and Losses

The gains and losses recognised in the Comprehensive Income and Expenditure Statement in relation to

financial instruments consist of the following items:

Included within the interest expense is a £20.072 million premium paid in relation to the restructuring of two

“Lenders Option Borrower Option” LOBO loans held with Commerzbank. In August 2021 it was agreed that the

Council would repay the principal of £30 million outstanding on these loans along with the above premium. The

loans were replaced with a single £50.072 million loan from the Public Works Loan Board’ at a lower interest

rate. This reduced both future interest rate risk and refinancing risk, and provided a cash saving and a Net

Present Value saving to the Council over the life of the original loans.

Although the cashflows for these loans occurred in 2021 - 2022 regulations allow that the premium should be

amortised over the life of the original loans (45 years). This will be undertaken as a Movement in Reserves with

£0.466 million chargeable as an expense each year. For 2021 - 2022 £19.626 million will be allocated to the

Financial Instrument Adjustment Account in relation to the remaining amortisation.

Fair Values of Assets and Liabilities

Financial instruments, except those classified at amortised cost, are carried in the Balance Sheet at fair value.

For most assets, including shares in money market funds and other pooled funds, the fair value is taken from

the market price.

Financial instruments classified at amortised cost are carried in the Balance Sheet at amortised cost. Their fair

values have been estimated by calculating the net present value of the remaining contractual cash flows at 31

March 2022, using the following methods and assumptions:

• Loans borrowed by the Council have been valued by discounting the contractual cash flows over the

whole life of the instrument at the appropriate market rate for local authority loans.

• The fair values of other long-term loans and investments have been discounted at the market rates for

similar instruments with similar remaining terms to maturity on 31st March.

• The fair value of PFI scheme liabilities have been calculated by discounting the contractual cash flows

(excluding service charge elements) at the appropriate AA-rated corporate bond yield.

Gross assets

(liabilities)

(Liabilities)

assets off set

Net position

on balance

sheet

Gross

assets

(liabilities)

(Liabilities)

assets off set

Net position on

balance sheet

£ million £ million £ million £ million £ million £ million

29.916 -29.206 0.710 Bank accounts in credit 31.520 -29.737 1.783

-29.206 29.206 0.000 Bank overdrafts -29.737 29.737 0.000

0.710 0.000 0.710 Total shown in assets 1.783 0.000 1.783

31 March 2021

31 March 2022

Financial

Liabilities

Financial

Assets

Financial

Liabilities

Financial

Assets

Liabilities

measured at

amortised cost

Loans and

receivables

Total

Liabilities

measured at

amortised cost

Loans and

receivables

Total

£ million £ million £ million £ million £ million £ million

-17.144 -17.144 -35.874 -35.874

Losses on derecognition -0.005 -0.380 -0.385 -0.002 -0.491 -0.493

-0.672 -0.672 -0.170 -0.170

-17.149 -1.052 -18.201 -35.876 -0.661 -36.537

1.126 1.126 1.549 1.549

Gains on derecognition 0.017 0.015 0.032 0.031 0.009 0.040

Fair Value gains / losses (-) -0.094 -0.094 0.803 0.803

0.017 1.047 1.064 0.031 2.361 2.392

Net gain/loss for the year -17.132 -0.005 -17.137 -35.845 1.700 -34.145

Total income in Surplus or (Deficit) on

the Provision of Services

2020 - 2021

2021 - 2022

Interest expense

Impairment losses (-) /gain

Total expense in Surplus or (Deficit)

on the Provision of Services

Interest and dividend income

Notes to the Core Statements

Suffolk County Council 92 Notes to the Core Statements

• No early repayment or impairment is recognised for any financial instrument.

• The fair value of short-term instruments, including trade payables and receivables, is assumed to

approximate to the carrying amount given the low and stable interest rate environment.

Fair values are shown in the table below, split by their level in the fair value hierarchy:

• Level 1 – fair value is only derived from quoted prices in active markets for identical assets or liabilities,

e.g. bond prices

• Level 2 – fair value is calculated from inputs other than quoted prices that are observable for the asset

or liability, e.g. interest rates or yields for similar instruments

• Level 3 – fair value is determined using unobservable inputs, e.g. non-market data such as cash flow

forecasts or estimated creditworthiness

* The fair value of short term financial liabilities and assets, including trade payables and receivables, is

assumed to be approximate to the carrying amount.

The fair value of the liabilities is higher than the carrying amount because the Council’s portfolio of loans includes

loans where the interest rate payable is higher than the current rates available for similar loans at the Balance

Sheet date.

The Fair Value of the Councils equity holdings are assessed within level 3 of the Fair Value Hierarchy, due to

no quoted market for the holdings, nor are there similar markets to assess by once all relevant factors are

assessed.

The Councils equity holdings at the start of the year were a 20% share in Suffolk Norse Limited, a company

formed as a joint venture to provide transport services to the Council. The market within which the company

operated was mainly in the provision of a single contract with the Council such that there was no assessable

value in its external trading capabilities or ability to transact with other markets.

During 2020 - 2021 it was agreed that the contract with the Council would terminate. In the 2020 - 2021 accounts

the equity holdings of the company were held at Fair Value and this was assessed as nil, as the company has

now ceased trading and is awaiting dissolution the Fair Value has been maintained as nil.

The Council has no other equity holdings and has no acquisitions or disposals within the year.

Balance Balance

Sheet Fair Value Fair Sheet Fair Value

31 March 2021 31 March 2021 Value 31 March 2022 31 March 2022

£ million £ million Level £ million £ million

Financial liabilities held at amortised cost:

181.217 200.988 Long-term loans from PWLB

2209.412 226.908

175.000 298.873 Long Term Bank and LOBO Loans

2151.651 264.453

39.975 64.973 Long-term PFI liabilities

337.274 55.823

Financial liabilities for which fair value is not disclosed*:

229.415 Trade Payables and Other Long Term Liabilities 254.601

625.607 TOTAL FINANCIAL LIABILITIES 652.937

Held as:

426.188 Long Term Financial Liabilities 433.102

199.419 Current Financial Liabilities 219.834

625.607 TOTAL FINANCIAL LIABILITIES 652.937

Financial assets held at fair value:

46.858 46.858 Investments in Pooled Funds

148.698 48.698

0.000 0.000 Equity Investments (shares)

Financial assets for which fair value is not disclosed*:

13.522 Investments - Loans and Receivables 8.823

76.925 Debtors 86.990

0.710 Bank Balances 1.783

138.015 TOTAL FINANCIAL ASSETS 146.294

Held as:

32.654 Long-term Financial Assets 24.584

105.361 Current Financial Assets 121.710

138.015 TOTAL FINANCIAL ASSETS 146.294

Notes to the Core Statements

Suffolk County Council 93 Notes to the Core Statements

37. Nature and Extent of Risks arising from Financial Instruments

The Council complies with CIPFA’s Code of Practice on Treasury Management and Prudential Code for Capital

Finance in Local Authorities, both revised in December 2021.

In line with the Treasury Management Code, the Council approves a Treasury Management Strategy before the

commencement of each financial year. The Strategy sets out the parameters for the management of risks

associated with financial instruments. The Council also produces Treasury Management Practices specifying

the practical arrangements to be followed to manage these risks.

The Treasury Management Strategy includes an Investment Strategy in compliance with the Department for

Levelling Up, Housing and Communities Guidance on Local Government Investments. This Guidance

emphasises that priority is to be given to security and liquidity, rather than yield. The Council’s Treasury

Management Strategy and its Treasury Management Practices seek to achieve a suitable balance between risk

and return or cost.

The main risks covered are:

• Credit Risk: The possibility that the counterparty to a financial asset will fail to meet its contractual

obligations, causing a loss to the Council.

• Liquidity Risk: The possibility that the Council might not have the cash available to make contracted

payments on time.

• Market Risk: The possibility that an unplanned financial loss will materialise because of changes in

market variables such as interest rates or equity prices.

Credit Risk

The following analysis summarises the Council’s potential maximum exposure to credit risk on its Financial

Assets.

The Council manages credit risk in its treasury investments by ensuring that such investments are only placed

with organisations of high credit quality as set out in the Treasury Management Strategy. These include

commercial entities with a minimum long-term credit rating of A-, the UK government, other local authorities,

and organisations without credit ratings upon which the Council has received independent investment advice.

A limit of £25 million of the total portfolio is placed on the amount of money that can be invested with a single

counterparty (other than the UK government). For unsecured investments in banks, building societies and

companies, a smaller limit of £10m applies. No more than £90 million in total can be invested for a period longer

than one year.

Amount at 31

March 2022

Total by Debt

Category

Estimated

Maximum

exposure to

default and

uncollectability

at 31 March 2022

Net Debtor

Estimated

maximum

exposure at

31 March

2021

£ million £ million £ million £ million £ million

Deposits with Banks and Financial institutions 59.150 59.150 0.000 59.150 0.000

Loans and receivables at amortised cost 2.164 2.164 0.004 2.160 0.010

Customer Debt

Secured Debt: Care Supplies 4.728

Secured Debt: Other Long Term Debt 23.800

Non aged debt 35.048

Debts less than 90 days old 8.695

Debts >90days but <365 days old 6.051

Debts outstanding for 365 days and over 9.351

Total for Customer Debt 87.673 2.689 84.984 2.514

Total 148.987 2.693 146.294 2.524

Notes to the Core Statements

Suffolk County Council 94 Notes to the Core Statements

In addition to the Financial Assets within the Council’s treasury investments the Council also has Financial

Assets in the form of trade receivables and service loans. The Council generally has terms that give customers

30 days to pay their debts which are classed as ‘current’. Of the £59.145 million classified as receivable trade /

general debtors there is £19.895 million (£8.467 million, 2020 - 2021) outstanding greater than 30 days.

There are two types of Secured Debt; £4.728 million of Care Supplies which have been secured against the

assets of customers, and £23.800 million relating to the sale of land at Chilton Woods where an interest in the

land is held to secure future payment.

Loss allowances on trade receivables have been calculated with reference to the Council’s historic experience

of default and where appropriate the specific circumstances of the debt. For care debt the loss allowance is

initially applied according to the type of debtor; care customer, provider organisations or NHS and other

authorities. Debts over 90 days old are also allocated a Red, Amber, or Green status based on individual

circumstance, with each status allocated a different likelihood of payment.

For debts relating to other services those over 90 days old and over £0.005 million are allocated a Red, Amber,

or Green status, with smaller and shorter terms debts having a loss allowance calculated on historic default

rates according to the age of the debt.

In furtherance of the Council’s service objectives, it has also lent money to its subsidiary companies and local

companies where this will help to fulfil those service objectives. These loans are held on the balance sheet at

amortised cost and the Council makes a provision for credit risk against them by calculating an expected credit

loss.

Liquidity Risk

The Council has ready access to borrowing at favourable rates from the Public Works Loan Board and other

local authorities, and at higher rates from banks and building societies. There is no perceived risk that the

Council will be unable to raise finance to meet its commitments. It is however exposed to the risk that it will

need to refinance a significant proportion of its borrowing at a time of unfavourably high interest rates. This risk

is managed by maintaining a spread of fixed rate loans and ensuring that no more than 50% of the Council’s

borrowing matures in any one financial year.

The maturity analysis of financial instruments is as follows:

12-month

Expected

Credit

Losses

Credit Risk

has increased

significantly

Simplified

approach

for

receivables

Total loss

allowances

Allowance at 31 March 2021

0.010 2.513 2.523

Change in Risk -0.004 0.176

0.172

Loans Repaid -0.002

-0.002

Allowance at 31 March 2022 0.004 0.000 2.689 2.693

Lifetime Credit Losses

31 March 2021 31 March 2022

£ million £ million

Less than one year 67.640 105.832

Between one and two years 28.121 92.369

Between two and five years 203.096 95.364

More than five years 125.000 173.330

423.857 466.895

Notes to the Core Statements

Suffolk County Council 95 Notes to the Core Statements

The Council has £100.000 million (2020 – 2021: £130.000 million) of “Lender’s Option, Borrower’s Option

(LOBO) loans where the lender has the option to propose an increase in the rate payable; the Council will

then have the option to accept the new rate or repay the loan without penalty. Given the level of current

interest rates it is unlikely that any will be called within 2022 – 2023, in the unlikely event that the lender

exercises its option the Council is likely to repay these loans. The maturity date is therefore uncertain, and

they are included in the table based on the next option dates falling after 31 March 2023.

Market Risk: Interest Rate Risk

The Council is exposed to risk in terms of its exposure to interest rate movements on its borrowings and

investments. Movements in interest rates have a complex impact on the authority. For instance, a rise in interest

rates would have the following effects:

• borrowings at variable rates – the interest expense will rise

• borrowings at fixed rates – the fair value of the liabilities will fall

• investments at variable rates – the interest income will rise

• investments at fixed rates – the fair value of the assets will fall

Investments measured at amortised cost and loans borrowed are not carried at fair value, so changes in their

fair value will have no impact on the Comprehensive Income and Expenditure Statement. However, changes in

interest payable and receivable on variable rate borrowings and investments will be posted to the Surplus or

Deficit on the Provision of Services.

The Treasury Management Strategy aims to mitigate these risks by setting upper limits on its net exposures to

fixed and variable interest rates. The Treasury Management team has an active strategy for assessing interest

rate exposure that feeds into the setting of the annual budget and is used to update the budget on a quarterly

basis. This allows for any adverse changes to be accommodated. The analysis will also advise whether new

borrowing taken out should be on fixed or variable rates.

Market Risk: Price Risk

The Council’s investment in a pooled property fund is subject to the risk of falling commercial property prices.

This risk is limited by the Council’s maximum exposure to property investments of £10 million. A 5% fall in

commercial property prices at 31 March 2022 would result in a £0.269 million (2020 - 2021: £0.223 million)

charge to Surplus or Deficit on the Provision of Services which is then transferred to the Pooled Investment

Funds Adjustment Account.

Market Risk: Foreign Exchange Risk

The Council does not currently invest in any fund which is subject to Foreign Exchange risk.

38. Interest in Companies

The Council holds a majority interest in the following company:

Company

Company Registration Number

Date Incorporated

Suffolk Group Holdings

09570600

01 May 2015

And held a minority interest in:

Suffolk Norse Limited

07911392

16 January 2012

Suffolk Group Holdings Ltd

Suffolk Group Holdings Ltd was incorporated to become the parent company of Vertas Group Ltd, Opus People

Solutions Ltd and Concertus Design and Property Consultants Ltd, companies in which the Council held

controlling interests. The Holding company issued 100 £1 ordinary shares to the Council. The Council’s

shareholdings in Vertas Group, Concertus and Opus were transferred to the Holding company on 1 April 2016.

Notes to the Core Statements

Suffolk County Council 96 Notes to the Core Statements

Suffolk Norse Limited

Suffolk Norse Limited is a joint venture between Suffolk County Council and Norse Commercial Services

Limited, a company ultimately controlled by Norfolk County Council. The Council holds 2 £1 ordinary shares

representing 20% of the share capital of the Company.

Suffolk Norse Limited was formed to provide transport services to Suffolk County Council. The contract for this

ended during 2021 - 2022. At the last balance sheet date, 31 March 2021, the Council held the investment at

nil value. Following the cessation of the contract the company has ceased trading and is awaiting dissolution,

as there are no ongoing operations the Council has maintained the investment at nil value.

For further details of the Councils transactions with these companies and the structures of the companies held

by Suffolk Group Holdings please see note 26: Related Parties.

Please refer to the prepared Group Accounts that begin on page 96. The statements are intended to present

financial information about the parent (the Council) and then additionally reflect the Council’s share of Suffolk

Group Holdings net assets, expenditure and income in a unified set of accounts.

39. Publicity

There is no longer the requirement for authorities to publish this information in their statement of accounts.

However, Suffolk County Council is continuing with the note in the interest of transparency.

The table below details the Council’s spending on publicity.

40. Going Concern

The concept of a going concern assumes that a local authority’s functions and services will continue in

operational existence for the foreseeable future. The provisions in the Code in respect of going concern reporting

requirements reflect the economic and statutory environment in which local authorities operate. These

provisions confirm that, as authorities cannot be created or dissolved without statutory prescription, they must

prepare their financial statements on a going concern basis of accounting.

Local authorities carry out functions essential to the local community and are themselves revenue raising bodies

(with limits on their revenue raising powers, arising only at the discretion of central government). If an authority

were in financial difficulty, the prospects are thus that alternative arrangements might be made by central

government either for the continuation of the services it provides or for assistance with the recovery of a deficit

over more than one financial year. As a result of this, it would not therefore be appropriate for local authority

financial statements to be provided on anything other than a going concern basis. The Council’s accounts are

therefore produced under the Code and assume that the Council’s services will continue to operate for the

foreseeable future. Nonetheless, the Council has carried out an exercise to demonstrate that it is a going concern

based on its current and forecast future financial position.

