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Open or Closing Reserve Account Instructions

Provides California Department of Education (CDE) contractors information regarding opening and closing reserve accounts.

The following are the current child development reserve account types and their associated contracts:

Center-Based (CB) Reserve Accounts can include:

  • General Child Care (CCTR)
  • California State Preschool (CSPP)
  • Migrant (CMIG)
  • Severely Handicapped (CHAN)

Resource and Referral (R&R) Reserve Accounts include:

  • Resource and Referral (CRRP)

Alternative Payment (AP) Reserve Accounts can include:

  • CalWORKs Stage 2 (C2AP)
  • CalWORKs Stage 3 (C3AP)
  • Alternative Payment (CAPP)
  • Family Child Care Home (CFCC)

Opening a Reserve Account

Contractors may establish a reserve account at any time; however, contractors should be aware of reporting due dates that will affect the establishment of a reserve account. Contractors wishing to establish a reserve account should do so by July 20 of that fiscal year; any requests received after that date will apply to the next fiscal year’s year-end calculations.

Once established, the reserve account must be maintained until closed by either the contractor, the CDE, or California Department of Social Service (CDSS); or until termination of the contractor’s child development contract(s). Since there are three reserve account types (CB, AP, and R&R), a contractor could have three reserve accounts. Each account must be maintained separately due to different maximum limits and use requirements. A contractor with multiple contracts will have all contracts of the same type contribute to the same reserve account. Expenditures from a reserve account are reported as restricted income for child development programs but may be utilized by any of the contracts that are eligible to contribute to that particular reserve account.

Contractors with open reserve accounts must submit a yearly Reserve Account Activity Report. For information on submitting the report, please see the Reserve Account Activity Report Instructions.

How to Open a Reserve Account

To open a reserve account, any agency user with the Authorized Representative user role must navigate to the Agreements tab of Child Development Provider Accounting Reporting Information System (CPARIS) and select Reserve Account New Account. Contractors wishing to establish one or more reserve accounts must review the reserve account requirements in CPARIS and select at least one reserve account type.

The Authorized Representative will complete the required information: full name, title, and signature date. To submit the request, the Authorized Representative must click Save. This will certify the form as correct. The request will be transmitted to your assigned fiscal analyst.

Closing a Reserve Account

Contractors may close a reserve account at any time. Upon closure of the reserve account(s), the contractor will receive an invoice for the total balance of the account(s). As with all billings, please wait until you have received the invoice before remitting the amount due, as all payments must reference an invoice number.

How to Close a Reserve Account

To close a reserve account, any agency user with the Authorized Representative user role must navigate to the Agreements tab of CPARIS and select Reserve Close Request. Contractors wishing to close one or more reserve accounts must review the reserve account closure requirements in CPARIS and select at least one reserve account type they wish to close.

The Authorized Representative will complete the required information: full name, title, and signature date. To submit the request, the Authorized Representative must click Save. This will certify the form as correct. The request will be transmitted to your assigned fiscal analyst.

Questions:   Cate Washington| cwashingtonl@cde.ca.gov | 916-322-8332
Last Reviewed: Tuesday, July 13, 2021
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