RESERVES POLICY

Where possible provision should be made to hold approximately the equivalent of 6 months revenue costs of the Association – as set out in the annual budget – should the level of income for the Association fall to such a level that the Association is unable to meet its regular ongoing commitments the reserve will be used to cover these commitments.

If the level of income falls to the extent that the reserves have to be used the Board should call an emergency meeting to discus the financial situation of the Association. Immediate steps should be taken to raise the level of income or make savings so that expenditure should stay within income levels.

The Association should be mindful that in the event of having to make savings and staff being laid off provision should be made for any staff member who has been employed for 2 years or more and may be entitled to redundancy payment. The Treasurer should calculate possible redundancy entitlements to be included and add this to the 6 months costings.

A rolling programme of improvements, decoration, or renewal of equipment within the Hall should be agreed by the Board and budgets allocated. If it is unlikely to expect these improvements, decoration or renewal to be paid for out of normal income or fundraising then reserves will be allocated to these items at the discretion of the Board.

If after taking into account the above commitments there are still reserves available it will be at the discretion of the Board how these reserves are used to further the aims of the association.

The Board should make use of any reserves and ensure they are kept in an interest bearing account until such time as needed. Interest on the account will be used towards revenue costs of the organisation.

Approval

This document was approved by the Board in February 2023.