1.This document should be interpreted in line with the standard policy context and definitions. The editor of this document is the Chair of Trustees.
2 Reserves Policy
The Trustees have developed a reserves policy to provide for circumstances such as:
- the risk of an unforeseen need for funds
- a source of income coming to an end
- planned commitments which cannot be met by future income
- the need to cover a short-term deficit (cash-flow)
To this end, the Trustees propose to maintain Edlumino’s reserves at a level which is at least equivalent to three months’ operational expenditure and have done so with regard to the Charity’s manner of operation and likely funding streams.
In the Trustees’ view, this policy will provide Edlumino with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future.
The Trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the Charity’s continuing obligations at each Trustees’ Meeting.
4.1 This Policy has been Impact Assessed for Environment and Equality considerations. Policy review follows the Review cycle.