Division of Financial Services
Accounting
Reserves are like savings accounts – an accumulation of funds for a future purpose. The source of funding for a reserve might be surpluses from operations, or scheduled transfers that have been planned and budgeted. Similar to savings accounts, expenditures should not be made directly from reserve accounts; the only activity should be transfers in or out of the account (see Funding and Using Reserves).
There are three attributes available to help units manage and monitor their reserves: Sub-Fund Group, Higher Ed Function Code, and Major Reporting Category Code. These provide information on the type of reserve, the level of availability for its use, and who controls the balance in the reserve accounts.
The Sub-Fund Group describes the type of reserve account; there are currently four types:
| Sub-Fund Group Code | Sub-Fund Description |
|---|---|
| RVGENL - General Reserves | Funds set aside for use in future periods. Reserves can be funded by annual operating surpluses, or through a funding plan. These funds are considered to be "savings accounts" so no expenses can be charged directly to them; only transfer object codes should be used in reserve accounts. |
| RVREPL - Renewal & Replacement | Funds set aside for the renewal of facilities and/or replacement of equipment (see also RVCAPT Capital Reserves). These funds are considered to be "savings accounts," so no expenses can be charged directly to them; transfers should be made to operating accounts for use. |
| RVCAPT - Capital Reserves | Funds set aside for planned capital projects. These funds are considered to be "savings accounts," so no expenses can be charged directly to them; transfers should be made to project accounts for use. |
| RVFCTY - Faculty Renewal Reserves | Funds set aside to support the faculty renewal initiative. These funds are considered to be "savings accounts," so no expenses can be charged directly to them; only transfers object codes should be used in reserve accounts. |
There are five Higher Ed Function Codes, which should only be used in conjunction with the reserve sub-fund codes (above), that indicate the level of availability for the reserve:
| Higher Ed Function Code (HEFC) | HEFC Description |
|---|---|
| 7000 - Discretionary Reserve | Used on any reserve (Fund=RV) account. Funds set aside for discretionary use in future periods. No transactions are allowed other than transfers in or out of the reserve account. |
| 7100 - Planning Reserve | Used on any reserve (Fund=RV) account. Funds set aside in support of a strategic initiative or future planned objective. No transactions allowed other than transfers in or out of the reserve account. |
| 7200 Committed Reserve | Used on any reserve (Fund=RV) account. Funds that have been committed, by the dean, vice president or designee, for a specific project or purpose in the future. No transactions allowed other than transfers in or out of the reserve account. |
| 442R - Public Service - Renewal & Replacement | For Service Facilities Use Only - funds set aside for renewal and replacement of assets related to Public Service service facilities (4420). |
| 452R - Academic Support - Renewal & Replacement | For Service Facilities Use Only - funds set aside for renewal and replacement of assets related to Academic Support service facilities (4520). |
The Major Reporting Category Code tracks who manages or controls the balance in the reserve accounts.
| Major Reporting Category Code | Major Reporting Category Name |
|---|---|
| DEAN | Funds Controlled by the Dean's Office |
| DEPARTMENT | Funds Managed by Departments |
| FACULTY | Funds Managed by Faculty |
| STUDENT | Student Funds |
| VP | Funds Controlled by the VP's Office |
