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5.01.001 - Financial Reserve

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Approved: 10/17/2011
Reaffirmed: 11/20/2012
Approved By: Board of Trustees
Section: 01 - FINANCE

In exercising its responsibility to ensure the financial stability of the College, it is the desire of the Board of Trustees to create a system for continuous monitoring and review the financial condition of the College.  As part of these processes, the Board directs the President to develop budget guidelines to create and maintain a financial reserve representing a minimum of ten (10%) percent of the College’s general fund budget.  The Board directs to College’s external auditor to review and analyze the status of the fund balance and the financial reserve and present this information as part of the annual audit report to the Board of Trustees.  In developing procedures for implementation of these requirements, the administration shall develop target financial reserves and where appropriate make recommendations to the Board to designate a portion of the fund balance for appropriate selected activities.