1st Wimborne Scout Group
Investment Policy:
The group’s income and expenditure is very small and as a consequence does not have sufficient funds to invest in longer term investments such as stocks and shares. The group has therefore adopted a low risk strategy to the investment of its funds. All funds are held in cash using only mainstream banks or building societies.
The group executive regularly monitors the levels of bank balances and the interest rates received to ensure the group obtains maximum value and income from its banking arrangements. Occasionally this may involve using an account that requires a period of notice before funds may be withdrawn, before doing so the group executive considers the cash flow requirements.
Reserves Policy:
The work of the group executive committee involves issues concerning financial control, particularly in the budgeting of events, activities and equipment maintenance as well as regularly monitoring the financial risks to which the group may be exposed.
The group’s income is generated from investments, donations, grants and the membership subscriptions paid by members of the group. The reserves policy of the group is such that our reserves continue to be held in low risk managed portfolios; the executive committee reviews the investments annual to ensure we are able to achieve a fair rate of return on the capital reserves held.
The reserves policy was declared by the group executive committee to be the ‘maintenance of available funds, excluding known commitments and contingent liabilities, equal to a minimum of one year’s budgeted revenue expenditure’ and can be used should they be a fall in the groups annual income.
The group’s policy on reserves is to hold sufficient resources to continue the charitable activities of the group should income and fundraising activities fall short. The group executive committee considers that the group should hold a sum equivalent to XX months running costs, circa £X.XX.
The group held reserves of approximately £X.XX against this at year end. This is above the level/below required for operating expenses. However, this can be explained by ……….
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1st Wimborne Scouting 