Reserves Policy


  

Primary Responsibility Church Treasurer
   
Issued February 2021
Status Agreed
Review Period 3 years
Next Review Date February 2024
 
DISTRIBUTION
Original Church Office
Copy Trustees
If printed this document is UNCONTROLLED 
  1. Policy Statement
The Reserves Policy of Wymondham Baptist Church is to hold reserves sufficient to be able to pay three months salary and three months running costs (utilities) in order to be able to adapt to any changes in the income and expenditure of the church.  It is therefore agreed that there will be a Reserve Fund set up of £11,000.  Part of this amount will be held in a Savings Account, £100 will be transferred from the current account to this account each month, until such time as the total reserve figure is met.
 
  1. Definition of Reserve Fund – what are reserves?
The Charity Commission defines reserves as:
“Reserves are the part of a charity’s unrestricted funds that is freely available to spend on any of the charity’s purpose”
This definition excludes restricted funds and endowment funds.  Reserves will also normally exclude fund that have been designated for essential future spending and tangible assets for church use.
 
  1. Purpose of holding reserves
The purpose of holding reserves is to ensure that the church has sufficient funds available to cope with financial issues that might arise, such as the loss of income, an urgent property repair or an issue with staffing.
 
  1. Procedure  
 
  1. At the time that the budget is set for the financial year, the Trustees will consider the level of reserves to be held to cover any expected cash flow delays as well as potential emergencies where significant expenditure may be required before additional income can be raised.
  2. The budget presented to the members for approval will include details of the level of reserves assessed by the Trustees to be required for the financial year.
  3. If the amount of unrestricted reserves held exceeds the level assessed as required, the Trustees will develop and present to the members a plan for using these excess reserves in a way that fulfils the charitable objectives of the church.
  4. The amount of unrestricted reserves held will be included in each financial report prepared for the Leadership Team meetings and presented regularly to the Members meeting.
 
Record of amendments:-
Date Revised pages Details of revision
 
05.02.2019
 
 
All
Initial document written to formulate our current approach and to fall in line with the best practice guide Baptists Together Leaflet F07 Charity Reserves
 
01.02.2021
 
 
 
1
 
Revision of paragraph 1 to indicate which bank accounts the Reserve Fund is held in and on-going savings.
 
 
01.02.2021
 
 
2
 
Revision of procedures
 
 
 
 
 
 
 
 
 
   

 

Cathy Finch, 13/02/2021