Accounting for NDR Model 2016-17 (England)



This model automatically produces the journals and subsequent NDR Collection Fund and General Fund positions for compliance with the 2016/17 Accounting Code and statutory provisions, for Billing and Precepting Authorities, non-pooling and pooling. It includes a safety net/levy and ‘pool benefit’ calculator and provides additional assurance and an audit trail for closedown and a monitoring and forecasting tool in-year.




Mar 2017




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What will it help you with

The Accounting for NDR Model helps Billing Authorities meet the Collection Fund accounting requirements of the 2016/17 Code and associated statutory regulations. The model can also help with estimation of the statutory surplus/deficit for 31 January purposes and assist with monitoring and forecasting outturn positions on the Collection and General Fund.

The model also produces the figures to be communicated to major preceptors at year-end and precepting authorities can use the model to comply with the 2016/17 Accounting Code and statutory requirements if they can obtain the relevant information from their billing authorities.

Summary of features

The NDR Model requires input of information on baselines, previous-year reconciliation and closing balance amounts, cashbook transactions and NNDR 1 and NNDR 3 data.

The model then automatically converts the inputs to determine the Collection Fund and General Fund transactions and balances needed to reflect all aspects (barring any local interpretation) of the accounting and regulatory requirements, apportioning the balances as required between billing and precepting authorities. Factoring in the cash transactions produces the complete final position of the NDR impact on the accounts.

It includes for individual authorities the safety net/levy calculations and accounting requirements and for pools, the calculation of pool benefit. It then generates the relevant journals needing to be actioned on the authority’s ledger to cover both the accounting and statutory requirements and produce the Collection Fund and General Fund figures to be included in each authority’s statement of accounts.

The model then summarises the General Fund position of the authority, which can be used as a reconciliation tool to ensure that, once the journals have been posted, the ledger reflects what is expected. The model also produces an NDR Collection Fund Statement. Both these elements of the model mean that it can be used not only for year-end accounting but also in the estimation process of the statutory surplus/deficit for 31 January purposes and also in monitoring the Collection Fund and General Fund positions at any point during the year and can also demonstrate the impact of forecast outturn figures.

Customer benefit

Using the model is a relatively quick way of producing the NDR element of the complex Collection Fund. It can provide assurance on your understanding and application of the accounting and statutory requirements, an audit trail of your approach and a reconciliation tool for populating and checking your financial statements. Used together with the ‘Council Tax Accounting Model’ it provides a complete package for producing the Collection Fund accounts and the General Fund implications at any point in the year, closedown, in-year monitoring or forecasting.

“Just thought I would send you a quick email to say how great your business rates spreadsheet is! Just down to the allocation of balances bit and I have found it extremely helpful so far and saved me loads of time trying to work it out for myself.” (Paul Allen, Finance Services Manager, North East Lincolnshire Council)

“Thank you, this model is really useful. Main things I liked on it was the levy calc (to confirm I was doing that OK) and also the journals tab because it meant I could confirm that all my journals were in line with what your model showed.”
(Ian Stapleton, Finance Services Manager, Castle Point Borough Council)

“Yes, this all works perfectly – thank you so much for updating it and it’s a really useful tool to have so thank you for creating it in the 1st place!”
(Breckland Council)

“A thank you to you and your colleagues for putting this model together, of enormous benefit.” (Keith Price, Group Accountant, Gosport Borough Council)

Additional information

Further information can be found at BRR Resource Hub.