FSNA OV BRANCH ON-53
Reserve Funds Policy
APPROVED DATE: -- 14TH , April 2003
The Ottawa Valley Branch of the FSNA has established two Reserve funds
Purpose
The Reserve Funds have been established as capital reserve for the Association to be set aside for contingencies.
Fund Levels
Fund levels to be maintained in the Reserve Funds will be determined from time to time by the OV Board. The Reserve Funds shall be reviewed annually by the OV Board at which time Fund levels will be re assessed. Expenditures from the Funds throughout the fiscal year (FY) will be as authorized by the Board.
Use of the Reserve Fund
The intent of the Reserve Funds are to have the funds available to meet unbudgeted expenditures as defined by each Funds purpose.
The Reserve Funds Accounting Method
The Reserve Funds shall be so identified and maintained in the main financial statement as “non interest bearing” funds. These funds may be invested in interest bearing certificates or bonds, and managed according to sound financial investment policies. . Interest gained from the investments are to be treated as interest income and utilized to meet annual Branch operating expenses. A separate report detailing the balance of the fund and interest earned shall be a part of the annual Treasurer's report. Adjustments required to maintain the level of the individual reserve funds shall be made at least annually
Approved.. Signed James L. Piche – President OV Branch
Reserve Fund - Emergency Defence of Benefits
Approval Date: 14th , April 2003
PURPOSE
The primary purpose of the Emergency Defence of Benefits Fund shall be for the funding of defensive actions against detrimental changes to the member’s pensions and benefits. What constitutes a detrimental change shall be determined by the OV Board.
The level of the Fund shall be determined by the OV Board on an annual basis. The initial level of the Fund has been established by the OV Board on March 13, 2003 at $3000.00. The Board has also established that quarterly increments of $100.00 will be added from the operating account commencing with the next May/June 2003 receipts received from the National Office. Quarterly Increments shall cease when the Fund reaches $5,000.00
Approved.. Signed James L. Piche – President OV Branch
Reserve Fund - Building & Support Fund
Apporoved Date: -- 14th, April 2003
PURPOSE
The primary purpose of the Building & Support Fund shall be for the funding of an OV Branch Office and the current and future support of that office. This fund is for start up costs, equipment replacement costs, equipment upgrade costs, and other expenses that are unpredicted and not budgeted.
A change in the level of the Fund shall be as determined by the OV Board on an annual basis. The fund has been established at the March 13, 2003 at $4000 by the OV Board.
FUND USES
A. Start Up
Start up costs shall be defined as the initial cost of equipment and other items necessary for the function and operation of a future OV Branch Office.
B. Equipment
Replacement costs shall be defined as the cost to replace equipment that is vital to the basic function and operation of the Office.
Upgrade costs shall be defined as the cost to upgrade equipment that is vital to the basic function and operation of the Office.
C. Unpredicted Expenses
Unpredicted expenses shall be defined as costs that were not budgeted for because the OV Branch was unable to predict the activity/purchase during regular budget preparation.
Approved.. Signed James L. Piche – President OV Branch
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