RESTRICTED CASH POLICY
OBJECTIVE: Restricted Cash will be maintained to accommodate economic uncertainties and to enhance financial program flexibility.
DESIGNATION OF CASH: It shall be the responsibility of the Board of Trustees to designate the amount of monies to be allocated to the restricted cash amount(s) using a formula of 7-1/2% of the prior year pledges. Once cash is designated to a restricted cash account, they shall so remain until changed by formal action of the Board and not to be co-mingled with other funds.
The initial amount of restricted cash will be designated by historical review of spending and future anticipated needs.
The Board shall make a review of the restricted cash balances no later than December of each year. Adjustments will be made during the budget process for the coming year.
SOURCES OF CASH: The restricted cash shall generally be funded from excess revenues generated by the campaign and or any possible excess unused funds from the current year Endowment Income.
USES OF CASH: The restricted cash shall be available for use by the Board of Trustees purposes set forth below or other such purposes as considered appropriate by the Board. Requests for direct allocation from restricted cash by agencies or other parties shall be considered by the Board in accordance with their normal operating procedures.
1. Cash shortfall
2. Collection losses
3. Emergencies and natural disasters within the North Platte Area
4. Cash flow problems
5. Assistance in keeping agencies solvent
6. Special community projects
7. The funding of new agencies during the budget year.
8. The purchase of special equipment
Policy first approved on November 16, 2006