(1) "Excessive reserves" means the total amount of the licensee's cash, cash equivalents, and other assets that would not normally be associated with providing programs or fund-raising activities is greater than the sum of:
- (a) The licensee's current liabilities, which means debts due within one year; plus
- (b) Total functional expenses during the most recently completed fiscal year; plus
- (c) The average net income or loss from combined gambling and retail sales conducted in conjunction with gambling activities for a three-month period. This average is calculated by dividing annual net gambling and retail sales income or loss by four.
- (2) However, we may approve the exclusion of funds reserved to start or expand specific programs from the computation of excessive reserves.
[Statutory Authority: RCW 9.46.070. WSR 07-10-032 (Order 609), § 230-07-050, filed 4/24/07, effective 1/1/08.]