B.1.9 Unrestricted Operating Reserve
Approved/revised: May 6, 2008
NVIT should annually budget an unrestricted operating reserve (contingency reserve) to ensure stability for the delivery of programs and services in the event of unforeseen circumstances.
1. NVIT may maintain a contingency reserve of up to three (3) percent of total budgeted operating revenues to meet unplanned and/or unforeseen circumstances in the current year.
2. The President in consultation with the Management Committee determines how the contingency reserve will be expensed.
1. The contingency reserve shall be maintained in accordance with Canadian Generally Accepted Accounting Principles.
2. If the contingency balance exceeds the threshold, a contingency utilization plan will be developed to reduce the balance to the appropriate level.