Reserve Account Activity Report InstructionsProvides California Department of Education (CDE) contractors information regarding submitting Reserve Account Activity Reports.
Contractors required to submit this report: All Child Care and Development contractors with a Reserve Account are required to submit an annual Reserve Account Activity Report, even if the account has a zero balance. If the reserve account has a balance, a General Ledger verifying the interest and balances must also be submitted via email to the contractor’s assigned fiscal analyst.The following are the current California Department of Education (CDE) 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)
This report must be submitted in Child Development Provider Accounting Reporting Information System (CPARIS) by July 20, following the end of the fiscal year being reported. This report is required even if the reserve account(s) have a zero balance.
NOTE: Payments to contractors based on June year-end Attendance and Fiscal Reports for Child Development programs, which are also due by July 20, cannot be computed until the Reserve Account Activity Report and account documentation (General Ledger) are deemed acceptable by the Child Development and Nutrition Fiscal Services (CDNFS) Fiscal Analyst.
How to Submit the Report
Submitting the report is the responsibility of the contractor. The principal administrative officer may assign a contractor designee for completion of the report, but the contractor’s Board of Directors is responsible for the accurate and timely submission of the report.
In order for a report to be valid, it must be complete and certified in CPARIS. Invalid reports or reports not certified by the 20th of the month following the end of the reporting period, or the next business day if the 20th falls on a weekend or a state holiday, will be deemed delinquent and all subsequent apportionments will be withheld until reporting requirements have been met.
Users with general system questions are encouraged to review the CPARIS User Manual and Frequently Asked Questions documents, both of which are posted on the CPARIS home page in the Announcements section.
All Child Care and Development contractors with a Reserve Account are required to submit an annual Reserve Account Activity Report, even if the account has a zero balance. If the reserve account has a balance, a General Ledger verifying the interest and balances must also be submitted via email to the contractor’s assigned CDNFS fiscal analyst.
Funds utilized from the reserve account for allowable contract expenditures must be reported on two reports:
(1) Reserve Account Activity Report. Enter the transfer amount and indicate the contract number to which the funds were transferred; and
(2) Attendance and Fiscal Report. Enter the transfer amount as income from the Reserve Account. The report must also include the reimbursable expenses that require this additional state income.
The Reserve Account Activity Report is the official statement showing the balance of state funds in the Reserve Account at the end of the fiscal year.
General Ledger Requirement
Contractors holding Reserve Account(s) with a balance greater than zero must submit a General Ledger for each Reserve Account to their assigned fiscal analyst. The General Ledger is submitted annually via email at the same time as the year-end Attendance and Fiscal Report(s) and Reserve Account Activity Report. The deadline to submit the General Ledger is July 20 each year. If the activity report and General Ledger are not received by the July 20 deadline, it will be considered delinquent and will result in withholding current apportionments.
For all Contractors - Reserve Accounts within your General Ledger must be titled as follows:
- Child Development Center-Based Reserve Account – Standardized Account Code Structure (SACS) Resource Code 6130
- Child Development Resource and Referral Reserve Account - SACS Resource Code 6131
- Child Development Alternative Payment Reserve Account - SACS Resource Code 6132
NOTE: SACS Resource Codes are only required for LEA.
How to Complete the Report
Required Reserve Account reports will be visible in CPARIS based on a contractor’s active Reserve Accounts. If a contractor holds all three Reserve Account types, those reports will be visible.Verify the statement acknowledging that the General Ledger must be emailed to your fiscal analyst, and check the box indicating acknowledgement of that requirement.
The Reserve Account’s beginning balance must match the prior year’s ending balance on the CDNFS 9530A, Reserve Account Status Report. The contractor must:
- Enter the beginning balance.
- Use whole numbers.
- Enter the total interest earned associated with the relative Reserve Account for the fiscal year.
Reserve funds must be maintained in an interest-bearing account. Failure to report interest will deem this report incomplete and unacceptable. Interest entry is not required if the beginning balance is zero. Accrued interest must be reflected on the accompanying general ledger.
Transfers from the Reserve to Agreements
When reporting funds transferring from the Reserve Account into a child development contract, the user must list the contract number (8 characters: 4-character alpha prefix and 4-character numeric suffix) in the Agreement Number(s) column, and the total transfer amount in the Transfer Amount column.
If a contractor holds more than one of the same contract type, and wishes to transfer from the reserve into multiple contracts, the contract numbers will be entered on the same line. For example, if an agency holds two CCTR contracts and is transferring funds from the reserve account into both CCTR contracts, the CCTR contract numbers will be entered as such: CCTR1234, CCTR5678. The sum of the transfer amount for both contracts will be entered in the Transfer Amount field. The amount being transferred into each contract will be reflected in the individual fiscal and attendance reports for each contract.
Contractors holding CSPP contracts must reflect transfers from the reserve account separately. The amounts must be separated into CSPP - General Center Based reserve transfers and CSPP - Professional Development reserve transfers. Transfers from the reserve to other contract types should be entered in the corresponding contract type’s row.
CCTR, CMIG, CHAN, and CSPP General Center Based reserve transfers are used for “reasonable and necessary costs” in excess of contract reimbursement. CSPP Professional Development Reserve transfers are intended for, and will be restricted to, expenditures specifically associated with the professional development of CSPP instructional staff.
The prior year’s Reserve Account Status Report, CDNFS 9530A, will reflect the breakdown of the maximum General Center Based Reserve amount and the maximum Professional Development Reserve amount.
Transfers from the reserve account can be made only to contracts of the same type as the reserve account, and must be reported as a “Transfer from Reserve” on the corresponding Attendance and Fiscal Report form.
The ending balance(s) of the reserve account(s) are reflected after the user saves the entered data. All transfers from the reserve are summed automatically. The ending balance field is calculated as:
Beginning Balance + Interest – Transfers to Agreements