Policy Information | |
Series Regulations - Regulations | |
RESERVE FUNDS Policy # 5512R |
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The District is authorized to establish and maintain reserve funds for a limited number of specific purposes set forth in New York State Education and General Municipal law.
When creating or funding reserve funds, the District will:
1) Consult with legal counsel and other financial experts as necessary for guidance on the authority to establish the reserve fund;
2) Identify the financial need or purpose to be served by the prospective reserve fund, including an assessment of whether the reserve fund will complement the long-term financial or capital plans of the District;
3) Communicate clearly and effectively to District residents the specific purpose of and the financial objectives for the reserve;
4) Maintain open and transparent records of all reserve fund transactions for the benefit of District residents and voters;
5) Determine optimal funding levels for the reserve, as well as the conditions under which the reserve assets will be utilized;
6) Periodically assess the reasonableness of the amounts accumulated in the reserve and when conditions warrant (and subject to any and all legal requirements) reduce reserve funds to a reasonable level or liquidate and discontinue a reserve fund that is no longer needed or whose purpose has been achieved;
7) Provide the Board with regular financial reports on reserve fund activity; and
8) Customize all payments or transfers into reserve funds by express resolution.
Regulations - Regulations |