ERCL Annual Report | Page 17

Income Expenditure Surplus/(Deficit) 96,916 138,608 (41,692) Community Facilities 433,496 1,056,460 (622,964) Libraries 279,376 1,555,203 (1,275,827) 2,190,663 3,797,164 (1,606,501) Arts & Culture Sports & Leisure Other Grants 150,302 150,302 Management Fee 3,571,255 3,571,255 Total 6,571,706 6,547,435 24,271 Reserves policy During 2015/16 the Trust agreed to build reserves over the first three years to a level of £250,000 to enable the Trust to manage financial risk and help deliver the Trusts commitments. It was recognised that this was our initial target and would therefore be regularly monitored and reviewed annually by the Finance Audit and Risk committee. Investment policy East Renfrewshire Council manage investments on behalf of the Trust, following their own organisational investment policy, primarily aimed at mitigating risk associated with safeguarding funds, ensuring liquidity of these funds and finally investment returns. As a result the policy aims to invest cash and cash-like investments up to a maximum level on acceptable counterparties. Activity is monitored regularly and the policy is reviewed annually. Due to the limited current level of surplus funds any funds held by the trust are invested in an interest bearing account held with our bankers, the Clydesdale Bank. Fixed assets The trust has a maintenance lease agreement with East Renfrewshire Council for the use of the buildings and equipment linked with the charitable activities and as such these assets do not belong to the Trust.