CRANBERRY TWP— In response to criticism, Butler County Community College has changed its accounting policy.

During the Butler County budgeting process in January, county Controller Jack McMillin questioned why the college had cash reserves of more than $8 million when its assets are $48 million. McMillin pointed to the reserve fund when he suggested a cut in county funding for the college.

College President Nick Neupauer, in response, issued a statement that reserve funds are needed to build a financially stable institution, that some of the funds are saved for emergencies, and that the college is planning projects such as the new Student Success Center.

Contracts in excess of $6 million were awarded Wednesday for that building project.

Neupauer's statement also referred to layoffs in the 1990-91 school year that were forced by a financial crisis at the college.

On Wednesday, the college established an accounting practice that designates that money.

The college will keep any cash reserves in excess of 10 percent of assets in a separate account. Money in this account will be used for repair, restoration, maintenance, or construction.

Jim Hrabosky, interim vice president of administration and finance, said money in this account can be invested to earn BC3 more than it would in a savings account.

"This policy enables us to do better planning than in the past," he said.

The policy further explains how the money may be moved to the general fund and when it must be returned to the reserve fund if it isn't used.

The trustees approved the policy at their meeting at the BC3 Cranberry Center.