The Net Assets Target (Target) is defined as the level of undesignated net assets determined by this Policy to be withheld from allocation to programs or Board Designated Reserves and is equal to 10 percent of the total program allocations for the most recently completed fiscal year. Undesignated net assets is defined as net assets which are unrestricted for any other purpose, including but not limited to Board Designated Funds, Committed Funds, Special Purpose Funds, program unallocated funds retained by the programs or contractual obligations. The calculation of total program allocations includes all Action Team, Committee, Task Force, and Direct Managed allocations plus approved draws from Board Designated Funds in the identified year. Total program allocations exclude administrative and USDA oversight expenses, QSSB Collections Credits and any replenishment of net assets required under this Policy. The amount of the Target will be calculated each November for the following fiscal year. At each Annual Board Meeting in December, the Treasurer will report to the Board the Target for the upcoming fiscal year. After presentation of the audited financial statements for acceptance by the Board in February, the Treasurer will report the balance of undesignated net assets over or under the Target for purposes of developing the initial budget for the upcoming fiscal year.