SBMAT Reserves Policy Summary
The Trust is predominantly funded by grants from the Department for Education, the use of which is regulated by its funding agreement. The majority of these grants are used by the Trust in the accounting period for which they are given.
The Trust Board approved a policy for financial good health with a level for the Trust of 5% of total income or £250,000 whichever figure is higher. Reserves must be maintained above this limit unless agreed by the Trust Board.
The Trust should not hold reserves in excess of 10% of total income without planned expenditure on educational activities over the next three years, bringing the reserves below 10% of income.
All reserves held by the Trust will be used to further the educational activities of the Trust. All reserves policies are reviewed annually.