standardised financial reports and financial health kpis ... · background, structure and some...

Standardised Financial Reports and Financial Health KPIs for City Governments in Europe

A unique achievement reached by six major European cities

Table of Contents

Background, Purpose and some Limitations ........................................................ 3 The City of Barcelona (ES) ...................................................................................... 5 The City of Dublin (IE) .............................................................................................. 7 The City of Hamburg (DE) ....................................................................................... 9 The City of London (UK) ........................................................................................ 11 The City of Milan (IT) .............................................................................................. 13 The City of Vienna (AT) .......................................................................................... 15 Terminology and Explanatory ............................................................................... 17

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Background, Structure and some Limitations

This standardised financial report and the financial health key performance indicators (KPIs) for city governments in Europe are the final output of the first phase of the European City Economic and Financial Governance (CEFG) Group, which was initiated in June 2014 by the City of Barcelona (ES) in collaboration with the European Institute of Public Administration (EIPA) and with the support of the European Commission – Eurostat. This prestigious and high-level partnership brings together the cities of Barcelona (ES), Dublin (IE), Hamburg (DE), the City of London (UK), Milan (IT) and Vienna (AT) to create a space for mutual learning in the field of economic and financial governance, to improve the comparability of financial data among European cities and thus to enhance and advocate for the effectiveness, efficiency and accountability of local public sector management. Over the course of four meetings, the CFOs and financial managers of these partner cities examined topical issues such as budget methods and practices, their integrated financial management systems, their financial accounting practices and systems in relation to national and European frameworks as well as the effects on economic development and growth.

The uniqueness of this partnership consists in the fact that it is the first time that fiscal and financial management issues are discussed from a cross-border perspective at city level. This group is considered an ideal place to bring local financial and economic realities and concerns to the attention of the European Commission (Eurostat) in matters that are usually (only) debated at national level.

This document presents the joint effort of the six European partner cities to achieve comparable financial and accounting data against the background of highly fragmented public sector accounting practices within the European Union and even within the countries. This novel financial report is a timely output in line with the European Commission’s efforts to define the European Public Sector Accounting Standards (EPSAS) in order to harmonise public sector accounting data across the EU and increase its reliability.

The template that is presented in this report is based on the CEFG Group city partners’ agreement reached through four partners’ meetings and built jointly bottom-up. Firstly, a preliminary document was produced, discussed and sent to the partners to be completed. The filled-in data and results were subsequently counter-checked and verified with the support of EIPA’s expert team. Finally, the document was further refined and finalised. The statements are in line with frameworks such as the European System of Accounts (ESA), the International Public Sector Accounting Standards (IPSAS), the International Monetary Fund (IMF) and World Bank approaches, and thus based on accrual accounting. It comprises a set of agreed financial indicators, including items such as the statement of operating performance, capital operations, financial flows, cash statements and debt for the common financial city reports as well as data of the six cities in relation to 10 financial health KPIs.

It is important to remember/stress that even if this statement claims to have defined a common set of financial information and KPIs as accurately and clearly as possible, the rules of central governments and their possible restrictions, e.g. obligation to break even or requirement of surpluses/prevention of these by politics, the diverse local socio-economic situations or the different competences of the respective cities, do affect the cities and cannot always be adequately reflected in the respective indicators. For instance, the

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operating performance indicators of the Cities of Vienna and Hamburg triple those of Milan, the third highest ranked city. This is, among others, due to the fact that Vienna and Hamburg are city states with also regional competences and thus they manage a bigger share of services and functions. In addition, both Vienna and Hamburg include pensions in their current expenditures, which is not the case in the other CEFG member cities. Another peculiarity and thus worth mentioning is the City of London, which has no long-term debt (which is a very unusual position for English local authorities) because of a high value property portfolio in the City. In addition, city budgets are structured differently and different accounting systems are still in use (e.g. cash accounting, modified accrual accounting or full accrual accounting). Finally, the City of London has a different financial year compared to the other five partner cities.

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European City Economic & Financial Governance (CEFG) Group City of BarcelonaSTANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015

STATEMENT OF OPERATING PERFORMANCE (OP)

code item 2012 2013 2014 commentsOP1 City Tax Revenues 818,9 855,5 918,1OP2 City Fees & Charges Revenues 261,8 271,8 255,8OP3=OP1+OP2 City's Own Revenues Coming from Citizens 1.080,6 1.127,3 1.173,9OP4 Other City's Own Current Revenues 42,1 44,5 214,3OP5=OP3+OP4 City's Own Revenues Total 1.122,8 1.171,7 1.388,3OP6 Tax Sharing Revenues 74,6 85,9 85,7OP7 Current Earmarked Grants from Other Governments 105,5 121,1 110,3OP8 Current Non-Earmarked Grants from Other Governments 932,6 978,6 932,8OP9=OP5+OP6+OP7+OP8 Current Revenues 2.235,5 2.357,4 2.517,1OP10 Interests and Other Costs of Debt 32,1 32,0 29,5OP11 Personnel Expenses 329,2 399,3 344,6OP12 Other Current Expenditures 1.446,4 1.458,5 1.511,5OP13=OP10+OP11+OP12 Current Expenditures 1.807,7 1.889,8 1.885,6OP14 Depreciation 90,3 94,8 101,3OP15=OP13+OP14 Total Expenses 1.898,0 1.984,6 1.986,9OP16=OP9-OP13 Gross Operating Balance 427,8 467,6 631,5OP17=OP9-OP15 Net Operating Balance 337,5 372,8 530,2

