What is the required operating reserve?

To ensure that projects do not spend more funds than they have available, and to keep project services and activities running as smoothly as possible, Community Partners requires that each project maintain at least an eight-week operating reserve in their project account at all times.

You should calculate this reserve from your current budget and spending patterns, any new or contemplated expenses, and unpaid liabilities (such as accrued vacation time or payments due to contractors). Ensuring that you have funds beyond the eight-week operating reserve is necessary if you want to be reimbursed for expenses, and when you are deciding whether to hire employees, retain contractors, sign leases, or incur other expenses.

Please remember that adding expenses changes the amount you need for your eight-week operating reserve.

For assistance in calculating your reserve and in monitoring your project's cash flow, contact the financial services team.

If you are approaching your reserve amount, the financial services team will work with you to decide how best to manage, reduce, or suspend project activities in order to maintain a positive balance in your account. Community Partners will make every effort to work with you to resolve situations like this. However, to reduce the likelihood of your project incurring a negative balance, Community Partners reserves the right to make unilateral decisions to suspend activities, including the termination of employees, when circumstances call for it.