MTRI will periodically move funds from its IRAD Return and Fee accounts into these Reserve accounts to keep MTRI fiscally self-sustaining. The purposes of these Reserves are outside of the current annual budgeting process as they occur in unpredictable or non-trend like manner.
E36575 MTRI Institute Growth Reserve:
MTRI will use these funds to pursue and hire key technologists that can grow the institute in emerging strategic technological areas or can leap-frog the state of the art in existing institute technical areas. The targeted candidates will be given use of these funds to pursue establishing themselves within their technical area of expertise within a research funding community. The target amount of the reserve is up to 10% of staff size with 18 months of salary support and attendant start-up costs each.
E36640 MTRI Salary Reserve:
MTRI will hold at least four months of salary and fringe costs of its current staff payroll to cover those staff during unexpected events that impair funding from clients (national crises, sudden loss of key MTRI staff member, etc.)
E36675 Non-Labor Reserve:
MTRI will use these funds primarily for recovery from non-labor events. These events could be equipment damage and data recovery due to natural or man-made harm that isn’t covered by insurance. It could be bad-debt events. Strategic equipment purchase due to an unforeseen business shift could also use these funds. The target amount of the reserve is at least 35% of the annual institute non-labor overhead expenses.
E36600 Facility Reserve:
MTRI will use these funds primarily to operate and maintain MTRI facilities. It could be facility costs needed to expand or contract space due to unexpected business environment changes. It could be to make lease-hold improvements such as painting, recarpeting, unplanned maintenance, wall or room reconfigurations, etc. The target amount of the reserve is at least one year of annual rent and electricity.