Looking After Your Money

The Trustee has a general duty of care to protect the assets of the charity and therefore fund balances must be held in a secure and responsible manner, providing a reasonable return for the benefit of the charity. A risk-averse approach to investment is maintained by the charity. Funds not required for immediate spending are invested in a prudent manner to minimise risk whilst seeking to obtain income to support the charity.

A current bank account is held to ensure prompt payment may be made to meet the day-today needs of the charity. Various fixed-term and notice accounts deposits have been made to maximise the amount of interest earned to benefit the charity, whilst ensuring that sufficient money is made available for any large spending plans. Fixed term deposits are usually set up so that they mature at different times and can either be re-invested or spent to match current needs. Long term investments are made with Charities, Churches and Local Authorities (CCLA) Investment Management Limited in Charities Official and Investment Fund (COIF) Income Units; these are higher risk as the value of the investment is not guaranteed but, historically, they have provided a good return with the wide spread of the pooled investment limiting risk. More information is available in the Charity’s Investment Policy. The Trust’s Charitable Funds Committee is responsible for updating the policy annually, a copy of the policy can be obtained by phoning 01522-308686.

The charity operates in line with the Standing Financial Instructions of the trustee, the Lincolnshire Community Health Services NHS Trust.

Reserves Policy

Funds donated or earned from investments etc. are made available to the fund managers to spend. The projects undertaken by the charity are one off purchases and not long term projects with ongoing costs or liabilities and so the charity does not hold reserves. If, in the unlikely circumstances that all funds were fully spent up, then activities would naturally cease

Risk management

Under the Charities Legislation of 2011 and the accounting Statement of Recommended Practice (SORP), charities are now required to show that they are being managed effectively and to show that they are mindful of the major risks to which the charity is exposed. The major risks have been identified and reviewed by the trustees and a system has been established to mitigate these risks. This is administered by members of the finance department.