Reserves In 2008, the district reported zero in an unreserved-designated fund balance. The unreserved-undesignated fund balance was reported as $5,698,803. in 2010, the district reported an unreserved-designated fund balance of $1,160,000 and an unreserved-undesignated fund balance of $6,648,064. 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. Pennsylvania 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.