Using Reserve Accounts

Reserve accounts are non-transactional accounts used to carry forward funds for a specific purpose from one year to the next. This means that the account cannot be used for expenditures. Funds should be transferred from the reserve account to a departmental account.

Procedures

Reserve accounts can be established and maintained within any of the funding sources and trial balances:

State Operating
Income Fund Reimbursable (IFR)
State University Tuition Reimbursable Account (SUTRA)
Dormitory Income Fund Reimbursable (DIFR)
Research Foundation (RF)
UB Foundation (UBF)

A main reserve account can be set up for each funding source with subcategorization for each planned use of reserve. You can also create subaccounts for each category you plan to spend the reserve funds (i.e. start-ups, equipment, IT projects, capital projects). For state reserve accounts (State Operating, IFR, SUTRA, DIFR) you should establish subaccounts for each category.

When creating a new reserve account, the title of the account should begin with the word "Reserve" followed by a description of the planned use of the funding. By following this structure, all reserve accounts will be grouped when sorted by account description.