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. Statutory arrangements require that the impact on the General Fund is neutralised by transfers to or from the account.
| Accumulated Absences Account | 2024/25 £000's | 2025/26 £000's |
|---|
| Balance at 1 April | (6,838) | (8,631) |
| Settlement or cancellation of accrual made at the end of the preceding year | 6,838 | 8,631 |
| Amounts accrued at the end of the current year | (8,631) | (8,784) |
| Amount by which officer remuneration charged to the Comprehensive Income and Expenditure Statement on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements | (1,793) | (153) |
| Balance at 31 March | (8,631) | (8,784) |
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 pension funds or eventually pay any pensions for which it is directly responsible. The council no longer holds a credit balance on the Pensions Reserve, this previously showed a substantial shortfall in the benefits earned by past and current employees and the resources the council has set aside to meet them which has been resolved at the latest valuation. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid.
| Pensions Reserve | 2024/25 £000's | 2025/26 £000's |
|---|
| Balance at 1 April | (56,125) | (50,881) |
| Remeasurements of the net defined benefit (liability) / asset | (934) | 34,552 |
| 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 Statement | (35,214) | (27,526) |
| Employer's pensions contributions and direct payments to pensioners payable in year | 41,392 | 43,855 |
| Balance at 31 March | (50,881) | - |
The Dedicated Schools Grant adjustment account holds accumulated deficits relating to the schools' budget. Where the council has incurred a deficit on its schools' budget between years beginning 1 April 2020 and ending 31 March 2026, the Local Authorities (Capital