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We are in the process of budget setting. It was suggested that we have an EMR for “contingencies” of 10% of expenditure. This was in the basis of “an increase in the price of planned expenditure” as opposed to a general reserve is for unplanned expenditure, which I fully agree with. What I don’t agree with, is that an EMR can be a “just incase prices rise”. Surely that should be part of the budget amount on each line item? Advice appreciated with any refs to JPAG would help.
by (500 points)

1 Answer

+1 vote
"contingencies"

What a load of nonsense!

We had "contingencies" AND "prudent reserve" AND an excessive bank balance.

All these phrases are just there to try and mask excessive balances that are not properly attributed to cost centres on the basis of a sound budgetary forecast.

Lazy Cllrs are easily duped by such shallow and inappropriate techniques resulting in ever escalating precepts.  Cllrs are there to QUESTION these things.
by (19.7k points)

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