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 Year||Opening Balance||Income||Expenditure||Closing 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||£5,160||£24,830|
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 30 Sep 2020
|Lloyds Treasurers Account||Active|
|+ Transfers In||£15,202.27|
|- Transfers Out||£0.00|
|Nat West Community Account||Inactive|
|+ Transfers In||£0.00|
|- Transfers Out||£15,202.27|
Reserves may be categorised as follows:
|1||General||It is recommended that a Parish Council should typically hold between 3 and 12 months expenditure as a general reserve|
|2||Earmarked||Money is allocated for a specific purpose but may not be spent in that financial year|
|3||Ring-fenced||Monies or grants allocated for a specific project only that must not be used for any other purpose|
|4||Election||All 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.
|Available Funds as at 30 Sep 2020||£24,830|
|50% of Precept Income||£2,915|
|Sub Total General Reserves||£2,915|
|Children's Play Area||£1,000|
|Special Project (to be decided)||£8,500|
|Sub Total Earmarked Reserves||£14,950|
|Sub Total Ring-Fenced Reserves||£4,415|
|Sub Total Election Reserves||£0|
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.