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 Head teacher 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. Advances of £4.2m made in 2004/05 under this scheme mainly to fund rationalisation projects in advance of the realisation of capital receipts.

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

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 balance of £3.6m at 31 March 2005 is equivalent to 1.9% of planned capital expenditure in 2005/06.

Trading accounts

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, where appropriate

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

Designated underspendings

To enable individual 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 during budget cycle

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 the accounts. In view of outstanding fire reinstatement commitments, a contribution of £3.8m to the reserve is proposed in 2004/05.

Invest to save

To provide funding for investment which will generate future cash savings which can be recycled back into the reserve

For approved investment purposes subject to Cabinet or Policy and Resources Executive Member approval

County Treasurer subject to Cabinet approval

Reviewed annually in conjunction with proposals in the budget meeting invest to save criteria. Currently being used to support initiatives to secure additional capital receipts and business rate revaluations.

Job evaluation transitional costs

To assist in meeting transitional costs likely to arise from implementation of the Pay and Benefit Review

To supplement employee budgets in transitional period following implementation

County Treasurer subject to Cabinet approval

Balance of £4.75m at 31 March 2005.Agreed that no further reserve contribution would be made in 2005/06, the budget of £2m having been transferred to fund Social Services market supplements agreed in advance of the Pay and Benefits implementation.

Grant equalisation

To assist in managing the impact of further grant loss in 2005/06 and 2006/07 following the review of the Revenue Support Grant formulae

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

County Treasurer subject to Cabinet approval

Balance of £20.9m at 31 March 2005. Contributions from the reserve of £5.9m in 2005/06, £7.7m in 2006/07 and £4.7m in 2007/08 planned on basis of anticipated grant loss.

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 infrastructure which is 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