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Policy 007

PLATTEKILL PUBLIC LIBRARY

CONTINGENCY FUND POLICY

Adopted: January 20, 2014 Page 1 of 1

Purpose and Scope

The general purpose of this policy is to improve Plattekill Public Library’s financial stability by protecting itself against emergencies.  The policy is designed to help the Library not only to prepare for a financial emergency but also to ensure the continuity of financial operations.

Definition

Fund Balance:  The accumulated equity balance in a governmental fund resulting from operations over the years.  This is the difference between fund assets and fund liabilities.

Guidelines

The goal of the Trustees of the Library shall be to maintain a Board restricted net asset to be no less than the estimated cost of four (4) months of operation of the most current operating budget.

Withdrawals from the Contingency Fund may be made during a Board declared emergency or for transfer to the Capital Reserve Fund by a simple majority vote of the Board.