The Office of Financial Planning will follow these guidelines in administering year-end carryforward balances.
At the end of each fiscal year, departmental accounts may have positive budget balances, or negative budget balances within certain limits. These balances are the net of revenue, salary, travel, operating, and equipment object codes. Under a policy approved by the Budget Advisory Committee effective for the fiscal year ended June 30, 1997, departments may carry forward 100 percent of these available balances except salary & benefit balances, and up to five percent of negative year-end balances. Positive account balances within a budget unit must be used to offset any negative account balance exceeding five percent or $5,000.
Calculation of Position Balances
(1) Add 100% of the available balances (budget less actual) in travel, operating, revenue, and equipment; (2) minus any overexpended salary objects.
Calculation of Negative Balances
The calculation is the same as for positive. However, the carryforward is limited to a maximum deficit of 5% of the account's budget or ($5,000). Each budget unit will be required to offset excess negatives with positive balances in other accounts or departments within the budget unit. The budget unit should identify the positive balances that will be used for offset any excess deficits and coordinate with the Office of Financial Planning to process the necessary budget adjustment.
Conferences and Institutes and other self-supporting activities that have a designated fund balance will not automatically carry forward. The respective budget unit must initiate a budget revision to re-budget the prior year balance.
Designated & Special Funds
These include Student Activity Fees, Technology Access Fees, Special Academic Fees, and Physical Plant Projects in Progress. The Office of Financial Planning will coordinate with the respective budget units on processing the appropriate budget entries.
The Office of Financial Planning is responsible for the calculation, reporting, and transfer of carryforward funds between fiscal years. It is the responsibility of each budget unit to direct funds to cover negative account balances that exceed the aforementioned limit. Self-supporting activities are responsible for initiating budget revisions to re-budget prior year balances.
Budget Entries & Reports
The carryforward transactions will be automatically posted in the departmental accounts under account code 74000 with reference to CBxxxxxx. Processing will normally occur in September, after year-end processing is completed. The Office of Financial Planning will distribute a summary report of the carryforward amounts by department to the Provost and Vice Presidents.
INB Screen FGITBSR and SSB Budget Queries will be backup for the carryforward amounts.
The University Budget Advisory Committee retains the right to change the carryforward policy as needed in response to changes in the University's financial environment. Changes can include, but are not limited to, carryforward impoundment and reductions.