Motherclanger Posted August 24, 2015 Share Posted August 24, 2015 Hi Does anyone from a committee run preschool have a reserves policy they are willing to share? Link to comment Share on other sites More sharing options...
blondie Posted August 24, 2015 Share Posted August 24, 2015 oooh will be interested in this as we are committee run but dont have this policy Link to comment Share on other sites More sharing options...
thumperrabbit Posted August 25, 2015 Share Posted August 25, 2015 We don't have a reserves policy either - we do keep a redundancy account which contains approx. 3 months pay for 'when the time comes' Link to comment Share on other sites More sharing options...
lsp Posted August 25, 2015 Share Posted August 25, 2015 We do not have a reserves policy. Can I ask why you are thinking of putting one in place? Not sure whether it is covered in finance policy? Link to comment Share on other sites More sharing options...
eyfs1966 Posted August 25, 2015 Share Posted August 25, 2015 Charities Commission (i think) have suggestion of 3 months of working capital as a minimum.. Link to comment Share on other sites More sharing options...
Fredbear Posted August 25, 2015 Share Posted August 25, 2015 No we don't have a policy either, but do have a redundancy account with money in. Link to comment Share on other sites More sharing options...
blondie Posted August 25, 2015 Share Posted August 25, 2015 we have an account with redundancy money in - i have asked other groups local to me and they dont have this which is a worry for them although i suppose that is their choice. Link to comment Share on other sites More sharing options...
GFCCCC Posted August 25, 2015 Share Posted August 25, 2015 (edited) We have a reserves policy which includes a building reserve, and an operating reserve. The building reserve is in case anything serious needs doing to the building (e.g. roof/boiler) but that is only relevant if you own the building. The operating reserve is six month operating costs which would allow the organisation time to consider it position if anything changed or to restructure/refinance. The six months allows for redundancy if that is the way any decision goes. If your organisations suddenly had to close or went into administration, the government fund would cover redundancy. Edited August 25, 2015 by GFCCCC Link to comment Share on other sites More sharing options...
eyfs1966 Posted August 25, 2015 Share Posted August 25, 2015 We have a reserves policy which includes a building reserve, and an operating reserve. The building reserve is in case anything serious needs doing to the building (e.g. roof/boiler) but that is only relevant if you own the building. The operating reserve is six month operating costs which would allow the organisation time to consider it position if anything changed or to restructure/refinance. The six months allows for redundancy if that is the way any decision goes. If your organisations suddenly had to close or went into administration, the government fund would cover redundancy. If your organisations suddenly had to close or went into administration, the government fund would cover redundancy. Hmmm sadly not if you are committee run not limited company or by guarantee Link to comment Share on other sites More sharing options...
blondie Posted August 25, 2015 Share Posted August 25, 2015 If your organisations suddenly had to close or went into administration, the government fund would cover redundancy. Hmmm sadly not if you are committee run not limited company or by guarantee so when would the government fund help? what sort of setting? Link to comment Share on other sites More sharing options...
manor Posted August 25, 2015 Share Posted August 25, 2015 (edited) Here are some examples from the PSLA Reserves policy example 2.docx Reserves and Designated Funds Policy.docx RESERVE policy doc.docx Reserve information sheet.docx Edited August 25, 2015 by manor Link to comment Share on other sites More sharing options...
GFCCCC Posted August 26, 2015 Share Posted August 26, 2015 If your organisations suddenly had to close or went into administration, the government fund would cover redundancy. Hmmm sadly not if you are committee run not limited company or by guarantee Not sure who told you this information but you will be pleased to know that its absolutely not true. Govt redundancy fund is from the National Insurance fund and is for everyone who is employed and paid via PAYE system. The point of it is to ensure that all employed people receive their legal entitlement to redundancy and pay in lieu of notice when an employer goes into administration. All employment laws in this country apply to all employed people whatever type of organisation they are employed by. Link to comment Share on other sites More sharing options...
eyfs1966 Posted August 26, 2015 Share Posted August 26, 2015 ..including where the employer is a charity governed by trustees who are joint and severally liable for all liabilities? I had presumed this would include liability for redundancies... 1 Link to comment Share on other sites More sharing options...
thumperrabbit Posted August 27, 2015 Share Posted August 27, 2015 In the days when we had PLA advisors they every meeting I had with them they asked the question 'do you still have redundancy funds?' So that is why we have it in a separate account; gosh we're rich if we don't need it but I don't think I'd like to risk it! 1 Link to comment Share on other sites More sharing options...
eyfs1966 Posted August 27, 2015 Share Posted August 27, 2015 This document clearly states that trustees are indeed liable for redundancy costs.... http://casouthwark.org.uk/sites/default/files/images/Trustee%20Liability.pdf Link to comment Share on other sites More sharing options...
Motherclanger Posted August 30, 2015 Author Share Posted August 30, 2015 Hi everyone, Thank you, for all the information on Reserve policies. I have now got enough to complete our policy. Link to comment Share on other sites More sharing options...
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