This procedure applies to self-supporting funds, capital improvement fee fund, contingency fund, and operating reserves.The objectives of this procedure are as follows:
- Ensure that adequate reserves are maintained for college financial activities.
- Provide for process that records and reports fund balance and reserves activity.
- The Budget and Planning Office will monitor all reserve funds and make appropriate entries to maintain reserves in accordance with this policy. Use of any of the following reserves and contingency funds must be approved by the TMCC President.
- Self-supporting accounts. The Budget and Planning Office will review accounts for appropriate reserves. At least 15% of each account's estimated budget will be held in reserve, object 79. Additionally, 50% of any excess reserves will be transferred to a college reserve account, which will be used for institution wide initiatives (invest in the future fund).
- Capital Reserves will be monitored and expenditures may be limited to maintain adequate reserves. These funds will can only be used for capital expenditures.
- Contingency Fund. The college will maintain at least 3% of operating budget revenues in contingency accounts. This fund can be utilized for unexpected expenses and college initiatives. Any unused funds will be transferred at year-end to institutional initiatives (invest in the future fund).
- Operating Reserves. The college will maintain operating reserves of at least 15% of the operating budgeted revenues. This fund can be utilized for unexpected expenses and college initiatives.
- The Budget and Planning Office will prepare a report (at least annually) listing the reserve amounts in each of the reserve funds.
- Use of Invest in the Future funds will be approved through the annual college resource allocation process.