24 Pa. Stat. § 6-691
The moneys in the capital reserve fund shall be kept separate and apart from any other fund by the treasurer of the school district, and the moneys in the fund may be invested by the board of directors or by the board of education in securities legal for the investment of sinking fund moneys of school districts. The interest earnings on investments shall be paid into the capital reserve fund. The board of directors or the board of education may sell any such securities and reinvest the moneys in other securities or convert such securities into cash when the same may be needed for expenditure under the provisions of this act or for reverting to the general fund if the approved project or projects fail to materialize within the five year period. The school district shall annually show in its budget and in its annual financial report, the amount of moneys in the capital reserve fund which shall at all times be properly identified as to purpose and authority under which it is constituted.
24 P.S. § 6-691