BLOG - UNBOUNCE - EXAMPLE PAGE - ANNUAL REPORT - KCH - Flipbook - Page 37
2021/22 Financial Review
The targeted level for the general funds is reassessed
annually by estimating the potential impact of the risks
included in the Charity’s risk register on the long-term
financial projections of the Charity. Specifically:
● Risks that might result in a significant and sustained
downturn in income in the following three years; or
● Risks that might result in unbudgeted
expenditure; and
● The risk of a downward readjustment in global
investment values.
The targeted level of reserves to cover these risks is
£5.8m (2020/21: £5.3m) comprising an operating risk
component to cover the first two items assessed as
£2.4m (2020/21: £2.2m), which is equivalent to twelve
months budgeted expenditure, and a component for
investment risk of £3.4m (2020/21: £3.1m) assessed
based on applying historic market volatilities to the
value of the Charity’s investments. The actual value of
the general reserve of £6m (2020/21: £5.8m) represents
103% (2020/21: 109%) of the target .
K I N G’ S CO L L E G E H O S P I TA L C H A R I T Y A N N UA L R E P O R T A N D F I N A N C I A L S TAT E M E N T S 2 0 2 1 / 2 2
37
