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Policy:

To build and maintain a reserve equal to one-third of the annual operating budget.

Procedures:

1. When establishing the annual budget each year the Treasurer and Regional Council should approve income and expenses that, taken together, will move the Association in the direction of achieving and maintaining the reserve policy as stated in the Strategic Plan.
2. The Treasurer and Council should take a similar view when approving mid-year budget adjustments.
3. Dues and fees for such things as the Annual Conference and training, as well as the Development goals should be set, in part, with consideration to building and maintaining the reserve at the stated policy level.
4. Approximately one-third of the reserve should be invested in a liquid fashion so that the funds are available without penalty should they be needed in an emergency. The remaining two-thirds can be invested longer term if it will produce more income.

Approved:

February 1994

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