Reserves In 2008, the Dover Area School Board reported a $4,148,046.00 in an unreserved-undesignated fund balance. The designated fund balance was reported as zero. In 2009–10 school year, Dover Area Reported an end of year fund balance of $7.2 million. Pennsylvania public 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 public school districts are required by state law to keep 5 percent of their annual spending in the undesignated reserve funds to preserve bond ratings. By law, the state limits the total unreserved-undesignated fund balance at 8% of the annual budget for school districts that have budgets over $19 million a year. According to the Pennsylvania Department of Education, from 2003 to 2010, as a whole, Pennsylvania school districts amassed nearly $3 billion in reserved funds.