CAPITAL OPERATIONS

CAPITAL FINANCIAL FLOWS (CF)

code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 11,6 7,5 11,1CF2 Capital Grants from Other Entities 14,0 20,2 42,8CF3 Other Capital Revenues 0,0 0,0 0,0CF4=CF1+CF2+CF3 Capital Revenues 25,6 27,7 53,9CF5 Acquisition of Fixed Capital 375,0 325,8 495,0CF6 Capital Grants to Other Entities 18,3 30,1 168,2CF7=CF5+CF6 Capital Expenditures 393,3 355,9 663,3CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) -367,7 -328,2 -609,3

CAPITAL CREATION OR CONSUMPTION (CC)

code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets 363,5 318,3 483,9CC2=CC1-OP14 Net Increase of Fixed Assets 273,2 223,5 382,6

FINANCIAL FLOWS (FF)

code item 2012 2013 2014 commentsFF1=OP16+CF8 Net Lending (+) or Borrowing (-) 60,1 139,4 22,2FF2 Disposal of Financial Fixed Assets 1,8 1,2 1,8FF3 Acquisition of Financial Fixed Assets 1,3 1,3 1,2FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) 135,5 75,6 -106,9

CASH STATEMENT & DEBT

CASH STATEMENT (CS)

code item 2012 2013 2014 commentsCS1 Cash as of January 1st 270,0 381,4 519,1CS2 Receipts from Operations 2.225,9 2.382,4 2.639,2CS3 Payments from Operations 2.189,5 2.180,9 2.383,9CS4=CS2-CS3 Cash Flow Generated from Operations 36,4 201,5 255,3CS5 Receipts from Overdrafts and Other Cash Facilities 0,0 0,0 0,0CS6 Receipts from Other Financial Operations 165,0 40,0 0,0CS7 Repayments of Ovedrafts and Other Cash Facilities 0,0 0,0 0,0CS8 Repayments of Other Financial Operations 90,0 103,7 129,7CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations 75,0 -63,7 -129,7CS10=CS4+CS9 Total Cash Flow 111,4 137,7 125,6CS11=CS1+CS10 Cash as of December 31st 381,4 519,1 644,8

519,1 644,8

PENDING PAYMENTS (PP) 0,0 0,0

code item 2012 2013 2014 commentsPP1 Pending payments as of January 1st 407,0 464,1 480,7PP2 Pending payments from Previous Years Paid or Cancelled 395,7 452,8 462,5PP3 Pending payments from Current Year (Year End) 452,8 469,4 614,3PP4=PP1-PP2+PP3 Pending payments as of December 31st 464,1 480,7 632,5

LONG TERM DEBT (LD)

code item 2012 2013 2014 commentsLD1 Long Term Debt as of January 1st 1.090,1 1.165,1 1.101,4LD2 New Long Term Debt 165,0 40,0 0,0LD3 Debt Repayment (Principal) 90,0 103,7 129,7LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 90,0 103,7 129,7LD4=LD1+LD2-LD3 Debt as of December 31st 1.165,1 1.101,4 971,7

This report gives evidence to revenues and expenditures/expenses and their balance, generated by current operations. Million Euros

These two reports give evidence of capital operations both in terms of financial flows generated, and their balance in terms of capital financial capacity or need, and assets created or consumed

This report gives evidence to two main financial balances, i.e. the net lending/borrowing and the overall financial flows balance

These three reports give evidence to three important elements of the financial situation: cash (and its flows along the year), and short and long term liabilities.

FINANCIAL HEALTH KPIs (FH)

code KPI 2012 2013 2014

Aut

onom

y FH1=OP5/OP9 Financial Autonomy - How much is the city independent from other governments? -- usually, the higher the better --

50,2% 49,7% 55,2%

FH2=FF4/OP9 Overall Financial Flows Balance - How big is the financial flows overall surplus or deficit? -- it should not be <0; in case it is positive, future generations will receive benefits from old generations --

6,1% 3,2% -4,2%

FH3=FF1/OP9 Net Lending or Borrowing Capacity - How big is the surplus or deficit generated by the current and capital operations (similar to FH2, but excludes financial operations)? -- it should not be <0; in case it is positive, future generations will receive benefits from old generations

2,7% 5,9% 0,9%

FH4=OP9/(OP13+LD3A) Operating Balance - Is there a balance between current resources and structural expenditures? -- it should be >100% and in that case new capital assets can be purchased without incurring in new loans; <100% shows a dangerous imbalance --