The Council ended 2021 – 2022 with a robust financial position, and therefore has a strong basis to withstand

the particularly challenging time expected in the months and years ahead for Local Government finances.

Alongside setting a balanced budget for 2022 - 2023, it reported a net underspend against its 2021 – 2022

Budget of £9.043 million. In addition, although its usable reserves fell from £253.149 million to £242.484 million

during 2021 – 2022, this was mainly attributable to planned application of reserves during the year.

Since the 31 March 2022, the financial environment in which the Council has operated has become more

challenging as a result various economic and geopolitical factors which have led to rises in inflation and interest

rates beyond those expected when the 2022 – 2023 Budget was set in February 2022. The impact of this has

2020 - 2021 2021 - 2022

£ million £ million

0.352 Staff recruitment 0.605

0.524 Other advertising 0.099

0.876 0.704

Notes to the Core Statements

Suffolk County Council 97 Notes to the Core Statements

led to the Council reporting an overspend of £12.247 million against its Revenue Budget in the “2022-23

Revenue Budget and 2022-23 Capital Programme – Quarter 2” report presented to Cabinet on 8 November

2022. However, despite this, the Council’s finances remain on a sustainable footing.

The Council’s continued sustainable financial footing was demonstrated in the 2023 - 2024 Budget approved

by Council on 9 February 2023 which set a balanced budget for 2023 - 2024, and the associated 2023 -2026

Medium Term Financial Plan, which forecast a balanced budget for 2024 - 2025, with a £10.230 million budget

gap emerging from 2025 - 2026 as shown in Table 1 below. This contrasts with the £36.165 million budget gap

that was forecast for 2025 - 2026 in the 2022 - 2023 Budget.

Table 1 – 2023 – 2026 Budget Gap

The improvement in short and medium term financial prospects from the position outlined in the 2022 - 2023

Budget has occurred despite inflation increasing to its highest rate in a generation, interest rates rising sharply

to levels not seen in over a decade, and escalating pressures within children’s social care. This has been made

possible due to a combination of the unexpected additional funding for social care, along an increase to the

referendum threshold for Council Tax to 5%, announced as part of the Chancellor of the Exchequer’s Autumn

Statement on 17 November 2022, and £25.140 million of additional itemised savings (£15.548 million for

delivery in 2023 - 2024, with a further £9.602 million for delivery in 2024-25) developed through the budget

setting process.

Whereas there is more confidence about the Council’s funding in 2024 - 2025 than it has been for any

subsequent year for quite some time due to the detail provided in the Local Government Finance Settlement,

things are a lot less certain by 2025 – 2026 with the prospect of fiscal tightening by that year as indicated by the

Chancellor’s Autumn Statement. However, whereas the immediate focus will necessarily be to deliver the

saving plans identified for 2023 - 2024 and 2024 - 2025, further plans will need to be developed to manage the

emerging gap from 2025-26 to ensure that the Council can remain sustainable financially. Nonetheless, this

gap is well within the unallocated reserves forecast to be held by the Council over the course of the Medium-

Term Financial Plan.

The Council’s reserves position and forecast remains healthy, with the Council holding reserves that have been

assessed to adequately meet its financial risk exposure, as well as holding sufficient reserves to meet time-

limited contractual and other obligations for which resources are not held in the revenue budget. Whereas

reserves have been used to support the funding of the 2023 - 2024 Budget, these are one-off, with the 2024 -

2025 Budget plans not requiring any further application of reserves. Although usable reserves are forecast to

fall over the period of the 2023 – 2026 Medium Term Financial Plan from balance of £242.484 million at the end

of 2021 - 2022 to £145.525 million by the end of 2025 – 2026, the change principally relates to the application

of reserves allocated for defined future uses and reserves to relating to capital investment. Unallocated

Reserves remain at healthy levels, and are only forecast to reduce from £67.710 million at the end of 2022 –

2023 to £63.349 million at the end of 2025 – 2026, with the balance held continuing to be consistent with an

assessment of the quantum of financial risk held by the Council. However, it is recognised that much

uncertainty exists over the period of the 2023 – 2026 Medium-Term Financial Plan, and that the Council will

need to respond swiftly to any deterioration in its financial position, either as a result of further increases to cost

pressures, or failure to deliver its savings targets. Further information on the assumptions that underpin the

Council’s financial plans, and which provide the basis for this Going Concern assessment, can be found in the

2023 - 2024 Budget report and associated appendices approved by Suffolk County Council on 9 February 2023.

In particular, the reserves forecast that formed part of the 2023 – 2026 MTFP assumes that the savings and

mitigation targets identified as part of that 2023 – 2026 MTFP are delivered, with the Council’s cash flow

forecasting and assessment of the adequacy of its liquidity position demonstrating positive cash balances

throughout the going concern period, with no expectation of external borrowing [other than to support the capital

programme which is consistent to the Council’s plans and normal practice]. In contrast to this, Table 2 below

2023-2024

(£million)

2024-2025

(£million)

2025-2026

(£million)

Net Expenditure Budget 687.592 716.413 743.649

Core Funding Budget -687.592 -716.413 -733.419

Budget Gap 0.000 0.000 10.230

Notes to the Core Statements

Suffolk County Council 98 Notes to the Core Statements

illustrates a downside scenario where none of these planned savings and mitigations are delivered. In this

scenario, the Council would continue to have positive useable reserves at the end of the reporting period. As a

result, and given the Council’s track record of managing challenging financial situations over the past decade

or so, it is satisfied that there is no material uncertainty relating to the Council’s going concern. Moreover, there

is no material uncertainty with regard to the Council’s wholly owned company, Suffolk Group Holdings Limited,

whose 2021- 2022 financial statements were given an unqualified audit opinion in September 2022 on the basis

that, inter alia, it is a going concern.

Table 2 – 2023- 2026 Medium Term Financial Plan - Useable Reserves and Savings Analysis

* Reserve balance adjusted from 2023 – 2026 Medium Term Financial Plan figures to reflect that the final 2021

– 2022 reserves balance is £0.811 million higher than the £241.673 million used within the MTFP.

2022-23

(£million)

2023-24

(£million)

2024-25

(£million)

2025-26

(£million)

Useable Reserves - Opening Balance as per 2023-26 MTFP * 242.484 185.944 157.214 154.184

Forecast / Planned Reserves Change as per 2023-24 Budget -56.540 -28.730 -3.030 -7.848

Useable Reserves - Closing Balance as per 2023-26 MTFP 185.944 157.214 154.184 146.336

2023-24 Cumulative Savings/Mitigations -31.079 -62.158 -93.237

2024-25 Cumulative Savings/Mitigations -17.702 -35.404

2025-26 Cumulative Savings/Mitigations -3.000

Useable Reserves - Closing Balance assuuming none of the

2023-26 MFTP savings or mitigations are delivered

185.944 126.135 74.324 14.695

Group Accounts – Introduction

Suffolk County Council 99 Group Accounts

Group Accounts

Introduction to the Group Accounts

The 2021 - 2022 Code of Practice on Local Authority Accounting in the United Kingdom sets out the

requirements for group accounts, requiring Local Authorities to consider all their interests in subsidiaries,

associates, or joint ventures.

The Council has a relationship with other companies and organisations whose assets and liabilities are not

included in the Council’s single entity accounts. Where the Council’s interest does not extend to a relationship

that could be classed as a subsidiary, associate or joint venture, those entities have not been included in the

Group Accounts.

The Council does have interests in, or control over, several companies that are classified as a subsidiary,

associate, or joint venture. Details of the organisations falling within the Council’s group boundary are as

follows:

The Council’s subsidiaries, Suffolk Group Holdings Ltd, is the parent of the three companies noted below.

1) Vertas Group Ltd, who own:

• IEM Caterquip Ltd

• Oakpark Security Systems Ltd

• Churchill Catering Ltd

• Vertas Environmental Ltd

• Verse Facilities Management Ltd

• Vertas (Ipswich) Ltd

• Diamond View Cleaning Solutions Ltd

• Suffolk Skills Academy Ltd

• Vertas Suffolk Larder Ltd

• Vertas (Derbyshire) Ltd

• Vertas (Derbyshire) Traded Ltd

2) Opus People Solutions Group Ltd, who own:

• Opus People Solutions East Ltd

• Opus People Solution Ltd

• Opus Teach Ltd

3) Concertus Design and Property Consultants Ltd, who own:

• The Energy Practice Ltd

• Carbon Chain Ltd

• Concertus Suffolk Ltd

• Concertus Derbyshire Ltd

• Concertus Derbyshire Traded Ltd

During the year the Council’s joint venture with Norse Commercial Services Limited called Suffolk Norse Ltd

ceased trading and is in the process of being dissolved.

The Council also has the following associates:

• Suffolk Libraries Industrial and Provident Society Ltd

• Leading Lives Industrial and Provident Society Ltd

• Realise Futures Community Interest Company

Suffolk Group Holdings Ltd

Suffolk Group Holdings Ltd was created in 2015 to allow Suffolk County Council to consolidate its shareholdings

in subsidiary organisations within a single entity. The Council maintains both officer and Councillor

representation within the board of Suffolk Group Holdings Ltd. The Board receive regular reports of the activities

and results of the groups subsidiary organisations to provide a single point of oversight and management for

these divested organisations.

The Council’s shareholdings in Vertas Group Ltd, Opus People Solutions Ltd, and Concertus Design and

Property Consultants Ltd were transferred to Suffolk Group Holdings in April 2016.

The Council owns 100% of the shareholding of Suffolk Group Holdings Ltd.

Group Accounts – Introduction

Suffolk County Council 100 Group Accounts

Vertas Group Ltd

Vertas Group Ltd was created in 2011 as a wholly owned subsidiary of the Council and began trading on 1

November 2011. The company has a Joint Venture, Verse Facilities Management Ltd, with West Suffolk

Council, and another Vertas (Derbyshire) Limited, with Derbyshire County Council. Vertas (Derbyshire) Limited

owns a subsidiary names Vertas (Derbyshire) Traded Ltd. Vertas Group Ltd also has several wholly owned

subsidiary companies as listed above.

Suffolk Group Holdings owns 100% of the shareholding of Vertas Group Ltd. The Council also made a loan to

Vertas Group Ltd of £2.430 million at the point of inception and a loan of £1.000 million to Schools Choice, a

now dissolved subsidiary of Vertas, upon inception which was subsequently amalgamated with the loan to

Vertas Group Ltd. The balance of the loan was settled within 2021 - 2022.

The principal activities of Vertas Group Ltd are to provide Catering, Grounds, Caretaking, Cleaning, Facilities

Management, Design and Print, and Transport services to the Council and its subsidiaries, schools and other

public sector organisations.

Opus People Solutions Group Ltd

Opus People Solutions Group (Opus) was created in 2014 as a wholly owned subsidiary of the Council. The

company has a joint venture, Opus People Solutions East Ltd with Cambridgeshire County Council,

Northamptonshire County Council, and Milton Keynes Council.

Suffolk Group Holdings owns 100% of the shareholding of Opus People Solutions Ltd.

The principal activity of Opus People Solutions Ltd is the provision of temporary staff to the Council and its

subsidiaries, and other public sector organisations.

Concertus Design and Property Consultants Ltd

Concertus Design and Property Consultants Ltd (Concertus) was created in 2013 as a wholly owned subsidiary

of the Council. The company has three wholly owned subsidiary companies listed above, as well as a Joint

Venture with Derbyshire County Council; Concertus Derbyshire Ltd.

Suffolk Group Holdings owns 100% of the shareholding of Concertus Design and Property Consultants Ltd. The

Council made a loan to Concertus of £1.000 million at inception, with a further £2.500 million secured loan in

2016 - 2017. The first loan has been cleared with the balance of the second loan currently standing at £1.864

million.

The principal activity of Concertus is the provision of design and property consultancy services to the Council,

schools, and other public sector organisations.

Of the organisations falling within the Council’s group boundary, only Suffolk Group Holdings Ltd and its

subsidiaries are considered material to the financial statements and this organisation has been consolidated in

the Group Accounts. The other entities above are not considered material either qualitatively or quantitatively.

For further details on transactions with these entities please see note 26 related parties.

Basis of Consolidation

The Group Accounts have been prepared using the requirements of the Code. Companies or other reporting

entities that are under the ultimate control of the Council have been included in the Council’s Group Accounts

to the extent that they are material to users of the financial statements in relation to their ability to see the

complete economic activities of the Council and its exposure to risk through interests in other entities and

participation in their activities.

Subsidiaries have been consolidated on a line-by-line basis, subject to the elimination of intra-group transactions

from the statements in accordance with the Code.

Group Accounting Policies

The accounting policies used in the preparation of the Group Accounts are the same as for the single entity

accounts of Suffolk County Council as set out in note 1.

Group Accounts – Comprehensive Income and Expenditure Account

Suffolk County Council 101 Group Accounts

2020 - 2021 2021 - 2022

Gross

Gross Net Gross Gross Net

Expenditure

Income Expenditure Expenditure Income Expenditure

£ million

£ million £ million £ million £ million £ million

383.497 -103.701 279.796

Adult and Community Services 397.218 -119.294 277.924

422.139 -281.508 140.631

Children & Young People 454.006 -283.313 170.693

51.857 -45.842 6.015

Public Health & Communities 69.065 -62.033 7.033

30.364 -6.542 23.822

Fire & Public Safety 30.225 -6.467 23.758

104.897 -37.517 67.380

Growth, Highways & Infrastructure 100.191 -38.970 61.221

47.737 -10.141 37.596

Corporate Services 60.060 -16.729 43.331

9.722 -0.204 9.518

Central Resources and Capital Financing 5.957 -0.223 5.734

-1.128 0.333 -0.795

Pension IAS 19 Costs 0.579 0.058 0.637

112.848 -81.650 31.198

Other Services 150.264 -120.628 29.636

1,161.933 -566.772 595.161

Net cost of services/Total Continuing Operations 1,267.565 -647.599 619.966

24.939 -6.238 18.701

Other Operating Expenditure G1 12.251 -0.826 11.425

31.201 -0.394 30.807

Financing and Investment Income and Expenditure G2 54.367 -1.150 53.217

0.000 -658.282 -658.282

Taxation and Non-Specific Grant Income G3 0.000 -661.112 -661.112

1,218.073 -1,231.686 -13.613

Surplus (-)/Deficit on Provision of Services 1,334.183 -1,310.687 23.496

0.173

Tax expenses of Subsidiaries -0.273

-13.440 Group Surplus (-) / Deficit 23.223

-14.143

Surplus on revaluation & restatements of Property Plant

and Equipment assets

-3.583

285.850 Remeasurement of the net defined benefit liability -299.698

271.707 Other Comprehensive Income and Expenditure -303.281

258.267 Total Comprehensive Income and Expenditure -280.058

-0.103 -0.367

Notes

Comprehensive Income and Expenditure attributable to

Non-Controlling Interests*

*Included within the Group statements are companies formed as Joint Ventures or where the Council or its subsidiaries do not hold 100% of

the shareholding witihn the company. These minority interests (Non-Controling Interests) are entitled to a share of the results of those

companies.

Group Accounts – Movement in Reserves Statement

Suffolk County Council 102 Group Accounts

* These adjustments primarily relate to the purchase of goods and services between the Council and its subsidiary companies.

There is also an adjustment to the opening balance to account for adjustments made following the audit of Suffolk Group Holdings Accounts.

