St Elizabeths Centre Annual Report End Dec 2022 FINAL - Flipbook - Page 33
Reserves Policy and Financial Position
The Trustees are conscious of the need to balance the requirements
of the Charity’s present service users and students against those in the
future. This means that they have to determine the level of reserves
to be carried forward to invest in future development. The Trustees
consider that, given the nature of the Charity’s work, the minimum level
of reserves should be 3 months’ annual expenditure.
The unadjusted general fund reserves of £4.5m represent approximately
2 months of normal annual expenditure. The Trustees are currently
adopting a new 5-year strategy with the aim of generating sustainable
operating surpluses to support investment in new facilities and improved
services. In this context the reserves policy will be reviewed to ensure it
is consistent with the long term 昀椀nancial strategy.
Restricted funds of £114k, as at 31 December 2022, are available for a
range of smaller projects for which the Charity has received donations,
but has not yet incurred the expenditure.
Designated reserves of £16,006k comprise the 昀椀xed asset fund,
representing all net assets and liabilities connected to the 昀椀xed assets
of the Charity.
Cash balances total £3,647k at 31 December 2022, consisting of £2,634k
of short term deposits and £1,013k of cash at bank and in hand.
The Charity’s Assets
The acquisitions and disposals of 昀椀xed assets during the period are
recorded in note 10 to the 昀椀nancial statements.
See also in note 22, charges relating to Impairment and extraordinary
expense due to Adult Home closure
Since the transfer of the Congregation’s assets and activities to the
Charity, the Charity’s land and buildings have not been revalued.
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