Regents Policy 5104: Policy on a Central Operating Reserve for the University of California Office of the President

Approved January 25, 2018

POLICY SUMMARY/BACKGROUND
This policy was developed in response to the recommendation made by the California State Auditor in April 2017 that the Regents adopt a policy governing the size of the reserve funds of the University of California Office of the President and the purposes for which they can be used.

POLICY TEXT
The Regents require that the University of California Office of the President (UCOP) maintain a Central Operating Reserve to support operations in the event of an unanticipated disruption in planned funding. The reserve funds may be used to cover ongoing budgeted expenses such as payroll and other operating expenses. The Central Operating Reserve shall not be used for other purposes. The President shall have the authority to establish and amend guidelines that specify the size and funding source(s) for the Central Operating Reserve. Access to reserves above the threshold stipulated in the Central Operating Reserve Guidelines shall require approval from a majority of the Chair of the Board, the Chair of the Finance and Capital Strategies Committee, and the Chair of the Compliance and Audit Committee.

COMPLIANCE/DELEGATION
Transactions that result in the flow of funds out of the Central Operating Reserve must be approved by the President or his / her designate. The President will notify the Chair of the Board of Regents, the Chair of the Finance and Capital Strategies Committee, and the Chair of the Compliance and Audit Committee before funds are drawn.

PROCEDURES AND RELATED DOCUMENTS
Presidential Guidelines Governing the UCOP Central Operating Reserve

Changes to procedures and related documents do not require Regents approval, and inclusion or amendment of references to these documents can be implemented administratively by the Office of the Secretary and Chief of Staff upon request by the unit responsible for the linked documents.