Saint Paul College Policies & Procedures - 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 

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

Review Date


Policy Status