The budget setting process provides an initial financial plan for the forthcoming year. Characteristically the income is essentially fixed, whilst the outgoing expenditure is subject to greater change. The emphasis is on managing changes by regular review and update. Actual figures are used where known otherwise cautious estimates are entered to produce the plan.
The funding is used to provide services and maintain assets onbehalf of the parish. The budget plan is updated and tracked on a regular basis. The Suffolk Association of Local Councils recommend that the agreed level of contingency held is approximately equal to the annual precept.
The development of the budget plan takes into account the following:
- The value of funds carried over from the previous year. A portion of which may already be allocated to a specific item of expenditure.
- Outgoing fixed expenses. e.g. Cost of independent audit.
- Recurring costs. e.g. to maintain assets to a safe and acceptable standard.
- Variable costs e.g. training to support PC members.
- Purchase of capital items - assets.
- Funding to progress activities from the work plan.
At each point consideration is given to the funds available and any potential change to the precept value to produce a balanced budget plan. This is an intrative process
The Parish Council budget setting process can be found here. Budget Planning Process