Cash Reserves Policy 210.07
Series: 200 Administrative Services
Section: Accounting and Auditing
The objective of the reserve policy is to provide adequate resources for cash flow and contingency purposes and to help ensure stable tax rates.
The College will maintain a “base” unallocated fund balance throughout the year of 10 percent of the general operating fund budget to be used for cash flow purposes and to mitigate risks such as revenue shortfalls or unanticipated expenditures. The funds will be used to avoid cash flow interruptions, generate interest income, and avoid the need for short-term borrowing.
To the extent that unusual circumstances arise, a balance larger than this “base” amount may be maintained periodically.
Revised: 06/19/1997, 11/15/2001, 02/16/2017