How often should contributions be reviewed in a surplus management policy?

In a surplus management policy, contributions should be reviewed as needed, but no less than biannually, because this frequency strikes a balance between responsiveness to changing circumstances and the stability required for effective long-term planning. Regular reviews allow an organization to adjust for various factors such as changes in financial status, market conditions, and shifts in funding needs. By setting a minimum frequency of biannual reviews, organizations ensure that they remain proactive in managing their surplus while giving themselves the flexibility to address issues as they arise.

Conducting reviews too infrequently could lead to missed opportunities for optimizing surplus management or addressing emerging financial concerns. On the other hand, excessively frequent reviews, such as monthly assessments, may lead to unnecessary administrative burden and distraction from strategic goals. The biannual review provides a structured schedule that encourages fiscal discipline while allowing enough time to make informed decisions based on accurate financial data.