Illustration: Calculation of Required Campus Contribution to the Unified Operating Reserve
Scenarios:
#1: The campus has generated a deficit for the current fiscal year and its Operating Reserve balance is above the 10% reserve balance target.
#2: The campus has generated a deficit for the current fiscal year and its Operating Reserve balance is below the 10% reserve balance target.
#3: The campus has generated a surplus for the current fiscal year and its Operating Reserve balance is below the 10% reserve balance target.
#4: The campus has generated a surplus for the current fiscal year and its Operating Reserve balance is above the 10% reserve balance target.
STEP 1: GATHER THE FOLLOWING DATA FROM THE STATS3EN_UNRES_EG REPORT:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| 1A. Total Revenues |
$201,792 |
$27,082 |
$109,680 |
$35,626 |
| 1B. Total Expenses [includes transfers] |
(207,957) |
(28,558) |
(108,789) |
(34,560) |
| 1C. Operating Increase (Decrease) Modified Cash Flow: |
(6,165) |
(1,476) |
891 |
1,066 |
| 1D. Plus Depreciation |
12,347 |
1,308 |
5,901 |
1,410 |
| 1E. Less Transfers to Capital Reserve Funding |
– |
– |
– |
(550) |
| 1F. Less Debt Service Principal |
(2,792) |
(79) |
(1,465) |
(288) |
| 1G. Less Other Capital and Financing Activities |
(4,108) |
(6) |
(3,805) |
(838) |
| 1H. Net Change Before Transfers From (To) Reserves |
(718) |
(253) |
1,522 |
800 |
| 1I. Transfer From (To) Budget Stabilization Reserve |
– |
– |
– |
– |
| 1J. Net Change After Budget Stabilization |
(718) |
(253) |
1,522 |
800 |
| 1K. Other Net Transfers From/(To) Reserves |
16,237 |
(37) |
1,038 |
(107) |
| 1L. Net Change in Cash & Reserve Transfers |
$15,519 |
$(216) |
$484 |
$907 |
STEP 2: USING GENERAL LEDGER ACTIVITY, CALCULATE THE OPERATING RESERVE BALANCE PRIOR TO CLOSE OUT OF CURRENT YEAR ACTIVITY:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| 2A. Balance in Operating Reserve at End of Prior Fiscal Year |
$25,190 |
$1,656 |
$3,256 |
$8,543 |
| 2B. Transfers In (Out) During Current Fiscal Year |
(16,117) |
(22) |
712 |
(44) |
| 1C. Operating Increase (Decrease) Modified Cash Flow: |
15,787 |
– |
– |
– |
| 2D. Adjusted Operating Reserve Balance |
$24,860 |
$1,634 |
$3,968 |
$8,499 |
STEP 3: CALCULATE 10% TARGET BALANCE FOR THE OPERATING RESERVE:
3A. Calculate Adjusted E&G Expenses Using Data From Step 1:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| 3A.1 Total Operating Expenses & Transfers (Step 1B) |
$207,957 |
$28,558 |
$108,789 |
$34,560 |
| 3A.2 Less depreciation expense (Step 1D) |
(12,347) |
(1,308) |
(5,901) |
(1,410) |
| 3A.3 Plus debt service principal (Step 1F) |
2,792 |
79 |
1,465 |
288 |
| 3A.4 Adjusted E&G Expenses |
$198,402 |
$27,329 |
$104,353 |
$33,438 |
3B. Apply Target Percentage to Calculate the Target Reserve Balance:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| 3B.1 Target Percentage |
10% |
10% |
10% |
10% |
| 3B.2 Target Operating Reserve Balance (Step 3A.4 * Step 3B.1) |
$19,840 |
$2,733 |
$10,435 |
$3,344 |
STEP 4: CALCULATE AMOUNT THAT ACTUAL OPERATING RESERVE IS OVER (UNDER) TARGET BALANCE:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| (Step 2D minus Step 3B.2) |
$5,020 |
$(1,099) |
$(6,467) |
$5,155 |
STEP 5: DETERMINE REQUIRED YEAR END CONTRIBUTION TO CENTRALLY HELD UNIFIED RESERVES:
| Data |
Scenario #1 ($ in thousands) |
Scenario #2 ($ in thousands) |
Scenario #3 ($ in thousands) |
Scenario #4 ($ in thousands) |
| 5A. Is the ‘Net Change Before Transfers From (To) Reserves’ (Step 1H) positive? |
No |
No |
Yes |
Yes |
| 5B. If the answer to Step 5a is ‘No’, STOP – the campus does not meet the requirements to make a contribution |
STOP |
STOP |
Continue |
Continue |
| 5C. Is the amount from Step 4 (Amount That Actual Operating Reserve is Over (Under) Target Balance) Greater Than Zero? |
|
|
No |
Yes |
| 5D.1 If the answer to Step 5C is ‘No’, determine the amount of current year ‘Net Change Before Transfers From (To) Reserves’ needed to help build the campus Operating Reserve to the 10% target balance (smaller of Step 1H or absolute value of Step 4)* |
|
|
$1,522 |
– |
| 5D.2 Amount of current year ‘Net Change Before Transfers From (To) Reserves’ subject to contributions to the Unified Reserves (Step 1H minus Step 5D.1) |
|
|
– |
$800 |
| 5E. Contribution to the Unified Operating Reserve: 10% of Step 5D.2 |
|
|
– |
$80 |
Back to APL III-J.
