Reserves Policy of High Peak CVS

Introduction
It is good financial practice to develop a reserves policy to ensure High Peak CVS can meet its financial liabilities and to clarify with funders the reasons why we have money, which is not specifically allocated thereby creating transparency and accountability.

Current Policy
A formal policy on reserves was agreed on the 9th September 2004 at the meeting of the High Peak CVS Board. It states:

High Peak CVS will aim to develop a general reserve to cover 4 months running costs:
• to ensure that the CVS can meet its obligations in the short term in the event of late payment of grants
• to cover any outstanding liabilities such as staff redundancy payments and remaining lease commitments on premises
• to ensure that High Peak CVS core activity can continue during a period of unforeseen difficulty

The reserves will be maintained in a form realisable within 28 days.

Monitoring and review
The policy and general reserve target will be reviewed upon an annual basis.
Furthermore the calculations of the required level of reserves will be an integral part of High Peak CVS planning, budget and forecast cycle.

Details of the current level of general reserve and a six month projected level will form part of the quarterly financial statement to Board members. Responsibility for the day to day monitoring and evaluation of reserves rests with the Chief Executive, with assistance from the Treasurer and Office and Finance Manager.

Kevin Skingsley
September 2004

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