[Businessmtg] Prudent reserve discussion

[travelynne2]


I’ve been following all the wonderful discussion and also learning more about how we apply the traditions and concepts to how ASP makes decisions! 

And thank you to Anne for your very helpful email (and the links!) with more detail from the treasury. 

Here are my thoughts right now:

1. How often do we fall below 1/2 of the prudent reserve? There have been suggestions to reduce the prudent reserve to 6 months of expenses. So if our current prudent reserve is 12 months of expenses  ($1300), how often have we fallen below 6 months reserve ($650)? If the answer is never or very rarely, then that would argue that reducing the prudent reserve to 6 months expenses would be low risk to ASP functionality. If the answer is often, then that would mean there are risks to reducing the reserve and we need to discuss further. I hope that makes sense. 

2. There are still a lot of unknowns in terms of the expenses to incorporate (Anne estimated $800 to $1000 of one time expenses and TBD ongoing expenses). Does the annual operating costs of ASP (used in making the prudent reserve figure) need to be updated? It sounds like we can’t really update it accurately until we know the annual costs of incorporation and any costs for our GR rep? 

3. We also have an undefined timeline for when we can donate to the Area since they are not set up yet and we don’t know what their expenses will be. 

Taking all of that into consideration and the recent discussion, I would be in favor of making a change now to ASP’s group conscience to immediately start donating 10% of funds in excess above our current prudent reserve to WSO as that is the only service entity currently able to receive funds. 

But then to wait on both recalculating our annual expenses and revisiting the amount of the prudent reserve until the incorporation costs are known (and the one time costs have been paid) and we hopefully know more about what, if any, costs our GR rep will incur. And once we have answered those questions and set a new prudent reserve, then we can determine what ratio we want to donate to WSO vs the Area (and maybe district). 

Take what you like. :) 

Hugs,
Lynne



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