Finances

Quarterly Reports and Spending over £500

The Council produces quarterly reports to track spending against the budget, and a list of all payments over £500, as required by the transparency code 2015.

Annual Budget and Precept Requests

Each year Grayshott Parish Council reviews our projected spend for the next financial year. We pull together all these numbers into a budget, and the precept is how we fund the majority of it.

About 75% of our budget is funded by our Precept Request and 25% comes from other sources such as grants, income from trusts and rental or licence income.

Where Our Funding Comes From

The Parish Council’s main source of income is the precept. This is a portion of your Council Tax bill, collected by the District Council and passed directly to us. Parish councils don’t receive central government funding, so the precept is essential..

We do also seek out grants and donations for special projects. For example, the new teen recreation area was funded through external support rather than an increase in the precept. This helps us deliver improvements without placing additional burden on residents.

How the Precept Is Spent

The precept funds everyday operations and community projects, including:

• Grass cutting and maintenance of public spaces

• Insurance, staffing, and administration costs

• community events and grants to local organisations

The amount each household pays depends on its Council Tax band. A Band D property is used as the “average” measure, with smaller homes paying less and larger homes paying more.

Planning Ahead: Reserves and the Precept

Like any budget, we must plan for future projects and unexpected costs. We do this by maintaining two types of reserves, our policies define when, and by how much, the precept contributes to these:

• General Reserve – a financial safety net for emergencies, inflation, or unforeseen costs. It ensures the Council can continue operating smoothly even if unexpected events occur.

• Earmarked Reserves – funds set aside for specific future projects, such as refurbishing the village square or upgrading playgrounds. These are built up gradually and reviewed annually, so large projects can be delivered without sudden increases in the precept.

Together, these reserves allow us to balance day-to-day spending with long-term planning, ensuring stability and fairness for residents.

External and Internal Audit Reports

Parish councils are checked in two ways to make sure public money is properly managed: an external audit and an internal audit.

External Audit and the AGAR

The Annual Governance and Accountability Return (AGAR) is the main document councils complete each year to show their accounts and governance checks. It includes a short governance statement and the council’s accounting figures, which the Responsible Finance Officer signs off before the council approves them. The completed AGAR is then sent to an external auditor who reviews it and issues a report; this process provides an independent check that the council has followed proper financial rules and published the required information.

Internal Audit

An internal audit is carried out by an independent person or firm appointed by the council to review its financial controls and procedures throughout the year. The internal auditor produces an Annual Internal Audit Report that feeds into the AGAR and helps the council identify and fix any weaknesses before the external audit. Sometimes, the internal auditor also completes and interim audit midway through the year.

Other Financial Reports required under the Transparency Code 2015