Governance Policy: Investment Policy for Operating Reserves
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.
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.
- 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.
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).
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