Reserves Policy Statement

As Trustees of Penlee Cluster we are committed to maintaining sufficient Reserves to ensure we have funds to operate for a minimum of 2 months, over time we would like to build our Reserves up to operate for 3 months.

  • We have no legal contracts or commitments apart from staff salaries.
  • We do not pay rent for premises in which we operate but we make a contribution towards running costs.

Expanded commentary in light of Covid pandemic

  • The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately two months of operating costs. It is our intention to increase this to cover three months operating costs. The trustees consider that this level will provide sufficient funds to manage unforeseen reductions in income and increases in expenditure.
  • The main area of expenditure is staff salaries and we will provide against three months salary costs.
  • We have no other legal or contractual obligations. We do not pay rent for the premises that we use but make a contribution to their running costs.

Present situation in the Covid pandemic

  • Our existing position as of 31 December 2020 is that we have sufficient free reserves to meet the policy. The level of reserves will be reviewed annually to help ensure sufficient reserves are in place to meet operating needs.

Penlee Cluster Churches Trustees
Published 8th January, 2021

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