£ million £ million £ million £ million £ million £ million £ million

Balance at 31 March 2020 169.398 5.035 174.433 39.180 0.637 39.818 214.251

Movement in Reserves during 2020 - 2021

Group Surplus or Deficit (-) 39.180 -25.740 13.440 0.000 0.000 0.000 13.440

Other comprehensive income and expenditure 0.000 0.000 0.000 -271.667 -0.040 -271.707 -271.707

Total comprehensive income and expenditure 39.180 -25.740 13.440 -271.667 -0.040 -271.707 -258.267

Adjustments between Group Accounts and Council Accounts* -26.534 26.534 0.000 0.000 0.000 0.000 0.000

Adjustments between accounting basis and funding basis under

regulations

71.103 0.000 71.103 -71.103 0.000 -71.103 0.000

Increase / Decrease (-) in year 83.749 0.794 84.543 -342.770 -0.040 -342.810 -258.267

0.000

Transfers to/from (-) Earmarked Reserves 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Balance at 31 March 2021 253.149 5.829 258.978 -303.589 0.598 -302.991 -44.013

Adjustment for Suffolk Group Final Accounts 0.000 0.152 0.152 0.000 0.000 0.000 0.152

Movement in Reserves during 2021 - 2022

Group Surplus or Deficit (-) 5.214 -28.437 -23.223 0.000 0.000 0.000 -23.223

Other comprehensive income and expenditure 0.000 0.000 0.000 303.268 0.013 303.281 303.281

Total comprehensive income and expenditure 5.214 -28.437 -23.223 303.268 0.013 303.281 280.058

Adjustments between Group Accounts and Council Accounts* -30.514 30.514 0.000 0.000 0.000 0.000 0.000

Net increase / decrease (-) before transfers -25.300 2.077 -23.223 303.268 0.013 303.281 280.058

Adjustments between accounting basis and funding basis under

regulations

14.636 0.000 14.636 -14.636 0.000 -14.636 0.000

Increase / Decrease (-) in year -10.664 2.077 -8.587 288.632 0.013 288.645 280.058

Transfers to/from (-) Earmarked Reserves 0.000 0.000 0.000

Total Reserves in the Movements in Reserves statement 242.485 8.058 250.543 -14.956 0.611 -14.346 236.197

Minority Interest's share of reserves of subsidiaries -0.323 -0.323 0.000 -0.323

Balance at 31 March 2022 242.485 7.735 250.219 -14.956 0.611 -14.346 235.873

Council's

Unusable

Reserves

Total Group

Unusable

Reserves

Total Group

Reserves

Council's Usable

Reserves

Suffolk Group

Usable Reserves

Total Group

Usable Reserves

Suffolk Group

Unusable

Reserves

Group Accounts – Balance Sheet

Suffolk County Council 103 Group Accounts

31 March 2021 31 March 2022

£ million Notes £ million

1,464.784 Property, Plant and Equipment G4 1,534.880

9.188 Intangible Assets 9.094

0.839 Heritage Assets 0.850

0.000 Long-term Investments G5 0.588

30.898 Long-term Debtors G6 23.294

1,505.710 Total Long Term Assets 1,568.706

59.148 Short Term Investments 57.375

8.346676 Assets held for sale 5.749

1.924 Inventories 0.845

110.782 Short Term Debtors G7 124.045

13.279 Cash and Cash Equivalents G8 15.030

193.479 Current Assets 203.044

-67.640 Short Term Borrowing -105.832

-223.471 Short Term Creditors G9 -208.345

-2.247 PFI Liability -2.701

-4.755 Donated Asset Account -4.755

-7.729 Provisions -9.169

-305.843 Current Liabilities -330.802

-3.871 Provisions -4.061

-356.603 Long Term Borrowing -361.088

-30.231 Other Long Term Liabilities G10 -34.955

-39.975 PFI Liability -37.274

-85.596 Donated Asset Account -80.840

-905.282 Liability related to defined benefit pension scheme -667.318

-15.803 Capital Grants Receipts in Advance -19.539

-1,437.361 Long Term Liabilities -1,205.075

-44.015 Net Assets / Liabilities (-) 235.873

258.977 Usable Reserves 250.219

-302.992 Unusable Reserves -14.346

-44.015 Total Reserves 235.873

Group Accounts – Cash-flow statement

Suffolk County Council 104 Group Accounts

2020 - 2021 2021 - 2022

£ million Notes £ million

-13.440

Net surplus (-) or deficit on the provision of

services

23.223

-126.825

Adjust net surplus or deficit on the provision of

services for non cash movements

G11 -89.757

115.362

Adjust for items included in the net surplus or deficit on

the provision of services that are investing and

financing activities

G11 86.546

-24.904

Net cash flows from Operating Activities 20.012

-48.171

Investing Activities G12 -2.382

72.985

Financing Activities G13 -18.410

-0.090

Net increase (-) or decrease in cash and cash

equivalents

-0.780

-13.188

Cash and cash equivalents at the beginning of the

reporting period

-13.279

Adjustment for Group Assets reclasified as Cash and

Cash equivelants from 2020-2021 Accounts

-0.971

-13.279

Cash and cash equivalents at the end of the

reporting period

-15.030

Group Accounts

Suffolk County Council 105 Group Accounts

Notes to the Group Accounts

Where added value is provided, additional disclosures are presented below in respect of the Group Accounts.

These are referenced with a G and can be referred to against the main statements of the Group Accounts on

pages 100 to 103.

Where there are no changes to values from the accounts of Suffolk County Council then no additional notes

have been prepared as these are referred to in the notes in the single entity accounts.

G1. Other Operating Expenditure

G2. Financing and Investment Income and Expenditure

G3. Taxation and Non-Specific Grant Income

2020 - 2021 2021 - 2022

£ million £ million

0.798 Payments to the Environment Agency 0.808

0.465 Payments to the Eastern Inshore Fisheries and Conservation Authority 0.472

-8.239 Gains/losses on trading operations -7.991

25.676

Gains/losses on the disposal of non current assets 18.136

18.701 Total 11.425

2020 - 2021 2021 - 2022

£ million £ million

17.341 Interest payable and similar charges 35.910

13.793

Net Interest on the net defined benefit liability 18.457

-0.394 Interest receivable and similar income -0.271

0.000 Other investment income - dividends receivable -0.069

0.066 Impairment Gains (-)/ Losses -0.810

30.806 Total 53.217

2020 - 2021 2021 - 2022

£ million £ million

-340.286 Council Tax Income -361.330

-113.471

Non domestic rates -117.106

-91.875 Non-ringfenced government grants -92.159

-4.755 Donated Assets -7.135

-107.895

Capital grant and contributions -83.382

-658.283 Total -661.112

Group Accounts

Suffolk County Council 106 Group Accounts

G4. Property, Plant and Equipment

In accordance with the temporary relief offered by the Update to the Code on infrastructure assets this note

does not include disclosure of gross cost and accumulated depreciation for infrastructure assets because

historical reporting practices and resultant information deficits mean that this would not faithfully represent the

asset position to the users of the financial statements.

The Council has chosen not to disclose this information as the previously reported practices and resultant

information deficits mean that gross cost and accumulated depreciation are not measured accurately and would

not provide the basis for the users of the financial statements to take economic or other decisions relating to

infrastructure assets.

G5. Long-term Investments

Other

Land and

Buildings

Vehicles

Plant and

Equipment

Surplus

Assets

Assets Under

Construction

Other

Property,

Plant &

Equipment

Infrastructure

Assets (NBV)

Total

Property,

Plant &

Equipment

(NBV)

£ million £ million £ million £ million £ million £ million

2020 - 2021

Suffolk County Council

Cost or Valuation at 31 March 2021 777.904 55.163 16.384 22.811

872.262

Accumulated Depreciation at 31 March 2021 23.232 35.248 0.056 0.000

58.536

Net Book Value at 31 March 2021 754.672 19.915 16.328 22.811

813.727 645.973 1,459.700

Suffolk Group Holdings

Cost or Valuation at 31 March 2021 4.079 4.100

8.179

Accumulated Depreciation at 31 March 2021 0.254 2.841

3.095

Net Book Value at 31 March 2021 3.825 1.259 0.000 0.000

5.085 0.000 5.085

Group

Cost or Valuation at 31 March 2021 781.983 59.263 16.384 22.811

880.441

Accumulated Depreciation at 31 March 2021 23.486 38.089 0.056 0.000

61.631

Net Book Value at 31 March 2021 758.498 21.174 16.328 22.811 818.811 645.973 1,464.784

2021 - 2022

Suffolk County Council

Cost or Valuation at 31 March 2022 790.499 50.334 20.133 57.893

918.857

Accumulated Depreciation at 31 March 2022 25.063 32.849 0.070 0.000

57.979

Net Book Value at 31 March 2022 765.436 17.485 20.063 57.893

860.879 668.576 1,529.455

Suffolk Group Holdings

Cost or Valuation at 31 March 2022 3.570 5.662

9.232

Accumulated Depreciation at 31 March 2022 0.411 3.395

3.806

Net Book Value at 31 March 2022 3.159 2.267 0.000 0.000

5.426 0.000 5.426

Group

Cost or Valuation at 31 March 2022 794.069 55.996 20.133 57.893

928.089

Accumulated Depreciation at 31 March 2022 25.474 36.244 0.070 0.000

61.785

Net Book Value at 31 March 2022 768.595 19.752 20.063 57.893 866.304 668.576 1,534.880

31 March 2021 31 March 2022

£ million £ million

0.000 Long Term Investments per Suffolk County Council 0.000

0.000 Less Investment in Group Companies 0.000

0.000 Group Investments 0.588

0.000 Total 0.588

Group Accounts

Suffolk County Council 107 Group Accounts

G6. Long-term Debtors

G7. Short Term Debtors

G8. Cash and Cash Equivalents

31 March 2021 31 March 2022

£ million £ million

32.653 Long-term Debtors per Suffolk County Council 24.584

-1.898 Less Loan between Suffolk County Council and subsidiaries -1.715

0.143 Add Group Long-term Debtors 0.425

30.898 Total 23.294

31 March 2021 31 March 2022

£ million £ million

22.912 Central government bodies 24.026

9.014 Other local authorities 8.467

9.737 NHS bodies 15.615

47.487 Other entities and individuals 45.904

8.761 Council Tax receivable from ratepayers 14.452

0.624 Business Rates receivable from ratepayers 0.514

98.535 Total 108.978

15.658 Group companies 19.411

-3.411 Less intra-Group debtors -4.344

110.781 Group Total 124.045

31 March 2021 31 March 2022

£ million £ million

Cash held by the Authority

0.710 Bank current accounts 1.783

0.710 Total 1.783

12.569 Group Cash and Bank Balances 13.247

13.279 Total Group Cash Total 15.030

Group Accounts

Suffolk County Council 108 Group Accounts

G9. Short Term Creditors

G10. Other Long Term Liabilities

31 March 2021 31 March 2022

£ million £ million

-25.043 Central government bodies -25.790

-19.072 Other local authorities -15.338

-6.609 NHS bodies -23.130

-121.801 Other entities and individuals -102.465

-12.410 Council Tax payable to ratepayers -6.988

-13.279 Business Rates payable to ratepayers -5.549

-198.214 Total -179.260

-29.954 Suffolk Group -33.578

4.697 Less intra-Group creditors 4.493

-223.471 Group Total -208.345

31 March 2021 31 March 2022

£ million £ million

-29.997 Suffolk County Council Long Term Liabilities -34.767

-0.234 Suffolk Group Long Term Liabilities -0.188

-30.231 Total -34.955

Group Accounts

Suffolk County Council 109 Group Accounts

G11. Operating Activities

G12. Investing Activities

The cashflows for operating activities include the following items:

2020 - 2021 2021 - 2022

£ million £ million

-50.224

Depreciation -51.915

-2.163

Impairment and downward revaluations 12.493

-0.493

Increase/decrease (-) in impairment for bad debts -0.936

-38.063

Increase (-) / decrease in creditors 31.888

48.285

Increase/decrease (-) in debtors -12.809

-0.133

Increase/decrease (-) in inventories 0.192

-25.340

Movement in pension liabilities -61.734

-61.324

Carrying amount of non current assets and non current assets held for

sale, sold or de-recognised

-14.417

2.631

Other non cash items charged to the net surplus or deficit on the

provision of services

7.481

-126.825

Total -89.757

7.800

Proceeds from the sale of property, plant and equipment, investment

property and intangible assets

3.307

107.562

Any other items for which the cash effects are investing or financing

cashflows

83.239

115.362

Total 86.546

2020 - 2021 2021 - 2022

£ million £ million

82.060

Purchase of property, plant and equipment and intangible assets 110.001

791.327

Purchase of short-term and long-term investments 741.809

-7.800

Proceeds from the sale of property, plant and equipment -3.307

-790.990

Proceeds from short-term and long-term activities -744.416

-122.768

Other receipts from investing activities -106.469

-48.171

Net cash flows from investing activities -2.382

Group Accounts

Suffolk County Council 110 Group Accounts

G13. Financing Activities

2020 - 2021 2021 - 2022

£ million £ million

-118.500

Cash receipts of short and long term borrowings -153.243

-21.666

Other cash receipts from financing activities 0.000

3.357

Cash payments for the reduction of the outstanding liabilities relating to

PFI contracts

3.585

207.754 Repayments of short-term and long-term borrowing 110.567

2.040

Other payments for financing activities 20.681

72.985

Net cash flows from financing activities -18.410

Pension Fund Accounts

Suffolk County Council 111 Pension Fund Accounts

Pension Fund Accounts

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SUFFOLK COUNTY COUNCIL ON THE

PENSION FUND’S FINANCIAL STATEMENTS

Opinion

We have audited the Pension Fund (“the Fund”) financial statements for the year ended 31 March 2022 under

the Local Audit and Accountability Act 2014 (as amended). The pension fund financial statements comprise

the Fund Account, the Net Assets Statement and the related notes 1 to 29.

The financial reporting framework that has been applied in their preparation is applicable law and the

CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2021/22.

In our opinion the pension fund financial statements:

• give a true and fair view of the financial transactions of the Fund during the year ended 31 March

2022 and the amount and disposition at that date of the its assets and liabilities as at 31 March 2022;

and

• have been properly prepared in accordance with the CIPFA/LASAAC Code of Practice on Local

Authority Accounting in the United Kingdom 2021/22.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the financial statements section of our report below. We are independent of the

Council as administering authority for the Pension Fund in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and the

Comptroller and Auditor General’s AGN01, and we have fulfilled our other ethical responsibilities in

accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Chief Financial Officer (S151 Officer)’s use of

the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast significant doubt on the authority’s ability to continue as a

going concern for a period of more than 12 months from when the Fund’s financial statements are authorised

for issue.

Our responsibilities and the responsibilities of the Chief Financial Officer (S151 Officer) with respect to going

concern are described in the relevant sections of this report. However, because not all future events or

conditions can be predicted, this statement is not a guarantee as to the authority’s ability to continue as a

going concern.

Other information

The other information comprises the information included in the Statement of Accounts 2021/22, other than

the financial statements and our auditor’s report thereon. The Chief Financial Officer (S151 Officer) is

responsible for the other information contained within the Statement of Accounts 2021/22.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is

materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or

Pension Fund Accounts

Suffolk County Council 112 Pension Fund Accounts

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial

statements themselves. If, based on the work we have performed, we conclude that there is a material

misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we report by exception

We report to you if:

• we issue a report in the public interest under section 24 of the Local Audit and Accountability Act 2014

(as amended);

• we make written recommendations to the audited body under Section 24 of the Local Audit and

Accountability Act 2014 (as amended);

• we make an application to the court for a declaration that an item of account is contrary to law under

Section 28 of the Local Audit and Accountability Act 2014 (as amended);

• we issue an advisory notice under Section 29 of the Local Audit and Accountability Act 2014 (as

amended); or

• we make an application for judicial review under Section 31 of the Local Audit and Accountability Act

2014 (as amended).

We have nothing to report in these respects

Responsibility of the Chief Financial Officer (S151 Officer)

As explained more fully in the Statement of the Chief Financial Officer (S151 Officer)’s Responsibilities set out

on page v the Chief Financial Officer (S151 Officer) is responsible for the preparation of the Council’s

Statement of Accounts, which includes the pension fund financial statements, in accordance with proper

practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United

Kingdom 2021/22, and for being satisfied that they give a true and fair view. The Chief Financial Officer (S151

Officer) is also responsible for such internal control as the Chief Financial Officer (S151 Officer) determine is

necessary to enable the preparation of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the Chief Financial Officer (S151 Officer) is responsible for assessing

the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the Administering Authority either intends to cease

operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of

not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from

error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations,

or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud

is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with Chief

Financial Officer (S151 Officer).

Our approach was as follows:

Pension Fund Accounts

Suffolk County Council 113 Pension Fund Accounts

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Fund

and determined that the most significant are the Local Government Pension Scheme Regulations

2013 (as amended), and The Public Service Pensions Act 2013.

• We understood how the Fund is complying with those frameworks by making enquiries of the

management. We corroborated this through our reading of the Pension Board minutes, through

enquiry of employees to confirm Pension policies, and through the inspection of other information.

• Based on this understanding, we designed our audit procedures to identify non-compliance with such

laws and regulations. Our procedures involved making enquiries of the management for their

awareness of any non-compliance of laws or regulations, inspecting correspondence with the

Pensions Regulator and review of minutes.

• We assessed the susceptibility of the Fund’s financial statements to material misstatement, including

how fraud might occur by considering the key risks impacting the financial statements and

documenting the controls that the Fund has established to address risks identified, or that otherwise

seek to prevent, deter or detect fraud.

