Accumulated Surplus (Reserves)

1. Policy

The Board of Governors of Loyalist College is responsible for the financial management of the College.

Recognizing that accumulated surplus is necessary:

• To finance development of new programs and initiatives, and
• To acquire capital equipment and finance plant rehabilitation which are not eligible for capital grants, and
• To provide a financial cushion for unplanned expenditures, and revenue losses which result from reduced enrolment, programs extensions or uncontrollable political decisions, the Board of Governors establishes the following guidelines in connection with accumulated surpluses. These guidelines comply with Ministry regulations which state that:
  • “a board cannot approve a budget that would provide for an accumulated deficit at the end of the fiscal year, or make any expenditures that are not within the financial limits set by the annual budget, without the written approval of Minister of Colleges and Universities”, and;
  • “the total surplus and/or reserve funds of the college at the end of any year are not to exceed 10% of operating revenues for that year”. Capital grants and municipal tax grants are excluded as revenue for this purpose.

2. Accumulated Surplus (Reserves) Limits