1. Reserve Discussion topics
See Budget Presentation

2. Reserve Discussion/Planning
Review Reserve Policy
EO 732 Replaced by ICSUAM 13000
No material change in criteria
Also see EO 1059
Revisit Budget Presentation
Auditor recommendation to reclassify Assets
Adjust prior Sick Leave designation

3. Reserve Discussion/Planning Designation Candidates
Existing Requirements
$180 K - Sick Leave liability for pre-1989 hires(14)
$5.0M PERS unfunded liability
$3.5M Outpost Bond
Strategic Requirements
UDP Renovation
Alumni Center
Other?

4. FY2017/2018 Budget Reserve Planning
FY 2017/2018 Budget Review
FY2017/2018 Budget Reserve Planning
Per Policy accommodations made for:
Working Capital
Annual Capital Replacement /Major Maintenance
Adequate funds on hand for Midterm Support
Planned negative Cash Flow in FY2017/18
Assumes large Capital investment plan
VEBA funding (Off Balance Sheet)
Assumes no additional investment
Completed Year 7 of 7 year plan
See Policy for Controller reporting requirements and thresholds.
Working Capital targeted at 8% of expenses = $2.7M
Reserve Funding Opportunities are:
VEBA – 1 year or so funding continuum, turn over to TPA
Alumni Center/Catering Kitchen
Designate/Grow funds for early Bond payoff – 2 year assessment
Pay down PERS Unfunded Liability
Develop long term plan for UDP Renovation

5. FY2017/2018 Budget Reserve Planning (Cont’d)
FY 2017/2018 Budget Review
FY2017/2018 Budget Reserve Planning (Cont’d)
PERS Unfunded Liability largest debt/risk
Charged Interest exceeding Operating ROI
No Future set aside funding in place
Need to start reserving and/or Designate Funds for long term rebuild
PERS assumes 7% earnings. Net Contribution and Investment policy much lower.
Reserve Funding Opportunities are:
VEBA – 1 year or so funding continuum, turn over to TPA
Alumni Center/Catering Kitchen
Designate/Grow funds for early Bond payoff – 2 year assessment
Pay down PERS Unfunded Liability
Develop long term plan for UDP Renovation

6. FY 2017/2018 Budget Reserve Matrix
FY 2017/2018 Budget Review
FY 2017/2018 Budget Reserve Matrix
Per Reserve Policy definitions/Requirements we’ve satisfied the need for Operating Statement items.
-FY2016/2017 is done hence zero WC. $2.7M estimated for FY2017/18
Beach Club Deposits $460K$250K. Increased due to Flex $’s
Paying as we go for all:
Facilities/Capital Replacement & Major Repair Funding accommodated through depreciation
Vacation/Holiday payout - Unrestricted. Ongoing accrual/Pay-out
Unemployment Insurance (UIT) held with CSURMA
Post Medical current year premiums being paid through Operating Statement
- Overall liability is being addressed through VEBA and future returns on investment.
SMIF held at Wells Fargo already in a separate account – Not restricted or designated but isolated

7. FY 2017/2018 Budget Reserve Funding Opportunities
FY 2017/2018 Budget Review
FY 2017/2018 Budget Reserve Funding Opportunities
All but Facilities are recorded on the Balance Sheet
Provisioning and recognized various liabilities. Paying down on some:
- Facilities Infrastructure pending
- Vacation/Holiday is partially designated on the asset side in name only
SRB Funding Payments – Finite pay down schedule
Refunding save $500K in interest over the remaining 22 years.
10 year Bond Call again.
VEBA assumes funding to initial commitment only – Future unfunded liability paid from VEBA investment returns
Beach Club is ongoing projected average with holding increasing due to Flex $’s
Liability is being addressed regularly. Could designate percentage of funds if balance increased dramatically.
SMIF – No liability unless we run out of cash and need to call in the account

8. Financial Reporting Formats
Monthly Operating Statements designed to capture information at it’s lowest level to measure departmental results and allow for prudent business decisions
Audited Financial Statement is presented in summary format and re-classify various accounts to conform with Campus roll-up.
Tax Return Restates certain Sales & Expenditures and extracts specific elements to conform with IRS reporting requirements
All GAAP compliant
Monthly A/R & A/P credits off-set to manage cash and payments
Interest Expense and costs allocated as appropriate to Divisions
Credit & Revenues do not get G&A allocation
G&A Allocated across Divisions to ensure overhead coverage
Audited Statements presented in a classical summary statement format
Reclassify A/R – A/P items especially with Campus since part of annual campus true-up.
Credit & Revenues restated to Sales and COG
Tax Return designed for taxable earning reporting. Although we’re a non-Profit another restatement