• In common with all audits under ISAs (UK), we are also required to perform specific procedures to

respond to the risk of management override. In addressing the risk of fraud through management

override of controls, we tested the appropriateness of journal entries and other adjustments; assessed

whether the judgements made in making accounting estimates are indicative of a potential bias; and

evaluated the business rationale of any identified significant transactions that were unusual or outside

the normal course of business. These procedures were designed to provide reasonable assurance

that the financial statements were free from fraud or error.

• To address our fraud risk we tested the consistency of the investment asset valuation from the

independent sources of the custodian and the fund managers to the financial statements.

• The Fund is required to comply with The Local Government Pensions Scheme regulations, other

legislation relevant to the governance and administration of the Local Government Pension Scheme

and requirements imposed by the Pension Regulator in relation ot the Local Government Pension

Scheme. As such, we have considered the experience and expertise of the engagement team

including the use of specialists where appropriate, to ensure that the team had an appropriate

understanding of the relevant pensions regulations to assess the control environment and consider

compliance of the Fund with these regulations as part of our audit procedures.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of

our auditor’s report.

Use of our report

This report is made solely to the members of Suffolk County Council, as a body, in accordance with Part 5 of

the Local Audit and Accountability Act 2014 (as amended) and for no other purpose, as set out in paragraph

43 of the Statement of Responsibilities of Auditors and Audited Bodies published by Public Sector Audit

Appointments Limited. To the fullest extent permitted by law, we do not accept or assume responsibility to

anyone other than the Suffolk County Council and its members as a body, for our audit work, for this report, or

for the opinions we have formed.

Debbie Hanson (Key Audit Partner)

Ernst & Young LLP (Local Auditor)

Luton 5 June 2023

Pension Fund Accounts

Suffolk County Council 114 Pension Fund Accounts

Fund Account

2020 - 2021 Fund Account 2021 - 2022

£ million £ million

Dealings with members, employers and others directly involved in the scheme Notes

Contributions and benefits

Contributions receivable:

From employers

92.994 Normal 10 95.305

3.149 Deficit funding 10 3.010

2.780 Other 10 1.318

From members

23.187 Normal 10 25.389

Transfers In

4.119 Individual transfers in from other schemes 6.940

Group transfers in from other schemes 3.685

Benefits payable:

-86.796 Pensions 10 -89.790

-13.230 Commutations of pensions and lump sum retirement benefits 10 -13.418

-1.346 Lump sum death benefits 10 -2.748

Payments to and on account of leavers:

-0.250 Refunds of Contributions -0.631

-7.256 Individual transfers out to other schemes -7.030

17.351 Net additions (withdrawals) from dealings with members 22.030

-11.518 Management Expenses 11 -14.247

5.833 Net additions (withdrawals) including management expenses 7.783

Returns on investments

Investment income

7.654 Dividends from equities 1.258

7.997 Income from pooled investment vehicles - Property 8.451

0.290 Income from pooled investment vehicles - Private Equity 0.891

20.300 Income from Other Managed Funds 24.711

0.001 Interest on Cash Deposits 0.014

0.043 Other 0.069

0.015 Taxes on Income -0.002

547.829 Change in market value of investments 314.837

584.129 Net returns on investments 350.229

589.962 Net increase, or (decrease), in the fund during the year 358.012

2,808.454 Opening net assets of the scheme 3,398.416

3,398.416 Closing net assets of the scheme 3,756.428

Pension Fund Accounts

Suffolk County Council 115 Pension Fund Accounts

Net Asset Statement

2020 - 2021 2021 - 2022

£ million £ million

Net asset statement Notes

Investment assets

243.349 UK Equities 13,14 0.000

Pooled Investment Vehicles

25.116 Unit trusts 13,14 0.000

501.287 Equities 13,14 813.781

916.969 Unit linked insurance policies 13,14 1,030.112

278.112 Property unit trust 13,14 343.274

1,422.905 Other Managed Funds 13,14 1,553.563

Other Investment Balance

1.477 Cash [held for investment] 13 5.145

Investment liabilites

-3.914 Cash [held for investment] 0.000

3,385.301 Total investments 3,745.875

Current assets

13.797 Debtors 22 12.761

4.732 Cash Deposits 19d 5.815

0.046 Cash at Bank 19d 0.184

18.575 Total current assets 18.760

Current liabilities

-5.460 Creditors 23 -8.207

-5.460 Total current liabilities -8.207

13.115 Net current assets 10.553

3,398.416 Net assets 3,756.428

Pension Fund Accounts

Suffolk County Council 116 Pension Fund Accounts

Notes to the Accounts

1. Description of the Fund

The Suffolk Pension Fund is administered by Suffolk County Council. It is a contributory defined benefit

scheme established by the Superannuation Act 1972 and governed by the Public Service Pensions Act 2013.

The Fund is administered in accordance with the following secondary legislation:

• The Local Government Pensions Scheme Regulations 2013 (as amended)

• The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016

• The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations

2014 (as amended).

The Fund provides retirement benefits for employees who are members of the Local Government Pension

Scheme (LGPS).

Organisations participating in the Suffolk County Council Pension Fund include:

• Scheduled bodies - local authorities, district and borough councils and other similar bodies such as

academies whose staff are automatically entitled to be members of the Fund

• Admitted bodies - voluntary and charitable bodies or private contractors undertaking a local authority

function

• Resolution bodies - town and parish councils who formally pass a resolution designating staff to be eligible to

join the LGPS.

There are 331 employer organisations with active members within the Scheme as at 31 March 2022, an

increase of 7 from the previous year total of 324. Teachers, Firefighters and NHS staff have their own

pension schemes and are not included in the Fund.

The Fund has the following number of members and pensioners:

31 March 2021 31 March 2022

Number of Employees in the Scheme

7,654 County Council 7,701

14,048 Other Employers 14,578

21,702 Total 22,279

Number of Pensioners

9,584 County Council 9,918

7,956 Other Employers 8,492

17,540 Total 18,410

Number of Deferred Members

15,763 County Council 15,542

14,873 Other Employers 15,610

30,636 Total 31,152

Pension Fund Accounts

Suffolk County Council 117 Pension Fund Accounts

Funding

Benefits are funded by contributions and investment earnings. Employers contributions are set based on the

triennial actuarial funding valuation in March 2019 for the contributions paid in 2021 – 2022. Employees

contributions are paid in line with the LGPS Regulations 2013.

Benefits

Prior to 1 April 2014 pension benefits are based on final pensionable pay and length of service. From 1 April

2014, the scheme became a career average scheme with members accruing benefits based on their current

annual pensionable pay at an accrual rate of 1/49th.

2. Events after the Balance Sheet Date

The Statement of Accounts were authorised for issue by the Chief Financial Officer (S151 Officer) on 5 June

2023. Events taking place after this date are not reflected in the financial statements or notes.

Events taking place before that date that relate to conditions existing at 31 March 2022 are reflected in the

notes to the accounts.

On 28 February 2023 the Pension Fund Committee received the results of the 2022 valuation exercise. Note

20, Funding Position and Note 21 Actuarial Present Value of Promised Retirement Benefits reflect the results

of the 2022 valuation.

3. Significant Changes to the Fund

As part of its annual asset allocation review, the Committee at its meeting on 24 November 2020, agreed to

transfer its UK Equity holding with UBS to the UBS Climate Aware strategy, to further reduce its carbon footprint

within its investments. This transfer happened over three tranches, in March 2021, May 2021 and July 2021.

At its meeting on 25 February 2021, the Pension Fund Committee made a decision to increase its commitment

to Infrastructure by making a $84 million (£64 million) commitment to the KKR Global Infrastructure Fund IV

which is administered by Kohlberg, Kravis Roberts (KKR). This decision was implemented on 11 May 2021 and

approved in full by KKR on 26 May 2021. The first capital call is expected in 2022.

In response to the Government's requirement for the LGPS to pool their assets with Local Government Pension

Funds, the Suffolk Pension Fund joined ACCESS (A Collaboration of Central, Eastern and Southern Shires)

alongside Cambridgeshire, East Sussex, Essex, Hampshire, Hertfordshire, Isle of Wight, Kent, Norfolk,

Northamptonshire and West Sussex. The Funds are working together to collectively invest assets in order to

significantly reduce investment costs whilst maintaining investment performance.

ACCESS appointed Link Fund Solutions Ltd to establish and operate its authorised contractual scheme and are

responsible for the creation of investment sub-funds and the appointment of managers to those sub-funds.

On the 7 July 2021 the Fund transferred the UK Equity holding with Blackrock valued at £292 million into the

ACCESS pooled vehicle Blackrock UK Select sub fund.

On the 1 December 2021 the Fund transferred the Fixed Income holding with M&G valued at £390 million into

the ACCESS pooled vehicle M&G Alpha Opportunities sub fund.

In June 2021, using the National LGPS Framework for Global Custody Services, as a joint procurement exercise

with other members of the ACCESS Pool, Northern Trust were appointed as custodian to the Pension Fund

commencing from 1 October 2021.

4. Basis of Preparation of Pension Fund Accounts

The Statement of Accounts summarises the Fund’s transactions for the 2021 - 2022 financial year and its

position as at 31 March 2022.

These accounts have been prepared in accordance with the ‘Code of Practice on Local Authority Accounting in

United Kingdom 2021 - 2022’, which is based upon International Financial Reporting Standards (IFRS).

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Suffolk County Council 118 Pension Fund Accounts

The accounts do not take into account obligations to pay pensions and benefits which fall due after the end of

the financial year. The actuarial present value of promised retirement benefits, valued on an International

Accounting Standard (IAS 26) basis, is disclosed in Note 21 of these accounts.

5. Going Concern Statement

The accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in

the United Kingdom 2021 - 2022 (the Code), which is based upon International Financial Reporting Standards

(IFRS), as amended for the UK public sector. The accounts have been prepared on a going concern basis.

In carrying out its assessment that this basis is appropriate, made to 30 June 2023, management of the Pension

Fund have considered the additional qualitative and quantitative key requirements:

The basis for preparation is supported by legislation for local authorities, and the Code requirements on the

basis of the continuation of services;

The Fund is cashflow positive meaning that the contributions received from the employers and members of the

scheme exceed the benefits amount paid out. All employers within the fund are paying contributions as per the

rates and adjustment certificate. No employer has requested to defer their payments within the 2021 - 2022 or

2022 - 2023 financial year. Based on previous years’ experience we do not expect any deferrals requests during

the period to 30 June 2024.

The Pension Fund has not utilised any borrowing during the 2021 - 2022 or 2022 - 2023 financial year and has

no plans to take out borrowing up to the 30 June 2024.

On 24 February 2022 Russia invaded Ukraine resulting in world-wide condemnation. The Russian stock

exchange closed down on 28 February and foreign investors were prevented from selling Russian stock

holdings. The London Stock Exchange suspended trading in Russian stocks and the major equity index

providers removed all Russian stocks.

As at 1 March 2022, the Suffolk Pension Fund held £1.4 million of Russian stock within its emerging market

index tracking investment with UBS. UBS has written the market value of these stocks to zero, as currently there

is no mechanism to sell the stocks. The loss of value of these stocks does not have a material impact on the

valuation on the Fund. These stocks will remain within the UBS account and should it be possible to sell these

stocks in the future then the proceeds will be credited to the Suffolk Pension Fund.

In September 2022, the UK market experienced unprecedented levels of political instability which resulted a

volatile market with a sharp rise in gilts yields. Pension Funds that held Liability Driven Investment strategies

were particularly hard hit. The Suffolk Pension Fund does not have a Liability Driven Investment Strategy and

only has a small exposure (4%) to gilts.

The Pension Fund has an allocation of 40.5% to equities, 28% to Bonds and 0.5% to cash, which are assets

that could be liquidated to pay benefits should the need arise.

On this basis, the Pension Fund has a reasonable expectation that it will have adequate resources to continue

in operational existence throughout the going concern period. For this reason, alongside the statutory guidance,

the Pension Fund continues to adopt the going concern basis in preparing these financial statements.

6. Summary of Significant Accounting Policies

6.1 Fund Account - Revenue Recognition

Contribution Income

Normal contributions from members and employers are accounted for on an accruals basis at the percentage

rate recommended by the actuary in the payroll period to which they relate.

Employers’ deficit funding contributions are accounted for on the due dates on which they are payable under

the schedule of contributions set by the scheme actuary.

Pension Fund Accounts

Suffolk County Council 119 Pension Fund Accounts

Employers’ augmentation and pension strain contributions are accounted for in the period in which the liability

arises. Any amount due in year but unpaid will be classed as a current financial asset.

Transfers to and from Other Schemes

Transfer values represent the amounts received and paid during the year for members who have either joined

or left the Fund during the financial year and are calculated in accordance with the LGPS Regulations.

Individual transfers in/out of the scheme are accounted for when they have been received/paid, which is when

the member's liability is accepted or discharged.

Transfers in from members wishing to use the proceeds of their additional voluntary contributions to purchase

scheme benefits are accounted for on a receipts basis and are included within transfers in.

Group transfers are accounted for in accordance with the terms of the transfer agreement.

Investment Income

Investment income may include withholding tax which is disclosed as a separate item (taxes on income) on the

face of the Fund Account. Investment income arising from the underlying investments of Pooled Investment

Vehicles is reinvested in the vehicle and reflected in the unit price.

Dividend income is recognised on the date the shares are quoted ex-dividend. Any amount not received by the

end of the reporting period is disclosed in the Net Asset Statement as a current financial asset.

Income from cash and other investments are accounted for on an accrual’s basis.

Distributions from pooled funds are recognised at the date of issue and any amount not received by the end of

the reporting period is disclosed in the Net Asset Statement as a current financial asset.

Movement in the Market Value of Investments

Movement in the net market value of investments is recognised as a realised or unrealised, gain or loss, during

the year.

6.2 Fund Account - Expenditure

Benefits Payable

Pensions and lump sum benefits payable include all amounts known to be due as at the end of the financial

year. Any amounts due but unpaid are disclosed in the Net Asset Statement as a current financial liability.

Taxation

The Fund is a registered public service pension scheme under section 1(1) of Schedule 36 of the Finance Act

2004 and is exempt from UK income tax on interest received and capital gains tax on proceeds of investments

sold.

Income from overseas investments is subject to withholding tax in the country of origin, unless exemption is

permitted. Irrecoverable tax is accounted for as a fund expense.

Management Expenses

All management expenses are accounted for on an accrual’s basis.

i) Administration Expenses and Oversight and Governance Expenses

Suffolk County Council staff costs are charged to the Pension Fund based on time spent. Accommodation and

other overhead costs have also been apportioned.

ii) Investment Management Expenses

Investment management fees and performance fees are agreed in the respective mandates governing their

appointment. These fees are based on the market value of the investments under management and therefore

increase or decrease as the value of the investments change.

Transaction costs and custody fees are included in investment management expenses.

6.3 Net Asset Statement

Pension Fund Accounts

Suffolk County Council 120 Pension Fund Accounts

Financial Assets

Financial assets are included in the Net Asset Statement on a fair value basis as at the reporting date. A financial

asset is recognised on the date the Fund becomes party to the contractual acquisition of the asset. Any gains

or losses arising from changes in the fair value from this date are recognised by the Fund.

The value of investments has been determined as follows:

Market Quoted Investments

Managed Funds are valued using the bid market price on 31 March 2022.

Property

Property is valued using the latest available Net Asset Value (NAV) or where a NAV is not available,

assumptions based on the probable realisation value.

Unquoted Pooled Investment Vehicles

Unquoted Securities include pooled investments in Infrastructure, Illiquid Debt, Private Equity and Timberlands.

Market quotations are not readily available. The value is based on the Fund's share of the net asset using the

latest financial statements received from the respective fund manager and adjusted for capital calls and

distributions received from that date to 31 March 2022.

Quoted Pooled Investment Vehicles

Pooled Investment Vehicles are valued at the closing bid price or at the closing single price, as available. The

change in market value of accumulation funds includes income which is reinvested in the Fund net of applicable

withholding tax.

Foreign Currency Transactions

Investments and cash held in foreign currencies have been valued on the relevant basis and translated into

sterling at the rate as at 31 March 2022.

Derivatives

Derivative financial instruments are used to manage exposure to specific risks arising from investment activities

and are not held for speculative purposes. Derivative contract assets are valued at bid price and liabilities are

valued at offer price. Changes in the fair value are included in the change in market value.

Forward Foreign Exchange Contracts outstanding at the year end are stated at fair value, which is determined

as the loss or gain that would arise if the outstanding contract was required to be settled on 31 March 2022.

Cash and Cash Equivalents

Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment

purposes. Bank balances and cash held by the Pension Fund at 31 March 2022 are therefore cash equivalent

sums. For short term investments there are no strict criteria to follow relating to the nature and maturity of these

items.

