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Cash Reserves Policy 210.07

Cash Reserves Policy 210.07
Johnson County Community College
Series: 200 Administrative Services
Section: Accounting and Auditing

Applicability: This Policy applies to all Johnson County Community College (“JCCC” or the “College”) departments and operations.

Purpose: The purpose of this Policy is to ensure that the College’s cash reserves provide adequate resources for cash flow and contingency purposes.

Statement:

It is the policy objective of the College to maintain a minimum General Fund reserve balance throughout the year of 25% of the General Fund budget, to be used for cash flow purposes and to mitigate risks such as revenue shortfalls or unanticipated expenditures. The funds will be used to avoid cash flow interruptions, generate interest income, and avoid the need for short-term borrowing.

A balance larger than this minimum policy calculation amount may be maintained periodically.

If the College’s General Fund reserve falls below the minimum policy calculation for a sustained period of time, the President or designee will submit a recommended plan to the Board of Trustees to rebuild the reserve to the minimum level.

Date of Adoption: 07/07/1994
Revised: 06/19/1997, 11/15/2001, 02/16/2017, 02/21/2019,07/21/2022