⚙️ Restate Last Year

Restate Last Year - An Introduction

Restate Last Year is used in the initial set-up to enter figures for the previous year (as there are none in Scribe to bring forward) or to Restate the figures brought forward in future years but normally only when instructed to do so by an auditor.

To access this feature, navigate to Setup -> Restate Last Year.

First Year using Scribe

Each financial year should hold the data relating to the end of the previous year.

If it's your first year in Scribe it is necessary to manually add in those previous year end figures, so that there is some comparative data in respect of the previous year when you get to the end of the first year. 

The figures you initially see will all be zero as there are no last year figures to use, so you can use the Restate function to add in some relevant details for the previous year without having to actually create the previous financial year in the system.

What Information Should I Enter?

Different information is required depending on whether you're working on a Receipts & Payments basis, or an Income & Expenditure basis.

The following information applies to both R&P and I&E, and must be entered via Setup -> Restate Last Year. Ensure you select Save before moving onto the next tab.

• Cash at Bank: This is simply your Box 8 figure on the prior annual return. You will need to include the pence and a bank reconciliation as at 31st March will assist with this.
• Funds: This is your Box 7 figure on the annual return, and you will need to include the pence. For those working on a Receipts & Payments basis, this figure will be the same as Box 8. You can then provide a breakdown of your Box 7 figure in terms of Capital & Earmarked Reserves and the remaining General Fund.
• Annual Return: This is where you can enter the other figures from your annual return (these figures can be rounded as per the annual return if you do not have the exact pence).

Councils working on an I&E basis will see the further tabs available.

• Assets: These are not the assets that appear on your annual return in terms of Box 9. This is purely to show any work in progress or temporary lendings on the balance sheet, but in practice is not that common.
• Adjustments: This is where you can enter the total adjustments from the prior year (e.g. debtors, creditors, prepayments etc). Once you have saved these entries, you can then allocate the amounts to relevant cost codes via the "Allocate" button.
• VAT: Typically you will always need to enter a VAT recoverable figure which will be part of the Balance Sheet Assets, even if there are no other adjustments, assets or liabilities to enter. This is the value of VAT claimed for the previous financial year but not received as at 31st March. This entry is just for the balance sheet, so you must do this in addition to entering the VAT balance when entering opening cashbook balances.

Those working in Income & Expenditure will need to run Calculate to ensure all balances. Navigate to Year End -> Calculate and select Start. If you receive a red notification that flags up a discrepancy, this will need to be investigated. ▶ Why does the Balance Sheet not balance? 

Points to note:

• If you carried out a conversion to Income and Expenditure for the last year you will also need to enter the six potential adjustments if there were any. Entering those adjustments is required because it is necessary for them to be reversed in this year’s accounts when you get to the next year end. 
• Assets (Box 9) and Borrowings (Box 10) are entered manually under Restate Last Year in the first financial year. In future years these boxes will be populated based on the information entered via Year End/Asset Register (or Borrowings).
• Those completing Year End in Receipts and Payments will have a General Fund (Box 7) that matches Cash at Bank (Box 8) because this will be strictly a 'cashbook' account and should not take account of any adjustments. 
• Remember that when working in Income and Expenditure, the difference between your General Fund (Box 7) and Cash at Bank (Box 8) should match the value of adjustments (e.g. VAT, debtors, creditors etc). E.g. General Fund =£2000; Cash at Bank =£1800 and VAT recoverable=£200 which is included within the general fund because it is an asset forming part of the total in I&E terms. 
• If you are just starting with Scribe, you can start using the system from the beginning of the financial year, and later enter the last year's figures as and when you have them available. 

If you have any discrepancies at your first year end, double-check what you have entered in the Restate Last Year process for the previous year end when you first started. ▶ Why does the Balance Sheet not balance?

After your First Year

In future years Scribe will allow you to copy forward your prior Year End data to the next, and you will not need to manually restate as with the first financial year. The only other time you may need to use this restate function is if instructed to do so by an auditor. If you are unsure on the process or would like guidance, contact the Scribe support team.