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23 <br /> Orange Operating Fund Balance and Liquidity Policy and Guidelines <br /> Purpose: As administrator of the Triangle Tax District, GoTriangle will maintain sound financial practices <br /> including minimum fund balance and liquidity requirements. <br /> Fund Balance and Liquidity Policy: <br /> It is the policy of the Triangle Tax District to maintain both minimum fund balance and cash reserve <br /> requirements. Based on the funding sources and responsible fiscal management,the Orange Operating <br /> Fund will maintain a fund balance to be used as a resource for expected and unexpected, but agreed <br /> upon,financial demands and to demonstrate strong liquidity to credit rating agencies as well as federal <br /> and state governments.This information will be used to support applications for additional funding <br /> towards Orange County Transit projects, including applications for the issuance of debt, and request <br /> federal and state grant resources. <br /> A minimum of 90 days unrestricted cash must be maintained in the Orange Operating Fund <br /> Cash is defined as 'on-deposit' in the bank account. <br /> The policy should be administered under the following requirements: <br /> All restricted, committed, assigned and unassigned fund balance, as defined in Governmental Account <br /> Standards Board (GASB) Statement 54, may be used in the calculation of the minimum fund balance <br /> requirement. <br /> Funds may only be spent in accordance with the external guidelines and enabling legislation as defined <br /> in Article II of the Orange County Transit Governance ILA. <br /> Idle funds as defined in N.C.G.S. 159-30 will be invested in accordance with applicable North Carolina <br /> General Statutes and GoTriangle's investment guidelines. <br /> Procedures: <br /> The Orange County Transit Financial Model for the Orange Operating Fund will include projections of <br /> fund balance and annual expenditures. Annual reporting will be provided by GoTriangle to the SWG, <br /> Orange County Board of Commissioners, DCHC MPO Policy Board and GoTriangle Board of Trustees, <br /> which will allow a review of budget compared to actuals for the Orange Operating Fund. Additionally, <br /> this annual review will ensure that sufficient fund balance will be available at year end to meet the <br /> adopted reserve requirement as defined above.The Orange County Transit Annual Work Program will <br /> include funds allocated, if needed,to maintain the Orange Operating Fund balance to meet financial <br /> policy guidelines.To demonstrate progress and compliance with this policy, GoTriangle will include a <br /> calculation of this liquidity measure within the statistical section of its Annual Comprehensive Financial <br /> Report ("ACFR"). <br /> Orange Capital Fund Balance Policy and Guidelines <br /> Purpose: As administrator of the Triangle Tax District, GoTriangle will maintain sound financial practices <br /> including minimum fund balance requirements. <br /> Capital Fund Balance Policy: It is the policy of the Triangle Tax District to maintain a minimum capital <br /> fund balance. Based on the nature of the funding sources and responsible fiscal management,the <br /> 2 <br />