USB shall establish Board Designated Reserves for such purposes as may be required from time to time at the direction of the Board. The duration and amount of such reserves shall be determined at the time the reserve is established. There are two types of Board Designated Reserves: Committed Funds and Special Purpose Funds. Committed Funds Committed Funds shall be established automatically at the end of each fiscal year to designate net assets in the amount necessary to fulfill unexpended project-specific budgets for all projects for which a final report of expenditures (FROE) has not been issued. The source of such Committed Funds shall be current year Board- and USDA-approved allocations to projects. Use of the Committed Funds reserves requires four steps:
  1. Identification of appropriate use of Committed Funds reserve funds
    • The responsible Primary Contractor or USB staff will identify the need for access to reserve funds and confirm that the use is consistent with the purpose of the reserves as described in this Policy and as outlined in the Board- and USDA-approved projects specifically identified at the time the reserve was established.
  2. Authority to use Committed Funds reserve funds
    • The responsible Primary Contractor or USB staff will submit a billing or approve an invoice for such reserved projects in accordance with standard procedures. Such billings or invoices will be subject to standard review and approval procedures then in place for Board-funded projects.
  3. Release of Committed Funds reserve funds
    • Within the prescribed number of days of the end date of the specifically-identified project, the responsible Primary Contractor or USB staff will prepare a final report of expenditures (FROE). At such time any unexpended project-specific funds shall be released to undesignated net assets or such other purpose as may be established by Board Policy then in place.
  4. Reporting and monitoring of Committed Funds reserve funds
    • The Director of Finance is responsible for ensuring that the Committed Funds are maintained as described in this Policy. The Director of Finance will provide regular reports to the Board of the level of Committed Funds through the monthly financial reporting.
    • The Primary Contractor or USB staff is responsible for ensuring that the Committed Funds are used and released as described in this Policy.
      • Annually during program and committee meetings held in conjunction with the summer board meeting, Primary Contractor or USB staff will provide a verbal report to the Action Team, Committee, Work Group, or Task Force responsible for oversight of any projects for which Committed Funds are currently held in reserve.
      • The Action Team, Committee, Work Group, or Task Force responsible for oversight of any projects for which Committed Funds are held in reserve must ratify the intended use and duration of those funds annually during the summer meeting cycle. Any projects which are not ratified for continuation will be terminated in accordance with applicable agreements and USB policy then in effect, and the related Committed Funds shall be released to undesignated net assets or such other purpose as may be established by Board Policy then in place.
    • The Director of Finance will compile a summary of the projects for which Committed Funds are held in reserve will be included in the board meeting materials for each board meeting.
  Special Purpose Funds Special Purpose Funds may be established at the discretion of the Board. The criteria for establishing a Special Purpose Fund include, but are not limited to:
  • The work is outside the normal scope of USB programs.
  • The work is anticipated to span multiple fiscal years.
  • The work has a defined timeframe and a performance window.
  • The work is designed to achieve a specific, defined purpose.
  • The work will be accomplished in relationship with another entity in the soy value chain.
  • The work will leverage the resources of another entity and will create an obligation of USB to the other entity.
Special Purpose Funds shall be established, amended, or terminated by a 60% (sixty percent) majority of the Board, subject to approval by USDA. The source of such Special Purpose Funds may be current year resources or net assets, within the limits of such Net Asset Policy as may be in place at the time such Funds are established. Use of the Special Purpose Funds reserves requires four steps:
  1. Identification of appropriate use of Special Purpose Funds reserves
    • The responsible Primary Contractor or USB staff will identify the need for access to Special Purpose Funds reserves and confirm that the use is consistent with the purpose of the Funds as described in this Policy and as outlined in the Board- and USDA-approved projects specifically identified to such Special Purpose Funds.
  2. Authority to use Special Purpose Funds reserves
    • The responsible Primary Contractor or USB staff will submit a separate billing or approve an invoice for such funded projects in accordance with standard procedures. Such billings or invoices will be subject to standard review and approval procedures then in place for Board-funded projects.
  3. Release of Special Purpose Funds reserves
    • Within the prescribed number of days of the end date of the specifically-identified project or projects, the responsible Primary Contractor or USB staff will prepare a final report of expenditures (FROE). At such time any unexpended project-specific funds shall be released to undesignated net assets or such other purpose as may be established by Board Policy then in place.
  4. Reporting and monitoring of Special Purpose Funds reserves
    • The Director of Finance is responsible for ensuring that the Special Purpose Funds are maintained as described in this Policy. The Director of Finance will provide regular reports to the Board of the level of Special Purpose Funds through the monthly financial reporting.
    • The Primary Contractor or USB staff is responsible for ensuring that the Special Purpose Funds are used and released as described in this Policy.
      • At each board meeting, Primary Contractor or USB staff will provide reporting to be included in the board meeting materials of any projects for which Special Purpose Funds are held in reserve.
      • The Board must ratify the intended use and duration of Special Purpose Funds reserves not less than annually during the February meeting cycle. Any projects which are not ratified for continuation will be terminated in accordance with applicable agreements and USB policy then in effect and the related Special Purpose Funds shall be released to undesignated net assets or such other purpose as may be established by Board Policy then in place.