7. Glossary of Terms

ACCOUNTING PERIOD

The 12-month period covered by the accounts, running from 1 April to 31 March.

ACCRUAL

Recording income when it is earned and costs when they are incurred, rather than when cash is received or paid.

ACTUARIAL GAINS AND LOSSES

Changes in a pension fund's surplus or deficit because actual events were different from the assumptions used, or because those assumptions have changed.

AGENCY SERVICES

Services the council provides on behalf of another organisation, which then pays the council back for the work.

ANNUAL GOVERNANCE STATEMENT (AGS)

A formal statement that explains how the council is governed and how its decision-making arrangements work.

ASSET

Something the council controls that is expected to provide value or support services in the future.

AUDITOR'S OPINION

The external auditor's view on whether the accounts give a fair and accurate picture of the council's finances.

BALANCE SHEET

A summary of what the council owns, owes and holds at the end of the financial year.

BALANCES

Money the council has set aside from previous years when income was higher than spending.

BUDGET

The council's plan for how much it expects to spend over a set period.

CAPITAL ADJUSTMENT ACCOUNT

An account showing money used to pay for long-term assets or to repay borrowing linked to capital spending.

CAPITAL CHARGE

A cost charged to services to reflect the use of buildings, equipment or other long-term assets.