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									COUNCIL                                                                                                                                                                                                          ITEM 07
16 FEBRUARY 2010                                                                                                                                                                                              APPENDIX 8
RESERVES AND PROVISIONS




                                BALANCE
  RESERVES/PROVISIONS            MARCH                              POLICY                                              FINANCIAL PLANNING                                 RISK MANAGEMENT
                                  2009
                                  £000
CAPITAL RESERVES
                                            Reserve used to fund capital programme. Interest on                                                                 Reserve acts as a contingency for
                                                                                                      See forecast in report to Financial Policy Panel 2
                                            reserve used to help finance the General Fund                                                                       unplanned capital expenditure. Asset
                                                                                                      December 2009 - reserves estimated to reduce to £4.0
CAPITAL RECEIPTS - general         6,713    Revenue Account provision of services. Target is to                                                                 Management Plan includes programme for
                                                                                                      million by 31 March 2011. Capital Programme funding is
                                            maintain a minimum reserve of £7 million, subject to                                                                property review and criteria for asset
                                                                                                      shown in the Policy Book.
                                            annual review                                                                                                       disposal.
CAPITAL CONTRIBUTIONS -                     Grants received which can be used to fund eligible        Projects to be identified and prioritised that can be
                                   160
grants                                      expenditure                                               financed by grants
                                                                                                      Capital programme forecasts based on release of           Expenditure planned but not committed until
SECTION 106 - unapplied                     Planning gain receipts set aside for schemes fulfilling   schemes once funding is received. Annual capital          receipts confirmed. Members and the
                                   1,807
capital reserves                            terms of agreement with developers                        programme review includes assessment of S106 funds        Corporate Management Board will receive
                                                                                                      available for financing schemes.                          quarterly updates on s106 funds held
       Total Capital Reserves      8,680

REVENUE STRATEGIC
RESERVES
COMMUNITY SAFETY                            To fund Community Safety activities agreed with           Reserved for prioritised expenditure on partnership
                                    86
PARTNERSHIP                                 Surrey County Council and Surrey Police Authority         schemes
                                                                                                      Agreed use includes (1) costs ariising from delays on
                                                                                                                                                                Contingency for one-off costs due to
CORPORATE PROJECT                           Reserve against unplanned works (capital or major         developments or disposal of assets (2) redundancy costs
                                   575                                                                                                                          recesssion and implementing service
RESERVE                                     revenue items)                                            where savings provide a pay-back (3) implementation
                                                                                                                                                                savings.
                                                                                                      costs to achieve approved service savings
HISTORIC BUILDINGS                  25      Earmarked to fund historic building repairs               As prioritised
                                                                                                      Interest ring fenced (potentially repayable on Horton
HOSPITAL CLUSTER                                                                                                                                                Covers risk that repayment is due where
                                   205      Interest generated from Hospital Cluster receipts.        Chapel). Use agreed for consultancy on Community
INTEREST                                                                                                                                                        conditions of transfer not met
                                                                                                      Development Trust appraisal.
                                            Finances insurance claims falling within self-insurance Reserve target at 110% of estimated value of outstanding Balance to be held against insurance
INSURANCE                          574
                                            limits - reserve on all outstanding claims              claims. Claims at 31 March 2008 valued at £465,000.      settlements or variations in insurance costs
                                                                                                      Minimal use forecast in 2009/10 as use for services at
                                                                                                      around £1/4 million will be offset by interest paid on
                                                                                                                                                                Contingency for interest rate reductions /
INTEREST EQUALISATION              842      Held against the risk of interest rate reductions.        backdted VAT claim. 2010/11 budget assumes use of
                                                                                                                                                                reduced investment returns
                                                                                                      around £0.4 million to offset low treasury management
                                                                                                      returns in year, budgeted at 2%.
                                            Balance on Local Partnership Fund £6k and Young
PARTNERSHIP FUNDS                   26
                                            People Partnership Fund £17k, Yells Fund £3k
                                                                                                      HPDG announced in year and reserve use to finance any
                                            Reserve comprising unspent Housing & Planning
                                                                                                      gap between estimated ana actual grant. Approximately     Commitments only made against balance of
PLANNING DELIVERY GRANT            475      Delivery Grant monies to cover grant reduction in
                                                                                                      £100,000 of grant is earmarked for capital expendiure     reserve
                                            future years
                                                                                                      (Document Management).




1473387f-3d3d-4484-b8b6-a79395d82d1e.xls Annexe                                                                                                                                                                Page 1 of 2
COUNCIL                                                                                                                                                                                                          ITEM 07
16 FEBRUARY 2010                                                                                                                                                                                              APPENDIX 8
RESERVES AND PROVISIONS




                                BALANCE
  RESERVES/PROVISIONS            MARCH                             POLICY                                           FINANCIAL PLANNING                                    RISK MANAGEMENT
                                  2009

                                   £000
                                                                                                                                                               Capital sum ring-fenced to ensure annual
RECREATION COMMUTED                         Earmarked to fund annual recreation maintenance        Budget forecasts assume all interest generated used to
                                   1,965                                                                                                                       return available . Quarterly monitoring
SUMS                                        liabilities                                            fund maintenance costs (Leisure Committee)
                                                                                                                                                               reports
VAT RESERVE                        148      Covers liabilities for unrecoverable VAT payments      Position to be reviewed annually at close of accounts       VAT contingency
PROPERTY MAINTENANCE                        Reserve provision for prioritised or emergency backlog .Asset Management Plan includes annual review of
                                   213                                                                                                                         Reserve for emergency works
FUND                                        repairs and maintenance.                               prioritised works programme.
                                                                                                   Financial Plan: Balance to be retained for replacement
                                            Provides for the replacement of plant and equipment.                                                               Contingency for essential replacement of
                                                                                                   programme as follows:- £466,000 for venues, £133,000
                                            Manages the risk of unplanned expenditure at all                                                                   plant and equipment that cannot be funded
REPAIRS & RENEWALS                 725                                                             for H&S, £126,000 for department equipment. Reserve to
                                            Council properties, including health and safety                                                                    within revenue or capital budgets, including
                                                                                                   be used for business case schemes where return on
                                            expenditures where there is no separate budget.                                                                    H&S related expenditure.
                                                                                                   investment identified.
       Strategic Reserves          5,859
REVENUE WORKING
BALANCES
                                            Provision for unforeseen expenditure and used to       Medium term financial strategy required maximum use of      Financial Plan includes annual budget
GENERAL FUND REVENUE
                                            support Revenue Budget in the medium term. Interest    £250,000 in any one year. 2009/10 revised forecast          review to identify savings and income to
ACCOUNT WORKING                    3,655
                                            on balance used to finance the General Fund revenue    £523k use with revenue losses due to the recession .        maintain minimum working balance in
BALANCE
                                            account. Policy is minimum balance of £2.5 million     2010/11 estimated use £167k at 2.5% council tax option.     medium term.

                                            Surplus/Deficits on collection fund covers revenues for Financial plan assumes surplus or deficit on collection    Council Tax base reviewed annually and
COLLECTION FUND                    806      SCC, SPA and EEBC. Policy is to clear surplus or        fund account are managed annually as part of the council   collection fund managed to ensure deficits
                                            deficit annually.                                       tax decision                                               are recovered and surpluses distributed
           Working Balances        4,461

     Total Revenue Reserves       10,320




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