RF Uses Funds for Corporate and Investment Reserves

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RF Financial Concepts 101 

Understanding the Business of the RF

Module 2: Understanding How the RF Uses Funds

RF Uses Funds for Corporate and Investment Reserves

Like many corporations, the RF maintains a corporate reserve to cover cash flow and contingency needs. The corporate reserve has primarily been used to cover major system initiatives, such as technology system upgrades.

The RF also maintains an investment reserve that was created to lessen the impact to campuses from fluctuations in investment rates of return. The investment reserve was established to help ensure campuses receive a known, predictable and constant distribution of investment income as part of their annual allocation from the RF. 

What the Data Shows

At the end of 2017, the balance of the corporate reserve exceeded $9.4 million.  Current and future funding is under review by the RF Board of Directors.

Investment income will also fund $15.7 million in 2018 to the investment reserve.  The RF is rebuilding the investment reserve by allocating investment income to the reserve until the losses that resulted from down markets in prior years have been recovered.  No distributions to campuses are planned at this time.

Where to Find More Information 

Please refer to the 2018 Operating Plan.  

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