P3460 Unrestricted Reserves

In alignment with the best practices recommended by the Government Finance Officers Association (GFOA), Wichita Public Schools (WPS) will maintain an unrestricted cash balance, at a level sufficient to ensure financial stability, support cash flow needs, and safeguard against unexpected financial challenges. Unrestricted cash balance is defined as unencumbered cash that is not subject to restrictions or limitations, and the unrestricted funds included will be defined by Governmental Accounting Standards Board (GASB).

WPS will target an unrestricted cash balance within the following range:

Minimum: No less than the annual average of one state aid payment, ensuring the district can withstand temporary delays or fluctuations in state funding. This is calculated by taking total state aid revenue received in a fiscal year divided into 12. 

Maximum: Up to two months of regular operating budget revenues (operating budget defined as final legal maximum General and Supplemental General funds) or two months of regular operating budget expenditures and transfers, whichever is greater.

If the unrestricted cash balance exceeds the maximum threshold, the district will evaluate the surplus and consider the following actions:

One-time investments in areas that do not create recurring obligations (i.e. salaries), such as facility improvements, or technology upgrades.

One-time taxpayer relief measures, such as mill levy adjustments.

Reallocation to restricted reserves for future anticipated obligations, such as capital projects or other long-term funding plans.

The adequacy of the cash balance will be reviewed annually as part of the district's budget process. If the cash balance falls below the minimum threshold, WPS will develop a financial recovery plan to restore it to the target range within a reasonable timeframe.