Follow us on Twitter

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 (1k 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 (1.3k 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.
+1 vote
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 (15.9k points)

Welcome to Town & Parish Councillor Q&A, where you can ask questions and receive answers from other members of the community. All genuine questions and answers are welcome. Follow us on Twitter to see the latest questions as they are asked - click on the image button above or follow @TownCouncilQA. Posts from new members may be delayed as we are unfortunately obliged to check each one for spam. Spammers will be blacklisted.

You may find the following links useful:

We have a privacy policy and a cookie policy.

Google Analytics Alternative