RESERVES POLICY

As agreed at the January 2002 Board Meeting the Finance Sub-Group met and reviewed the Reserves Policy as had been laid down in November 1997. The Sub-Group recommended that the policy be retained as drafted and that careful monitoring both of the reserves and of expenditure plans set out within the Development Plan continue.

The Association's trustees are required to review their financial policies from time to time. The reserves policy of the Association was drawn up in November 1997 and aimed to reserve the equivalent of two years expenditure to give the Association security in the event of one or two failed events or a sudden drop in membership or subscriptions. The Trustees, in the drawing up of this policy, took advice from the Foundation for Science and Technology and the report "Not just for a rainy day" a guide to writing a reserves policy published by the National Council for Voluntary Organisations. It was agreed that this policy was necessary "to underpin the activities of the Association so that forward planning of events and activities can take place with confidence before other sources of income or support can be arranged. Adequate financial reserves will help to ensure that the Association remains independent of, and not reliant on, the financial support of any one organisation or interest. This independence is crucial to the fulfilment of its charitable objectives. The trustees regard this as a minimum prudent sum to underpin the Association."

This plan was reviewed by members of the Finance Sub-Group in March 2002 and recommended acceptance of the policy without change to the March meeting of the Board. This was accepted.