Munstead and Tuesley Parish Council

 

Reserve Policy

  

 

 

Introduction

1.1 Munstead and Tuesley parish council is required by statute to maintain financial reserves sufficient to meet the needs of the organisation and in addition has statutory limitations on how it spends certain receipts which it must ensure are accounted for separately to the council’s general funds.

1.2 Whilst there is no statutory minimum (or maximum) level of reserves, the council has no power to hold revenue reserves other than those for reasonable working capital needs or specific earmarked purposes.

1.3 The Council’s Internal and External Auditors review the council’s reserves and their justification annually.

1.4 This policy sets out how the council will manage its reserves.

 

General Reserve

2.1 The general reserve is not ringfenced (earmarked) for any specific expenditure. Its purpose is to smooth the impact of uneven cashflow or cover unexpected/emergency expenditure. It is not intended to fund on-going expenditure.

2.2 The general reserve will be replenished as part of the budget process in any year where it has been utilised for unexpected/emergency expenditure.

 

Earmarked Reserves

3.1 The council may establish ringfenced (earmarked) reserves for any reason where it reasonably believes it may incur expenditure in the future. The council’s current earmarked reserves are detailed below.

 

Elections Reserve

4.1 This earmarked reserve is to cover the cost of elections.

 

Play Area Reserve

5.1 This earmarked reserve is to build a match funding pot to contribute towards investment in play areas in the parish.

5.2 There is no specific target level for the reserve.

 

CIL Receipts Reserve

6.1 CIL Receipts are subject to statutory restrictions requiring they only be used for certain kinds of expenditure. Munstead and Tuesley Parish Council have a CIL policy.

6.2 In accordance with Financial Regulations the council will hold a CIL Receipts Reserve to ensure CIL receipts are separately accounted for.

 

Review and Variation to Policy

7.1 This policy will be reviewed annually by Munstead and Tuesley Parish Council as part of setting the council budget.

7.2 Where it determines there is justification for doing so, the Council may make decisions which are at variance to this policy.