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Home COFSAB Forum Finances Operating Fund Surpluses Reply To: Operating Fund Surpluses

  • Michelle J

    Member
    August 30, 2022 at 11:13 am

    Hi all,

    I’m a little late to the conversation. It is possible to have a contingency fund set up that’s also invested per Schedule 2; however, your corporation’s bylaws have to allow for your corporation to set up that additional account.

    Whenever a budget is put together, there should be a corresponding plan of action, ,with specific dates, especially for larger initiatives. COVID-19 supply chain issues (etc) have impacted everyone, so it’s unfortunately not a surprise to hear some operating items were delayed.

    It never hurts to seek advice from the Corporation’s accountant/auditor as to how to handle this and the cost should not be significant. Usually Operating fund surpluses are expected to roll into Reserve fund accounts. There should be an investment strategy associated with the Reserve funds, as well.

    Good luck at your AGM.

    Michelle