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Reserve Funds

The following reserve funds shall be maintained as distinct entities in the financial accounts of the Association:

  1. Operating Reserve

    The Operating Reserve shall be maintained at an amount equivalent to 150%of the budgeted operating expenses for the current fiscal year.

  2. Special Discretionary Reserve

    Except as otherwise provided in these By-Laws, any excess of income over expenditures and transfers necessary to maintain the Operating Reserves at the levels provided herein shall be credited to, or any excess of expenditures and transfers to maintain the Operating Reserve income shall be charged to, the Special Discretionary Reserve. Funds from the Special Discretionary Reserve shall only be expended on major projects of the Association. All expenditures from this reserve shall be approved by a two-thirds vote of the Senate and by the Council of Presidents.

  3. Annual Discretionary Expense Account

    The amount in the Annual Discretionary Expense Account shall be determined at the time of budget negotiations, and shall be an amount equivalent to one-half of a percent of the Special Discretionary Reserve, but not greater than $10,000. All expenditures from the Annual Discretionary Expense Account shall be approved by a two-thirds vote of the Senate, and shall be closed to the Special Discretionary Reserve at the end of each fiscal year.

The Operating Reserve shall be maintained at its prescribed amounts by crediting funds to, or transferring funds from, the Special Discretionary Reserve at the beginning of each fiscal year.

No funds shall be directly expended from the Operating Reserve.


donald@
Mon May 9 17:09:02 PDT 1994