APPROVED DATE: -- 14TH , April 2003
The Ottawa Valley Branch of the National Association of Federal Retirees has established two reserve funds.
Purpose
The reserve funds have been established as capital reserve for the association to be set aside for contingencies.
Fund Levels
Fund levels to be maintained in the reserve funds will be determined from time to time by the OV Board. The reserve funds shall be reviewed annually by the OV Board at which time fund levels will be reassessed. Expenditures from the funds throughout the fiscal year (FY) will be as authorized by the board.
Use of the Reserve Fund
The intent of the reserve funds are to have the funds available to meet unbudgeted expenditures as defined by each fund's purpose.
The Reserve Funds' Accounting Method
The reserve funds shall be so identified and maintained in the main financial statement as “non interest bearing” funds. These funds may be invested in interest bearing certificates or bonds, and managed according to sound financial investment policies. Interest gained from the investments are to be treated as interest income and utilized to meet annual branch operating expenses. A separate report detailing the balance of the fund and interest earned shall be a part of the annual treasurer's report. Adjustments required to maintain the level of the individual reserve funds shall be made at least annually.
Approved. Signed James L. Piche – President OV Branch
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