117,8% 118,3% 124,9%

FH5=OP10/OP9 Cost of Debt - It shows how big is the cost of debt and how much takes from the current economic capacity (current, operating revenues) of the city government -- the lower the better

1,4% 1,4% 1,2%

FH6=LD4/OP9 Debt Repayment Capacity - How big is the long-term debt compared to annual current revenues? -- like the Maastricht's Stability Pact Debt/GDP ratio

52,1% 46,7% 38,6%

FH7=LD4/LD3A Debt Repayment Length - How long does it take to repay the stock of debt at current level of repayment (in years)? -- the lower the better, since it means that the city has less dead weight for its financial future

12,9 10,6 7,5

FH8=LD4/OP16 Debt Paydown Capacity - How long does it take to repay the stock of debt if all current surplus where used? -- the lower the better

2,7 2,4 1,5

FH9=PP4/(OP13+CF7) Amount of Commercial Debts - Does the city demonstrate any difficulties in paying creditors? -- the lower the better --

21% 21% 25%

FH10=CS5/OP9 Cash Facility Burden - An excessive use of cash facilities (e.g. overdrafts) may be a symptom of short term solvency difficulties -- the lower the better

0,0 0,0 0,0

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European City Economic & Financial Governance (CEFG) Group City of Dublin

STANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015


code item 2012 2013 2014 commentsOP1 City Tax Revenues 341,3 341,2 342,2OP2 City Fees & Charges Revenues 222,7 224,4 243,2OP3=OP1+OP2 City's Own Revenues Coming from Citizens 564,0 565,6 585,4OP4 Other City's Own Current Revenues 3,9 5,9 4,6OP5=OP3+OP4 City's Own Revenues Total 567,9 571,5 590,0OP6 Tax Sharing Revenues 167,9 167,2 76,8OP7 Current Earmarked Grants from Other Governments 89,7 75,1 92,8OP8 Current Non-Earmarked Grants from Other Governments 0,0 0,0 0,0OP9=OP5+OP6+OP7+OP8 Current Revenues 825,5 813,8 759,6OP10 Interests and Other Costs of Debt 13,6 12,0 10,6OP11 Personnel Expenses 377,0 372,4 361,5OP12 Other Current Expenditures 438,7 428,9 375,8OP13=OP10+OP11+OP12 Current Expenditures

829,3 813,3 747,9

(1) Depreciation should normally be charged as an expense to the cost of operations ie. in the Income and Expenditure Account. Whilst most assets are subject to depreciation, the accounting treatment adopted by Local Authorities in Ireland results in a nil impact on the Income and Expenditure Account.Dublin City Council included annual depreciation charge in this line as per Annual Financial Statement.(2) The water and sewage network valued at 2853 million was transferred to Irish Water in 2014. Depreciation on those assests was 937.6 million.

OP14 Depreciation 31,4 31,4 7,0OP15=OP13+OP14 Total Expenses 860,7 844,7 754,9OP16=OP9-OP13 Gross Operating Balance -3,8 0,5 11,7OP17=OP9-OP15 Net Operating Balance -35,2 -30,9 4,7

CAPITAL OPERATIONS


code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 98,3 128,7 84,4 The water and sewage network valued at

2853 million was transferred to Irish Water in 2014. Depreciation on those assests was 937.6 million.

CF2 Capital Grants from Other Entities 140,9 150,4 111,4CF3 Other Capital Revenues 113,8 64,6 48,0CF4=CF1+CF2+CF3 Capital Revenues 353,0 343,7 243,8CF5 Acquisition of Fixed Capital 82,0 185,9 21,1 See comment above.CF6 Capital Grants to Other Entities 260,0 224,5 178,4CF7=CF5+CF6 Capital Expenditures 342,0 410,4 199,5CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) 11,0 -66,7 44,3


code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets -16,3 57,2 -63,3CC2=CC1-OP14 Net Increase of Fixed Assets -47,7 25,8 -70,3


code item 2012 2013 2014 commentsFF1=OP16+CF8 Net Lending (+) or Borrowing (-) 7,2 -66,2 56,0FF2 Disposal of Financial Fixed Assets 29,1 9,8 29,3FF3 Acquisition of Financial Fixed Assets 0,0 0,0 0,0FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) 47,1 -74,4 83,6




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CASH STATEMENT (CS)

code item 2012 2013 2014 commentsCS1 Cash as of January 1st 80,15 115,2 136,6CS2 Receipts from Operations 902,7 945,3 997,3 See comment above.CS3 Payments from Operations 829,4 925 1042 See comment above.CS4=CS2-CS3 Cash Flow Generated from Operations 73,3 20,3 -44,7CS5 Receipts from Overdrafts and Other Cash Facilities 0 0 0CS6 Receipts from Other Financial Operations 0 0 0CS7 Repayments of Ovedrafts and Other Cash Facilities 0 0 0CS8 Repayments of Other Financial Operations 0 0 0CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations 0 0 0CS10=CS4+CS9 Total Cash Flow 73,3 20,3 -44,7CS11=CS1+CS10 Cash as of December 31st 153,45 135,5 91,9

