Financial Reserves Policy

Financial Reserves Policy

Last Updated (Tuesday, 30 November 1999 01:00) Written by Iain Monday, 21 April 2008 13:37

Malpas Young Persons Project is committed to the prudent financial management of the charity. Although the fundamental purpose of a Charity is to provide current facilities to its beneficiaries some funding must be available to ensure future continuity of service.

In the short term the Project Management Committee will seek to optimise the funds available to further the aims of the charity, which may be summarized as:

On behalf of young people in Malpas and the surrounding area, to:-

1    Promote the development of young people, physically, mentally and spiritually, in order that they can grow to full maturity as individuals and members of society.

2    Establish and manage a Centre that provides a base for the social welfare, recreation and leisure of young people.

However, in practice, the Project must seek to maintain continuity of the service it is has been created to offer and it is necessary to retain a proportion of funding each year to cater for contingencies, which could otherwise disrupt the aims of the Charity.

Implementation

Risks that could undermine Project performance arise from adverse decisions of funding organizations, the breakdown of equipment, deterioration of building fabric and the loss of experienced volunteers.  

The Management Committee will aim to operate with a reserve equivalent to one year’s revenue costs.  In calculating the revenue cost, full account will be taken of the operating life of equipment and the consequent need to replace it. It will also be necessary to ensure that appropriate provision is made for licences, insurances, training and specialist support, as well as obvious utilities like gas, electricity and water and consumable materials.

The reserve will be held in the unrestricted fund, to be readily available to the Management Committee to expend where the need arises.