Clarity over gross expenditure and gross income in relation to codes which should be followed

0 votes
Turnover is defined as the higher of an authority’s gross income for the year and its gross expenditure for the year does this include the amount sitting in the bank ?  eg gross expenditure is 63,000 gross income is 61,000 but 240,000 is held in the bank
asked by (660 points)

2 Answers

0 votes
I can’t see how money in the bank counts as turnover to me the more important question is why do the reserves amount to four years income and are they properly reviewed
answered by (600 points)
Agreed. It can be justified to hold a large reserve, but it needs to be related to specific future projects or liabilities. I'd expect the auditors to query such a large balance.
0 votes
Gross income is the total of all new money coming in from all sources during the year. Gross expenditure is the total of all payments made. The bank balance is irrelevant, as it is not new money.
answered by (6.4k points)

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