Policy 009-2011: Surplus and Reserve Funds
POLICY STATEMENT:
It is the policy of the LGMA to establish reserve funds to cover normal operating expenses, special programs and projects, training and scholarship funding and significant capital items.
POLICY BACKGROUND:
The LGMA has a commitment to the Association membership to maintain the current level of programming and to be proactive in exploring new professional development, training and information resources.
POLICY GOAL:
Due to the voluntary nature of the Association's revenue streams, which could decline in any given year, it is deemed prudent to maintain adequate reserves to meet obligations to our membership and our related partner associations.
POLICY OBJECTIVES:
That the staff be directed to :
- First, maintain a reserve of $10,000 for each MATI education program.
- Second, maintain an Operating Reserve valued at a minimum of 4/12ths of the previous year expenditures.
- Third, maintain a reserve for Project/Program Development valued at a minimum of 1/12th of the previous year expenditures.
- When the above noted reserves have been topped up to values indicated and current year operations net a surplus, staff will first top up Unrestricted Equity to a minimum of 1/12th of previous year expenditures, with any remaining surplus for the year to be donated to the LGMA Distinguished Member Legacy Fund held by the Vancouver Foundation. This will only be adjusted if a 2/3rd vote by the Board of Directors is made to otherwise allocate the surplus. A cheque to the Vancouver Foundation will be issued once the year end review has been completed.
- The Board of Directors may reallocate reserve funds should circumstances dictate adjustments.
Policy adopted March 4, 2011