Parish Councils are statutory bodies. Members are elected for a term of four years and councils are funded principally by an annual precept. Income and expenditure for the next financial year are calculated in the form of estimates by the Parish Council. The net amount (the precept) is added to council tax, collected by the county, borough or district council (principal authorities) and paid to parishes in two six-monthly instalments. Parish and town councils can apply for other funding such as grant and funding awards, but they do not receive funds directly from central government, as principal authorities do.