ERI Reserves Policy
Revised May 2023
Approved by Board Sep 2023
The Board of Directors has set a reserves policy which states:
Reserves should be maintained at a level that ensures that the core activities of ERI can continue during a period of unforeseen difficulty, in particular its commitments to ongoing projects and initiatives.
The calculation of the required level of reserves is an integral part of the organisation’s planning, budget and forecast cycle
It takes into account:
- risks associated with each stream of income and expenditure being different from that budgeted;
- planned activity levels;
- the obligation upon ERI to honour its contracted commitments
The Board will keep under review the appropriate level of reserves having regard to stakeholders’ requirements.
The Reserves policy should be reviewed on an annual basis.
ERI’s unrestricted reserves in the financial statements are to be maintained at a level equivalent to one year’s central costs at current activity levels as confirmed in the annual financial statements.
