UUCSS Policies – Operating Reserve

[approved November 20, 2019]

The purpose of the Operating Reserve Policy for UUCSS is to ensure the stability of the mission, programs, employment, and ongoing operations of the church.  The Operating Reserve Policy will be implemented in concert with the other governance and financial polices of UUCSS and is intended to support the mission and goals as set forth in the strategic plan.  

The Operating Reserve is intended to provide an internal source of funds for situations related to the church property and buildings, such as a sudden increase in expenses, one-time unexpected, unbudgeted expenses, unanticipated loss in funding, or uninsured losses. 

 The Operating Reserve is not intended to replace a permanent loss of funds, cover for failure to keep up with maintenance, or eliminate an ongoing budget gap.   

If an expense would otherwise not be covered by the operating reserve but represents a safety risk or increased long term expense if it is not covered, the Board can commit funds from the Operating Reserve.  In a case where funds were needed due to a failure to keep up with maintenance, the Board will require the responsible entity to submit a plan to keep up with maintenance. 

It is the intention of UUCSS for the Operating Reserve to be used and replenished within a reasonably short period of time.  The Board must approve a plan to replace the funds. 

The Operating Reserve is defined as a designated fund set aside by action of the Board of Trustees. The minimum amount to be designated as the Operating Reserve will be 20% of the annual budget. The Operating Reserve serves a dynamic role and will be reviewed and adjusted in response to both internal and external changes.  

The amount of the Operating Reserve Fund target minimum will be calculated each year after approval of the annual budget, reported to the Finance Committee/Board of Trustees, and included in the regular financial reports.