Current through Reg. 49, No. 38; September 20, 2024
(a) A
nonprofit corporation or business shall maintain cash reserves, not to include
the performance deposit in §
RSA 1.63
of this title (relating to Proposal Requirements), totaling both:
(1) an amount not less than 15% of all the
ongoing operating costs (administrative, personnel and fringe benefits) in the
proposed annual contract, to be used to satisfy obligations and maintain
operations in the event of an interruption in cash flow; and
(2) an amount not less than 5.0% of the
proposed total annual contract, less the ongoing operating costs, to be used to
satisfy debts or other costs which cannot be paid with grant funds; these funds
must be from sources other than a system operations grant.
(b) Regional library systems shall have five
years to accumulate this cash reserve. For the purpose of this rule, the years
will be considered to begin on the date the annual program of service for the
subsequent fiscal year is due at the Texas State Library. For regional library
systems in existence at the time the rule is adopted, the five-year period will
begin with the submission of the next annual program of service after the
adoption of the rule. For all others, the five year period will begin with the
submission of the first program of service by the regional library
system.
(c) The regional library
system shall accumulate the cash reserve according to the following schedule:
(1) With the submission of the annual program
of service for year one, the regional library system must submit a plan for
accumulating the cash reserve to accompany the annual program of
service.
(2) With the submission of
the annual program of service for year two, the regional library system must
demonstrate it has already accumulated at least 20% of the total cash reserve
required by this rule.
(3) With the
submission of the annual program of service for year three, the regional
library system must demonstrate it has already accumulated at least 40% of the
total cash reserve required by this rule.
(4) With the submission of the annual program
of service for year four, the regional library system must demonstrate it has
already accumulated at least 60% of the total cash reserve required by this
rule.
(5) With the submission of
the annual program of service for year five, the regional library system must
demonstrate it has already accumulated at least 80% of the total cash reserve
required by this rule.
(6) With the
submission of the annual program of service for every year thereafter, the
regional library system must demonstrate the cash reserve account required by
this rule is fully funded.
