Finance
Budgets
Parish council budgets are annual financial plans, approved by the Council, that outline planned income and expenditure for the upcoming financial year. The primary source of income is the parish precept, which is a sum of money the council requests from the billing authority to be collected via council tax from local residents. This budget is a statutory duty for parish councils and determines how much is needed from the precept to fund village services and projects.
The Budget Process
Planning & Drafting: The process begins in the autumn for the financial year starting April 1st. A draft budget is prepared by the clerk (acting as the Responsible Financial Officer) for councillors to review and discuss.
Approval: The full council approves the final budget, which details planned income and expenditure, by the end of the financial year (usually by February or March).
Precept Setting: Once the budget is set, the council calculates the precept, which is the total amount needed from council tax to meet the budget's shortfall.
Submission to Billing Authority: The agreed precept figure is submitted to the district or borough council, which is responsible for collecting council tax and distributing the funds to the parish council.
Annual Governance and Return
An AGAR for a parish council refers to the Annual Governance and Accountability Return, a mandatory annual financial document that parish councils in England use to demonstrate accountability to their local electors. It includes sections on governance, accounting statements, and an internal audit report, and must be submitted to an external auditor for examination. Parish councils are responsible for preparing and publishing their AGAR, along with notices for public inspection of accounts and objections.
What the AGAR includes
The AGAR is a set of documents with specific sections:
Annual Governance Statement: This confirms the council's governance arrangements are in order.
Accounting Statements: These detail the council's income, expenditure, assets, and liabilities.
Internal Audit Report: This is the report from the independent internal auditor appointed by the council.
Notice of Public Rights
A Notice of Public Rights for a parish council is an official announcement, required by law, that details the period when the public can inspect the council's accounting records for the financial year, along with the Annual Governance and Accountability Return (AGAR). The notice specifies the dates for this inspection period, how to contact the council to arrange a viewing, and the name and address of the external auditor. This process ensures transparency, allowing electors to scrutinise financial records and, if necessary, make objections to the external auditor.
What the Notice Means:
Transparency: It ensures that the public can access and review the financial documents of their local parish council.
Public Inspection: Members of the public have a right to inspect the accounting records, books, deeds, contracts, bills, vouchers, and receipts for the relevant financial year.
Public Right to Object: Electors can raise objections with the external auditor if they believe there is an unlawful item in the accounts or a matter of public interest that should be reported.
Asset Register
A parish council's asset register is a detailed list of the council's fixed assets, including land, buildings, vehicles, and community assets, along with their purchase cost or value. This register serves as a record for financial accuracy, insurance, asset management, and compliance with the Accounts and Audit Regulations. Assets are listed at their acquisition cost and are not depreciated, with values remaining unchanged until disposal. The register is updated annually and used to ensure proper safeguarding of the council's property and to provide information for decisions on risk and insurance issues.
Community Infrastructure Levy (CIL)
CIL Levy refers to the Community Infrastructure Levy (CIL), a charge set by local authorities on new developments to help fund the local infrastructure, facilities, and services needed to support growth. This charge is typically a fee per square metre of new floor space or per new dwelling, and the funds raised are reinvested into projects like schools, transport improvements, and open spaces.
Financial Regulations
Financial regulations for a parish council are standardised rules governing the management of public funds, ensuring transparency and accountability. These regulations, based on models provided by the National Association of Local Councils (NALC), cover aspects like the procurement of goods and services, budgeting, and the responsibilities of the Responsible Financial Officer (RFO). Councils must adhere to these regulations, which are often integrated with Standing Orders, and they can be amended by a council resolution.
For all Bottisham Parish Council policies click here.