If the Target as calculated above is less than the level of undesignated net assets reported in the audited financial statements, the excess funds shall be available for allocation to programs or Special Purpose Funds in accordance with the policies and procedures then in place subject to the following limits:
  • Allocations from undesignated net assets to programs or Special Purpose Funds shall not exceed $10,000,000 (ten million dollars) in any fiscal year.
  • Allocations from undesignated net assets shall not reduce the balance of undesignated net assets below the Target unless the following conditions are met:
    1. A 60% (sixty percent) majority of the Board approves the allocation from undesignated net assets,
    2. A requirements analysis and timeline for replenishment, if anticipated, is established and approved by the Board, and
    3. Such allocation and replenishment plan is approved by USDA.
If the Target as calculated above is greater than the level of undesignated net assets reported in the audited financial statements:
  • A requirements analysis and timeline for replenishment, if anticipated, shall be established and approved by the Board, and
  • Such replenishment plan must be approved by USDA.