The Pension Fund holds short term investments in Money Market Funds for the purpose of obtaining a gain or

return.

Events after the Balance Sheet date

Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between

the end of the reporting period and the date when the Pension Fund Accounts are authorised for issue. Two

types of events can be identified:

• those that provide evidence of conditions that existed at the end of the reporting period – the Pension Fund

Accounts are adjusted to reflect such events.

• those that are indicative of conditions that arose after the reporting period – the Pension Fund Accounts are

not adjusted to reflect such events, but where a category of events would have a material effect, disclosure

is made in the notes of the nature of the events and their estimated financial effect.

Events taking place after the date of authorisation for issue are not reflected in the Pension Fund Accounts.

Additional Voluntary Contributions

Pension Fund Accounts

Suffolk County Council 121 Pension Fund Accounts

The Pension Fund provides an additional voluntary contributions (AVC) scheme for its members, the assets of

which are invested separately from those of the Pension Fund. AVC’s are paid to the AVC provider by

employers and are specifically for providing additional benefits for individual contributors. Each contributor

receives an annual statement showing the amount held in their account and the movements in the year.

AVC’s are not included in the accounts in accordance with Section 4(1)(b) of the Local Government Pension

Scheme (Management and Investment of Funds) Regulations 2016 (SI 2009/3093) but are disclosed as a note.

Actuarial Present Value of Promised Retirement Benefits

The actuarial present value of promised retirement benefits is assessed on a triennial basis by the scheme

actuary in accordance with the requirements of IAS 19 and relevant actuarial codes.

As permitted under IAS 26, the Fund has opted to disclose the actuarial present value of promised retirement

benefits by way of a note to the Net Asset Statement.

7. Accounting Standards Issued, Not Adopted

The Code of Practice on Local Authority Accounting in the United Kingdom 2021 – 2022 requires the disclosure

of information relating to the expected impact of changes that will be required by a new standard that has been

introduced but not yet adopted and applies to the adoption of the following disclosures as amended in the 2022

- 2023 code:

• IFRS 16 - Leases

• IFRS 1 – Amendment relating to foreign operations of acquired subsidiaries transitioning to IFRS

• IAS 37 – Onerous contracts

• IAS 41 - Agriculture

The code requires implementation of the above disclosure from 1 April 2022. These changes are not considered

to have a material effect on the Pension Fund accounts of 2021 - 2022.

8. Critical Judgements in Applying Accounting Policies

In applying the accounting policies set out in Note 6, the Pension Fund has to make certain judgements about

complex transactions or those involving uncertainty about future events. The main critical judgement that the

Pension Fund must consider is the Pension Fund actuarial liability.

The Pension Fund liability is calculated every three years by the appointed actuary, with annual updates in the

intervening years. The methodology used is in line with accepted guidelines. Assumptions underpinning the

valuations are agreed with the actuary and are summarised in Note 20 Funding Position. This estimate is subject

to significant variances based on changes to the underlying assumptions.

The methodology used in calculating the Pension Fund’s liability, in conjunction with the Fund’s investment

strategy means that the surplus or deficit can vary significantly over short periods of time, whilst the underlying

funding strategy is based on a much longer timeline that smooths out the effects of the extreme market volatility.

9. Assumptions made about the Future and other Sources of Estimation Uncertainty

The Pension Fund Accounts contain estimated figures that are based on assumptions made by the Council

about the future or that are otherwise uncertain. Estimates are made taking into account historical experience,

current trends and other relevant factors. However, the nature of estimation means that actual outcomes could

differ from those estimates and there is a risk that these investments may be under or overstated in the accounts.

An analysis of the potential market movement range for these holdings is set out in Note 18f.

The key judgements and estimation uncertainty that have a significant risk of causing material adjustment to

the carrying amounts of assets and liabilities within the next financial year are as follows:

Actuarial Present Value of Promised Retirement Benefits

Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the

discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality

rates and expected returns on Pension Fund assets. A firm of consulting actuaries, Hymans Robertson LLP are

engaged to provide the Fund with expert advice about the assumptions to be applied.

Pension Fund Accounts

Suffolk County Council 122 Pension Fund Accounts

Property

Pooled property investment vehicles are valued at closing bid prices if both bid and offer prices are published;

or if single priced, at the closing single price. Pooled property funds have derived underlying assets that have

been valued by independent external valuers on a fair value basis and in accordance with the Royal Institute of

Chartered Surveyors’ Valuation Standards (9th Edition).

The property investment held with Schroders at 31 March 2022 is £343.274 million.

Private Equity

Private Equity investments are valued at fair value in accordance with IFRS and British Venture Capital

Association guidelines. Both Pantheon and Wilshire have established procedures to report fair value on a

consistent, transparent and prudent basis. These investments are illiquid and are not publicly listed and as such

there is a high degree of estimation involved in the valuation.

The unquoted Private Equity investments at 31 March 2022 are £123.490 million with Pantheon and £11.649

million with Wilshire.

Infrastructure

Infrastructure investments are valued through a fair market value process designed in accordance with IFRS.

These investments are not publicly listed and as such there is a high degree of estimation involved in the

valuation.

The Infrastructure investments held with Partners, M&G and JP Morgan at 31 March 2022 are £72.125 million,

£49.957 million and £166.397 million respectively.

Illiquid Debt

Illiquid Debt is valued by a valuation agent who will use an independent pricing source to value most loans at

market value or a probable realisation valuation method if market quotations are not readily available. These

investments are not publicly listed and as such there is a degree of estimation involved in the valuation.

Illiquid Debt is held with M&G and includes the Debt Opportunity investments, the Illiquid Credit Opportunity

Fund and the Debt Solutions Fund totalling £45.939 million and a Multi Asset Credit Fund held with Partners

Group valued at £49.735 million as at 31 March 2022.

Timber

The Timber investment is a limited liability partnership investment in large scale high quality timber assets. The

fair value is determined on at least an annual basis with a valuation review performed on a quarterly basis to

assess whether there is evidence of a significant change in the investment fundamentals that warrant a change

in the fair value. The manager may utilise independent valuations to confirm the reasonableness of internally

prepared valuations.

Fair values will be based on comparable purchase and sale transactions, or other accepted valuation techniques

that include the discounted cash flow and multiple of earnings approach. Separate appraisals for timber are

obtained from independent qualified appraisers at least once every three years or more frequently as required.

The Timber investment at 31 March 2022 is £8.010 million.

10. Contributions Received and Benefits Paid during the Year

Employers' Employees' Benefits

Contributions Contributions Paid

£ million £ million £ million £ million £ million £ million

35.770 8.696 -47.728 Suffolk County Council 36.920 9.984 -48.156

59.593 13.619 -48.258 Other Scheduled and Resolution Bodies 59.733 14.567 -52.687

3.560 0.872 -5.386 Admitted Bodies 2.980 0.838 -5.113

98.923 23.187 -101.372 Total 99.633 25.389 -105.956

2020-2021

2021-2022

Pension Fund Accounts

Suffolk County Council 123 Pension Fund Accounts

Included within employer normal contributions of £95.305 million shown in the Fund account is an amount for

deficit funding of £4.114 million paid within the employers' percentage (£5.043 million in 2020 - 2021). The deficit

funding identified separately on the Fund account of £3.010 million (£3.149 million in 2020 - 2021) refers to

those employers funding their deficit by means of lump sum payments.

Employer contributions are made up of two elements:

a) the estimated cost of future benefits being accrued, the 'primary rate'; plus

b) an adjustment for the funding position of accrued benefits relative to the Fund’s solvency target, the

'secondary rate'.

The Fund's actuary undertakes a funding valuation every three years for the purpose of setting employer

contribution rates for the next three-year period. 2021 - 2022 was the second year in the three-year period

following the 31 March 2019 valuation for the contribution rates set by the actuary to reflect a and b above.

A list of employers and their contribution rates is in the Funding Valuation Report available on the Suffolk

Pension Fund website at www.suffolkpensionfund.org.

11. Management Expenses

Management expenses are categorised into investment management expenses, administration expenses and

oversight and governance costs in accordance with the CIPFA guidance to Accounting for Local Government

Pension Scheme Management Costs.

Administration Expenses includes costs associated with members, pensioners and scheme employers. This

would include all activities associated with pension administration - staff costs, IT, membership fees and

subscriptions.

Oversight and Governance Costs includes costs incurred in the monitoring of investments, investment advisory

services, independent advisors, support to the Pension Fund Committee and Pension Board, voting services,

costs associated with the production of statutory and non-statutory reporting, legal services, actuarial services,

audit services and accountancy services.

External audit fees charged by Ernst & Young for 2021 - 2022 were £0.019 million, (£0.019 million 2020 - 2021).

The external fee is subject to change, depending on additional charges which may be made by the external

auditors on high risk areas. £0.013 million has been accrued for additional work for 2021 – 2022.

£0.010 million has been received during the year from the Department for Levelling Up, Housing and

Communities to support the implementation of the Redmond review recommendations to meet the anticipated

rise in fees for the 2020 – 2021 audits driven by new audit requirements.

Ernst & Young will charge an additional amount to respond to IAS 19 assurance requests for 2021 – 2022.

£.0013 million was received in 2021 – 2022 for the work completed in 2019 - 2020. This has been charged to

the employers who have requested this assurance.

Investment management expenses include costs that are incurred in association with the management of the

Pension Fund assets and financial instruments whether directly invoiced to the fund or deducted from the fund

assets. This includes management fees, performance fees and broker commission transaction costs as

overleaf:

2020 - 2021 2021 - 2022

£ million £ million

9.697 Investment Management Expenses 12.286

1.286 Administration Expenses 1.383

0.535 Oversight and Governance Costs 0.578

11.518 14.247

Pension Fund Accounts

Suffolk County Council 124 Pension Fund Accounts

2020 - 2021

Management

Fees

Performance

Fees

Transaction

Costs

Total

Assets £ million £ million £ million £ million

UK Equities 0.783 1.885 0.087 2.755

Pooled Investments

Overseas Equities 0.117 0.026 0.143

Unit Linked Insurance Policies 0.338 0.338

Fixed Income 2.500 2.500

Property 0.366 0.005 0.371

Absolute Returns 0.764 0.764

Private Equity 1.048 0.491 1.539

Infrastructure 2.208 -1.701 0.507

Illiquid Debt 0.656 0.656

Timberlands 0.072 0.072

Total Investment Expenses 8.852 0.675 0.118 9.645

Custody 0.051

Total Investment Management Expenses 8.852 0.675 0.118 9.696

2021 - 2022

Management

Fees

Performance

Fees

Transaction

Costs

Total

Assets £ million £ million £ million £ million

UK Equities 0.076 2.021 0.039 2.136

Pooled Investments

Equities 0.165 0.165

Unit Linked Insurance Policies 0.480 0.480

Fixed Income 2.808 0.073 2.881

Property 0.322 0.003 0.324

Absolute Returns 0.771 0.771

Private Equity 0.363 0.001 0.364

Infrastructure 2.544

2.344 4.887

Illiquid Debt 0.177 0.177

Timberlands 0.070 0.070

Total Investment Expenses 7.776 4.365 0.114 12.255

Custody 0.031 0.031

Total Investment Management Expenses

7.807 4.365 0.114 12.286

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Suffolk County Council 125 Pension Fund Accounts

12. Analysis of the Market Value of Investments by Investment Manager

The Blackrock UK Equity mandate and the M&G Bonds investment have transferred into the ACCESS Pool

which is managed by Link Fund Solutions, as the Authorised Contractual Scheme operator of the Pool. The

UBS Group investments are managed within the ACCESS Pool on a pool governance basis.

The Northern Trust holding is the surplus cash managed by the Pension Fund which is invested in money

market funds. This was previously held with HSBC.

The infrastructure and multi asset credit mandates with Partners Group, the private equity mandate with

Pantheon Ventures Investments, and the infracapital fund with M&G have been funded as investment

opportunities are identified by the investment managers.

The debt opportunity mandate with M&G and private equity with Wilshire are mature investments that are

returning funds as the investments are realised.

Market

Value

Percentage

of Assets

Market

Value

Percentage

of Assets

£ million % £ million %

Investments managed within the ACCESS Pool

501.287 14.80% Link Fund Solutions 1,199.756 32.07%

916.968 27.07% UBS Group 1,030.111 27.54%

1,418.255 41.87% Total within the ACCESS Pool 2,229.867 59.61%

Investments managed outside the ACCESS Pool

657.235 19.40% BlackRock Investment Management 379.627 10.15%

7.944 0.23% Brookfield Asset Management 8.010 0.21%

0.250 0.01% Cambridge Research & Innovation Limited 0.146 0.00%

16.328 0.48% HSBC 0.000 0.00%

165.248 4.88% JP Morgan 166.397 4.45%

415.900 12.28% M&G Investments 95.895 2.56%

0.000 0.00% Northern Trust 24.142 0.65%

130.461 3.85% Pantheon Ventures 167.048 4.47%

79.010 2.33% Partners Group 121.860 3.26%

181.346 5.35% Pyrford International 178.808 4.78%

303.066 8.95% Schroder Property Investment Management 357.281 9.55%

12.694 0.37% Wilshire Associates 11.649 0.31%

1,969.482 58.13% Total outside the ACCESS Pool 1,510.863 40.39%

31 March 2021

31 March 2022

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Suffolk County Council 126 Pension Fund Accounts

13. Reconciliation of Movements in Investments and Derivatives

The change in market value of £539.664 million (£540.443 million and -£0.779 million) is £8.165 million lower

than the change in market value on the Fund Account of £547.829 million. The difference is caused by indirect

management fees of £8.047 million and transaction costs of £0.118 million which are charged against the Net

Asset Value and not directly to the Fund.

The Pooled Investment Vehicles are managed by fund managers registered in the UK.

Opening Change in Closing

Market Value Purchases Sales Market Value Market Value

01 April 2020 31 March 2021

£ million £ million £ million £ million £ million

UK Companies 188.106 28.599 -18.329 44.973 243.349

Derivatives - Forward Foreign Exchange contracts 1.199 0.326 -1.525 0.000 0.000

Quoted

Pooled Investment Vehicles:

Other Managed Funds 857.195 164.364 -161.029 122.240 982.770

Unit trusts 15.040 - -0.513 10.589 25.116

Overseas Equities 368.187 6.821 0.000 126.279 501.287

Unit linked insurance policies 794.307 90.290 -200.290 232.662 916.969

Unquoted

Pooled Investment Vehicles:

Other Managed Funds 299.924 196.184 -61.287 5.314 440.135

Property 270.917 15.416 -6.607 -1.614 278.112

Total of Investments 2,794.875 502.000 -449.580 540.443 3,387.738

Opening Movement in Impairment of Change in Closing

Market Value Cash Balance Investments Market Value Market Value

01 April 2020 31 March 2021

£ million £ million £ million £ million £ million

Other Investment Balances:

Cash Held for Investment 0.446 -2.104 - -0.779 2.437-

Net Investments 0.446 -2.104 - -0.779 2.437-

Pension Fund Accounts

Suffolk County Council 127 Pension Fund Accounts

The change in market value of £306.670 million (£308.267 million and -£1.597 million) is £8.167 million lower

than the change in market value on the Fund Account of £314.837 million. The difference is caused by indirect

management fees of £8.053 million and transaction costs of £0.114 million which are charged against the

NAV and not directly to the Fund.

The Pooled Investment Vehicles are managed by fund managers registered in the UK.

Opening Change in Closing

Market Value Purchases Sales Market Value Market Value

01 April 2021 31 March 2022

£ million £ million £ million £ million £ million

UK Companies 243.349 7.845 -269.997 18.803 0.000

Quoted

Pooled Investment Vehicles:

Other Managed Funds 982.770 590.339 -554.105 7.111 1,026.115

Unit trusts 25.116 - -29.099 3.983 0.000

Equities 501.287 306.453 -35.000 41.041 813.781

Unit linked insurance policies 916.969 112.754 -112.755 113.144 1,030.112

Unquoted

Pooled Investment Vehicles:

Other Managed Funds 440.135 61.088 -46.539 72.764 527.448

Property 278.112 35.216 -21.475 51.421 343.274

Total of Investments 3,387.738 1,113.695 -1,068.970 308.267 3,740.730

Opening Movement in Impairment of Change in Closing

Market Value Cash Balance Investments Market Value Market Value

01 April 2021 31 March 2022

£ million £ million £ million £ million £ million

Other Investment Balances:

Cash Held for Investment 2.437- 9.179 - -1.597 5.145

Net Investments 2.437- 9.179 - -1.597 5.145

Pension Fund Accounts

Suffolk County Council 128 Pension Fund Accounts

14. Analysis of Investments (excluding Cash and Derivatives)

The table above breaks down the Pooled Investment Vehicles and further analyses the Other Managed Funds.

