Policy 009: 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 maintain sufficient operating reserve funds to cover normal expenditures for three to six months based on the previous year's expenditures.
- That any remaining surplus will be allocated in reserves in one or more of the following ways:
- To develop new services and programs for members in accordance with the LGMA Vision and Mission.
- To fund revisions of existing programs as established by program policies
(e.g. MATI programs) - To fund scholarships in accordance with guidelines established by the Board of Directors
- To be placed into special reserves to finance long-term projects or large capital items
- The Board of Directors may reallocate reserve funds should circumstances dictate adjustments.