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Budget Transfers _ Lapse Guideli

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Budget Transfers _ Lapse Guideli Powered By Docstoc
					Budget Transfer
  Guidelines
         Budget Transfers
• Two types of budget transfers:
  – Intrafund
     • Within the same fund group as allowed
     • Within the same budget group
  – Interfund
     • Between fund groups as allowed
    Intrafund Transfers
    E&G 14-accounts
•    E&G Operating Budget is our plan approved
     by the Board of Regents
     – Published document shows how we intend to use funds
       by expenditure type and NACUBO classification.
     – Each VP is responsible for assuring allocations are used
       for the intended purpose.
    Intrafund Transfers
    E&G 14-accounts
•    Intrafund transfers between 14-budget groups
     are allowed with some restrictions:
      1. No transfers to/from F&A (14-7 accounts) and other
         14- E&G accounts.
      2. Research Development funds must be used in
         accordance with Ed Cd § 62.097: (a) An eligible institution
          may use money received from the research development fund only for
          the support and maintenance of educational and general activities,
          including research and student services, that promote increased
          research capacity at the institution.
      3. Special Items may have restrictions
          •   TRBs can only be used for debt payments for the construction
              project authorized.
    Intrafund Transfers
    E&G 14-accounts
•    Movement to other budget groups can impact
     financial reporting.
     – SRECNA is by NACUBO program = Instruction,
       Research, etc.
•    Movement within a budget group can also
     impact financial reporting.
     – Summary of Operating Results based on natural
       classification of expenses = Salaries, Benefits,etc.
     – User Defined Budget Pools drive these controls.
    Intrafund Transfers
    19-accounts
•    Movement between fee funded accounts and 19-
     7 accounts (and certain other 19-accounts is
     restricted); same with movement into F&A
     accounts 19-8 (or others that do not lapse).
•    Movement to Official Occasions accounts is
     restricted. Increases must be approved by
     AVP-Financial Affairs.
     –
                        Budget Pools
>> All budget categories have been displayed <<
           Set up Budget Categories for 19790400      Screen: 3
  Bud Bud            Cash
  Cat Pool Type Status Source           Budget Category Title
_ 70 12 EX A             191111       SCHOLARSHIPS AND FELLOWSHIPS
_ 75 12 EX A             191111       TRAVEL (ALL TYPES)
_ 98 12 IN A             191111       BALANCE FORWARD


                         All subaccounts have the same assigned pool
                 number – funds can be used for any of
                 the authorized purposes.

                           MOST EFFICIENT, ELIMINATES THE NEED TO
                           PROCESS TRANSFERS BETWEEN SUBACCOUNTS
                  Budget Pools
All budget categories have been displayed <<
          Set up Budget Categories for 14020500     Screen: 3
Bud Bud                 Cash
Cat Pool Type Status Source            Budget Category Title
06 03 EX A             EGPR2         FACULTY SALARIES - CONSULTANTS
09 09 EX A               EGLOC         ADMIN & PROFESSIONAL SAL
10 10 EX A             EGLOC          CLASSIFIED SALARIES
20 20 EX A             EGPR2         WAGES
21 21 EX A             EGPR2         WORK-STUDY WAGES
50 03 EX A             EG            MAINTENANCE, OPER & EQPT
99 03 EX A                           UNALLOCATED


                           Pool numbers assigned restrict budget usage by
                           subaccount or groups of subaccounts.

                          LEAST EFFICIENT – REQUIRES AN INTRAFUND
                   TRANSFER TO MOVE FUNDS INTO OTHER
                   SUBACCOUNTS. (Unless you want to restrict this
        with hard rules.)
Interfund Transfers
Between E&G and Designated Accounts
•   Interfund transfers between 14 and 19-accounts are
    only allowed because approx $27M of designated
    tuition and other fee revenues are transferred-in as a
    funding source for the E&G budget.
•   Otherwise, this practice would not be allowed.
    –   State Appropriations must be fully accounted for in E&G accounts
        and fully expended in the fiscal year awarded.
        •   We are required to spend every $ of our state appropriated funds in the
            same fiscal year awarded.
Interfund Transfers
Between E&G and Designated Accounts

