WVSPS Bylaws

(Appendix IV)

RESERVE FUND

The Reserve Fund includes a contingency account and an investment account defined and administered as follows:

1. The contingency account is for meeting deficiencies caused by variations in income and expenses and is a source of financing for unanticipated activity of priority importance.

2. The budget at the beginning of each fiscal year shall assign at least two (2) percent of the total to the contingency account. The desired level of the contingency account at the beginning of the fiscal year is ten (10) percent of the annual budget for the coming year.

3. At the Annual Meeting, the Budget Committee recommends a level of dues of the succeeding year sufficient to meet the estimated needs of the Association and to maintain the contingency account at the desired level. The recommendation shall be in the form of a Bylaw change, if required, and shall BE included with the meeting agenda distributed to the Board of Directors by mail prior to the meeting.

4. Transfer of funds in any one fiscal year from the contingency account to the general fund for operating expenses, with corresponding budget changes, can be approved by the Executive Committee to a total of two (2) percent of the total budget approved by the Board of Directors at the beginning of the fiscal year. Transfer of funds above two (2) percent must be approved by the Board of Directors.

5. The investment account is to protect the structure of WVSPS from a major economic crisis.

6. Growth of the investment account is encouraged to a level equal to twenty-five (25) percent of the total annual budget. Transfer of an amount equal to at least one (1) percent of the total budget from the contingency account to the investment account is considered by the Executive Committee each year.

7. Transfer of funds to and from the investment account is recommended by the Executive Committee and is approved by the Board of Directors.