The purpose of the Funds Management Policy is to ensure the stability of the mission, programs, employment, and ongoing operations of the organization, and to provide a source of internal funds for organizational priorities such as building repair and improvement, program opportunity, and capacity building.
Washington State Law (RCW 27.12.210) authorizes the Board of Trustees to undertake all actions necessary for the orderly and efficient management and control of the District’s finances.
All funds are reviewed and adjustments made annually in February by the Board of Trustees.
Fund Management
District Funds are established and managed as follows:
General Fund
This fund is used to carry out the District’s normal operations and maintenance activities. The minimum unassigned cash balance should be at least four months of anticipated operating costs at the beginning of the year. A balance in excess of the minimum may be used for current-year expenditures or may be transferred to Board Designated Unrestricted Funds.
Unemployment Reserve
The District maintains a self-insured unemployment compensation fund to 1) cover unemployment claims, and 2) ensure continuity of staff salaries in the event of a layoff or an emergency situation. The minimum fund balance is two months of average salary and benefits expenses based on the prior year’s expenditures. The fund balance is reviewed and adjusted annually.