Reserves
Policy
The purpose of the Reserves Policy of Hockey Saskatchewan 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 program opportunity and capacity building.
Procedures
Definitions and Goals
Operating and Opportunity Reserve
The Operating and Opportunity Reserve is intended for the following:
- To provide an internal source of funds for situations such as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding or uninsured losses.
- To provide funds to meet special targets of opportunity or need that further the mission of Hockey Saskatchewan which may or may not have specific expectations of incremental or long-term increased income.
- It is intended as a source of internal funds for organizational capacity building such as staff development, research and development or investment in infrastructure that will build long-term capacity.
It is the intention of Hockey Saskatchewan that the Operating and Opportunity Reserve be used and replenished within a reasonably short time period. The minimum amount designated for the fund as the operating and Opportunity Reserve will be established in an amount sufficient to maintain ongoing operations and programs measured for a set period of time, measured in months. The Operating and Opportunity Reserve serves as a dynamic role and will be reviewed and adjusted in response to both internal and external changes.
The target minimum Operating and Opportunity Reserve Fund is equal to twelve months of the average operating expenses of Hockey Saskatchewan. The calculation of average annual operating expenses includes recurring, predictable expenses such as salaries and benefits, occupancy, office, travel program and on-going professional services. Depreciation, in-kind, and other non-cash expenses are not included.
The amount of the Operating and Opportunity Reserve Fund target minimum will be calculated each year after approval of the annual budget, reported to the Finance/Audit Committee and then the Board of Directors.
The Operating and Opportunity Reserve Fund will be made up of the Hockey Saskatchewan contributions to its Investment Fund set up under the Investment and Financial Management Policy.
Interest earned from the Investment Fund will be targeted towards the annual budget.
Accounting for Reserve Fund
The Operating and Opportunity Reserve Fund will be recorded in the financial records as Managed Income Portfolio and operated as per the Investment and Financial Management Policy and Procedures.
Funding the Operating and Opportunity Reserve
The Operating and Opportunity Reserve Fund will be funded with surplus unrestricted operating funds. Hockey Saskatchewan will maintain a minimum amount of cash within its chequing account, and the General Manager will work with the Investment Managers of the Managed Income Portfolio to move funds between the chequing account and the Managed Income Portfolio as per the Procedures and guidelines within the Investment and Financial Management Policy. All movement of funds will be reported within the monthly financial statement of Hockey Saskatchewan.
Use of Reserve
The use of the Operating and Opportunity Reserves is as follows:
- Interest earned on the Reserve through the Managed Income Portfolio is targeted towards the annual operational budget of Hockey Saskatchewan.
- The General Manager will submit a request to the Board of Directors through the Finance/Audit Committee through the presentation of the annual operating budget, or at any time during a fiscal year, for the funding of an Opportunity that may arise that was not known at the time of the creation of the operational budget and cannot be funding through the annual operating budget. Within the request, the General Manager will provide details on the request including but not limited to, the amount of the request; details on the opportunity; and how the money will be replenished within the Reserve Fund.
- The General Manager is responsible for ensuring that the Operating and Opportunity Reserve is maintained and administered as per the Investment and Financial Management Policy and Procedures and provide monthly feedback through financial reporting.