The London Youth Opera reserves policy was reviewed and updated during April 2025.
The trustees have set a level equivalent to 3 months of operating costs for the organisation as a desired level of reserve. This fund is a contingency in the event of a sudden reduction in income, in order to protect the future operation of the organisation from the effects of any unforeseen variations in its income and expenditure. It also provides a cash flow for invoices and contracts that are paid in arrears.
The trustees have designated reserves where there are planned commitments that cannot be met by anticipated future income alone. These reserves relate to:
- The organisation's responsibilities as a freelance contractor to hold sufficient funds to ensure prompt payment as set out in the payment schedule of individual freelance contracts including any original opera commissions undertaken
- The organisation's responsibilities as a company hiring venues to hold sufficient funds to ensure prompt payment as set out in any venue hire contracts
The reserves policy and the levels of reserves required are reviewed yearly as part of the annual budgetary process.
Within the accounts, the amounts of reserves are specified as Designated Funds and are sized to cover those costs of future productions which have been committed to the year end including; venue hire, commission fee and fees for the Music Director and Production Team.
This policy will be regularly monitored by the Trustees of London Youth Opera and will be subject to annual review.
Date: Reviewed 4 April 2025