Reserves In 2008, West Branch Area School District reported no funds in an unreserved-designated fund balance. The unreserved-undesignated fund balance was reported as $3,383,053.00. In 2010, West Branch Area School District reported $5,080,418.00 in an Unreserved - Undesignated Fund. In 2013, the board reported there is $4,755,835 in reserves. PA school district reserve funds are divided into two categories – designated and undesignated. The undesignated funds are not committed to any planned project. Designated funds and any other funds, such as capital reserves, are allocated to specific projects. School districts are required by state law to keep 5 percent of their annual spending in the undesignated reserve funds to preserve bond ratings. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.