Seattle Colleges will establish and maintain a reserve of 5-10% of the aggregate total of each fund’s annual expenditure budget. Excluded are trust and capital funds. The reserve will be established from existing balances or by creating surpluses by generating more revenue than expenditures in a fiscal year. Non-operating budgets with deficits at the end of any fiscal year must be zeroed out by the end of the next fiscal year. Deficit balances may not be carried forward beyond one fiscal year without specific approval of the Chancellor.

The creation of a District operating reserve will ensure sufficient funds available for working capital, be available to deal with fluctuations in revenue or expenditures, and provide opportunities to fund non-recurring expenses, such as program start-up costs or equipment purchases. The status of the District reserve will be reported to the Board of Trustees on a quarterly basis as a part of its financial statements.

Companion Document : Pro608
Adoption Date : 1978/01/16
Revision Date : 2009/09/10