Date: August 4, 2023
As per a decision made by Fedora Governance on August 4, 2023, a portion of the Fedora Program's accumulated retained net assets will be reserved in a budget reserve fund to support critical program operations in the event of a fiscal emergency or in a situation where the program needs to wind down operations. The reserve will cover three months of critical operating expenses which could include, but is not limited to, the following:
- Full-time program staff salary plus any fringe benefits throughout the period
- Contractor hours to complete outstanding development work necessary to wind down operations
Process for the Declaration of a Fiscal Emergency
An expenditure from the reserve fund for an unexpected loss may occur only with approval from the Governance Group. Examples may include an unexpected cost required to carry out objectives of the program or the dissolution of the program.
Budget Reserve Fund Balance
The reserve fund established is one quarter (3/12) of the annual operating expenses for core program and support activities. Core program and support activities do not include the operating expenses of grant-funded activities and consulting expenses. In an emergency, generally these can be eliminated either temporarily or longer, if necessary. The reserve fund should be reviewed for adequacy and adjusted at the beginning of each fiscal year, so that the balance is maintained throughout the fiscal year.
