Governance Policy: Investment Policy for Operating Reserves

Preamble:

The Board of Directors, as a fiduciary, is responsible for all funds of the organization. All funds of the organization are held by the corporation as a steward for the sake of carrying out its mission and purposes. The following investment objectives and directions are to be judged and understood in light of that overall stewardship.

Purpose:

To establish guidelines to achieve an operating reserve sufficient for OutServe-SLDN to:

• Adequately support its annual budget;
• Ensure continued growth of current and future programs;
• Fulfill its mission even during times of harsh economic conditions;
• Provide financial stability and the means for the development of its principal activity.

Objective:

• To maintain funds adequate to meet the operating needs of OutServe-SLDN with an initial goal of three months reserves and an intermediate goal of six months reserves;
• To assure preservation of principal;
• To ensure adequate liquidity;
• To achieve market rate returns;
• To manage risk.

Investment Strategies:

100% of the operating reserve funds shall be held in any of the following: FDIC-insured checking and savings accounts (or similarly insured accounts); money market accounts which the sponsors assert maintain a constant $1.00 per share value; US Treasury obligations not to exceed three months; and federally insured certificates of deposit not to exceed $100,000 per institution (CD maturities may exceed three months if no penalty is incurred for withdrawal of funds prior to CD’s maturity).

Reporting:

OutServe-SLDN will prepare at least quarterly, or when requested by the Board of Directors, a statement of financial position and a statement of cash flows that shows the past, present and, when operationally possible, projected operating status.

Reserve Policy Review:

This policy will be reviewed by the Finance Committee and full Board of Directors at least once annually, where upon the reserve policy is re-approved or amended as deemed necessary.

Adopted: June 3, 2001
REVISED: June 1, 2003
REAFFIRMED: December 19, 2006
REAFFIRMED: March 8-9, 2008