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Policy Section: Operations – Finance |
Policy Number: OF-7 | |
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Policy: Financial Planning and Budgeting – Reserve Fund |
Date Approved: April 25, 2017 | |
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Last Date Reviewed: | |
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Last Date Revised: | |
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Number of Pages: | |
AWNA’s reserves are to ensure the stability of the mission, programs, employment and ongoing operations of the association and to provide a source of internal funds for organizational priorities.
Parameters:
1.The Board reviews reserve funds annually and/or upon the
recommendation of the Executive Director.
2.Reserves should be categorized as:
a) Restricted net assets, and
b) Unrestricted net assets, and
c) Invested in capital assets.
3.Unrestricted equity (operating reserve) should be maintained at a
minimum six months of operating costs.
4.The reserve funds will be accounted for in the association’s
financial records.
5.Use of reserves requires:
a) Identification of use as provided by the Executive Director, and
b) Authority to use reserves as approved by the Board of Directors,
and
c) Reporting and monitoring to ensure funds are maintained and
used only as described by policy.