Cash Reserves Policy

 

Policy Number:

OPER_0013

Policy Statement:

The objective of the reserve policy is to provide adequate resources for cash flow and contingency purposes while maintaining reasonable tax rates.

Procedures:

General and Vocational Funds

The College will maintain a base unallocated fund balance at the beginning of each fiscal year of 20 percent of general and post-secondary technical education (PTE) 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. 

Capital Outlay Fund

The Capital Outlay Fund will maintain a base unallocated fund balance at the beginning of each fiscal year of $250,000.   

Any change in either base listed above must be approved by the Board of Trustees. 

To the extent that unusual contingencies exist as a result of state or federal aid uncertainties or other unknowns, a balance larger than these base amounts may be maintained.

Contacts:

Chief Financial Officer, Controller

Policy History:

June 25, 2026: Revised to include policy number.

July 8, 2025: Revised for accessibility format.

March 1, 2018, Date of Approval