Page 10 - NovDefComp

POLICY
BUDGETED FUND BALANCE & RESERVE

• Unrestricted Fund Balance—The unrestricted fund balance is any amount of
available assets in the Deferred Compensation Trust Fund beyond those needed
to fund annual operating expenses and the reserves.

Ideally, the unrestricted fund balance will be minimally positive.
 As all revenues into this fund are derived from participant accounts, excess
unrestricted fund balance represents participant assets that are idle. The
excess can be reduced by, for example, reducing the administrative
reimbursement rate and revenues or by crediting participant accounts
using a reasonable and fair methodology.
 A negative unrestricted fund balance means that expenditures and/or
reserves are not fully funded. The balance can increased by, for example,
reducing expenses or increasing rates and revenues.

Mid-year revenue and expenditure budget changes will be avoided to minimize
adverse impacts to plan participants.

Unrestricted assets must remain in the Deferred Compensation Trust Fund. As
revenues to this fund are generated by charges to participants’ accounts, the
assets belong to plan participants and cannot be transferred to any other County
fund.

Reserve Amount

Reserve for Next Request For Proposals $50,000

Reserve for Unanticipated Expenses 25% of the fiscal year’s budgeted
expenditures

Unrestricted Fund Balance Amount of assets beyond those needed
for budgeted expenses, unanticipated
expenses and reserves.

The DCAC will review and approve this policy as part of its budget approval process
before July 1 of each fiscal year.

History
November 1, 2018 Approved
August 23, 2019 Approved
August 27, 2020