PENDING PAYMENTS (PP)

code item 2012 2013 2014 commentsPP1 Pending payments as of January 1st 262,6 242,6 221,6PP2 Pending payments from Previous Years Paid or Cancelled 820,2 634,6 728,3PP3 Pending payments from Current Year (Year End) 800,2 613,6 772,7PP4=PP1-PP2+PP3 Pending payments as of December 31st 242,6 221,6 266

LONG TERM DEBT (LD)

code item 2012 2013 2014 commentsLD1 Long Term Debt as of January 1st 928,9 910,3 842,3LD2 New Long Term Debt 44,4 18,1 9,8LD3 Debt Repayment (Principal) 63 86,1 119,3LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 33,6 36,1 11,5LD4=LD1+LD2-LD3 Debt as of December 31st 910,3 842,3 732,8


code KPI 2012 2013 2014

Aut

onom


68,8% 70,2% 77,7%


5,7% -9,1% 11,0%


0,9% -8,1% 7,4%


95,7% 95,8% 100,0%


1,6% 1,5% 1,4%


110,3% 103,5% 96,5%


27,1 23,3 63,7


-239,6 1.684,6 62,6


21% 18% 28%


0,0 0,0 0,0

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European City Economic & Financial Governance (CEFG) Group City of HamburgSTANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015

Data for fiscal year 2014 are preliminary!

STATEMENT OF OPERATING PERFORMANCE (OP)*

code item 2012 2013 2014 commentsOP1 City Tax Revenues 8.800 9.208 10.057OP2 City Fees & Charges Revenues 818 815 831OP3=OP1+OP2 City's Own Revenues Coming from Citizens 9.618 10.023 10.888OP4 Other City's Own Current Revenues 712 855 894OP5=OP3+OP4 City's Own Revenues Total 10.330 10.878 11.782OP6 Tax Sharing Revenues 0 86 36OP7 Current Earmarked Grants from Other Governments 310 418 302OP8 Current Non-Earmarked Grants from Other Governments 669 758 799OP9=OP5+OP6+OP7+OP8 Current Revenues 11.309 12.140 12.919OP10 Interests and Other Costs of Debt 838 791 737OP11 Personnel Expenses 3.774 4.104 4.556OP12 Other Current Expenditures 6.713 6.814 7.435OP13=OP10+OP11+OP12 Current Expenditures 11.325 11.709 12.728OP14 Depreciation 697 827 604OP15=OP13+OP14 Total Expenses 12.022 12.536 13.332OP16=OP9-OP13 Gross Operating Balance -16 431 191OP17=OP9-OP15 Net Operating Balance -713 -396 -413

* Adjusted representation excluding special items (see also Annual Report, representation in the Management Report 2012-2014)

CAPITAL OPERATIONS*


code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 76 5 22CF2 Capital Grants from Other Entities 158 137 102CF3 Other Capital Revenues 20 23 31CF4=CF1+CF2+CF3 Capital Revenues 253 165 155CF5 Acquisition of Fixed Capital 474 446 361CF6 Capital Grants to Other Entities 427 407 472CF7=CF5+CF6 Capital Expenditures 901 853 833CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) -648 -687 -678


code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets 398 441 339CC2=CC1-OP13 Net Increase of Fixed Assets -299 -386 -265

* Deriving from the cameralistic accounts; no adequate statement of cash flows is available for periods up to 2014.


code item 2012 2013 2014 commentsFF1=OP15+CF8 Net Lending (+) or Borrowing (-) -664 -256 -487

FF2 Disposal of Financial Fixed Assets 0 0already included in CF1 and CF5

FF3 Acquisition of Financial Fixed Assets 0 0FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) -779 19 -473




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CASH STATEMENT & DEBT*

CASH STATEMENT (CS)

code item 2012 2013 2014 commentsCS1 Cash as of January 1st 1.004 406 519CS2 Receipts from Operations 11.229 11.303 12.339CS3 Payments from Operations 11.773 11.721 11.901CS4=CS2-CS3 Cash Flow Generated from Operations -544 -418 439CS5 Receipts from Overdrafts and Other Cash Facilities 3.850 5.814 2.909CS6 Receipts from Other Financial Operations 3.128 4.102 3.175CS7 Repayments of Ovedrafts and Other Cash Facilities 3.789 5.558 3.266CS8 Repayments of Other Financial Operations 3.243 3.827 3.160CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations -54 531 -342CS10=CS4+CS9 Total Cash Flow -598 113 96CS11=CS1+CS10 Cash as of December 31st 406 519 615

