Balances and Reserves

Balances

The Parish Council’s financial position over time may be illustrated by the closing balance of its accounts each year. The table below shows the closing balance of our accounts for each financial year since 2010-2011.

Financial Years Summary and Balances

Financial YearOpening BalanceIncomeExpenditureClosing Balance
2010 - 2011£11,959£5,973£5,680£12,252
2011 - 2012£12,252£7,706£7,503£12,455
2012 - 2013£12,455£6,429£3,964£14,920
2013 - 2014£14,920£6,075£4,224£16,772
2014 - 2015£16,772£5,908£8,480£14,200
2015 - 2016£14,200£6,942£6,267£14,895
2016 - 2017£14,895£6,535£7,450£13,982
2017 - 2018£13,982£7,800£8,779£13,007
2018 - 2019£13,007£5,783£6,581£12,209
2019 - 2020£12,209£22,326£16,303£18,232
2020 - 2021£18,232£11,758£3,445£26,545

The above figures show that the Parish Council has consistently held its balances at an approximate ratio of 2:1, where the amount of funds available is twice the average income/expenditure.

The graph below shows the income and expenditure for each financial year since 2010-2011.

The table below shows the current balance of the Parish Council’s accounts, based upon the present accounting system implemented at the start of the financial year 2019 – 2020.

Account Current Balances as at 06 Jul 2020

AccountAmount
Lloyds Treasurers AccountActive
Opening Balance£0.00
+ Transfers In£15,202.27
+ Receipts£18,399.87
- Transfers Out£0.00
- Payments£7,057.27
Current Balance£26,544.87
Nat West Community AccountInactive
Opening Balance£12,208.73
+ Transfers In£0.00
+ Receipts£15,684.25
- Transfers Out£15,202.27
- Payments£12,690.71
Current Balance£0.00

Reserves

Reserves may be categorised as follows:

No.CategoryNotes
1GeneralIt is recommended that a Parish Council should typically hold between 3 and 12 months expenditure as a general reserve
2EarmarkedMoney is allocated for a specific purpose but may not be spent in that financial year
3Ring-fencedMonies or grants allocated for a specific project only that must not be used for any other purpose
4ElectionAll reasonable costs of holding parish council elections can be fully recharged by the district to the local council. This covers that possibility.

Parish Councils have no legal powers to hold revenue reserves other than for reasonable working capital or for specifically earmarked purposes, therefore the year-end general reserve should not be significantly higher than the annual precept.

The Finance Sub Committee considers the reserve ratio when setting the budget and precept for the following year. The Reserves Policy may be viewed here and in the Document Library.

Reserves Statement

ReservesAmountsTotals
Available Funds as at 06 Jul 2020£26,545
General Reserves
50% of Precept Income£2,915
Sub Total General Reserves£2,915
Earmarked Reserves
Insurance Excess£1,450
Children's Play Area£1,000
Asset Management£4,000
Neighbourhood Plan£0
Special Project (to be decided)£8,500
Sub Total Earmarked Reserves£14,950
Ring-Fenced Reserves
APLCHF Donations£4,415
Sub Total Ring-Fenced Reserves£4,415
Election Reserves
Sub Total Election Reserves£0
Total Reserves£22,280
Unallocated Funds£4,265

It is rare for a Parish Council to hold its reserves other than in the form of easily accessible bank deposit or other short-term savings accounts. These short-term investments are often used to maximise income from cash balances during the financial year. We follow this practice.