US Central Office Prudent Reserve: Polling the Audience

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US Central Office Prudent Reserve: Polling the Audience

Postby Robyn » Thu Apr 24, 2014 7:26 pm

Hello All Central Office Treasurers, Past and Present or those knowledgeable of such:
Need your help! Can you respond and let me know
1. What City/State you are from
2. How is the prudent reserve set/maintained? Ex.: Number of month's rent vs. percentage of income vs. something else
If something else, could you be specific?
We are looking to change our prudent reserve for our central office treasury and would like to see how the majority of you guys have yours set up for our suggestions to the Council.
Thanks for your help!
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Re: US Central Office Prudent Reserve: Polling the Audience

Postby Blue Moon » Thu Apr 24, 2014 8:32 pm

To which "central office" do you refer?

I currently serve as Chair of USA Area 44's Finance Committee, so have some experience in this.

Our Area has a Prudent Reserve of 50% of prior year's budgeted expenses. Budgeted expenses includes things like rent, utilities, committees etc. but excludes operating activity such as literature.

Most Groups and Districts in the Area use 3 months' expenses as their Prudent Reserve. I'm.not sure about Intergroup, but it's probably the same as Area.
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Re: US Central Office Prudent Reserve: Polling the Audience

Postby Db1105 » Thu Apr 24, 2014 9:54 pm

Our local Intergroup tries to keep a 3 month prudent reserve.
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Re: US Central Office Prudent Reserve: Polling the Audience

Postby Robyn » Fri Apr 25, 2014 9:39 am

Thanks for the feedback...Yes, I am referring to intergroup... and I am in NC and our Area and Districts keep records differently than what our local intergroup office does. We have not looked at this since 2003 and some reps feel our reserves are too low as it is less than what the literature suggests for prudent reserves.

Could you give me the state in which you live? Thanks!
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Re: US Central Office Prudent Reserve: Polling the Audience

Postby Blue Moon » Mon May 05, 2014 10:30 pm

Area 44 is Northern New Jersey.

Why does Intergroup need much Prudent Reserve for literature? They should draw up a budget, if they don't already have one. Factor in expenses incurred e.g. Night watch, rent, utilities.

Literature is self-funding, unless they're giving it away. So it needs no Prudent Reserve if it's being sold. The problem is not Prudent Reserve so much as cashflow. You need enough cash in the bank to buy before you can sell, over and above Prudent Reserve which exists to keep the lights on for a while even if donations dry up.
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Re: US Central Office Prudent Reserve: Polling the Audience

Postby Robyn » Sun May 11, 2014 6:01 pm

Blue,
You misunderstand...I meant AA literature like the pamphlet where "Money and Spirituality Mix"...

Our monthly intergroup expenses run about $ 10,000 and our prudent reserve is $ 6000. Clearly below three months of operating expenses...

Thanks for the feedback...
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