Financial health, contingency & reserves

This policy defines PIRC's approach to monitoring financial health using two cashflow measures: confirmed cashflow and a probabilistic income-prediction tool ("SleepEasy"). It sets clear thresholds — from 12 months predicted down to under 3 months confirmed cashflow — each triggering progressively stronger contingency actions, from cautious spending through to bare-bones operations and emergency funder outreach. The policy also outlines a reserves strategy, targeting 3 months' running costs built via an annual contribution of £10,000 or 4% of turnover, with progress tracked through regular financial reporting. It is particularly useful for small organisations seeking a transparent, team-facing framework for financial resilience and reserves governance.