EFNA is committed to maintaining an unrestricted reserves fund to help us to:
- Cover winding up costs in the event of closure;
- Ensure our commitment to ensuring continuity and quality of service; and
- Bridge the timing differences between the start of the financial year and the receipt of contracted funding/grants/sponsorship – to protect against the effect of late payment throughout the financial year
On an annual basis EFNA will undertake a minimum reserves calculation based on its estimates of the sums required to run the planned activities in that calendar year. This will also take into account potential wind-up costs should the organisation be unable to continue to operate.
The Board will keep the level of reserves under annual review to ensure that it is adequate and appropriate to meet the requirements of the organisation.