Reserve

Purpose

Use of reserve

Management and control

Review process

Schools

Earmarking of the balance of unspent delegated budgets

1

To supplement school's budget share, to finance capital contributions and to provide a contingency

Responsibility of headteacher and school governing body

In addition to review by individual governing body, trends reviewed annually by Education executive member

2

Up to 25% of total reserve made available on a loan basis to finance school capital projects of an `invest to save' nature. £5.1m expected to be advanced under this scheme by 31 March 2006

Proposals subject to approval of the capital programme, involving executive member, Cabinet and County Council approval

Use of loan scheme subject to appraisal of projects and to 25% upper limit

Trading units

To enable business units to carry forward planned surpluses

To meet future deficits and/or restructuring costs, to fund capital investment or to return surpluses to customers by reducing prices

By responsible Chief Officer subject to executive member approval

Through production of an annual business plan linked to the budget process

Service underspendings

To enable services to carry forward 100% of planned underspendings and at least 50% of unplanned underspendings

To fund non-recurring expenditure in future years or to phase in the requirement for additional funding or to achieve savings

By service Chief Officer reporting to the Executive member. Cabinet responsible for approval of cases where more than 50% of a saving is earmarked

Reviewed annually as part of budget cycle. £749,000 of projected balance of £905,000 at 1 April 2005, due to be used to finance spending in 2005/06

Insurance

To cover fire, flood and storm damage reinstatement costs which are already committed and to reserve against adverse trends in liability claims

To supplement annual `premiums' charged to services

Chief Executive and County Treasurer subject to Cabinet approval

At least annually on closure of accounts. Reserve balance expected to decline in 2005/06 to £2.9m due to current level of fire damage commitments

General capital

To assist in matching the timing of the availability of capital financing resources with the timing of capital payments

To finance locally-resourced capital expenditure

By County Treasurer in conjunction with decisions on the financing of the capital programme

Reviewed at least twice yearly on closure of the accounts and in approving a new capital programme. Reserve expected to be fully utilised by the end of 2006/07

Job evaluation transitional costs

To assist in meeting transitional salary protection costs likely to arise from implementation of the Pay and Benefits review

To supplement employee budgets in transitional period following implementation

County Treasurer subject to Cabinet approval

To be reviewed when transitional impact of Pay and Benefits review is known. The Cabinet approved the use of £1.25m in 2004/05 to fund Social Services market supplements and the reserve contribution proposed to end in 2005/06 in order to fund continuing market supplements of £2m in Social Services

Grant equalisation

To assist in managing the impact of future grant loss arising from 2003/04 review of the grant formulae and from non-recurring additional grant in 2004/05 and 2005/06

To compensate for service and/or council tax impact of grant loss

County Treasurer subject to Cabinet approval

Revised in each year's budget planning. Proposed to discontinue reserve contribution in 2005/06 and use the balance of the reserve to phase in the council tax impact of grant loss on a proportional basis, involving the use of £5.9m in 2005/06, £7.7m planned in 2006/07 and £4.7m in 2007/08

Modernisation, restructuring and efficiency plan

A newly established reserve in 2005/06, to assist in funding uncertain future costs associated with the modernisation of the County Council's services

To fund both pump priming initiatives and continuing higher costs

County Treasurer and Chief Executive, subject to the approval of the Leader and Cabinet

Review in each year's budget planning and if necessary on an interim basis during the year

Segensworth unit factories

To enable annual tenant contributions towards repairs to be earmarked for periodic major repair liabilities to infrastructure

To fund maintenance of specific significant infrastructure costs which are the responsibility of the County Council as freeholder

Director of Property, Business and Regulatory Services subject to terms of relevant agreement

Reserve is ring-fenced

Other minor reserves

Sums set aside for specific future purposes

To fund spending on specified purpose

Various

Reviewed at least annually on closure of the accounts. Overall balance projected at £298,000 at 31 March 2006