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Financial Reserves Policy

Financial Reserves Policy

ACHD believes that it is a best practice when healthcare districts inform their constituents and community about general district operations, including how the Board manages their financial reserves. Reserves are necessary for the sustainable delivery of core services and to manage through various cash flow cycles. A healthy reserve may provide healthcare districts with significant benefits, including, savings to balance budgets, ability to respond to emergencies, maintenance of infrastructure, and to provide investment capital for future needs.

To promote transparency and commitment to a strong financial plan, districts seeking certification must adopt a financial reserves policy that demonstrates how the district manages their reserves.

To demonstrate compliance, provide a link to where the district’s financial reserves policy is on the website.

Example of Financial Reserves Policy Link

To return to the main Certification Guidelines page, click here.

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