 To and from 14- and 19-accounts:
 – Temporary transfers
    •   Access to money in the required fund is provided through a
        swap of budget. Subject to availability of funds.
 – Permanent transfers
    •   Allowed at the beginning of each fiscal year through the BDL
        process.
        –   During a fiscal year, the Budget Office will track permanent
            requirements through the commitment process.
Interfund Transfers
Between E&G and Designated Accounts
 What is allowed/not allowed?
 –   Transfers to 14-accounts must first meet the definition of E&G
     •   From 19-accounts sourced from designated tuition is allowed.
     •   From other 19-accounts as approved.
 –   Transfers out of 14-accounts must not violate Ed Code or General
     Appropriations Act (GAA)
     •   Can not EVER move 14-funds to 36-accounts for construction (e.g.
         renovations)
     •   Can not move Special Items funding.
 –   Should not move funds to avoid lapse rules unless approved by
     AVP-Financial Affairs.
Interfund Transfers
Between E&G and Designated Accounts
 –   Budget Office makes the determination of what
     is allowed.
 –   Request via email to Budget.Office@utsa.edu
       Include the following minimum information:
       1. From Account
       2. To Account
       3. Amount
       4. Reason for the transfer
Service Center 18-accounts

 –   Intrafund – only within same budget group
 –   Interfund – other than accounting charges
     budget transfers would be done to subsidize
     large deficits and are subject to the approval of
     the AVP-Financial Affairs.
 –   Increases in budget must be approved by AVP-
     Financial Affairs.
Grants & Contracts 26-accounts

 –   Intrafund – only within same budget group if
     allowed by the sponsor.
 –   Interfund – never allowed
Auxiliary Enterprise 29-accounts

 –   Intrafund – within same budget group allowed; to
     other 29-budget groups should be appropriate based on
     the revenue and justification for collecting the revenue.
     Otherwise, it may be more appropriate to transfer the
     expense, not the revenue.
 –   Interfund – allowed to fund 36-plant projects;
     transfers from 19-accounts may also be allowed upon
     approval of the AVP-FA.
Gift 30-accounts
  – Intrafund – within same budget group
     generally allowed; to other 30-budget groups if
     appropriate, upon approval.
    •   Approvals by the University Controller or designee.
  – Interfund – never allowed.
Plant Funds 36-accounts
  –   Intrafund – within same budget group to another
      project upon approval.
      •   Approvals by the University Controller or AVP-Financial
          Affairs or designee.
  –   Interfund – allowed to
      •   Establish a new project account – but never from E&G
          –   Amounts over $100,000 subject to UT System approval.
          –   Amounts over $500,000 require BoR approval.
      •   Return funds to the original revenue source in excess of need
          when a given project is closed-out.
Lapse Guidelines for
  Fiscal Year End
     Balances
 Lapse Guidelines –
 Educational & General Funds
 (14 – Accounts)


• Deficits not cleared prior to year end will be cleared
  during the lapse process.
• Most E & G budget balances lapse at fiscal year end
  and are allocated:
   – 50% to appropriate VP’s Reserve Fund
   – 50% for deferred maintenance
E & G Funds (14 – Accounts)
Exceptions to Lapse Guidelines
The following E&G balances are not subject to
lapse (carry forward 100%):
• President/Vice President Reserve Accounts
• GIT Accounts
• Lab Fee Accounts
• Research Development & Special Item Appropriations (to the
   amount in the GAA)
• Facilities & Administration (F & A) 14-7 accounts with balances
   from FY 2007 (no transfers in to these accounts!)
    – Balances under $100 will be swept to Dean / VP account
Lapse Guidelines (19 – Accounts)
Designated Funds

• Deficits not cleared prior to year end will be
  cleared during the lapse process.
• M & O 19-7 accounts will lapse at fiscal year
  end and are allocated:
   – 50% to VP’s Reserve Fund
   – 50% for Deferred Maintenance
Designated Funds (19 – Accounts)
Exceptions to Lapse Guidelines

The following Designated 19- Accounts are
not subject to lapse (carry forward 100%):
• Most 19- accounts sourced from fees - other than 19-7
• 19-79 Graduate Program Support
• Official Occasions Accounts
• Facilities & Administration (F & A) 19-8 accounts -
       • F&A balances under $100 will be swept to Dean /
         VP Account
 Designated Funds (19 – Accounts)
 Lapse Restrictions

• Transfers from an account that will lapse to an
  account that does not lapse may be disallowed
• Detailed explanations are required
   – Questionable transfers subject to approval by AVP-
     Financial Affairs
   – No exceptions.
Lapse Guidelines – Service Centers (18-
Accounts)

• Not subject to lapse (carry forward 100%)
• Any Surplus/Deficit exceeding 10% requires
  special exception and approval of AVP-Financial
  Affairs or University Controller
• Subject to new Service Center policy for
  compliance with OMB Circular A-21.
   – Contact Carol Hollingsworth with questions at x4229
Lapse Guidelines – Other Fund Groups

• Year end balances in the following funds are not
  subject to lapse (carry forward 100%)
   – Grant and Contracts (26 Accounts)
   – Auxiliary Enterprise (29 Accounts)
   – Gift/Restricted Funds (30 Accounts)
   – Plant Funds                   (36 Accounts)