Sac State University Policy Manual
University Reserves Policy

Policy Administrator: Chief Financial Officer
Authority: ICSUAM 2001.00 Campus Reserves
Effective Date: May 16, 2016
Updated: April 27, 2016
Index Cross-References: ICSUAM 2001.00 Campus Reserves policy
Policy File Number: ADM-0159

 

UNIVERSITY RESERVES POLICY

Policy Statement:
This policy establishes the campus guidelines to set-aside, build, or maintain adequate reserves in accordance with University policy, including ICSUAM 2001.00 Campus Reserves.

Who the Policy applies to:
This policy applies to University divisions, colleges, program centers, departments or any campus entity that has the ability to set aside, build or maintain campus funds for reserve purposes.

There are three distinct categories of university reserves: 1) the University’s Central Reserves; 2) the CSU Fund level; and 3) the “support areas” that fall within the two aforementioned categories (e.g. division, college, program center, department, etc.). The President and/or his/her designee will have: a) oversight for the University’s Central Reserves, which includes CSU Fund 485 (TF-CSU Operating Fund), and 481 (TF-Lottery Education Fund); b) the authority to determine the levels of reserves at the “support areas” and can limit those reserves to guarantee the University’s needs are met; and c) the responsibility to take into account those funds that are restricted for specific purposes per Chancellor’s Office guidelines.

Other CSU Funds are typically managed by self-support entities. Therefore, the appropriate person(s) and/or board member(s) designated to provide oversight for the fund will determine the suitable reserve levels. They will also ensure compliance with this policy and manage reserves to meet operational needs. Combined reserves for the categories 1 and 3 or 2 and 3 above shall not exceed the stated amounts established for the CSU Fund as set forth in ICSUAM 2001.00.

Why the Policy is necessary:
The University may maintain reserves for a variety of purposes. The purposes include economic uncertainties, capital projects, capital renovations, facilities maintenance and repair, encumbrances, catastrophic events, or any other specified purpose consistent with the underlying funding requirements and restrictions as provided by the Chancellor’s Office. The campus will establish and maintain reserves in accordance with the ICSUAM 2001.00.

Responsibilities:
The division, college, program center, department or area heads are responsible for compliance with this policy. The University’s chief financial officer is responsible for monitoring reserves to ensure amounts are in compliance with this policy and consistent with university plans and requirements by using the appropriate FIRMS object codes in each CSU Fund within ICSUAM 2001.00.

 

Approved by:
President Robert S. Nelsen
May 16, 2016