Will the reserves balances be the budgets against the linked cost codes?

There is no direct relationship between the opening balances of the reserves and the budget of the linked reserves codes. 

The user must decide what budget amount they would like to appear against the code and edit it accordingly:

• Budget = Zero: the budget vs actual report (e.g. the Summary Report) records the actual reserve transactions (payments and receipts) only. Will likely result in an overall budget deficit on the main report (recommended to use a Cost Centre Group as explained below). The reserves position is managed using the Reserves Balance report. 
• Budget = Total amount in the reserve: to reflect the available amount in the reserves on the budget vs actual report. May not be relevant if not all the reserve is planned to be spent and may result in large budget surpluses (recommended to use a Cost Centre Group filter as explained below). The reserves balance report will show the full picture.
• Budget = The expected spend for the year itself: to allow comparison against the actuals on the budget vs actual report based on the planned spend from the reserve. It should be noted the reserves transfers do not appear on the budget vs actual reports so the Reserves Balance is always recommended to provide the full picture. 

Whichever option is chosen it is always recommended that the Reserves Balance report is provided in addition to the budget vs actual report. This will then give the full picture of reserves as the full opening balance will be shown along with any transfers in addition to spend and receipts.

Cost Centre Groups

In addition it is strongly recommended to create a Cost Centre Group filter that can be used on budget vs actual reports. This allows users to create a report that does not include the reserves cost centre in order that the precept budget is more easily reported on and reviewed.