The Association’s unrestricted funds comprise the following:
Movements in unrestricted funds referred to above are detailed in the notes to the annual Financial Statements.
Restricted funds represent monies set aside for particular projects or purposes and are administered in accordance with the instructions or intentions of the donors.Movements in restricted funds are detailed in the notes to the annual Financial Statements.
The Association’s income may vary from year to year due to unforeseen changes, for example, in the value of the Association’s investments, in the income from Inland Waterways Enterprises Ltd, in membership income and in the value of donations and legacies received.Similarly its expenditure can change, for example due to needs for urgent expenditure on campaigning or on waterway restoration or for legal advice or legal action.The Association therefore holds reserves that enable it to continue its activities whenever the need arises and irrespective of any financial or operational difficulty the Association may be experiencing at the time.
The reserves consist of the General Fund less the funds invested in tangible fixed assets and less the value of all commitments made from the General Fund.Based on the risk assessments that it has carried out, Finance Committee has concluded that its reserves should lie between £325,000 and £650,000.
Each year’s Financial Statements will set out the level of the reserves on the first day and the last day of the year.If either figure is outside the desirable range the action that Finance Committee has taken to correct the position will be recorded.
The Board of Trustees will review its reserves policy annually.
Approved by the Board of Trustees: 18th August 2012.