CORSENSIDE PARISH HALL – FINANCIAL RESERVES POLICY
Corsenside Parish Hall Management Committee (‘The Committee’)
It is the policy of the Committee to try to retain a minimum of financial reserves equivalent to 100% of the annual unrestricted expenditure, which in the year ended 31 March 2023 amounted to £11,233.
The balance of unreserved funds at that date was £4,373 equivalent to 39 % of the annual unreserved expenditure. This exception to our policy reflected a decision by the Management Committee to draw on an unusual increase in our unrestricted reserves through a Covid-19 recovery grant in 2020, which was carried forward into the year beginning 1st April 2022, of which £8,856 was designated for major repairs and upgrade works (new external cladding and internal insulation of the north and west-facing walls of the building carried out in 2022-2023.
Other and more typical expenditure of unreserved funds in that year was £2,377, for which the balance of unreserved funds brought forward into 2022-2023 was equivalent to 187% in compliance with our policy.
Reserves are held to provide for fluctuations in cash-flow throughout the year and for unforeseen needs, such as emergency repairs and minor additional requirements necessary to complete planned upgrading of the hall’s facilities.
In addition, the Committee may designate unreserved funds for particular uses, among which regular annual items include insurance, testing of portable electrical appliances and fire-fighting equipment and provision for testing the electrical installation and for the consequences of expected changes in the regulations.
In a typical year, the reserves do not provide for major repairs and upgrading of the hall’s structure and facilities, including major items of furniture and equipment and it is recognised that grant income from grant-awarding charities and other organisations.
This policy has been reviewed and was approved on 7 March 2024 and it is next due for review in February 2025.