These investments are either quoted (they are traded on an exchange and have a visible market valuation) or

unquoted (stocks that are not traded on an exchange and are difficult to value).

£ million £ million £ million £ million

Equities

243.349 UK Companies 0.000

Pooled Investment Vehicles - Quoted

25.116 Unit Trusts 0.000

501.287 Equities 813.781

916.969 Unit Linked Insurance Policies 1,030.112

Other Managed Funds

722.674 Fixed Income 765.601

181.346 Absolute Returns 178.808

42.671 Money Market Funds 38.148

36.079 Private Equity 43.558

982.770 Total Quoted Other Managed Funds 1,026.115

Pooled Investment Vehicles - Unquoted

Other Managed Funds

66.606 Illiquid Debt 95.674

258.257 Infrastructure 288.479

107.328 Private Equity 135.285

7.944 Timberlands 8.010

440.135 Total Unquoted Other Managed Funds 527.448

1,422.906 Total Other Managed Funds 1,553.563

278.112 Property 343.274

3,387.738 Total 3,740.730

31 March 2021

31 March 2022

Market Value

Pension Fund Accounts

Suffolk County Council 129 Pension Fund Accounts

15. Holdings Above 5% of the Fund

This is a summary of the individual holdings within the Fund which exceed 5% of the total net assets available

to pay benefits as at the balance sheet date.

16. Analysis of Derivatives

The Pension Fund’s investment managers are permitted to use derivatives in the management of their

mandates, subject to the restrictions set out in the individual manager’s investment management agreement.

The investment managers will make use of currency hedging for the purpose of reducing exchange rate risk in

the investments held in their mandates.

17a. Financial Instruments – Classification

Accounting policies describe how different asset classes of financial instruments are measured, and how income

and expenses, including fair value gains and losses, are recognised. The table overleaf analyses the carrying

amounts of financial assets and liabilities by category and Net Asset Statement heading, excluding statutory

creditors (prepayments from employers, transfer values, lump sum benefit payments, payroll adjustments) and

statutory debtors, (employer and employee contributions, VAT, transfer values and capital cost of retirement).

Market Value Percentage of

31 March 2021 the Fund Asset Type Manager

£ million 31 March 2021

501.287 14.80% ACCESS Global Equity - Newton Link Fund Solutions

387.381 11.45% Fixed Income Global Opportunity Fund Blackrock

369.533 10.92% Climate Aware UBS

335.293 9.91% Alpha Opportunities Fund M&G

272.635 8.06% All World Equity UBS

181.346 5.36% Global Total Return Mutual Fund Pyrford

Market Value Percentage of

31 March 2022 the Fund Asset Type Manager

£ million 31 March 2022

544.528 14.54% Climate Aware UBS

519.256 13.86% Global Equity - Newton Link Fund Solutions

385.974 10.30% Fixed Income - M&G Link Fund Solutions

379.627 10.13% Fixed Income Global Opportunity Fund Blackrock

313.151 8.36% All World Equity UBS

294.525 7.86% UK Equity - Blackrock Link Fund Solutions

Pension Fund Accounts

Suffolk County Council 130 Pension Fund Accounts

The debtor figure of £2.372 million above (£5.012 million at 31 March 2021) excludes statutory debtors of

£10.389 million (£8.785 million at 31 March 2021).

The creditor figure of £5.001 million above (£2.665 million at 31 March 2021) excludes statutory creditors of

£3.206 million (£2.795 million at 31 March 2021).

No financial assets were reclassified during the accounting period.

17b. Net Gains and Losses on Financial Instruments

18a. Fair Value Hierarchy

The valuation of financial instruments has been classified into three levels, according to the quality and reliability

of information used to determine fair values.

Level 1

Financial instruments at level 1 are those where the fair values are derived from unadjusted quoted prices in

active markets for identical assets or liabilities. Products classified as level 1 comprise quoted equities, quoted

fixed securities and quoted index linked securities.

Listed investments are shown at bid price. The bid value of the investment is based on the bid market quotation

of the relevant stock exchange.

31 March 2021 31 March 2022

Designated

as Fair Value

through

Profit & Loss

Assets at

Amortised

Cost

Financial

Liabilities

Amortised

Cost

Designated as

Fair Value

through Profit

& Loss

Assets at

Amortised

Cost

Financial

Liabilities

Amortised

Cost

£ million £ million £ million £ million £ million £ million

Financial Assets

243.349 Equities 0.000

25.116 Pooled Investments - Unit Trusts 0.000

501.287 Pooled Investments - Overseas Equities 813.781

916.969 Pooled Investments - Unit Linked Insurance 1,030.112

278.112 Pooled Investments - Property 343.274

1,422.905 Pooled Investments - Other Managed Funds 1,553.563

1.477 -3.914 Other Investment Balances 5.145

5.012 Debtors 2.372

4.778 Cash 5.999

3,387.738 11.267 -3.914 Total Financial Assets 3,740.730 13.516 0.000

Financial Liabilities

-2.665 Creditors -5.001

0.000 0.000 -2.665 Total Financial Liabilities 0.000 0.000 -5.001

3,387.738 11.267 -6.579 Total 3,740.730 13.516 -5.001

31 March 2021 31 March 2022

£ million Financial Assets £ million

540.443 Fair value through profit and loss 308.267

0.000 Amortised cost - unrealised gains -1.597

Financial Liabilities

-0.779 Fair value through profit and loss 0.000

539.664 Total 306.670

Pension Fund Accounts

Suffolk County Council 131 Pension Fund Accounts

Level 2

Financial instruments at level 2 are those where quoted market prices are not available; for example, where an

instrument is traded in a market that is not considered to be active, or where valuation techniques are used to

determine fair value and where these techniques use inputs that are based significantly on observable market

data.

Assets classified as level 2 include pooled equity and fixed income investments.

Level 3

Financial instruments at level 3 are those where at least one input that could have a significant effect on the

instrument's valuation is not based on observable market data.

These instruments would include unquoted investments such as Property, Private Equity, Infrastructure, Illiquid

Debt and Timberlands, which are valued using various valuation techniques that require significant judgement

in determining appropriate assumptions.

18b. Fair Value - Basis of valuation

The basis of valuation for each class of investment asset is set out below:

Asset

Valuation

Hierarchy

Basis of Valuation

Observable and

Unobservable inputs

Key Sensitivities

affecting the Valuations

Market Quoted Equities

Unit Trusts

Money Market Funds

Absolute Returns

Level 1 Published bid market price N/A N/A

Unit Linked Life

Assurance Policies

Equity Pooled Funds

Level 2

Valuation technique with

quoted prices of a similar

asset

Price of recent

transactions for identical

instrument

Significant change in

economic circumstances

or time lapse since the

transaction took place.

Fixed Income Level 2

The prices are published

reflecting the NAV at each

dealing point but are not

exchange traded

Price of recent

transactions for identical

instrument

Significant change in

economic circumstances

or time lapse since the

transaction took place.

Forward Foreign

Exchange derivatives

Level 2

Market exchange rates at

the year end

Price of recent

transactions for identical

instrument

Risk of an exchange rate

changing between the

transaction date and the

subsequent settlement

date

volatility of the exchange

rates during the hedge

period

Pension Fund Accounts

Suffolk County Council 132 Pension Fund Accounts

Asset

Valuation

Hierarchy

Basis of Valuation

Observable and

Unobservable inputs

Key Sensitivities

affecting the Valuations

Property Level 3

Assets are priced based on

valuations received from the

Managers which are

determined in accordance

with the last known NAV

and adjusted for

subsequent capital calls

and distributions and other

relevant information

provided by the property

fund.

Pricing inputs are

unobservable and

includes situations

where there is little

market activity.

Estimated rental

growth.

Covenant strength for

existing tenancies.

Discount rate.

Land/Building valuation

surveys.

Significant changes in

rental growth, vacancy

levels or the discount rate

could affect valuations as

could more general

changes to market prices

and volumes of sales and

purchases

Illiquid Debt Level 3

The valuation techniques

used include comparison to

recent arm’s length

transactions, reference to

other instruments that are

substantially the same,

discounted cash flow

analysis, option adjusted

spread models and, if

applicable, enterprise

valuation.

These techniques may

include a number of

assumptions relating to

variables such as credit

risk and interest rates.

Valuations could be

affected by material

events occurring between

the date of the financial

statements provided and

the Pension Funds

reporting date, by

changes to expected cash

flows, earning multiples

and discount rates used in

the discounted cash flow

analysis.

Infrastructure Level 3

The valuation of the

investment assets is

determined in accordance

with generally accepted

valuation principles in

compliance with article 5(3)

of the Luxembourg law of

15 June 2004 on

investment companies in

risk capital.

Management's cash

flow projections.

Estimates of growth

expectations and

profitability.

Profit margin

expectations.

Adjustments to current

prices

for similar properties

Valuations could be

affected by material

events occurring between

the date of the financial

statements provided and

the Pension Funds

reporting date by changes

to expected cash flows

and fair value adjustments

Private Equity Level 3

The valuation of the

investments are carried at

fair value as determined in

good faith by the General

Partner in accordance with

the terms of the

Partnership Agreement and

US GAAP.

Management's cash

flow projections

Estimates of growth

expectations and

profitability

Profit margin

expectations

Adjustments to current

prices

for similar assets

valuation techniques

Valuations could be

affected by material

events occurring between

the date of the financial

statements provided and

the Pension Funds

reporting date, by

changes to expected cash

flows, earning multiples

and discount rates used in

the discounted cash flow

analysis.

Pension Fund Accounts

Suffolk County Council 133 Pension Fund Accounts

18c. Transfers between hierarchy levels 1 and 2

The Blackrock UK Equity transferred from Level 1 to Level 2 during the year. This was previously held as a

segregated mandate and is now being held as a pooled fund administered by Link Fund Solutions

18d. Valuation of Financial Instruments Carried at Fair Value

Asset

Valuation

Hierarchy

Basis of Valuation

Observable and

Unobservable inputs

Key Sensitivities

affecting the Valuations

Timberlands Level 3

Valuation technique is

based on accepted

valuation techniques that

include discounted cash

flow and multiple earnings.

Management's cash flow

projections

Estimates of growth

expectations and

profitability

Profit margin

expectations

Adjustments to current

prices

for similar assets

Valuation techniques

Valuations could be

affected by material events

occurring between the

date of the financial

statements provided and

the Pension Funds

reporting date by changes

to expected cash flows,

earning multiples and

discount rates used in the

discounted cash flow

analysis.

Quoted Market

Price

Using

Observable

Inputs

With

Significant

Unobservable

Inputs

Values at 31 March 2021 Level 1 Level 2 Level 3 Total

£ million £ million £ million £ million

Financial Assets

Fair value through profit and loss 528.562 2,140.929 718.247 3,387.738

Assets at amortised cost 7.352 7.352

Total Financial Assets 535.914 2,140.929 718.247 3,395.090

Financial Liabilities

Fair value through profit and loss

Financial Liabilites at amortised cost -2.665 -2.665

Total Financial Liabilities -2.665 0.000 0.000 -2.665

Net Financial Assets 533.249 2,140.929 718.247 3,392.425

Pension Fund Accounts

Suffolk County Council 134 Pension Fund Accounts

18e. Reconciliation of Fair Value measurements within Level 3

Quoted Market

Price

Using

Observable

Inputs

With

Significant

Unobservable

Inputs

Values at 31 March 2022 Level 1 Level 2 Level 3 Total

£ million £ million £ million £ million

Financial Assets

Fair value through profit and loss 260.514 2,609.494 870.722 3,740.730

Assets at amortised cost 13.515 13.515

Total Financial Assets 274.029 2,609.494 870.722 3,754.245

Financial Liabilities

Fair value through profit and loss

Financial Liabilites at amortised cost -5.001 -5.001

Total Financial Liabilities -5.001 0.000 0.000 -5.001

Net Financial Assets 269.028 2,609.494 870.722 3,749.244

Opening Realised Unrealised Closing

Market Value Purchases Sales Gains/(Losses) Gains/(Losses) Market Value

Assets 01 April 2020 31 March 2021

£ million £ million £ million £ million £ million £ million

Property 270.917 15.416 -6.607 3.392 -5.006 278.112

Illiquid Debt 40.247 27.027 -3.622 2.153 0.801 66.606

Infrastructure 153.001 160.483 -43.756 22.782 -34.253 258.257

Private Equity 98.239 8.670 -13.910 8.815 5.514 107.328

Timberlands 8.437 0.004 - - -0.497 7.944

Total of Investments 570.841 211.600 -67.895 37.142 -33.441 718.247

Opening Realised Unrealised Closing

Market Value Purchases Sales Gains/(Losses) Gains/(Losses) Market Value

Assets 01 April 2021 31 March 2022

£ million £ million £ million £ million £ million £ million

Property 278.112 35.216 -21.475 2.593 48.828 343.274

Illiquid Debt 66.606 35.513 -9.380 1.752 1.183 95.674

Infrastructure 258.257 13.997 -7.617 -0.201 24.043 288.479

Private Equity 107.328 11.578 -29.531 19.497 26.413 135.285

Timberlands 7.944 - - - 0.066 8.010

Total of Investments 718.247 96.304 68.003- 23.641 100.532 870.722

Pension Fund Accounts

Suffolk County Council 135 Pension Fund Accounts

18f. Sensitivity of assets values at Level 3

An analysis of historical data and expected investment return movements by Hymans Robertson has

determined a potential market movement range for the value of the holdings classified as level 3 as below:

19. Nature and Extent of Risks Arising from Financial Instruments

The fund's primary long-term risk is that the fund's assets will fall short of its liabilities of benefits payable to

members. The aim therefore of investment risk management is to minimise the risk of an overall reduction in

the value of the fund and to maximise the opportunity for gains across the whole fund portfolio.

This risk is minimised through asset diversification to reduce exposure to market risk and credit risk to an

acceptable level. The liquidity risk is managed by ensuring there is sufficient liquidity to meet the fund's forecast

cash flows, which forms part of the Pension Fund's overall risk management policy.

Responsibility for the fund's risk management strategy rests with the Pension Fund Committee. Risk

management policies are established to identify and analyse the risks and are reviewed regularly to reflect

changes in activity and market conditions.

The key risks that have been identified are:

A. Credit risk

B. Liquidity risk

C. Market risk

D. Interest Rate Risk

E. Currency Risk

F. Price Risk

G. Custody

H. Investment Management

I. Sensitivity of Funding position to market conditions and investment performance

Market Value Valuation Value on Value on

31 March 2021 Range Increase Decrease

£ million £ million £ million

Property 278.112 14.2% 317.604 238.620

Illiquid Debt 66.606 7.9% 71.868 61.344

Infrastructure 258.257 21.0% 312.491 204.023

Private Equity 107.328 28.5% 137.917 76.740

Timberlands 7.944 21.0% 9.612 6.276

Total of Investments 718.247 849.492 587.003

Market Value Valuation Value on Value on

31 March 2022 Range Increase Decrease

£ million £ million £ million

Property 343.274 15.0% 394.765 291.783

Illiquid Debt 95.674 10.3% 105.529 85.820

Infrastructure 288.479 14.6% 330.597 246.361

Private Equity 135.285 31.2% 177.494 93.076

Timberlands 8.010 14.6% 9.179 6.840

Total of Investments 870.722 1,017.564 723.880

Pension Fund Accounts

Suffolk County Council 136 Pension Fund Accounts

A. Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss to another party by failing

to meet its obligations.

The Fund is exposed to credit risk in its operational activities through securities lending, forward currency

contracts and treasury management activities. Commercial credit risk also arises with those organisations that

pay monies over to the Fund (debtors) as part of the administration function, principally contributions from

employers and transfers in from other registered pension schemes.

The Fund monitors the monthly receipt of contributions from employers. The Funding Strategy Statement

requires safeguards to be in place for all new admission agreements to protect the Fund from an employer

default, primarily through a guarantee from a tax-backed scheme employer for any new employer in the Fund.

An analysis of debtor balances at 31 March 2022 is provided in Note 22.

The Fund’s bank account is held with Lloyds Bank Plc, which is also banker to Suffolk County Council the

Administering Authority for the Pension Fund. The bank held a Long-Term rating of ‘A+’ (strong) with Standard

and Poor and with Fitch as at March 2022. The management of this cash held for the purpose of managing the

cashflow was carried out by the Council’s Treasury Management team in accordance with the cash

management strategy approved by the Pension Fund Committee. The Fund has had no occasion of default or

uncollectable deposits.

The Fund’s cash pending allocation for investment, is held within the custody system in the bank account of the

custodian, Northern Trust, or placed on deposit at the instruction of the individual managers.

