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Services · Sustainability

Reserves Management

REM

Establishes a reserves policy and the tools to set, monitor and govern the National Society's financial reserves. It defines free reserves, sets a target range with a minimum operating reserve, and embeds monitoring, reporting and a build-up and drawdown plan.

What changes

A board-approved reserves policy, an evidence-based reserve target, regular reporting against that target, and a plan to reach and hold it. Financial resilience and going-concern both strengthen as a result.

What you get

  1. Reserves Policy REM001
  2. Reserves Target and Adequacy Calculation Model REM002
  3. Reserves Monitoring Dashboard and Register REM003
  4. Reserves Position Report to the Board / Finance Committee REM004
  5. Reserves Build-up and Drawdown Plan REM005

What has to come first

  • FSC / reliable recent financial statements Required

    The reserves calculation needs a sound fund balance and expenditure base

  • FRMFinancial Risk Management Policy Recommended

    The financial risk register informs the risk-based buffers in the target

Who is involved

From the National Society's side. This is what the engagement asks of your people.

Your own staff work alongside the adviser throughout, so this is a commitment of their time as well as the Centre's. Ask in the request and you are given the day estimate per role before anything is signed.

RoleWhat they do
Governing Board / Finance or Audit CommitteeAdopt the reserves policy and target; oversight of breaches
HNS Secretary GeneralApproves; accountable for financial resilience
HNS Finance DirectorOwns the policy, the model and reporting
Chief Accountant / finance teamFund classification, data and monitoring
Resource mobilisation / fundraisingIncome concentration and build-up planning
External auditorsFund classification and disclosure interface

How it is measured

IndicatorTargetEvidence
Reserves policy approved and target range adopted by the Board 10 weeks Approval minutes; signed policy (REM001)
Evidence-based minimum operating reserve and target range calculated Target set (min / target / ceiling); months-cover documented Completed model (REM002)
Reserves position reported against target each period 100% of reporting periods Board report (REM004); dashboard (REM003)
Build-up / drawdown plan in place where the NS is off target Plan with owners and milestones Build-up/drawdown plan (REM005)

Tools

5 of 5 ready to download.

  • REM001 Reserves Policy Policy DOCX
  • REM002 Reserves Target and Adequacy Calculation Model Workbook / Calculator XLSX
  • REM003 Reserves Monitoring Dashboard and Register Dashboard / Register XLSX
  • REM004 Reserves Position Report to the Board / Finance Committee Report template DOCX
  • REM005 Reserves Build-up and Drawdown Plan Plan / Tracker XLSX

Describe the problem, not the service

You do not need to know which of the 124 to ask for.

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