The rainy day fund -- which purpose has never been defined by the CFO of Arrow, but is about to be -- is to be used to cover large expenses not covered within the budget. If you were to go over budget in the shop, you would be granted a reasonable part of the rainy day fund to compensate. If a pipe burst in the office building and the floor was covered in water and needed to be replaced, the rainy day fund would be used. If there were a lawsuit against Arrow Transportation, the rainy day fund would be used. This grants you assurance that if you spend all the money for a drive shaft, then you will still have money for repairs at the end of the year if you go over budget. And if the rainy day fund is squeezed dry, then I'm sure there will be extra funds from other budgets. If we're facing bankruptcy, we can take out a loan, and pay it back after the next budget is formed. I have the money for the drive shaft covered. Don't worry about it. :)
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