At 31 March 2022, £5.999 million was with Lloyds (£4.478 million at March 2021). Cash deposited in Northern

Trust money markets amounted to £24.142 million at 31 March 2022 (£20.334 million with the former custodian

HSBC at March 2021), Blackrock as at 31 March 2021 held £1.389 million in their money market fund, this

investment has transferred into a pooled fund in units and so the balance is nil as at 31 March 2022, and

Schroders held £14.006 million in their money market fund, (£20.948 million at March 2021).

B. Liquidity risk

Liquidity risk is the risk that the Fund will have insufficient liquid assets (cash) to meet its investment or benefit

obligations as they fall due. The Pension Fund takes steps to ensure it has adequate cash resources to meet

its commitments.

The Pension Fund holds sufficient working capital to ensure that it has cash available to meet benefit and

transfer payments and cash drawdown requirements in respect of certain investment transactions. Within

mandates it is the responsibility of the individual managers to ensure that they have sufficient funds available

to meet the transactions they enter into on behalf of the Fund. These responsibilities are detailed within the

investment management agreements. At an investment level a large proportion of the Fund’s investments are

held in instruments that can be realised at short notice if a cash flow need arose. Certain investments,

particularly property, unquoted private equity, illiquid debt, timberlands and infrastructure funds are considerably

less liquid but these make up a far smaller proportion of the overall portfolio, £870.722 million, 23% (£718.247

million, 21% at March 2021).

C. Market risk

Market risk is the risk that the fair value of cash flows of a financial instrument will fluctuate due to changes in

market sentiment. Market risk reflects interest rate, currency and other price risk.

Market risk is inherent in the investments that the Fund makes. To mitigate market risk the investments are

made in a diversified set of asset classes and investment approaches to ensure a risk adjusted balance between

categories. The Fund takes formal advice from its independent investment advisers (Hymans Robertson LLP

and Mark Stevens) and the portfolio is split between a number of managers and investment strategies with

different benchmarks and performance targets. Full details can be found in the investment strategy statement

that is available at www.suffolkpensionfund.org. Investment risk and strategy are regularly reviewed by the

Pension Fund Committee.

Pension Fund Accounts

Suffolk County Council 137 Pension Fund Accounts

D. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because

of changes in market interest rates.

The Pension Fund's exposure to interest rate movements from its investments in fixed interest securities and

cash and cash equivalents which includes the custodian money market fund and cash held for investment.

The Pension Fund recognises that interest rates can vary and can affect both income to the fund and the value

of the net assets. A 100-basis point (BPS) movement in interest rates (equivalent to 1%) is consistent with the

level of sensitivity applied as part of the Fund's risk management strategy.

The analysis below, assumes that all other variables remain constant and shows the effect in the year of a +/-

100 BPS change in interest rates on the cash available to pay benefits.

E. Currency Risk

Currency risk is the extent to which the Pension Fund is exposed to fluctuations in exchange rates and the

impact these fluctuations have on the sterling valuation of assets denominated in foreign currency.

The one year expected standard deviation for an individual currency as at 31 March 2022 is 9.5% (as provided

by Hymans Robertson). This is based on the assumption that there is no diversification with other assets and

that all other variables, in particular interest rates remain constant.

The foreign exchange rate movement exposure to the strengthening or weakening of sterling against the various

currencies in which the fund holds investments which are not hedged to sterling are as follows:

Value as at Change Change

31 March 2021 + 100 BP's - 100 BP's

Asset Type £ million £ million £ million

Cash held for Deposit 4.778 0.048 -0.048

Cash and Cash Equivalent 40.233 0.402 -0.402

Total Assets 45.011 0.450 -0.450

Value as at Change Change

31 March 2022 + 100 BP's - 100 BP's

Asset Type £ million £ million £ million

Cash held for Deposit 5.999 0.060 -0.060

Cash and Cash Equivalent 43.293 0.433 -0.433

Total Assets 49.292 0.493 -0.493

Value as at

31 March 2021

Potential

Market

Movement

Value on

Increase

Value on

Decrease

Asset Type £ million £ million £ million £ million

Overseas Equities 501.287 50.129 551.416 451.158

Overseas Index Linked Equities

678.866 67.887 746.753 610.979

Alternative Investments 336.973 33.697 370.670 303.276

Total overseas assets 1,517.126 151.713 1,668.839 1,365.413

Pension Fund Accounts

Suffolk County Council 138 Pension Fund Accounts

F. Price Risk

Price risk is the risk of volatility in the valuation of the assets held by the Fund. The level of volatility will vary

by asset class and also over time. The Fund has some diversification in the asset classes in which it invests,

which seeks to reduce the correlation of price movements between different asset types, while employing

specialist investment managers to best deploy capital in line with the Fund’s overall strategy.

An analysis of historical data and expected investment return movements by Hymans Robertson has resulted

in a potential market movement price risk index for each asset type. If the market price of the fund’s investments

increase or decrease in line with the potential market movements then the change in the value of the net assets

would be as follows:

Value as at

31 March 2022

Potential

Market

Movement

Value on

Increase

Value on

Decrease

Asset Type £ million £ million £ million £ million

Overseas Equities 519.256 49.329 568.586 469.927

Overseas Index Linked Equities

892.929 84.828 977.757 808.101

Alternative Investments 381.671 36.259 417.928 345.412

Total overseas assets 1,793.856 170.415 1,964.272 1,623.441

Value as at Value on Value on

31 March 2021 Change Increase Decrease

Asset Type £ million % £ million £ million

UK Equities 243.349 16.70 283.988 202.709

Overseas Equities 501.287 17.40 588.511 414.063

Fixed Income 722.674 8.00 780.488 664.860

Index Linked 916.969 15.91 1,062.859 771.079

Cash & FFX -2.437 0.30 -2.445 -2.430

Money Markets 42.671 2.10 43.567 41.775

Unit Trusts 25.116 16.70 29.311 20.922

Property 278.112 14.20 317.604 238.620

Alternatives 657.560 18.80 781.182 533.939

Total Assets 3,385.301 3,885.065 2,885.537

Value as at Value on Value on

31 March 2022 Change Increase Decrease

Asset Type £ million % £ million £ million

Equities 813.781 20.03 976.782 650.781

Fixed Income 765.601 8.10 827.615 703.587

Index Linked 1,030.111 18.63 1,222.021 838.202

Cash & FFX 5.145 0.30 5.160 5.129

Money Markets 38.148 2.10 38.949 37.347

Property 343.275 15.00 394.766 291.783

Alternatives 749.814 16.60 874.058 625.570

Total Assets 3,745.875 4,339.352 3,152.399

Pension Fund Accounts

Suffolk County Council 139 Pension Fund Accounts

G. Custody

The Fund appointed Northern Trust as it's global custodian with responsibility for safeguarding the assets of the

Fund. Northern Trust is an established custodian bank and were appointed as the Fund’s custodian in 2021

following a national framework tendering process. Quarterly reconciliations are performed between the

underlying records of the custodian and the appointed investment managers.

H. Investment Management

The Fund has appointed a number of investment managers to manage portions of the Fund. An Investment

Management Agreement is in place for each relationship. All appointments meet the requirements set out in the

LGPS investment regulations. Managers’ report performance on a quarterly basis and this is monitored and

reported to Pension Fund Committee. The Fund makes use of a third-party performance measurement service

provided by Northern Trust. All managers have regular review meetings and discussions with members of the

Pension Fund Committee, officers and the Independent Financial Adviser Mark Stevens.

I. Sensitivity of Funding position to market conditions and investment performance

When preparing the formal valuation, the Actuary takes the assets of the Fund at the market value on the

valuation date. Volatility in investment performance as a result of market risk factors can have an immediate

effect on the funding level and deficit. This is particularly relevant because the Fund is invested predominantly

in riskier (and historically higher return) assets such as equities and equity-like investments (e.g. property trusts).

A rise or fall in the level of equity prices can have a direct impact on the financial position of the Fund.

Less obvious is the effect of anticipated investment performance on the Fund’s liability to pay future pension

benefits. Here the returns available on government bonds (gilts) are important, as the discount rate that is used

to place a value on liabilities is the gilt yield at the valuation date plus a margin of 1.8% per annum. Effectively

if the gilt yield rises the discount rate will increase and all other things being equal the value placed on liabilities

will fall. If the Fund was invested entirely in gilts rather than potentially higher returning assets the discount rate

would be lower as no margin for the expected out performance of the Fund’s investments over gilts could be

assumed.

20. Funding Position

In line with Regulation 62 of the Local Government Pension Scheme Regulations 2013, the Fund's actuary

undertakes a funding valuation every three years for the purpose of setting employer contribution rates for the

forthcoming triennial period.

An actuarial valuation uses economic and demographic assumptions in order to estimate future liabilities of

pensions payable. The assumptions are typically based on a mix of statistical studies and experienced

judgement. Hymans Robertson LLP provides the Fund’s Actuarial appraisal.

The key elements of the funding policy are:

• To take a prudent long-term view to secure the regulatory requirement for long-term solvency, with sufficient

funds to pay benefits to members and their dependants,

• To use a balanced investment strategy to minimise long-term cash contributions from employers and meet

the regulatory requirement for long-term cost efficiency,

• To ensure that employer contributions rates are as stable as possible,

• To reflect the different characteristics of employing bodies in determining contribution rates where the

administering authority considers it reasonable to do so,

• To use reasonable measures to reduce the risk to other employers and ultimately to the council tax- payer

from an employer defaulting on its pensions obligations.

The aim is to achieve 100% solvency over a number of years and to provide stability in employer contribution

rates by spreading increases in rates over a period of time. This is usually over three years but in some cases

this period can be extended.

Solvency is achieved when the funds held plus future expected investment returns and future contributions

are sufficient to meet expected future pension benefits payable.

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Suffolk County Council 140 Pension Fund Accounts

Formal Valuation

The last formal three-yearly actuarial valuation was carried out as at 31 March 2022. The valuation report

sets out the rates of the employer’s contributions for the three years starting 1 April 2023. The valuation

was based on:

• Meeting the requirements of the Local Government Pension Regulations.

• 100% funding of future liabilities for service completed to 31 March 2022.

• The ‘projected unit method’ of actuarial valuation.

Financial Assumptions

Financial assumptions typically try to forecast when benefits will come into payment, what form these will take

and how much the benefits will cost the Fund in the future. The financial assumptions included in the valuation

are as follows:

• Projected investment returns of 3.7% per year

• Projected increase in future salaries of 3.7% a year.

• Projected pension increases of 2.7% a year. (CPI)

Funding Position

The actuary uses the market value of the Fund's assets as stated in the audited accounts of March 2022. The

actuarial assessment of the value of the fund’s assets was £3,756 million as at 31 March 2022 and the liabilities

at £3,522 million.

The valuation showed that the Fund’s assets covered 107% of its liabilities at the valuation date, and the surplus

based on the actuarial valuation was £235 million.

Contribution Rates

The Fund actuary uses a model to project each employer’s asset share over a range of future economic

scenarios. The contribution rate takes each employer’s assets into account as well as the projected benefits

due to their members.

Employer contributions are made up of two elements:

• the primary contribution rate – contributions payable towards funding future benefits accruing.

• the secondary contribution rate – the difference between the primary rate and the total employer contribution

The total contribution rate for each employer is then based on:

• the funding target – how much money the Fund aims to hold for each employer,

• the time horizon – the time over which the employer aims to achieve the funding target,

• the likelihood of success – the proportion of modelled scenarios where the funding target is met.

This approach takes into account the maturing profile of the membership when setting employer contribution

rates.

The whole fund primary rate (payroll weighted average of the underlying individual employer rates) is 20.0% of

pensionable pay for the three years starting 1 April 2023.

The average employee contribution rate is 6.6% of pensionable pay.

The next formal valuation is as at 31 March 2025.

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Suffolk County Council 141 Pension Fund Accounts

21. Actuarial Present Value of Promised Retirement Benefits

In addition to the triennial funding valuation, the Fund's actuary also undertakes a valuation of the Pension Fund

liabilities every year using the same base data as the funding valuation rolled forward to the current financial

year, taking account of changes in membership numbers and updating assumptions to the current year.

In 2015 the Government introduced reforms to public sector pensions, meaning most public sector workers

were moved into new pension schemes in 2015. In December 2018, the Court of Appeal ruled that the

‘transitional protection’ offered to some members of the judicial and fire fighters’ schemes, as part of the reforms,

amounted to unlawful discrimination on regarding age discrimination. This ruling does have implications for the

Local Government Pension Scheme.

The government has conceded there will be changes to the scheme and the remediation process, including

cost cap considerations, may affect the resolution and financial impact for entities.

International Accounting Standard 26 (IAS 26)

CIPFA’s Code of Practice on Local Authority Accounting 2021 - 2022 requires administering authorities of the

LGPS funds that prepare pension fund accounts to disclose what IAS 26 refers to as the actuarial present value

of promised retirement benefits.

The following assumptions have been used for the IAS 26 calculation:

• Pension increases of 3.2% a year (2.9% 2020 - 2021)

• Increases in future salaries of 4.2% a year (3.6% 2020 - 2021)

• Discount Rate of 2.7% per year (2.0% 2020 - 2021)

The IAS 26 calculation shows that the present value of promised retirement benefits amount to £4,591 million

as at 31 March 2022 (£4,728 million as at 31 March 2021). This incorporates an approximate allowance for the

potential increase in liabilities arising from the impact of the McCloud judgement.

22. Current Debtors

The current debtors can be analysed as below:

31 March 2021 31 March 2022

£ million £ million

Debtors

7.015 Employers Contributions 8.220

1.755 Employee Contributions 2.122

4.340 Investment Assets 1.386

0.671 Sundry Debtors 1.015

0.016 Asset Pooling 0.018

13.797 12.761

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Suffolk County Council 142 Pension Fund Accounts

23. Current Creditors

The current creditors can be analysed as below:

24. Additional Voluntary Contributions

Scheme members have the option to make additional voluntary contributions to enhance their pension benefits.

In accordance with regulation 4 (1) (b) of the Local Government Pension Scheme (Management and Investment

of Funds) Regulations 2016, additional voluntary contributions have been excluded from the Fund Account and

Net Asset Statement. These contributions are held by the providers and therefore do not form part of the Fund’s

investments.

A total of £0.065 million was paid over to the providers Clerical Medical, Standard Life and Utmost (previously

Equitable Life) in 2021 - 2022, (£0.060 million 2020 - 2021).

25. Related Party Transactions

Related party transactions requiring disclosure in accordance with IAS 24 are as follows:

The Suffolk Pension Fund is administered by Suffolk County Council and consequently there is a strong

relationship between the Council and the Pension Fund.

Suffolk County Council is the largest single employer of members of the Pension Fund and contributed £36.920

million to the Fund in 2021 - 2022 (£35.770 million in 2020 - 2021). In addition the council incurred costs of

£1.219 million (£1.067 million in 2020 - 2021) in relation to the administration of the Fund, audit, legal and

committee services. These have all been reimbursed by the Fund.

Part of the Pension Fund cash holdings are invested by the Treasury Management operations of Suffolk County

Council through the Treasury Management Policy approved by the Pension Fund Committee. During the year

ending 31 March 2022 the Fund had an average investment balance of £9.619 million (£9.587 million in 2020 -

2021) earning interest of £0.007 million (£0.001million in 2020 - 2021) from these investments.

One member of the Pension Fund Committee and five members of the Pension Fund Board are scheme

members within the Pension Fund. All members of the Pension Fund Committee and Board are required to

declare their interests at each meeting.

26. Key Management Personnel

No senior officer responsible for the administration of the Pension Fund provides any goods or services to the

Fund other than those covered by their contract of employment with the Council.

The key management personnel of the Fund are the S151 Officer, Head of Pensions and Lead Accountant

(Pensions). The total remuneration payable to the key management personnel by the Suffolk Pension Fund was

£0.150 million in 2021 - 2022 (£0.139 million in 2020 - 2021).

These costs are charged to the Pension Fund as governance and oversight costs, Note 11 and are included in

the related parties Note 25.

31 March 2021 31 March 2022

£ million £ million

Creditors

0.000 Amounts owed to Employers -0.941

-1.453 Investment Expenses -2.818

-1.200 Administration and Governance Expenses -0.143

-0.271 Transfer Values In Adjustment -0.188

-1.513 Lump Sum Benefits -0.987

-1.023 Sundry creditors -3.130

-5.460 -8.207

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Suffolk County Council 143 Pension Fund Accounts

27. Agency Services

In response to the Government's requirement for the LGPS to pool their assets with other Pension Funds, the

Suffolk Pension Fund joined ACCESS (A Collaboration of Central, Eastern and Southern Shires) alongside

Cambridgeshire, East Sussex, Essex, Hampshire, Hertfordshire, Isle of Wight, Kent, Norfolk, Northamptonshire

and West Sussex.

