Reserves Policy

MWSD-POL-01

Introduction

It is essential that any Charity sets a clear policy in regards to unrestricted funds that are agreed to be retained to protect against a cash flow problem or a problem when income falls short of necessary expenditure (the rainy day fund).

It is therefore necessary that Mersey Weaver Scout District has a policy on its unrestricted financial reserves.

Policy

Taking into account the District’s assets and their related liabilities, and the current accumulated funds in the District, the District Executive Committee have taken a prudent approach to unrestricted reserves and considers that the District should hold a sum equivalent to 12 months running costs, circa £90,000.