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2015 SV0 Emergency and Contingency Reserve Funds


Thursday, August 7, 2014

The purpose of Emergency and Contingency Reserve Funds is to maintain the required fund balances established under section 450A of the District of Columbia Home Rule Act (D. C. Official Code, sec. 1-204.50a) for each fiscal year. The Emergency and Contingency Reserve Funds were established to provide for nonrecurring or unforeseen needs that arise during the fiscal year.

This agency is budgeted on an as-needed basis, to replenish the Emergency and Contingency Reserve Funds for allocations made from the funds in the previous years. The Emergency and Contingency Reserve Funds were established to provide for nonrecurring or unforeseen needs that arise during the fiscal year.  In FY 2005, the following changes were adopted:

  • Modified the calculation of the Emergency and Contingency Reserve Funds by using prior year actual expenditures from Local funds as defined in the annual Comprehensive Annual Financial Report (CAFR), and removed expenditures related to payment of debt service from the calculation of actual expenditures;
  • Changed the required funding levels from 7 percent to 6 percent (Emergency Reserve Fund at 2 percent and Contingency Reserve Fund at 4 percent); and
  • Changed the replenishment requirements from 1 to 2 years, with no less than 50 percent replenished in the first year.
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