Campus Reserve Policy
Effective October 1, 2015, the Integrated CSU Administrative Manual (ICSUAM Section 2001.00) formalized and established a systemwide policy on the creation and use of carryforward balances. The campus CFO must certify annually the amounts and purpose of campus reserves in accord with the CSU policy.
There are two categories of funds for which this policy applies; 1) annual operating funds and 2) reserves for pre-determined and designed use such as capital projects, capital renovation, facilities maintenance and repair, catastrophic events, or another specified purpose.
The limit for annual operating funds (carryforward reserves) is designated as “not more than one-half of the projected annual operating budgets in the funds for which the reserves are established.”
Regarding reserves for pre-determined and designated uses, the campus has adopted the attached matrix.
Interim Vice President and CFO Josee Larochelle has approved the following carryforward guidelines, effective Fiscal Year 2015-16 for San José State University. The policy represents an aspirational goal; it is understood that reaching them will take some time and effort.
Per ICSUAM Section 2001.00, the following carryforward guidelines have been adopted at San José State University:
San Jose State University
Carry Forward Planning Guidelines
Effective April 1, 2015 Revised: October 2015
Established Reserves for Operating Funds
|Fund||Description||Carry Forward Policy|
|Academic Affairs||Graduate Business Prof Fee (70006)||Category 1 fee that applies to all AACSB accredited programs; see EO 1054 for intended uses||No more than 6 months operating costs*|
|Academic Affairs||Continuing Education Revenue Fund (48XXX)||Self-support education; primarily Special Session programs||No more than 6 months operating costs|
|Academic Affairs||Transfer Student Orientation (70008)||Orientation sessions occur over the summer and cross both fiscal years; revenues often come in advance of expenses||No more than 6 months operating costs.|
|Athletics||All revenue funds (65178)||Primarily ticket proceeds.||Goal: $3-4M to accommodate revenue fluctuations|
|Cost Recovery Activities||77XXX and 78XXX||Cost recovery fees reimburse the Operating Funds for services provided to non-operating fund units||No more than 6 months operating costs, plus reserves for equipment replacement, or major maintenance (e.g., Central Plant)|
|Facilities Development & Operations||MLK Library M&R/Renewal (65011, 64009)||This is the SJSU portion of the MLK Library M&R fund; see MLK Operating Agreement; Library Ops balance goes here per Agreement||Per Library Operating Agreement with City of San José|
|Housing||Housing Fees (71000)||Housing operating fund.||No more than 6 months operating costs. Balances should be deposited into construction reserve fund|
|Parking Services||Parking Fees (56000), Parking Fines & Forfeitures (55000)||Use of surplus parking fee revenues limited to construction or M&R||No more than 6 months operating costs. Balances should be deposited into construction or M&R reserve funds|
|Student Affairs||Frosh Orientation (70001)||Orientation sessions occur over the summer and cross both fiscal years; revenues often come in advance of expenses||No more than 6 months operating costs|
|Student Health Center||Student Health Fee (51000)||Category 2 student fee for health services||No more than 6 months operating costs. $1M minimum, to ensure debt payment converage.|
|Student Health Center||Augmented Health Fee (51001)||Category 4 student fee for optional health services||$100k-$150k; no more than 6 months operating costs|
|Student Union Fee||Student Union Fee Fund (73000)||Category 2 student fee for the Student Union Facility debt service; surplus can be used for programs||See below|
* Operating costs are defined as those expenses necessary to carry out day-to-day activities. Examples of such costs include, but are not limited to: salaries & benefits, utilities, space rental, supplies and services, etc.
Established Reserves for Pre-Determined & Designated Uses
|Fund||Reserve Name2||Purpose||Basis of Reserve Amount|
|Student Union Fees||Major Maintenance and Repair/Capital Renovation and Upgrade (74000)||Major maintenance and repair or renovation of facilities funded through the Student Union Fee||Minimum of 5% of total cost of construction ($90M)|
|Student Union Fees||Major Capital Outlay Reserve (Construction Reserve) (74000)||For major capital outlay projects, such as the Rec & Aquatic Center renovation||Per capital project plans and schedules|
|Student Union Fees||Student Union Inc. Working Capital (held by SUI)||For capital projects between $10k and $99k and emergency repairs, FICA costs, and unforeseen items that were not included in the annual operating budget. SUI includes projects >$99k in annual budget plan. CO previously required 35% of annual expenditure budget.||In February 2014, AVP of Finance and AVP of Campus Life agreed to reserve up to 33% of annual expenditure budget|
|Health Facitilies Fees||Major Maintenance and Repair/Capital Renovation and Upgrade (52000)||Major maintenance and repair or renovation of SH&CC funded through the Health Facilities Fee||Minimum of 5% of total cost of construction ($27M) + Group II Equipment.|