RESERVES POLICY.
RESERVES POLICY
Introduction
Rosie’s Trust is registered with the Charity Commission for Northern Ireland and complies with all its requirements, including the annual independent inspection of the charity’s accounts and the submission of these accounts as part of the Charity Commission’s annual return.
Accordingly, the Board of Trustees manages Rosie’s Trust in the best interests of the charity and our beneficiaries. This involves managing the charity’s income, running costs, future plans and potential risks.
Rosie’s Trust operates a system of general funds to cover our core running costs. The staff team is responsible for all aspects of the day-to-day running costs of the charity, but with the close involvement of Trustees.
At the time of the writing (May 2026), Rosie’s Trust receives funds from a variety of sources, including the John Atcheson Foundation, Kingsbridge Healthcare Group, and the Pet Foundation. Some of the charity’s funds are restricted and cover the costs associated with particular activities or projects; for example, volunteer training and recognition events. Rosie’s Trust also receives unrestricted funding, primarily through individual and corporate donations as well as community fundraising, which is allocated to cover other costs as required.
The Board of Trustees has determined it appropriate to maintain a reserves fund, drawn from Rosie’s Trust’s unrestricted income.
This policy sets out the considerations of the Board of Trustees in determining the level of reserves Rosie’s Trust should hold. It thereby demonstrates to beneficiaries, donors, funders and the wider public that Rosie’s Trust is well managed and that the Board acts at all times to protect the charity from future challenges and any unforeseen changes in our economic circumstances.
Issues for consideration
As is the case for all charities, Rosie’s Trust faces a variety of risks. The Board of Trustees manages actual and potential risks through, among others, the development and regular review of our Risk Register. This process ensures that the Board has the appropriate safeguards in place to prevent Rosie’s Trust from being exposed to undue risk, whether that be financial or reputational.
The Board believes the establishment and maintenance of a reserves fund is critical to enable Rosie’s Trust to cope with unexpected events, including a sudden loss of funding or the unforeseen closure of the charity. In developing this policy, therefore, the Board of Trustees has considered the current and future running costs required to maintain the charity’s operations and manage any short-term drop in income.
It should be noted that there is no consensus on what level of reserves is appropriate for charities to hold. Charities of a similar size and carrying out similar purposes may well hold different levels of reserves. Determining the appropriate level of reserves depends not only on the size of the charity or its purposes, but also the nature of its operations, its legal structure, contractual obligations to employees, how its income is generated, and so on.
If the level of reserves is set too high, funders and the public may conclude that Rosie’s Trust does not need funding. Similarly, if the level is set too low, it may be thought that Rosie’s Trust is at risk of not meeting our liabilities as they fall due. The Charity Commission for Northern Ireland could also opine that the Board is not properly managing its assets.
In considering the above issues, the Board of Trustees has focused on:
· What income Rosie’s Trust can reasonably expect to generate both in the current year and in the future.
· What expenditure is planned for this and future years.
· The charity’s future needs, commitments, opportunities and costs.
· Whether the charity may be forced to cease operations and how Rosie’s Trust would meet its contractual obligations in relation to employees (such as salaries, pension obligations and/or redundancy payments) and any outstanding payments to suppliers.
Agreed level of reserves
After careful consideration of the above issues, the Board of Trustees has set the level of reserves to equate to one month’s operating costs () plus potential redundancy payments and accountancy costs, as follows:
One month’s operating costs £30,000
Accountancy costs £3,000
Redundancy costs £23,700
Costs to delete confidential and
terminate telecom contracts: £500
Costs associated with disposing of or selling assets: £1,000
Total reserves £ 58,200
NB: These figures are based on current rates of pay and length of service of the individual members of the staff team.
Exceptional use of reserves
The Board of Trustees has agreed that the level of reserves may be temporarily reduced when Rosie’s Trust has secured sufficient funding to cover operating costs for a minimum of two years. In this event, the Board may draw on the reserves to fund:
· Opportunities to promote Rosie’s Trust and/or invest in its future sustainability; or
· Unforeseen day-to-day operational costs, eg to employ temporary staff to cover long-term sick leave or other unforeseen emergency.
However, the minimum level of reserves will not be allowed to fall below £30,000 under any circumstances.
Surplus funds may only be used to fulfil the charity’s mission and purposes.
Monitoring and review
The Board of Trustees will monitor the level of reserves on a quarterly basis as part of the regular financial reporting process. In so doing, Trustees will:
· Identify when and why funds have been used from the reserves.
· Identify when and why reserves have risen above or fallen below the set level.
· Ensure that any significant change in the level of reserves is reported in the Trustees’ annual report.
Declaration
The Trustees will consider on a regular basis the level of reserves that Rosie’s Trust holds and how this can be used to benefit the charity and the services that we provide and best meet the needs of our beneficiaries and volunteers.
Policy adopted by the Board of Trustees, 20 May 2026
Signed (on behalf of the Trustees)
Aileen Martin
Chair