2132  CAPITAL IMPROVEMENT RESERVE

Campuses may establish a capital improvement reserve to provide funding 
for maintenance and repair projects and the construction of new facilities.  
The following guidelines and procedures should be followed to establish a 
capital improvement reserve:

1.	The reserve must be established for a specific project.  The campus 
	should forward a project description and a request to establish the 
	reserve signed by the campus Chief Business Officer.  The project 
	description should include a brief statement of the work to be 
	performed, a preliminary cost estimate, and reasons why the work is 
	required.

2.	Auxiliary and Business Services will establish the reserve as an account 
	in the Dormitory Construction Fund-Housing.  At the end of each 
	fiscal year, the campus may request Auxiliary and Business Services to 
	transfer surplus funds available from operational savings to the 
	reserve.

3.	Auxiliary and Business Services will credit the reserve account semi-
	annually with interest earned on the accumulated reserve.  The earned 
	interest rate will be equal to the six-month average Surplus Money 
	Investment Pool earned interest rate applicable to the six-month 
	period.

4.	Once the reserve balance has accumulated the amount required to fund 
	the project, the funds will be made available to the campus to begin 
	construction.