519 645

PENDING PAYMENTS (PP) 0 30

code item 2012 2013 2014 commentsPP1 Pending payments as of January 1st 2.681 3.360 3.398PP2 Pending payments from Previous Years Paid or CancelledPP3 Pending payments from Current Year (Year End) 679 38 387 net additionsPP4=PP1-PP2+PP3 Pending payments as of December 31st 3.360 3.398 3.785

LONG TERM DEBT (LD)

code item 2012 2013 2014 commentsLD1 Long Term Debt as of January 1st 23.053 22.938 23.213LD2 New Long Term Debt 3.128 4.102 3.175LD3 Debt Repayment (Principal) 3.243 3.827 3.160LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 3.243 3.827 3.160LD4=LD1+LD2-LD3 Debt as of December 31st 22.938 23.213 23.227

* The cash flow statement is obtained from different calculations. There is no adequate statement of cash flows for periods up to 2014.


code KPI 2012 2013 2014

Aut

onom


91,3% 89,6% 91,2%


-6,9% 0,2% -3,7%


-5,9% -2,1% -3,8%


77,6% 78,1% 81,3%


7,4% 6,5% 5,7%


202,8% 191,2% 179,8%


7,1 6,1 7,4


n/a (KPI not defined if negative)

53,9 121,6


27% 27% 28%


0,3 0,5 0,2

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European City Economic & Financial Governance (CEFG) Group City of LondonSTANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015

SPECIAL REMARKS


code item 2012 2013 2014 commentsOP1 City Tax Revenues 16,7 15,5 16,4OP2 City Fees & Charges Revenues 138,2 131,4 136,3OP3=OP1+OP2 City's Own Revenues Coming from Citizens 154,9 146,9 152,8OP4 Other City's Own Current Revenues 69,0 88,1 125,6OP5=OP3+OP4 City's Own Revenues Total 224,0 235,0 278,4OP6 Tax Sharing Revenues 0,0 0,0 0,0OP7 Current Earmarked Grants from Other Governments 86,0 95,1 102,9OP8 Current Non-Earmarked Grants from Other Governments 144,9 125,4 116,2OP9=OP5+OP6+OP7+OP8 Current Revenues 455,0 455,4 497,4OP10 Interests and Other Costs of Debt 0,0 0,0 0,0OP11 Personnel Expenses 200,6 208,0 206,0OP12 Other Current Expenditures 244,5 285,0 273,7OP13=OP10+OP11+OP12 Current Expenditures 445,1 492,9 479,8OP14 Depreciation 0,0 0,0 0,0OP15=OP13+OP14 Total Expenses 445,1 492,9 479,8OP16=OP9-OP13 Gross Operating Balance 9,9 -37,5 17,7OP17=OP9-OP15 Net Operating Balance 9,9 -37,5 17,7

CAPITAL OPERATIONS


code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 112,5 111,0 183,9CF2 Capital Grants from Other Entities 11,5 11,2 20,7CF3 Other Capital Revenues 0,0 0,0 0,0CF4=CF1+CF2+CF3 Capital Revenues 124,0 122,2 204,5CF5 Acquisition of Fixed Capital 29,5 251,7 62,5CF6 Capital Grants to Other Entities 0,0 0,0 0,0CF7=CF5+CF6 Capital Expenditures 29,5 251,7 62,5CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) 94,5 -129,5 142,1


code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets -83,0 140,7 -121,4CC2=CC1-OP14 Net Increase of Fixed Assets -83,0 140,7 -121,4


code item 2012 2013 2014 commentsFF1=OP16+CF8 Net Lending (+) or Borrowing (-) 104,4 -167,0 159,7FF2 Disposal of Financial Fixed Assets 0,0 0,0 0,0FF3 Acquisition of Financial Fixed Assets 0,0 0,0 0,0FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) 104,4 -167,0 159,7

Million Euros

Exchange rate1,37 EUR = 1 GBP



This report gives evidence to revenues and expenditures/expenses and their balance, generated by current operations.

11


CASH STATEMENT (CS)

code item 2012 2013 2014 commentsCS1 Cash as of January 1st 17,1 19,3 55,1CS2 Receipts from Operations 343,7 309,3 325,5CS3 Payments from Operations 290,7 249,3 252,1CS4=CS2-CS3 Cash Flow Generated from Operations 53,0 60,0 73,4CS5 Receipts from Overdrafts and Other Cash Facilities 0,0 0,0 0,0CS6 Receipts from Other Financial Operations 121,9 229,1 289,6CS7 Repayments of Ovedrafts and Other Cash Facilities 0,0 0,0 0,0CS8 Repayments of Other Financial Operations 172,8 253,3 327,3CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations -50,8 -24,2 -37,7CS10=CS4+CS9 Total Cash Flow 2,2 35,8 35,8CS11=CS1+CS10 Cash as of December 31st 19,3 55,1 90,8

519,1 644,8

PENDING PAYMENTS (PP) 464,1 553,9

code item 2012 2013 2014 commentsPP1 Pending payments as of January 1st 203,6 166,2 198,2PP2 Pending payments from Previous Years Paid or Cancelled 203,6 166,2 198,2PP3 Pending payments from Current Year (Year End) 166,2 198,2 282,2PP4=PP1-PP2+PP3 Pending payments as of December 31st 166,2 198,2 282,2

LONG TERM DEBT (LD)

code item 2012 2013 2014 comments

LD1 Long Term Debt as of January 1st 0,0 0,0 0,0

The City of London Corporation does not have debt.

