Fiscal Operations Manual
Section 700: Reserves and Investment Management
Effective: 01/01/2003
Revised: 01/25/2010

Auxiliary Enterprises, as self-sustaining organizations, must set aside funds for equipment replacement and develop a business plan.  The business plan will include a Capital Asset Replacement Plan, must be submitted to the Director of Business Affairs, and be approved by the Vice President for Finance and Administration at the beginning of each fiscal year.  The plan must set a target for funding levels and include dollar amounts for contributions to the reserve fund.

Reserve funds for both buildings and equipment for Auxiliary Enterprises are interest-bearing funds.  The interest earnings should be considered when creating the schedule for funding the reserves.

All purchases are made from the operating fund.  When purchasing a replacement, cash is moved from reserves to the operating fund by use of Exxxx or Fxxxx account codes. 

Reference: IMD 6.350; ORS 351.590; ORS 351.615