Financial Reserve Policy
REM REFERENCE POLICY TYPE APPROVAL DATE ADOPTED DIRECTORATE POLICY OWNER NEXT REVIEW REVISION RECORD 16 December 2019
1.
A5745791 Council: adopted by Council resolution Council Corporate and Commercial Services Manager Financial and Integrated Planning 2030 VERSION REVISION DESCRIPTION 1.0 Initial 2.0 Revised and renamed
Purpose
This policy is to ensure sustainable and responsible management of Council’s cash balances and financial reserves through a consistent and transparent approach to the appropriate identification and creation, administration, and usage of statutory and discretionary restricted financial reserve accounts. The objectives to be achieved under this policy support this aim by ensuring:
Definitive classifications of Financial Reserve accounts, including cash-on-hand requirements
Appropriate levels of funds are available at the appropriate time to meet statutory and operating requirements and to prudently manage financial risk
Council’s reserve activity is in accordance with legislative, governance and prudent financial principles
Processes are established around the creation and classification of Financial Reserves, as well as requirements of transfers of funds into and from these reserves
Processes are established to administer the Financial Reserves, including restrictions of usage of funds in reserve, internal and external reporting of usage of funds in reserve and closure of reserves at end of useful life