801.71 Budgetary Reserve

The District will maintain a General Fund budgetary reserve in the amount of five tenths of one percent (.50%) of budgeted line item expenditures in order to provide for operating contingencies. No expenditures shall be made from the budgetary reserve account unless specifically authorized by the Superintendent/designee.

The maintenance of a budgetary reserve is recognized to be a sound management practice given that there are certain variables over which control is not possible regardless of the care with which the budget is prepared. These variables include unpredictable changes in the cost of goods and services, as well as, the occurrence of events which are vaguely perceptible during the time of budget preparation, but which, nevertheless, may require expenditures by the District during the year for which the budget is prepared.

The expenditures may not be made through the budgetary reserve account, but only against the line items which appear throughout the functional appropriations.

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Adopted:

February 7, 2011
 
Reviewed:
July 18, 2016 
 
Revised:
July 18, 2016