University Guidelines
Section 3.2 Financial Services: Budget - Cash Reserve
Issued: May 2024
Replaces: See Note
Working Capital Cash Reserves
Operating Liquidity
Operating liquidity is used to meet the daily cash flow needs of the University. In order to ensure the financial stability of the University, the Southern Illinois University System has established an operating liquidity target range of 90-120 days of unrestricted days’ cash on hand. The days’ cash on hand will be calculated annually based on June 30th cash balances plus state appropriation owed to the University as of the last day of the fiscal year and will be reported to the Board Treasurer. Attached as Exhibit A is the formula for calculating the days’ cash on hand. Each campus can set additional goals.
Board Designated Operating Cash Reserve
As needed, the university’s governing board may establish Board Designated Operating Reserves. These cash reserves are intended to provide an internal source of funds for situations such as a sudden increase in expenses, state operating appropriation recission, one-time unbudgeted expenses, unanticipated loss in funding, or uninsured loss. Operating Cash Reserves serve a dynamic role and should be reviewed and adjusted in response to internal and external changes.
Note: Replaces Section 3.2 Financial Services: Budget – Contingency Reserve which was deleted in July 2019
| Unrestricted Cash & Investments per Audit | Current Year |
|---|---|
| HAFS Operating Cash | |
| HAFS RRR | |
| MFS Operating Cash | |
| MFS RRR | |
| Due from State | |
| Total Liquidity | $ - |
| Total Operating Expenses per Audit | ||
|---|---|---|
| Add: Non-Operating Interest on capital asset-related debt | ||
| Less: Scholarship & Fellowship Expense | ||
| Add OPEB Non-Cash Adjustment | ||
| Less: Depreciation & Amortization | ||
| Less: On-Behalf & Special Funding Situation | see below | |
| Less: On-Behalf & Special Funding Situation | ||
| Total Adjusted Operating Expenses | $ - |
Days Cash on Hand = (Total Liquidity *365) divided by Total Adjusted Operating Expenses
OPEB Non-Cash Adjustment
OPEB Non-Cash Adjustment = Net OPEB Liability change - Def. Outflow change + Def. Inflow change
| Current Year | Prior Year | Change Increase (Decrease) | |
|---|---|---|---|
| Net OPEB Liability | - | ||
| Deferred Outflow - OPEB | - | ||
| Deferred Inflow - OPEB | - |