The Suffolk Pension Fund paid some of the costs of the ACCESS pool on behalf of the other members of the

scheme. The amounts paid are not included in the Fund Account. These costs are charged to the Essex Pension

Fund who have taken over administering the Pool. The Suffolk Pension Fund stopped receiving costs from May

2020.

The costs charged are as below:

28. Securities Lending

The Suffolk Pension Fund does not operate securities lending however, it is undertaken in the pooled holdings

operated by Link Fund Solutions and the proceeds are reflected in the asset value earning £0.021 million in

2021 - 2022 (£0.012 million) in 2020 - 2021.

29. Contractual Commitments

In 2003 the Fund has made contractual commitments to private equity funds managed by Wilshire and

Pantheon. Commitments are made in the underlying currency of the funds ($103.131 million and €41.288

million) and are therefore subject to volatility (risk) arising from exchange rate fluctuation. This volatility will

impact both the value of unfunded commitments in sterling terms and the valuation of the funded interest and

monies received as distributions. At 31 March 2022 the unfunded commitment (monies to be drawn in future

periods) is $8.777 million and €2.300 million. The commitments are paid over the investment timeframe of the

underlying partnerships.

In 2011 - 2012 a contractual commitment of €54 million was made to an infrastructure investment (Partners

Group Global Infrastructure 2012) managed by Partners Group, the outstanding amount as at 31 March 2022

is €9.290 million.

In 2015 - 2016 contractual commitments of $149.500 million were made to private equity investments managed

by Pantheon. Some draw downs on the commitments have been made and the outstanding amounts to 31

March 2022 are $34.379 million.

In 2016 - 2017 the Pension Fund made additional contractual commitments to M & G, of £60 million in the

Greenfield infrastructure fund the outstanding amount is £17.781 million.

During 2017 - 2018 a contractual commitment was made to an infrastructure investment (Partners Group Global

Infrastructure 2015) managed by Partners Group of €55 million, the outstanding amount as at 31 March 2022

is €12.100 million.

During 2020 - 2021 a contractual commitment of £75 million was made to the Mult Asset Credit Fund with

Partners Group. The undrawn amount at the end of the year is £26.039 million.

During 2021 - 2022 a contractual commitment of $80 million was made to the Global Infrastructure Fund IV with

KKR. No capital calls have been made during the year.

2020 - 2021 2021 - 2022

£ million £ million

0.020 Payments on behalf of the ACCESS pool 0.000

0.020 0.000

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Suffolk County Council 144 Pension Fund Accounts

A summary of the commitments is as below:

2021 - 2022

Commitment Drawn Outstanding

£ million £ million £ million

Private Equity

Wilshire (2003-2008) 68.951 64.704 4.247

Pantheon (2003-2010) 44.268 39.946 4.322

Pantheon (2015) 113.546 87.435 26.111

Total Private Equity 226.765 192.085 34.680

Infrastructure

Partners (2012) 45.633 37.851 7.782

Partners (2016) 46.478 36.253 10.225

M&G (2016) 60.000 42.219 17.781

KKR (IV) 63.798 0.000 63.798

Total Infrastructure 215.909 116.323 99.586

Illiquid Debt

Multi Asset Credit Fund 75.000 48.961 26.039

Total Illiquid Debt 75.000 48.961 26.039

Asset Class

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Suffolk County Council 145 Pension Fund Accounts

Fire Pension Fund Statement

1. Administration of the Fire Pension Scheme

The Fire Pension Fund is administered by Suffolk County Council following financial guidance issued in

April 2006 by the Ministry of Housing, Communities and Local Government. The fund for the pensions of

Fire Fighters has no assets and is balanced to nil each year by receipt of a pension top-up grant from the

Home Office.

2. Preparation of the Fire Pension Scheme

The Fire Pension Fund is prepared in accordance with the Chartered Institute of Public Finance and

Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom 2021 - 2022.

The accounts are prepared on an accrual’s basis. This means that, within material levels, income and

expenditure is recognised in the accounts in the accounting period in which the effect of the relevant

transactions take place and not in the period in which cash is received or paid.

Employees’ and employer’s contribution levels are based on percentages of pensionable pay set

nationally by the Ministry of Housing, Communities and Local Government and the Home Office and

subject to triennial revaluation by the Government Actuary’s Department.

3. Accounting for liabilities and other benefits arising after period end.

The Fund’s financial statements do not take account of liabilities to pay pensions and other benefits after

the current financial year. Information on the Council’s long-term pension’s obligations can be found in the

main statements in note 33.

2020-21 2021-22

£ million Fund Account £ million

Contributions Receivable

From Employer

3.075 Normal 2.646

1.361 From members 1.290

0.008 Transfers In 0.074

Benefits Payable

-6.449 Pensions -6.628

-0.991 Commutations and Lump Sum retirement benefits -2.523

0.000 Lump Sum Death Benefits -0.188

-0.008 Other -0.024

Payments to and on account of leavers

0.000 Individual transfers out to other schemes -0.106

-3.004 Net amount payable (-) for the year before top-up grant -5.459

2.972 Top-up grant received 2.994

0.032 Net amount payable from/to(-) sponsoring department 2.465

2020-21 2021-22

£ million Net Assets Statement £ million

0.032 Amount (from)/to sponsoring department 2.465

Glossary

Suffolk County Council 146 Glossary

Glossary of Terms

This is a list of terms used in the accounts and what they mean.

Accruals basis

Amounts included in the accounts for income or expenditure in relation to the financial year but not received or

paid as at 31 March.

Accumulated Absences Account

The Accumulated Absences Account contains the differences that would otherwise arise on the General Fund

Balance from accounting for absences earned but not taken in the year, e.g. annual leave entitlement carried

forward at 31 March. Statutory arrangements require that the impact on the General Fund Balance is balanced

by transfers to or from the Account.

Actuarial gains and losses

The changes in actuarial losses or gains happen because:

• Events have not coincided with assumptions made by the actuary at the last valuation; or

• the actuary’s assumptions have changed.

Actuarial valuation

An actuarial valuation measures a pension fund’s ability to meet its long term liabilities (future costs). The

actuary looks at the likely increase in the value of the fund and the probable payments out of the fund. The

difference between the two is the amount that the Council has put into the fund.

Agent

The Council acts as an agent on behalf of Central Government with regards to the receipt of grants, when it is

just transferred through to a third party and the Council cant not make any decision over its use.

Amortised

The measure of the wearing out, consumption or other reduction in the useful economic life of an intangible

asset.

Asset

An Asset is something of value owned by the Council.

Assets held for sale

Assets held for sale are assets that are anticipated to be sold within the next year, rather than continue to be

used by the Council. They are measured at market value.

Billing Authority

The Districts and Borough Councils within Suffolk who are responsible for the collection of council tax and non-

domestic (business) rates.

Budget

A statement of spending plans for a financial year, which starts on 1 April and ends on the following 31 March.

Capital adjustment account

A reserve set aside from revenue resources or capital receipts to fund capital expenditure or the repayment of

external loans and certain other capital financing transactions.

Capital expenditure

Spending on assets that have a long term value, for example, land, buildings, equipment and vehicles.

Capital receipts

Income received on the sale of a capital asset.

Cash and cash equivalents

Cash is represented by notes and coins held by the Council and deposits available on demand. Cash

equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value.

Carrying amount

Carrying amount refers to the value at which an asset/liability is held in the balance sheet. It is the most recent

valuation of the asset/liability net of any depreciation/amortisation.

Glossary

Suffolk County Council 147 Glossary

CCG

Clinical Commissioning Group of the NHS.

CIPFA

The Chartered Institute of Public Finance and Accountancy. CIPFA is the professional institute for

accountants working in the public services. CIPFA publishes the Code.

Community assets

These assets include public areas within Suffolk such as parks and other open spaces.

Contingent asset

Contingent assets are possible or present assets that arise from past events whose existence will only be

confirmed by the occurrence of one or more uncertain future events not wholly within the Council’s control.

Contingent assets are not recognised in the Comprehensive Income and Expenditure Statement.

Contingent liability

Contingent liabilities are possible or present obligations that arise from past events, whose existence will be

confirmed only by the occurrence of one or more uncertain future events not wholly within the Council’s control.

Contingent liabilities are not recognised in the Comprehensive Income and Expenditure Statement.

Creditors

A person or organisation that the Council owes money to at the 31 March.

Current assets

Short term assets which change in value such as inventories, debtors and bank balances.

Current liabilities

Short term liabilities which are due to be paid in less than one year, such as bank overdrafts and money owed

to suppliers.

Current Service Cost

An estimate of the true economic cost of employing people in a financial year. It measures the full liability

estimated to have been generated in the year.

Collection Fund Adjustment Account

The Collection Fund Adjustment Account contains the difference between the amount of income from Council

Tax and Business Rates included in the Comprehensive Income and Expenditure account and the amount

required by regulation to be credited to the General Fund.

Componentisation

Each part of an asset with a cost that is significant in relation to the total cost of an asset is held separately in

the asset register and depreciated separately.

De minimis

The term used to describe a lower limit of a transaction below which no action is needed.

Debtors

A person or organisation that owes the Council money at the 31 March.

Dedicated School Grant Adjustment Account

The dedicated school grant adjustment account is an account established, charged and used solely for the

purpose of recognising deficits in respect of schools budgets.

Deferred liabilities

Deferred liabilities are liabilities which are payable at some point in the future or paid off by an annual sum over

a period.

Defined benefit scheme

The calculation of the pension due using the employee’s final salary or career average and the number of years

they have paid into the scheme multiplied by a set fraction.

Defined contribution scheme

A pension scheme with no assets to meet the pension liabilities and cash is generated to meet the actual

pension payments.

Depreciation

The measure of the wearing out, consumption or other reduction in the useful economic life of a fixed asset.

Glossary

Suffolk County Council 148 Glossary

Donated Assets

Assets transferred to the Council for nil consideration.

Earmarked reserves

Monies set aside for a specific purpose.

Finance Leases

Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and

rewards incidental to ownership of the property, plant or equipment from the lessor to the lessee. All other leases

are classified as operating leases.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or

equity instrument for another. The term “financial instrument” covers both financial assets and financial liabilities

and includes the most straightforward of financial assets and liabilities such as trade receivables (debtors) and

trade payables (creditors).

General Fund

The General Fund is the main revenue fund from which service costs are met.

Government grants

Support from the Government, government agencies and similar organisations (whether local, national or

international) in the form of cash or transfers of assets to the Council. In return, the Council must carry out its

activities in line with certain conditions.

Gross expenditure

The cost of providing Council services before allowing for government grants or other income.

Heritage Assets

Assets held principally for contribution to knowledge and culture.

Historical Cost

The original cost of an asset/liability to the Council at the date it was acquired/recognised on the balance sheet.

IAS

International Accounting Standard.

IFRS

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by the

International Accounting Standards Board (IASB) to provide a global framework for how organisations prepare

and disclose their financial statements.

Impairment

A reduction in value of a fixed asset resulting from, for example, fall in market values, obsolescence or physical

damage. To comply with accounting standards, the Council undertakes annual reviews of its assets to identify

any assets which have been impaired.

Infrastructure assets

Fixed assets that cannot be sold, transferred or removed. Examples of infrastructure assets are highways and

footpaths.

Intangible assets

An asset with no physical substance but is identifiable and is controlled by the Council.

Inventories

Goods bought which have not been used.

Investments (Non-Pension Funds)

A long-term investment in the activities of the Council is an investment that is intended to be held for continuing

use. Investments are also classified in this way only where the investors can show they intend to hold the

investment for the long term or where there are restrictions on their ability to sell the investment.

Investments which do not meet these conditions are classed as current assets.

Lender’s Option Borrower’s Option (LOBO) - loans where the lender has the option to propose an increase

in the interest rate at set dates, following which the Council has the option to either accept the new rate or to

repay the loan at no additional cost.

Glossary

Suffolk County Council 149 Glossary

Liability

An amount due to individuals or organisations which will have to be paid at some time in the future. Current

liabilities are usually payable within one year of the balance sheet date.

Long Term Debtor

These debtors represent the capital income still to be received, for example, from the sale of an asset or the

granting of a loan.

Materiality

An item is material if its omission, non-disclosure, or misstatement in financial statements could be expected to

lead to a distortion of the view given by financial statements.

Minimum Revenue Provision

A minimum amount, set by law, which the Council must charge to the Revenue Account to provide for debt

redemption or for the discharge of other credit liabilities.

Net book value

The amount at which fixed assets are included in the balance sheet. This means their original cost or current

value less the amount allowed for wear and tear (depreciation).

Net cost of services

This comprises all expenditure minus all income, other than precept and transfers from reserves.

Non-current asset

An asset which is intended to be used for several years such as a building or a vehicle.

Non-current liability

Liabilities which are due to be paid in one year or more, such as a loan with a payback period of longer than

one year.

Operating lease

An operating lease is any lease that is not a finance lease.

Pay

Pay is defined in the latest CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (the

Code). This definition includes the following:

• Gross pay (before the deduction of employees’ pension contributions)

• Compensation for loss of office and any other payments receivable on termination of employment

• Expense allowances chargeable to tax and other benefits (as declared on HM Revenue & Customs

form P11D)

Post balance sheet events

Those events, both favourable and unfavourable, that occur between the balance sheet date and the date on

which the statement of accounts is signed by the responsible financial officer.

Precept

The levying of a rate by one authority which is collected by another. Suffolk County Council precepts upon the

borough and district councils’ collection funds for its income but some bodies, e.g. the Environment Agency,

precept upon Suffolk County Council.

Provision

An amount set aside to provide for a liability that is likely to be incurred but where the exact amount and the

date on which it will arise are uncertain.

Projected unit credit method of actuarial valuation

An accrued-benefits valuation method is one in which the scheme liabilities allow for projected earnings. An

accrued-benefits valuation method is the scheme liabilities at the valuation date in relation to:

• the benefits for pensioners and deferred pensioners (that is, individuals who are no longer active

members but are entitled to benefits at a later date) and their dependants, allowing where appropriate

for future increases; and

• the accrued benefits for members in service on the valuation date.

The accrued benefits are the benefits for service up to a given point in time.

Private Finance Initiative (PFI)

This provides a way of funding major capital investments by working with private consortia.

Glossary

Suffolk County Council 150 Glossary

Public Works Loans Board (PWLB)

A government controlled agency that provides a source of borrowing for public authorities.

Related parties

Two or more parties (individuals or organisations) are related parties when at any time during the financial

period:

• one party has direct or indirect control of the other party;

• the parties are controlled by the same source;

• one party has influence over the financial and operational policies of the other party, so the other party

might not always feel free to follow its own separate interests; or

• the parties, in entering a transaction, are influenced by the same source to such an extent that one of

the parties to the transaction has given favourable conditions to the other because of this outside

influence.

Remaining useful life

The length of time that a fixed asset is expected to be operational.

Revaluation reserve

This account contains the difference between the values of the Councils assets based on historical cost and

more recent valuations.

Revenue expenditure funded by capital under statute (REFCUS)

Spending which does not result in the creation of a fixed asset but which by law the Council must treat as capital

spending and can finance by capital sources including borrowing and capital grants.

Section 151 Officer

Section 151 of the Local Government Act 1972 requires the Council to appoint an officer responsible for the

proper administration of the Council’s financial affairs.

Settlements

Agreements that end the Councils responsibility to pay pensions to people, for example, when people move to

another pension scheme.

Single entity accounts

Financial statements prepared for an organisation as a distinct and independent body. These do not include

assets, liabilities, expenditure or income owned or incurred by another body in which the organisation has an

interest, such as a joint venture.

Straight-line calculation

A way of working out the repayment of an amount spread equally over a period of time.

Subsidiary

The Council, normally through shareholding, controls an organisation – it has the power to govern its financial

and operating policies so as to benefit from its activities.

Surplus

The remaining income after taking away all expenses.

Triennial Valuation

A valuation carried out on the Pension Fund every three years, to estimate the future benefit payments from the

Fund and the total value of those payments, based on assumptions about the future.

Useable Reserve

A useable reserve represents resources the Council can use to support service delivery. Some usable reserve

hold restrictions on their use depending on legislation.

Unusable Reserve

Unusable reserves are not available to support delivery of services. The reserves are in place for statutory

adjustments, required to reconcile balances to the amounts chargeable to council tax, in order to comply with

legislation.

Usable capital receipts

The proportion of the proceeds arising from the sale of fixed assets that can be used to finance capital

expenditure or repay debt.