Producing time series comparable to 2020-21 LFRs: guidance note

Definitions

For the purposes of this document, the following terms are defined as set out below:

Funding Basis (FB)

 The figures have been adjusted for certain accounting transactions that have been charged to services, such as depreciation and pension costs. Funding basis figures are used by local authorities when making financial decisions, such as setting budgets. All the LFRs covered by this document present figures on a funding basis.

Cash terms

 Figures presented in cash terms have not been adjusted for inflation.

Revenue Expenditure

The cost of delivering services each year, including operating costs and overheads, plus costs that cannot be directly attributed to a service, such as the repayment of debt.

Gross Service Expenditure

Total expenditure incurred in relation to the provision of a service.

Gross Service Expenditure Adjusted for LFR Purposes

 Total expenditure incurred in relation to the provision of a service, adjusted to exclude inter and intra-authority transfers. This figure must be used when calculating aggregate figures, such as Scotland or Council level, to ensure there is no double counting due to transfers between or within local authorities.

Gross Service Income

The total income a local authority receives in relation to services, for example customer and client receipts and specific grants.

Gross Service Income Adjusted for LFR Purposes

Gross service income adjusted to exclude inter and intra-authority transfers. This figure must be used when calculating aggregate figures, such as Scotland or Council level, to ensure there is no double counting due to transfers between or within local authorities.

Net Revenue Expenditure

The element of service expenditure funded by general funding, such as General Revenue Grant (GRG) and local taxation, and from reserves. This is calculated as the difference between Gross Service Expenditure and Gross Service Income.

Integrated Joint Board (IJB)

Thirty IJBs were established in Scotland under the Public Bodies (Joint Working) (Scotland) Act 2014. They are responsible for the planning of integrated arrangements and onward services delivery of health and social care for their constituent councils and health boards.