3.01.13 – Annual Surplus and Deficit

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Intent

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The Society wants to ensure that;

1. Surplus dollars generated through operations are expended prudently in meeting external financial obligations, providing financial resources for asset maintenance and replacement and/or building the Park’s operating capacity.   and

2. Deficits are funded prudently.

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Guidelines

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1. Surplus

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• The surplus as at December 31 of each year will be directed towards (priority will be in descending order):

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1. Maintaining of Reserves; (i.e. Life Cycle Maintenance and Operating Reserve); and/or

2. Reducing any financial obligations until they are paid in full; and/or

3. Retained in working capital.

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2. Deficit

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• Deficits will be funded through reduction in working capital, the Operating Reserve or from Broad approved financing.

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Procedures

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• Separate bank accounts will be established and maintained for reserves (i.e. the Operating Reserve, Life Cycle Maintenance Fund (LCMF), Capital Project Fund or any other reserves established by the Board.

• Each bank account will be reported separately on the Society’s balance sheet.

• Use of funds from any of the reserves must receive approval from the Society’s Board of Directors.

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