Finance Committee

Reserves Analysis

The Club will maintain a financial reserve fund called "Replace/Rehabilitate Capital Equipment/Building Fund" to show the portion of the club's cash balance that will be restricted by this policy to paying only for the replacement or rehabilitation of capital assets already being depreciated in the balance sheet. 

Current policy is to increase the balance of Replace/Rehabilitate Capital Equipment/Building Fund at the end of each year by the total depreciation expenses incurred during that calendar year.

The Finance Committee will conduct Reserves Analysis in order to determine how well the anticipated balance in the Replace/Rehabilitate Capital Equipment/Building Fund will match the forecasted spending to replace or rehabilitate the Club's capital assets in future years.

If replacement or rehabilitation expenses in a year will exhaust the balance of the fund, the remaining expenses will have to be paid from unreserved cash balances ordinarily used for operational expenses, or an assessment will have to be applied to all members for any short fall.