Minimum Reserve Fund
It is the policy of the Central Arkansas Library System (CALS) to maintain a reserve fund which is the greater either of $1,500,000 or an amount equal to one month’s operational expenses (8.33% = 1/12 of the General Fund annual budget). This balance must be present at the beginning and end of each calendar year. During the operational year, funds from reserves may only be expended with the permission of the Board of Directors.
These reserves exist to pay for expensive and largely unexpected costs or to cover an unanticipated shortfall in general revenues. The funds will be held in CDs, T-bills, and/ or money market accounts.