In order to promote both financial
stability and to encourage future development of programs and staff, the board
of trustees of Shawnee state university recognizes a need to establish an
orderly process for appropriating university reserves.
Allocated funds or reserves are
accumulated university resources within the educational and general fund that
have been set aside for a specific purpose and are to be expended only for that
purpose and only when current-year revenues are not sufficient to meet the
approved expenditure needs unless otherwise authorized by the Shawnee state
university board of trustees.
(A)
Reserve or allocated fund balance categories
The board of trustees hereby
establishes the following reserve or allocated fund balance categories. These
categories are examples and should not be considered as all inclusive. The
board of trustees may add, delete, and otherwise amend this list at any board
meeting through the resolution process. Reserve or allocated fund balance
categories include those listed below:
(1)
Building alteration, this fund
provides for repairing, replacing, and modernizing university buildings and
attached equipment, including (but not limited to) heating, ventilating and air
conditioning, phones, networking, plumbing, carpeting, and electrical equipment
and installations.
(2)
Faculty and staff development, this fund encourages
professional development of university employees.
(3)
Movable
equipment, this fund provides for the replacement of movable equipment
necessary for the operation of the university.
(4)
Program
development, this fund provides start-up money to assist in the development of
new educational programming.
(5)
Unemployment compensation, this fund
is established to assist in the funding of unexpected unemployment
claims.
Shawnee is a reimbursable employer per
the Revised Code, section
4141.241. Claims are paid by the
Ohio bureau of employment services, and the university is billed each month for
claims paid.
(6)
Site improvements, this fund provides for repairing,
replacing and/or modernizing parking lots, sidewalks, roads, and outdoor
lighting, as well as care of grounds and other site
improvements.
(7)
Legislative or other reserve requirement, these funds
are reserved in accordance with any legislative or other legal mandate
governing unrestricted educational and general revenues.
(8)
Departmental
funds, funds held in reserve by departments or cost centers as a result of
unspent budgetary allocations or dedicated revenues not spent.
(9)
Working capital,
this fund assures that the university's current assets will be sufficient to
meet monthly cash flow requirements.
(B)
Reserve and
allocated funds and fund goals
Each reserve fund approved by the
board of trustees shall establish a goal to which annual pledges may be made.
The goal may be a dollar amount recommended by the president or it may be an
amount which is the result of an approved formula. For the reserve funds
outlined above the initial goal shall be established in the following
manner:
(1)
Building alternation, five per cent of total investment
in buildings as reported on the most recent annual financial
report.
(2)
Faculty and staff development as recommended by the
president at twenty-five thousand dollars.
(3)
Movable
equipment, five per cent of the total investment in movable equipment as
reported on the most recent annual financial statement.
(4)
Program
development as recommended by the president at fifty-thousand
dollars.
(5)
Unemployment compensation, one per cent the total
salary and wages paid as reflected on the prior year's w-2
reports.
(6)
Site improvements as recommended by the president at
seven- hundred fifty thousand dollars.
(7)
Legislative or other reserve as
required through legislative or other requirement legal
mandates.
(8)
Departmental funds as accumulated by departments
through unspent budgetary allocations or dedicated revenues.
(9)
Working capital,
twelve point five per cent of the educational and general operating budget
(exclusive of transfers) reported on the most recent annual financial
statement; such reserves shall be recorded as an allocated fund balance on the
balance sheet and must be fully funded before those reserves identified 1-5
above are funded unless authorized by resolution of Shawnee state university
board of trustees.
(C)
Review of reserve and allocated
Annually, after year and reserves are
made known by the university controller, the board of trustees finance and
facilities committee shall meet to review reserve pledges. Pledges will be
accounted for by appropriate category and reflected accordingly in the annual
financial statement.
(D)
Expending reserve funds
Expenditures from any line item in
reserve shall be made according to the following guidelines:
(1)
Departmental
funds, encumbrances, revenue center, lab fees and carry forward funds are
allowed to be spent at the discretion of the applicable account administrator,
subject to appropriate oversight approval from the division administrator. New
degree programs funds are allowed to be spent at the discretion of the vice
president for business affairs and the provost.
(2)
The president,
or his delegate, has authority to spend up to a total of fifty thousand dollars
from other reserve categories per fiscal year as long as the purpose of the
expenditure is in concert with that category. An accounting of this expenditure
will be made annually to the board of trustees finance & facilities
committee. Expenditure of reserve funds greater than fifty thousand dollars in
a fiscal year require board of trustees approval.
(3)
Should financial
difficulties arise as determined by the vice president for business affairs,
necessitating preservation of reserves, the president, upon the advice of the
vice president for business affairs, can suspend reserves expenditure(s) for up
to ninety days, pending final approval by the board of
trustees.
Replaces: 3362-4-12
