Reserve Fund Accounting Records and Reports. 5. Reserves Authorized by the General Municipal Law (GML). 6. Capital Reserve Fund. 6. Repair Reserve Fund. An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit's finances by providing a cushion against unexpected events. fund. Usually, though, reserves are built up over time designating a portion of the excess cash as a reserve fund. ACCOUNTING FOR RESERVES.

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