II.G. General & Contracting Fund Balance
ADMINISTRATIVE POLICY TYPE: FISCAL MANAGEMENT
POLICY TITLE: General and Contracting Fund Balance
Fox Valley Technical College should strive to maintain a fund balance in the general fund and contracting funds equal to between 60 days, or 16.6 percent, and 90 days, or 25 percent, of budgeted appropriations. The cash portion of the fund balance “designated for operations” shall be a minimum of 30 days, or 8.3 percent of budgeted appropriations.
To provide for:
- Adequate working cash for budgeted operating activities, thereby avoiding the need for short-term financing.
- Unanticipated expenditures.
- Orderly adjustment resulting from termination/reduction of revenue sources.
- Unanticipated fluctuations in revenues.
To maintain the General and Contracting Fund Balance Policy, Fox Valley Technical College shall strive to:
- Eliminate the budgeted use of fund balance if said use would reduce fund balance below policy minimums.
- Apply remaining unexpended general and contracting resources at the end of each fiscal year to the reserve designated for operations if necessary to meet policy minimums.
NOTE: Annual board review.