Minutes of Finance Committee 3 June 2026

THOSE ATTENDING:

Cllr H.Allsopp (Chairman)

Cllr K Burn

Cllr A Cottrell

Cllr M Jackson

Cllr L Watson

Cllr J Rowell

Cllr G Huntley

IN ATTENDANCE:

Mrs A Brindley Parish Clerk/RFO,

Rob Delap – Operations Manager

David Iley – Finance & Administration Officer

AGENDA PART 1

F01/26            1.         APOLOGIES FOR ABSENCE.

The following apology was received from Cllr FitzGerald for illness.  The meeting agreed that this was a proper reasons for absence.

F02/26            2.         MEMBERS DECLARATION OF DISCLOSABLE PECUNIARY AND OTHER REGISTERABLE INTEREST(S).

There were no declarations

F03/26        3.           PUBLIC QUESTIONS.

There were no questions from the public.

F04/26         4.            ELECTION OF CHAIRMAN TO SERVE FOR THE COUNCIL YEAR 202/27.

Cllr H Allsopp was duly moved, seconded and elected to serve as Chairman of the Finance Committee for the ensuing year

F05/26            5.         ELECTION OF VICE-CHAIRMAN TO SERVE FOR THE COUNCIL YEAR 2026/27.

Cllr J Rowell was duly moved, seconded and elected to serve as Vice-Chairman of the Finance Committee for the ensuing year

F06/26            6.          TO RECEIVE AND AGREE AS A TRUE RECORD THE  MINUTES  OF THE MEETING HELD ON 18 MARCH 2026

The minutes were agreed, and the Chairman was approved to sign them as correct

F07/26            7.         MATTERS ARISING

FO40/25 The Clerk advised that the grant of £300 for Choppington Allotments for a skip on site has yet to be claimed

F08/26            8.         TERMS OF REFERENCE

RESOLVED: Members approved the Terms of Reference.

F09/25            9.         AUDIT AND GOVERNANCE: 

The Parish Clerk reported on actions as a result of the recommendations from the internal auditor

1. That council prioritise updating its website to include the ICO publication scheme, and review its existing website to check for redundant or dead links.

This has been actioned.  The broken link has been corrected and although a publication scheme was on the website, this has been replaced by the ICO version.  The budget for the Council’s website provider has been increased this year to reflect increased checks for accessibility issues.

• That council review its systems of internal controls to identify any potential benefits to staff assuming new roles that might be delivered.

The Council is aware of the need for succession planning and as such members of staff are given training and participate in all aspects of the governance of the Council, and will be fully trained to assume new roles at the appropriate time.

• That council reconsider financial regulation 6.18 covering small purchases of materials or services (e.g. postage).

The Council has begun the application process for a purchasing card.

RESOLVED:  Members accepted the audit recommendations and approved the actions in response to them.

FO10/26         10.       FINANCIAL PERFORMANCE TO THE END OF 2026

Members reviewed the financial end position for the year 2025/26 and noted that the underspend is transferred to reserves.

F011/26 11. APPROVAL OF RESERVES POLICY 2026-27

The Reserves Policy sets out how Choppington Parish will determine and review levels of reserves held by the Council. The Local Government Finance Act 1992 requires local authorities to have regard to the level of reserves needed for meeting estimated future expenditure when calculating the budget requirement. This policy ensures that the reserves are properly maintained and managed in a transparent and accountable manner.

RESOLVED: Members reviewed and approved the reserves policy

F012/26         12.       EARMARKED RESERVES 2025-26

Members received the year-end position for earmarked reserves. It was noted that the Repairs and Renewals (R&R) earmarked reserve balance is maintained to fund the repair and replacement of self-insured fixed assets, and is carried forward each year to cover for assets with a lifespan exceeding 20 years.

F013/26         13.      EARMARKED RESERVES FOR 2026-27

The Parish Clerk/RFO presented the earmarked reserves for 2026-27

RESOLVED:  Members reviewed and approved the earmarked reserves

AGENDA – PART 2. 

Members considered under Standing Order 3, that in view of the special and confidential nature of the business to be transacted, it was advisable in the public interest that the press and public be excluded and asked to withdraw.

F014/26         14.       CONSIDERATION OF GRANT REQUEST

Prior to the committee meeting, members had the opportunity to discuss the plans underpinning the grant request from CEO K of A Radio. Members were provided with the information and assurances required to make a grant award of £500, on the understanding that access to the project would be advertised to all young people in the area, and that K would return at the end of the year to report back to the council on activities undertaken.

There being no further business the meeting ended 11.00am

Signed by the Chairman: …………………………………………….               Date:  …………………..

8 Terms of reference     3 June 2026

Terms of reference

Finance Committee

1. Committee:  The Finance Committee is constituted as a committee of the Council.

2. Membership:  All Councillors can be members with a minimum of 5 Councillors and will include the Chairman and Vice Chairman of the Council.

The quorum shall be 3 members of the Committee.

3. The Chairman (and Vice Chairman) will be elected at the first meeting of the Finance Committee following the Annual Meeting of Choppington Parish Council.

4. The Committee will meet as the workload requires, with a minimum of 3 working days’ notice given unless an extraordinary meeting is required subject to legal requirements.

5. Purpose:   To oversee the Council’s financial affairs in accordance with legislative requirements, regulations and guidelines including:

1. Monitoring of income and expenditure during the financial year and where appropriate recommending actions to the Parish Council.

1. Review of the Council’s accounting practices and systems.

1. Preparation of annual budget and precept for recommendation to Parish Council.

1. Review of earmarked balances including repair and replacement programme.

• Review insurance cover

• Review financial regulations and make recommendations to Parish Council.

• Receive internal and external audit reports and arrange implementation of recommendations.

