Collection Fund Account for the Year Ended 31 March 2009

Notes to the Collection Fund Account

1. General

This account reflects the statutory requirement for billing authorities to maintain a separate Collection Fund, showing the transactions of the billing authority in relation to business rates and council tax, and illustrates the way in which these have been distributed to preceptors and the General Fund.  The Collection Fund is consolidated with other accounts of the billing authority.

2. Council Tax

Council tax income derives from charges raised for domestic properties, based on their market value as at 1 April 1991. Each property falls within one of eight valuation bands as follows:

The charge for each property is calculated by estimating the income required for Kent County Council, Kent Police Authority, Kent Fire and Rescue and Thanet District Council to provide services to the District, then dividing this by the tax base.

The following table shows the number of properties per band discounted and converted to Band D equivalents thus calculating the Council Tax base:

Estimated income for 2008/09 was £64.761m, actual income was £65.902m. After set aside and write off of bad debt (£964k) the increase in income has reduced the deficit on the fund by £177k.

3. Transfers from the General Fund

Individual entitlements to Council Tax Benefit reduce the amount of Council Tax payable in the year, the total amount being charged to the General Fund.

4. Income from Business Rates

The Council collects non-domestic rates for its area which are based on local rateable values multiplied by a national uniform rate.  The total amount, less certain reliefs and other deductions, is paid to a central pool (the Non Domestic Rate pool) managed by Central Government, which in turn pays back to authorities their share of the pool based on a standard amount per head of the local population.  Under these arrangements, the amounts included in these accounts can be analysed as follows:

5. (SURPLUS)/DEFICIT of the Revenue Account

The introduction of Council Tax brought with it the requirement to share any surplus or deficit (in proportion to precepts) as estimated at 15 January between the major precepting authorities. (NB: The deficit/surplus relating to Community Charge is estimated at 15 February and borne 100% by the billing authority).

Remaining balances are then used to decrease or increase the council tax payable.

The balance on the Collection Fund at year end represents partly a decrease in the resources attributable to the Authority, and partly amounts due from precepting authorities. In order to comply with the Statement of Recommended Practice (SORP) this has been split between TDC fund balances (£49k) and precepting authority debtors (£291k) within the Balance Sheet.

6. Precepts and Demands on the Collection Fund

Annually the precepts from major precepting authorities are affected by prior year surpluses or deficits. The figures for 2007/08 and 2008/09 reflect the total amount raised to pay for goods and services within each authority, and to clear any deficit or utilise any surplus from prior years.

Next page: Annual Governance Statement

Previous page: Housing Revenue Account

• Explanatory Foreword
• Statement of Accounting Policies
• Statement of Responsibilities for the Statement of Account
• Independent Auditors Report
• Income and Expenditure Account
• Statement of Movement on the General Fund Balance
• Statement of Total Recognised Gains and Losses
• Balance Sheet
• Cash Flow Statement
• Notes to the Core Financial Accounts
• Housing Revenue Account
• Collection Fund  
• Annual Governance Statement
• Glossary of Terms

• Download Statement of Accounts 2008-09 (PDF, 353kb)
• Download Statement of Accounts Summary (PDF, 1.5mb)

E-mail:

accountancy@thanet.gov.uk

Tel: 01843 577000