HEAVITREE COMMUNITY PRE-SCHOOL
  FINANCIAL RESERVES POLICY






The financial security of our pre-school is important, and so money will be kept in reserve for unforeseen circumstances. We aim to have money in reserve to cover main costs for at least one term.




Procedures

• Money will be set aside each year to cover staff redundancy costs. This will be recalculated annually, to ensure sufficient funds.

• If unforeseen circumstances lead to loss of income, potential expenditure that will need to be met may include staff salaries, rent, administration costs (eg payroll), and insurance. A reserves target of £10,000 - £50,000 will aim to be achieved.

• Should reserves go above £50,000, the committee will agree the most appropriate course of action.

• Should reserves drop below £10,000, the committee will discuss ways to reduce costs where possible, without affecting quality of provision, and increase fees if appropriate.

• Our financial reserves will be reviewed annually, and adjusted accordingly.