Johnson County Community College
Series 200: Administrative Services
Section 210: 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.

Date of Adoption: 7/7/94
Revised: 6/19/97, 11/15/01