2022 Atlanta Board of Trustees Meeting

7173 S. Havana St #600-130 Centennial, CO 80112 P: 303.770.2526 | F: 303.779.4834 obesitymedicine.org

Reserve Fund Reserve Fund Objective: T o optimize yields on OMA’s short -term assets while maintaining adequate liquidity, without taking excessive principal risk. Reserve Fund Purpose: To ensure adequate cash for operations. Note this policy excludes funds which are required for the normal operating activities of the association (i.e. the checking account), which at no point in time shall exceed $600,000. Reserve Fund Balance: OMA will maintain adequate reserves to provide for a minimum of six months of operating expense. While the industry average recommended target for reserves is three to six months of operating expenses, OMA will maintain a conservative reserve amount in the reserve fund balance. The board must authorize any disbursements from the reserve fund that require depletion below six months of operating expense. The reserve fund shall be invested in liquid instruments. When investing liquid assets, the advisor will emphasize safety, liquidity, and yield, in that order, with staggered maturities up to a maximum of 36 months. The weighted average duration of liquid assets shall be less than three years. The reserve fund may also be invested in short term fixed income assets. This portion of the portfolio is designed to maximize return, consistent with safety of the principal. Liquidity is a secondary objective. Maturities should be reasonably laddered out to a maximum of eight years. The weighted average duration of fixed income assets shall be less than six years. It is acceptable for there to be some principal fluctuation and risk in an effort to earn a greater total return. Investment Fund Investment Fund Objective: to support OMA’s strat egic objectives and to be invested in medium to long- term vehicles designed to grow the organization’s savings, and to provide annual distributions to supplement operating revenue. Specific allocations of the investment fund have been designated in the OMA Investment Policy. Investment Fund Balance: Any funds in excess of the reserve fund amount will be considered the “Investment Fund”. The OMA Spending Policy will dictate the annual amount to be dispersed as a “distribution from investment fund”, based o n the spending rate and the balance in the Investment Fund. The funds for the investment fund will be derived from the surplus from operations, or the net operating excess for each fiscal year. Cash Flow Management: OMA Executive Director will be responsible for managing OMA cash flow and for communicating anticipated distributions and liquidity requirements in a timely manner to OMA investment advisor, as well as the Board of Trustees.

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