GOVERNANCE AND ORGANIZATION
Reserve Funds
In recognition of its fiduciary responsibility, the Board of Trustees will exercise control over the administration of Colby Community College funds, services, and property. The Board will establish policies that provide oversight over the financial stability and security of the College while providing management discretion required to handle day-to-day operations of the College.
Scope
Colby Community College reserve funds (unrestricted net assets) are subject to this Policy. Reserves are defined, for the purpose of this Policy, as audited year-end unrestricted net assets, including such sources as general fund, tuition, fee revenue and auxiliary revenue, but not including the reserves for compensated absences. Further, sources of funding that are for pass through (e.g., Kansas Board of Regents), for Federal or other special purpose grants, or are associated with long-term KPERS pension and KPERS health care liabilities, are not included in the reserve calculation or subject to this Policy. The reserves of the College will accumulate through management of revenues and not by annual allocation of resources through the Board approved budgets.
Minimum Reserve Requirements
The Board hereby establishes a minimum unrestricted net asset balance to be held in reserve by the College equal to 6% of the prior fiscal years audited average operating expenditures for the fiscal year. This calculation shall exclude the following: depreciation, non-Student Financial Aid federal program expenses, disbursements for the Area Vocational Schools and the Local District Colleges, and long-term KPERS pension and KPERS health care liabilities. Beginning in FY 2020-21, and all fiscal years thereafter, the minimum unrestricted net asset balance to be held by the College shall increase to 7.25%. Reserve levels shall be calculated for the College as a whole based on audited financial statements for the fiscal year most recently closed.
Use/Expenditure of Reserves
Any use of reserves for capital projects or operating expenses above the expense threshold where Board approval is required must be included in the College’s master plan and/or program plan and be presented to the full Board in an agenda item for approval. Capital projects, for the purpose of this Policy, are defined as those requiring a program plan by the management of the College.
Colby Community College has the discretion to expend reserves unless the following conditions exist:
- Spending would drop the reserve balance for the College below the minimum required by this Policy;
- Spending from reserves would result in a commitment to ongoing costs and expenditures that cannot be supported, or which would affect the overall budget allocation to the College; or
- The College has not yet achieved the minimum reserve required by this
When any of the above conditions exist, reserve spending must be approved by the President or the Board, as appropriate, prior to expenditure.
The President may approve expenditures below the required reserve balance in the following situations:
- The College incurs an emergency that requires immediate action. In such circumstances, other sources of funding shall be sought
- If such funds are not available, the President will immediately notify the Board Chair of the situation giving rise to a need to expend below minimum reserve requirements, but is authorized to permit expenditures that reduce the reserve below the required
- The College has an opportunity that enhances the quality of programs or services provided but that requires up-front investment. The President is authorized to permit expenditures that reduce the required reserve level to not less than 3% of audited average annual operating expenses. The President is required to consult with the Board Chair in advance of issuing approval of such expenditures. The College is required to submit in writing a cost benefit analysis of the opportunity investment and a plan with timelines for restoring the reserve to the required
The President Reserve dollars shall only be used to assist the College faced with extreme financial circumstances. The Board shall be notified in advance of any such use of these reserves for this purpose.
Reporting
After fiscal year-end close and the completion of the financial audit, the College Controller shall report to the Board the reserves (unrestricted net assets) for the College for the fiscal year just completed based on audited Financial Statements. If the College has unrestricted net asset levels that equal more than half of the Colleges’ prior fiscal year audited operating expenditures, the President shall include a report to the Board that outlines the future uses of these funds.
For any use of reserve for capital investment as outlined above or for any situation in which the President has authorized an expenditure from reserves that reduces the level below the Board established Policy, the President shall report in writing to the Board at the next meeting of the Board the situation that gave rise to the need to take reserves below the required level.
Procedures
The President shall promulgate such procedures as may be needed to implement this Policy.
[Updated January 2020; November 2020]
- Audit and Inventory Control
- Authorization to Purchase (Bidding Policy)
- Authorization to Sign Contracts and Agreements
- Authorized Signers
- Billing and Payment
- Bonds
- Budget
- Cash Management
- Check Signing
- College Ownership and Use
- College Seal
- Competing Business Interests
- Compliance of Federal Funds
- Credit Card Usage
- Debt Management
- Disposition of Surplus Property
- Expenditures And Fiscal Control
- Facilities and Naming Guidelines
- Federal Funding
- Financial Compliance
- Financial Responsibility Agreement
- Gift Acknowledgement
- Gramm – Leach – Bliley Act (GLBA)
- Grants and Other Outside Financial Resources
- Indirect Rates
- Investment of Funds
- Petty Cash and Change Funds
- Prior Year Charges
- Records Retention
- Refunds
- Rental of Facilities
- Return of Title IV Funds
- Returned Checks
- Sale of Livestock
- Sales and Advertising On Campus
- Scholarships (Internal)
- Scholarships (Performance-Based)
- Small Balance Write-Off
- Stop Payment
- Supplanting
- Tuition Assistance
- Uncollectable Debt Write-Off
- Use of College Equipment
- Vehicle Fleet
- Access Control
- Accessibility
- Advert Waiver for Staff Positions
- Background Check
- Bicycles and other Mobile Devices Motorized and Non-Motorized
- Children in the Workplace
- Civility
- Compensatory and Overtime
- Complaints
- Conditions of Employment
- Condolences and other Recognition
- Conflict of Interest
- Copyrights and Patents
- Credit Card Usage
- Emotional Support and Service Animals
- Employee Benefits
- Equipment Usage
- Equity Grievance Resolution
- Ethics and Integrity
- Incentive-Based Enrollment
- Individual Email Accounts
- Intellectual Property
- Interdepartmental Transfer
- Leave
- Operational Policies
- Parking
- Petty Cash and Change Funds
- Publication and Logo Use
- Raise Eligibility
- Recruitment Code of Conduct
- Social Media
- Suspension of Employee
- Telephone Usage and Long Distance
- Travel
- Use of Computers/College Computing and Information Systems
- Weapons
- Accreditation
- Accrediting Bodies
- Alcohol/Drug-Free Workplace and Drug-Free Awareness Program
- Child Abuse Prevention
- Copyright Infringement
- Crime Awareness and Campus Security Act of 1990
- Degrees and Certificates
- Employment
- Essential Skills and Outcomes
- Ethics and Integrity
- FERPA
- Harassment
- HIPAA
- Mission Statement
- Notice of Non-Discrimination
- Open Records Requests
- Philosophy
- Publication and Logo Use
- Purposes
- Vision
- Academic Integrity
- Academic Load
- Accessibility
- Administrative Drop
- Bicycles and Other Mobile Devices
- Billing and Payment
- Code of Conduct
- Copyright Infringement
- Credit Hour Definition
- Crowd Control at College Sponsored Activities
- Dorm Credit Hour Requirement
- Emotional Support and Service Animals
- Fairness in Women's Sports Act
- Financial Responsibility Agreement
- File a Complaint
- Grade Appeal
- Indigenous Student Tuition
- International Students and the Law
- Interrogations and Investigations
- Parking
- Placement Testing
- Prior Year Charges
- Proctoring
- Refunds
- Satisfactory Academic Progress (Academics)
- Satisfactory Academic Progress (SAP)
- Scholarships
- Small Balance Write-Off
- Student-Athlete Drug Policy
- Student Complaint Guidelines
- Students with Disabilities
- Transcript Withholding
- Undocumented Immigrants
- Weapons
- Work Study and General Work Time
Human Resources
1255 S Range Ave
Colby KS 67701
hr@colbycc.edu
(785) 460-5406