Reserve Fund Guidelines
Approved June 10, 2010
The board of trustees has established a goal of maintaining a minimum fund balance (unrestricted net assets) equal to 50% of the annual operating budget. This ratio will be reported as part of the review of the proposed budget for each year, and again as the year end results are reviewed.
In order to achieve this goal, the board has established a policy that requires proposals for new initiatives to include a business plan that optimally projects net revenue after expenses or is cost neutral. The board has the discretion to fund new projects that do not meet these criteria, especially if they will lead to accomplishing the society's strategic objectives. Additionally, the annual meeting must control program expenses so as to project break even or better results in the budget.
As ASPHO works to build reserves to the target level, the annual budget process will include an allocation to the reserve fund.