Financial Reserves Policy
Policy Statement Background:
The Northeast Wisconsin Chapter of PMI (PMI-NEW) desires to maintain a firm and strong fiscal foundation. To achieve that it is the policy of this Chapter to maintain a sufficient financial reserve. The purpose of the following policy and procedures is to describe PMI Northeastern Wisconsin’s financial reserves policy.
Policy Statement:
The chapter shall maintain a reserve (targeted reserve) of at least one years’ worth of operating expenses assuming no incoming revenue. Operating expenses will be enough to provide 20 PDUs to members (1/3 of the number needed to maintain a PMP) and includes:
This targeted minimum reserve must be liquid.
Procedure:
At the beginning of the fiscal year the President and the VP of finance shall calculate an amount for the targeted reserves using the table above and average costs for the previous year for these events adding in anticipated inflation.
They shall then compare it to the chapter’s reserves. If the reserves are below the targeted reserves, or the budget will put them below the targeted reserves, the President shall call a meeting of the board to take corrective action.
