Can a standard reserve amount that remains in a separate savings account from year to year be established?
The emergency reserve funds are considered an integral part of each PTA’s planning and budgeting process. The emergency reserve funds are intended to serve as a means to retain financial stability in the event of an unforseen development such as unplanned expenses arising from a project or an unexpected increase in inflation. The amount of the fund will vary according to each PTA’s size. It is a good idea to establish carryover funds or reserve funds, which will help provide funds for unanticipated and unbudgeted expenses; funds for emergencies; and allow the PTA to be fiscally responsible.
