Subject: Does the Campus Need to Contribute to the Unified Operating Reserve?
Presentation
A paragraph of text is at the top of of the page, followed by a series of questions presented in the form of a flow chart.
Content
Although several calculations are needed in support of the determination, there are just 2-3 questions to be answered annually to determine if a campus needs to contribute to the centrally held Unified Operating Reserve. See Attachment III for an illustration of the calculations that support this decision tree and the actual calculation of the required contribution under four scenarios.
Q1: Does the campus have an E&G surplus before transfers to and from reserves?
If Yes: Continue to Question Q2a
If No: No Contribution required
Q2a: Is the campus’ Adjusted Operating Reserve balance more than the 10% target balance for the Operating Reserve?
If Yes: Contribute 10% of the E&G surplus, before transfers to and from reserves, to the Unified Operating Reserve
If No: Continue to Question Q2b
Q2b: Is the E&G surplus, before transfers to and from reserves, more than the amount needed to bring the Operating Reserve balance to the 10% target balance?
If Yes: Calculate the excess of the E&G surplus, before transfers to and from reserves, over the amount needed to bring the Operating Reserve balance to the 10% Target Balance and Contribute 10% of the excess to the Unified Operating Reserve
If No: No Contribution required