Reserves Policy

BELCHAMP WALTER VILLAGE HALL RESERVES POLICY

1. Introduction

    The Village Hall governance document specifies that the property shall “be held in trust … for the use of the inhabitants of Belchamp Walter………without distinction of political religious or other opinions including use for meetings lectures and classes and for other forms of recreation and leisure-time occupation with the object of improving the conditions of life for the said inhabitants.”

    It also specifies that net income should be spent on the “ maintenance upkeep and insurance of the property …” and/or “… in otherwise furthering the purposes specified   “

    These extracts form the basis for this reserves policy.

    2. Premis

    The trustees have set a reserves policy which requires reserves to be maintained at a level which ensure that Belchamp Walter Village Hall’s core activities could continue during a period of unforeseen difficulties.

    The reserves will be maintained in a readily realisable form.

    The calculation of the required level of reserves is an integral part of the organisation’s planning, budget and forecast cycle.

    It takes into account

    • risks associated with income and expenditure being different from that budgeted.
    • planned activity level
    • organisation’s commitments

    3. Operational Reserves

      In order to meet our obligations it is necessary to hold reserves to allow for short term fluctuations in receipts and payments.  The equivalent of six months expected expenditure would normally be regarded as sufficient to meet these risks.  However, the experience of the months of the pandemic suggests that there should be a higher level of reserves to cover unexpected fluctuations in these items.  Reserves of approximately 12 months of expenditure – approximately £3,000 – are held for this purpose.

      4. Capital Reserves

        As with any older building there are risks associated with the long term maintenance of the premises which are not covered by insurance.  In the event of a significant deterioration in the building, sufficient funds should be held to allow for temporary repairs so as to allow continued use of the premises while more permanent solutions are sought.  £5,000 is deemed to be a sufficient reserve for this purpose.

        5. Developmental Reserves

        A further reason for holding reserves is to allow for development of the estate.  Additional reserves will be accumulated from time to time for this purpose so that either smaller developmental projects may be undertaken in their entirety or money may be used towards larger projects.  As far as possible these reserves will be held as unrestricted funds to allow for the greatest flexibility in determining which projects to pursue.  Where the Trustees determine that a proportion of these unrestricted funds should be applied to a specific project they will be held as designated funds.  Where money is raised for a specific purpose, it will be held as a restricted fund and only applied for that purpose.   

        Adopted: Jan 2024