• To oversee all legal matters regarding leases, insurance claims, insurance cover, loans, insurance cover, damage to property, debt recovery and make recommendations to Parish Council.

1. Reviews fees and charges

9 Financial Performance to end of year  3 June 2026

1 Grant received for wild flower corridor

2 increase Includes £2870 recharge of staff costs

3 decrease Neighbourhood plan income in budget but not received

4 Increase in office rent not reflected in budget

5 Members expenses unclaimed

6 Printed Information and distribution underspend

7 Included expenditure budget for Neighbourhood Plan

8 Underspend moves to Repair and Replacement EMB

Item 11 Reserves Policy    3 June 2026

Choppington Parish Council

Reserves Policy

1. Introduction

This Reserves Policy sets out how Choppington Parish will determine and review levels of reserves held by the Council. Reserves are important to ensure the financial stability and sustainability of the Council, enabling it to meet unexpected expenses and fund day to day operations and future plans. The Local Government Finance Act 1992 requires local authorities to have regard to the level of reserves needed for meeting estimated future expenditure when calculating the budget requirement. This policy ensures that the reserves are properly maintained and managed in a transparent and accountable manner.

2. Purpose of Reserves

The Council holds reserves for key purposes, including:

• Managing cash flow: To ensure the Council can meet its financial obligations at any time without disruption.
• Funding for future projects: To support planned capital works or future initiatives, particularly where funding may not be available from other sources
• Long-term financial planning: To allow the Council to plan for and save for significant future expenditure, such as major repairs, infrastructure projects, or new initiatives.

3. Types of Reserves

The Council holds two types of reserves:

1. Earmarked Reserves: These reserves are set aside for specific purposes or projects. CPC earmarked balances include the repair and replacement fund which identifies the level of funds required to maintain and replace all assets.

Other earmarked reserves are intended to be used within a set time frame and any funds remaining unused can be reallocated or returned to general reserves. 

Levels Unlike General reserves there is not a guide for upper or lower levels for earmarked reserves except that they must be held for ‘genuine and intended purposes’ (JPAG 5.33)

2. General Reserves are funds which do not have any restrictions placed upon them as to their use, within the limits of legal authority. These can be used to smooth the impact of uneven cash flows, offset the budget requirement if necessary or can be held in case of unexpected events or emergencies. 

Levels.  It is important that the Council adopts the level appropriate to the size and situation of the Council and plans the budget to ensure that the adopted level is maintained.  The Joint Panel on Accountability and Governance advises that for the size of our Council this should be between 3-12 months of  annual expenditure. Changes in activity levels and or range of services provided will require changes in the level of General Reserve in order to provide working capital for those activities.  Even at times when extreme pressure is put on the council’s finances the council must keep a minimum balance of General Reserves sufficient to administration costs such as staff salaries.   If, in extreme circumstances, General Reserves are exhausted due to major unforeseen spending pressures within a particular financial year, the Council will need to draw down from Earmarked balances to provide short-term resources.

Surplus funds from one year are placed into general reserves in the next

4. Principles for Holding Reserves

The Council will adhere to the following principles when managing its reserves:

• Adequacy: The amount held as reserves should be adequate to cover the risks of unforeseen circumstances or financial difficulties, including the ability to cover short-term cash flow shortages and emergency spending requirements.
• Transparency: Reserves will be reviewed regularly, and reported in the Annual Governance and Accountability Return and budget documents.
• Prudence: Reserves should be invested prudently to ensure they retain value and are available when needed. The Council will only invest reserves in low-risk, easily accessible accounts
• Renewal: Where reserves are used for specific purposes, they will be renewed over time, in line with the Council’s budget and financial planning process. The Council will aim to maintain reserves at levels that support its long-term objectives and financial stability.

5. Review and Monitoring of Reserves

The Council will undertake a formal review of its reserves at least once a year, as part of its annual budgeting and financial planning process. During this review, the Council will:

• Assess the adequacy of reserves based on anticipated risks and future expenditure needs.
• Determine whether any earmarked reserves can be reallocated based on changes in the Council’s priorities or completed projects.
• Ensure that the general reserve is sufficient to cover potential contingencies.

The Finance Committee will be responsible for reviewing the reserves policy and ensuring that reserves are managed in line with the overall financial strategy.

6. Guidelines for the Use of Reserves

Reserves will be used only for the following purposes:

• Emergency/Contingency Expenditure: When unexpected expenditure arises that is not accounted for in the current year’s budget.
• Specific Capital Projects: For major infrastructure projects or improvements that have been identified in the Council’s long-term planning.
• Maintaining Service Levels: In the event of a shortfall in expected income reserves may be used temporarily to ensure the continued delivery of essential services.

7. Maximum and Minimum Levels of Reserves

• General Reserve: The Council will aim to hold a general reserve between three to 12 months of annual expenditure. The exact amount will be reviewed annually based on projected expenditure and the Council’s financial needs.
• Earmarked Reserves: The amount in earmarked reserves will be determined by the specific requirements for each project or contingency, as identified in the Council’s financial planning process.

8. Reporting

The Parish Clerk/RFO, will prepare a report on the reserves at each quarterly Finance committee including:

• The current balance of the general reserve.
• Expenditure against each earmarked reserve.
• Any proposals for the use of reserves, along with relevant financial justifications.

9. Policy Review

This policy will be reviewed by the Finance Committee annually and reported to the Parish Council, to ensure it remains fit for purpose and continues to align with the Council’s financial management and planning objectives

 Angela Brindley

Parish Clerk

Approved 20 November 2024

Reviewed 19 November 2025

Reviewed 3 June 2026

Agenda item 12  Earmarked reserves 2025-26.

Agenda item 13 Earmarked reserves 2026-27