FUND BALANCE RESERVE POLICY
In May of 2014, the State Legislature’s Joint Committee on Finance adopted the UW System
Board of Regents Policy 21-6 for calculation of program revenue balances, implementing a
minimum balance of 0% for select funds, and a requirement that institutions justify balances in
excess of 12% of total year end expenditures. Affected categories and funds for the 0% minimum
balance are: (1) Tuition (Academic Student Fees Fund 131 and Extension Student Fees Fund
189) and (2) Auxiliary Operations (Fund 128), while affected categories and funds for the 12%
maximum reporting threshold include (1) Tuition, (2) Auxiliary Operations, (3) General Operations
(Fund 136), (4) Other unrestricted Program Revenue (Funds 132 and 184).
UW-La Crosse will seek to manage balances within a 0% to 10% range established by the policy
for funds 128, 131, 132, 136, 184 and 189 based on the four categories of funds set by the Board.
Colleges and divisions will manage cash balances at the account level based on approved
budgets. Budgeted funds are anticipated to be fully expended in the implementation of the Board’s
policy. Funds will be tracked across categories as Obligated, Planned, Designated, Reserves or
Undocumented in accordance with Board policy.
The Budget Office will monitor budgets and expenditures at the account level to determine which
accounts, funds and categories of funds have balances outside the 0%-10% range. Plans to have
balances in excess of 10% in any category of funds will be determined as part of the university’s
multi-year financial planning or related to facility or major projects.
The Board and UW System Administration are requiring all institutions to provide ending balance
reports with detailed back up and planning documents for all balances above the reserve
threshold. As a result, units will be required to provide a 5 year spend plan, utilizing the university
template, to bring balances down to or below the 10% level over this timeframe. Spend plans
should include details for one-time or non-budgeted items related to a unit’s priorities to bring the
cash balance down to the recommended level. Accounts with closing balances below $10,000
are excluded from this policy and reporting requirements. A Fund Balance Spend Plan document
will be due to the Budget Office by July 15th of each fiscal year.
Adopted: 06.09.14
Additional Source: Regent Policy Document 21-6