Unreserved Fund Balance (UFB)
Management Principles
- Fiscal Stewardship - At all times, know your unit’s current and projected year-end fiscal position with accuracy.
- Positive Fiscal Position - Complete the year with fewer expenses than realized revenue.
- Appropriate Balance - Manage to an appropriate year-end balance for the size and complexity of your unit.
Minimum UFB
A reasonable amount of annual UFB is prudent and expected. Each unit will strive to have a minimum amount of UFB equivalent to 2% of total unrestricted revenues not including UA Intra-Agency Receipts. All units are expected to end the fiscal year with a positive balance.
Units must inform their respective Provost/Vice Chancellor and Associate Vice Chancellor for Financial Services of any projected deficits as soon as they are identified. Units will be required to repay any year-end deficits in excess of $10,000 unless alternate arrangements are made, in writing, in advance.
Maximum UFB
Unexpended receipts may suggest a failure to invest available resources in expected program deliveries and enhancements. To encourage effective use of current-year operating funds, while allowing for flexibility to meet future needs, the maximum UFB is 4% of total revenues (not including Intra-Agency Receipts) for all units.
All units are instructed to target maximum UFB levels by the end of FY23.
Authority to distribute UFB annually resides with each respective Provost/Vice Chancellor. This authority includes the ability to reallocate resources to current fiscal year operating needs or other high priority areas.
A portion of UFB may also be redirected when UFB at year-end deviates in excess of the established variances of 2% of total unrestricted revenues, based on April Management Report projections, or when UFB exceeds maximum guidelines.
Redirected UFB will be pooled by division for distribution by the Vice Chancellor.
The maximum UFB sweep will be determined as follows:
High Accuracy
- None if the amount of UFB is within established guidelines
- 80% of UFB over the maximum
Low Accuracy
- 50% of total UFB
*The maximum UFB is the target by the end of FY23. There will be flexibility in managed balances in excess of 4%.
UFB revenue should be used for investments that are one-time in nature such as equipment/supplies, sponsored activity match support, bridge funding related to future base reductions or reallocations, faculty startup or upgrades for program needs, campus infrastructure or similar projects, space needs or costs related to moves, or special one-time program support.
Units purposely managing to an identified resource level for extraordinary one-time expenses such as those listed above may enter into a central working capital agreement or submit a request for exception to the maximum UFB guideline along with the April Management Report.
The Associate Vice Chancellor for Financial Services will review the requests and make recommendations to the Vice Chancellor for Administrative Services by June 1.
Our staff are happy to answer questions and help navigate the UFB process.