SADC Financial Regulations Effective 1 April 2013 Regulation  22  -­‐  Reserve   1. The Accounting Officer shall, on the direction of the Council of Ministers, establish a cash Reserve Fund for the Institution, which shall be administered in accordance with the provisions of these regulations. 2. The reserve fund shall comprise such amount as the Council of Ministers may decide to transfer from surplus funds or from any other sources. 3. Investment of the reserve fund shall be carried out in such a way so that: a) interest is maximised while maintaining security of capital as provided for in Regulation 51(2). b) interest earned accumulates to the reserve fund’s credit. 4. The reserve fund account shall be held and managed separately from other SADC funds. 5. The Chairperson of Council may at the request of the Accounting Officer, authorise drawings from the reserve fund to meet cash flow shortages caused by: a) delays in the receipt of Member States contributions; or b) to make good losses caused by unfavourable movements in the exchange rate provided this is necessary to meet authorised expenditures. 6. Such drawings referred to in sub regulation 5(a) shall be repaid to the reserve fund as and when late payments are received. 7. Any other utilisation of the reserve fund shall be specifically approved by Council and the exact drawings and terms of repayment stated in the resolution. Page 35 of 100