Reserves and Year-End Balances

The College shall maintain an appropriate portion of general fund balances designated as a reserve for which no use is presently planned.

The President is responsible for maintaining a portion of the college resources as a reserve. The college general fund reserve should be 5-7% of the previous year’s general fund operating revenues.

The College shall provide for classification of all year-end fund balances in accordance with the following distinctions:

• Restricted – Balances the use of which is restricted by parties external to college.
  
• Unrestricted – Balances the use of which is not restricted by parties external to the college. Unrestricted balances will be designated in one of the following manners:
  
  • Designated for Programs – Balances that have been designated by the college for 
    specific purposes.
    
  • Designated for Reserves – Balances designated by the college for reserves.
    
  • Undesignated – Balances not restricted, designated, or reserved by the college.

If the college’s general fund reserve falls below 5%, the college shall report to the Vice Chancellor-Chief Financial Officer information on current fiscal conditions with a detailed plan to achieve a minimum level. If the college’s general fund reserve is above 7% a plan must be approved by the Vice Chancellor-Chief Financial Officer.

​Reference: Minnesota State 5.10