LD2 New Long Term Debt 0,0 0,0 0,0LD3 Debt Repayment (Principal) 0,0 0,0 0,0LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 0,0 0,0 0,0LD4=LD1+LD2-LD3 Debt as of December 31st 0,0 0,0 0,0


code KPI 2012 2013 2014

Aut

onom


49,2% 51,6% 56,0%


22,9% -36,7% 32,1%


22,9% -36,7% 32,1%


102,2% 92,4% 103,7%


0,0% 0,0% 0,0%


0,0% 0,0% 0,0%


0,0 0,0 0,0


0,0 0,0 0,0


35% 27% 52%


0,0 0,0 0,0

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European City Economic & Financial Governance (CEFG) Group City of Milan

STANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015


code item 2012 2013 2014 commentsOP1 City Tax Revenues 1.108,3 1.091,0 1.174,5OP2 City Fees & Charges Revenues 703,6 702,6 752,6OP3=OP1+OP2 City's Own Revenues Coming from Citizens 1.811,9 1.793,6 1.927,1OP4 Other City's Own Current Revenues 258,9 281,6 247,2OP5=OP3+OP4 City's Own Revenues Total 2.070,8 2.075,2 2.174,3OP6 Tax Sharing Revenues 0,6 2,1 0,1OP7 Current Earmarked Grants from Other Governments 311,2 332,0 329,0OP8 Current Non-Earmarked Grants from Other Governments 329,7 291,2 213,5OP9=OP5+OP6+OP7+OP8 Current Revenues 2.712,3 2.700,5 2.716,9OP10 Interests and Other Costs of Debt 119,9 110,1 114,9OP11 Personnel Expenses 622,9 636,3 632,8OP12 Other Current Expenditures 1.751,3 1.791,2 1.801,3OP13=OP10+OP11+OP12 Current Expenditures 2.494,1 2.537,6 2.549,0OP14 Depreciation 226,7 250,2 261,7OP15=OP13+OP14 Total Expenses 2.720,8 2.787,8 2.810,7OP16=OP9-OP13 Gross Operating Balance 218,2 162,9 167,9OP17=OP9-OP15 Net Operating Balance -8,5 -87,3 -93,8

CAPITAL OPERATIONS


code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 62,2 5,4 12,2CF2 Capital Grants from Other Entities 201,0 134 274,4CF3 Other Capital Revenues 80,6 54,1 67,1CF4=CF1+CF2+CF3 Capital Revenues 343,8 193,5 353,7CF5 Acquisition of Fixed Capital 183,4 384,7 600,1CF6 Capital Grants to Other Entities 84,3 22,6 80,9CF7=CF5+CF6 Capital Expenditures 267,7 407,3 681CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) 76,1 -213,8 -327,3


code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets 121,2 379,3 587,9CC2=CC1-OP14 Net Increase of Fixed Assets -105,5 129,1 326,2


code item 2012 2013 2014 commentsFF1=OP16+CF8 Net Lending (+) or Borrowing (-) 294,3 -50,9 -159,4FF2 Disposal of Financial Fixed Assets 0,0 0,0 0,0FF3 Acquisition of Financial Fixed Assets 0,0 0,0 0,0FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) 242,7 -1,7 -184




13


CASH STATEMENT (CS)

code item 2012 2013 2014 commentsCS1 Cash as of January 1st 1015,5 1127,9 790,3CS2 Receipts from Operations 3766,4 3607,8 3595,6CS3 Payments from Operations 3653,5 3945,4 3630,7CS4=CS2-CS3 Cash Flow Generated from Operations 112,9 -337,6 -35,1CS5 Receipts from Overdrafts and Other Cash Facilities 0 0 0CS6 Receipts from Other Financial Operations 0,0 0,0 0,0CS7 Repayments of Ovedrafts and Other Cash Facilities 0 0 0CS8 Repayments of Other Financial Operations 0,0 0,0 0,0CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations 0 0 0CS10=CS4+CS9 Total Cash Flow 112,9 -337,6 -35,1CS11=CS1+CS10 Cash as of December 31st 1128,4 790,3 755,2

PENDING PAYMENTS (PP)

code item 2012 2013 2014 commentsPP1 Pending payments as of January 1st 0 0 887,9PP2 Pending payments from Previous Years Paid or Cancelled 0 0 638,6PP3 Pending payments from Current Year (Year End) 0 0 547,8PP4=PP1-PP2+PP3 Pending payments as of December 31st 0 0 797,1

