Rye Town Council
Notes to the Accounts
For The Year Ended 31 March 2005
14	Earmarked Reserves
			Balance at	Transfers	Contribution	Contribution	Balance at
			1/4/2004		to reserve	from reserve	31/3/2005
			£		£	£	£
	Asset Renewal Reserves		52,665	-	8,073	(4,398)	56,340
	Other Earmarked Reserves		9,977	(1,057)	11,500	(1,040)	19,380
	Total Earmarked Reserves		62,642	(1,057)	19,573	(5,438)	75,720
	The Asset Renewal Reserves are maintained to fund the maintenance of certain assets and the
	periodic replacement of certain equipment. They are credited normally with amounts equivalent to the
	notional depreciation charges on such assets.
	The Other Earmarked Reserves are credited with amounts set aside from revenue to fund specific
	known commitments of the Council.
	The Earmarked Reserves at 31 March 2005 are set out in Appendix A.
15	Management Agreement
	Rye Town Council entered into a 12 month management agreement with Rye Town Services with effect from 1 April 2005 for them to manage the Heritage Centre and tourist office. The Council remains responsible for the upkeep of the fabric of the building premises and thus the replacement reserves have been continued at the year end. The Council has also loaned Rye Town Services the use of the stock held at the year end on condition that stock of equal value is returned to them at the end of the management agreement.
16	Contingent Liabilities
	The Council is not aware of any contingent liabilities at the date of these accounts.
17	Rye in Bloom
	The Council does not run The Rye in Bloom competition and receives grant funding from Rother District Council which it passes onto Rye in Bloom, a registered Charity.
18	VAT Provision
	The Council has provided for a VAT liability of £1,980 in respect of a H M Revenue & Customs control
	visit at the Heritage Centre. This represents the Council's best estimate of the total potential liability
	as the enquiry is still in progress at the time of the accounts being approved.