Cash Reserves Policy 210.07
Series: 200 Administrative Services
Section: Accounting and Auditing
The objective of the reserve policies is to provide adequate resources for cash flow and contingency purposes while maintaining reasonable tax rates.
The college will maintain a “base” unallocated fund balance throughout the year of 10 percent of the general operating fund budgets to be used for cash flow purposes, unanticipated expenditures of non-recurring nature, or to meet unexpected increases in service delivery costs. 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 contingencies exist as a result of state or federal aid uncertainties, or other unknowns, a balance larger than this “base” amount may be maintained.
Revised: 06/19/1997, 11/15/2001