LONG TERM DEBT (LD)

code item 2012 2013 2014 commentsLD1 Long Term Debt as of January 1st 4200 4128,5 4177,7LD2 New Long Term Debt 79,3 174 113,2LD3 Debt Repayment (Principal) 150,8 124,8 137,8LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 130,9 124,8 137,8LD4=LD1+LD2-LD3 Debt as of December 31st 4128,5 4177,7 4153,1


code KPI 2012 2013 2014

Aut

onom


76,3% 76,8% 80,0%


8,9% -0,1% -6,8%


10,9% -1,9% -5,9%


103,3% 101,4% 101,1%


4,4% 4,1% 4,2%


152,2% 154,7% 152,9%


31,5 33,5 30,1


18,9 25,6 24,7


0% 0% 25%


0,0 0,0 0,0

Bal

ance

Deb

tS

hort

Term

Sol

venc

y


14

European City Economic & Financial Governance (CEFG) Group City of ViennaSTANDARDISED FINANCIAL REPORT AND FINANCIAL HEALTH KPIs FOR CITY GOVERNMENTS IN EUROPE

November 2015


code item 2012 2013 2014 commentsOP1 City Tax Revenues 1.262,3 1.303,5 1.341,0OP2 City Fees & Charges Revenues 1.223,1 1.273,2 1.292,5OP3=OP1+OP2 City's Own Revenues Coming from Citizens 2.485,4 2.576,7 2.633,5OP4 Other City's Own Current Revenues 1.412,2 1.495,0 1.490,1OP5=OP3+OP4 City's Own Revenues Total 3.897,6 4.071,7 4.123,6OP6 Tax Sharing Revenues 5.120,8 5.371,2 5.557,3OP7 Current Earmarked Grants from Other Governments 0,0 0,0 0,0OP8 Current Non-Earmarked Grants from Other Governments 1.583,2 1.600,1 1.053,9OP9=OP5+OP6+OP7+OP8 Current Revenues 10.601,6 11.043,0 10.734,8OP10 Interests and Other Costs of Debt 66,6 66,5 78,5

OP11

Personnel Expenses 3.836,7 3.917,7 4.009,2 This data includes pensions. In 2012, pension payments amounted to 1,268.7 Million €. Adding these to the 2,539.9 Million € for staff in active employment and to 28.1 Million € for elected bodies, the overall personnel expenses amounted to 3,836,7 Million €.In 2013, pension payments amounted to 1,297.5 Million €. Adding these to the 2,591.4 Million € for staff in active employment and to 28.8 Million € for elected bodies, the overall personnel expenses amounted to 3,917,7 Million €.In 2014, pension payments amounted to 1,341.0 Million €. Adding these to 2,638.6 Million € for staff in active employment and to 29.6 Million € for elected bodies, the overall personnel expenses amounted to 4,009.2 Million €.

OP12 Other Current Expenditures 5.929,1 6.177,5 5.780,9OP13=OP10+OP11+OP12 Current Expenditures 9.832,4 10.161,7 9.868,6

OP14 Depreciation 0,0 0,0 0,0Modern cash accounting system in use, no information on depreciation

OP15=OP13+OP14 Total Expenses 9.832,4 10.161,7 9.868,6OP16=OP9-OP13 Gross Operating Balance 769,2 881,3 866,2OP17=OP9-OP15 Net Operating Balance 769,2 881,3 866,2

CAPITAL OPERATIONS


code item 2012 2013 2014 commentsCF1 Disposal of Fixed Capital 0,0 0,0 0,0 No information availableCF2 Capital Grants from Other Entities 0,0 0,0 0,0CF3 Other Capital Revenues 0,0 0,0 0,0CF4=CF1+CF2+CF3 Capital Revenues 0,0 0,0 0,0CF5 Acquisition of Fixed Capital 0,0 0,0 0,0CF6 Capital Grants to Other Entities 0,0 0,0 0,0CF7=CF5+CF6 Capital Expenditures 0,0 0,0 0,0CF8=CF4-CF7 Capital Financial Capacity (+) or Need (-) 0,0 0,0 0,0


code item 2012 2013 2014CC1=CF5-CF1 Gross Creation of Fixed Assets 0,0 0,0 0,0CC2=CC1-OP14 Net Increase of Fixed Assets 0,0 0,0 0,0


code item 2012 2013 2014 commentsFF1=OP16+CF8 Net Lending (+) or Borrowing (-) 769,2 881,3 866,2FF2 Disposal of Financial Fixed Assets 0,0 0,0 0,0 No information availableFF3 Acquisition of Financial Fixed Assets 0,0 0,0 0,0FF4=FF1+FF2-FF3+LD2-LD3 Overall Financial Flows Balance (Current Year) 1.091,8 1.166,9 1.124,1

Million Euros



This report gives evidence to revenues and expenditures/expenses and their balance, generated by current operations.

