The Reserves Policy has two primary aims:
- To ensure that in the event of a sudden or unforeseen shortfall in revenue or increase in costs the Association has sufficient funds to maintain its normal level of activity whilst action is taken to remedy the financial situation.
- To support any long-term aims of the Association requiring funds to be built up over an extended period.
As part of the annual budget setting process, the committee will agree the appropriate amount of reserves to be held by the Association during the following 12 months. The revenue and expenditure budget will be set such as to be consistent with the agreed reserves amount.
The Treasurer will be responsible for monitoring reserves and explaining to trustees any variances of +/- 10% and where appropriate, advising as to any remedial action. It is recognized that due to the seasonality of the Association’s income, the actual reserves held will vary throughout the year.
It is the Association policy to hold reserves of approximately £24,500 consisting of £6,500 to cover one year’s running costs and commitments, plus £18,000 for emergency situations and to facilitate longer term projects, such as the replacement of a teaching apiary or other services to preserve and enhance beekeeping in the county or public understanding of bees (see Rule 4.1).
Monitoring and review
The trustees of the Association will monitor the implementation and effectiveness of this policy annually at its meeting prior to the AGM, and take action as necessary.
Last review: January 2021