RF Uses Funds for Corporate and Investment Reserves

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

Page 10 of the RF’s annual Operating Plan presents a roll forward of projected activity and ending balances of the RF’s corporate and investment reserves.  Current and future funding and use of these reserves are reviewed by the RF Board of Directors.