15


CASH STATEMENT (CS)


CS1 Cash as of January 1st 1.938,7 1.782,1 2.082,0

No information available; except for Cash as of January 1st (CS1) and Cash as of December 31st (CS11)

CS2 Receipts from Operations 0,0 0,0 0,0CS3 Payments from Operations 0,0 0,0 0,0CS4=CS2-CS3 Cash Flow Generated from Operations 0,0 0,0 0,0CS5 Receipts from Overdrafts and Other Cash Facilities 0,0 0,0 0,0CS6 Receipts from Other Financial Operations 0,0 0,0 0,0CS7 Repayments of Ovedrafts and Other Cash Facilities 0,0 0,0 0,0CS8 Repayments of Other Financial Operations 0,0 0,0 0,0CS9=CS5+CS6-CS7-CS8 Cash Flow Generated from Cash Facilities and Other Financial Operations 0,0 0,0 0,0CS10=CS4+CS9 Total Cash Flow 0,0 0,0 0,0CS11=CS1+CS10 Cash as of December 31st 1.782,1 2.081,9 1.967,6

519,1 644,8

PENDING PAYMENTS (PP) -1.562,8 -1.322,8


PP1

Pending payments as of January 1st 1.758,0 1.625,0 1.699,4 No information available, except for Pending payments as of January 1st (PP1) and Pending payments as of December 31st (PP4)

PP2 Pending payments from Previous Years Paid or Cancelled 0,0 0,0 0,0PP3 Pending payments from Current Year (Year End) 0,0 0,0 0,0PP4=PP1-PP2+PP3 Pending payments as of December 31st 1.625,0 1.699,0 1.519,4

LONG TERM DEBT (LD)

code item 2012 2013 2014 commentsLD1 Long Term Debt as of January 1st 4.027,3 4.349,7 4.635,2LD2 New Long Term Debt 723,6 1.147,6 945,0LD3 Debt Repayment (Principal) 401,2 862,1 686,8LD3A Debt Repayment (Principal) Excluding Extraordinary Repayments 401,0 862,0 687,0LD4=LD1+LD2-LD3 Debt as of December 31st 4.349,7 4.635,2 4.893,4


code KPI 2012 2013 2014

Aut

onom


36,8% 36,9% 38,4%


10,3% 10,6% 10,5%


7,3% 8,0% 8,1%


103,6% 100,2% 101,7%


0,6% 0,6% 0,7%


41,0% 42,0% 45,6%


10,8 5,4 7,1


5,7 5,3 5,6


17% 17% 15%


0,0 0,0 0,0

Bal

ance

Deb

tS

hort

Term

Sol

venc

y


16

Terminology and Explanatory Notes

General definitions Each item is accounted according to accrual accounting except those included in CAPITAL FINANCIAL FLOWS (CF) that are accounted when the credit or liability rises. The financial information is provided in relation to the legal perimeter of each city. Nil cells must be read as “data not available”.

OP - Specific definitions - OP1: Compulsory, unrequited amounts on which the city government exerts

discretion on rates or reliefs (or both).- OP2: Revenues from sales of goods and services; it includes city fines and

sanctions.- OP4: Other city revenues on which the city exerts some discretional power (e.g.

dividends, interests receivable).- OP6: Taxes shared between the city government and other governments, where

decision on revenue split is made with or without the participation/ consent of the citygovernment and there is a reduced or non-existent degree of freedom for the citygovernment. This kind of revenue could be considered as a transfer.

- OP7 & OP8: Please note that capital grants are accounted in the CF template asCF2 (s. below).

- OP10: Other costs of debt include costs associated to city's bond issuance, ratingagencies costs, costs of debt advice, etc.

- OP11: Includes all costs incurred for personnel, i.e. all payroll costs; excludespensions.

- OP14: It is otherwise known as "fixed capital consumption".

CF - Specific definitions - CF1: Sales of fixed assets.- CF5: Purchases of fixed assets.- CF1 to CF4: Financial inflows that are accounted when the credit rises, therefore

they include both cash inflows and receivables.- CF5 & CF6: Financial outflows that are accounted when the debit rises, therefore

they include both cash outflows and payables.

FF - Specific definitions - FF2: Only in case it has not been already included in CF1.- FF3: Only in case it has not been already included in CF5.

CS - Specific definitions - CS2: Current and capital cash inflows.- CS3: Current and capital cash outflows.- CS5: Cash inflows from lines of credit use.- CS6: Cash inflows from such financial operations as loans, bonds, etc.- CS7: Cash outflows for repayments of lines of credit used.- CS8: Cash outflows for repayments of such financial operations as loans, bonds,

etc.

17

PP - Specific definitions - PP1 to PP3: Short-term debt includes commercial debt of current and capital

expenditures usually due within 12 months. It does not include financial debt, butincludes overdue debt.

- PP2: Includes cancelled short-term debt due to errors, discounts, allowances, etc.

LD - Specific definitions - LD1 to LD3A: Long-term debt includes loans, bonds and all types of debt with

multiannual repayments.- LD3A: It does not include extraordinary repayments due to roll overs.

18

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