Administrative Responsibility:   Assistant Vice President, University Budget

PURPOSE

General Fund operational carryforward balances will transfer to the new fiscal year as assigned. Designated fund carryforward balances will transfer to existing FOAPAL (Fund/Organization/Account/Program/Activity/Location) strings in Banner.

SCOPE

All units under the general fund

DEFINITIONS

1. Carryforward Funds - Positive or negative operational general fund budget balances moving from the prior fiscal year to the new fiscal year, in total reflecting part of the total fund balance at the end of a fiscal year. Rolled encumbrances are also part of the fund balance but moved to the new fiscal year in a separate process.
2. Budget Balance - The revised budget less net expenditures and encumbrances.

POLICY

The Office of University Budget (OUB) is responsible for the calculation, reporting and transfer of General Fund carryforward balances between fiscal years. OUB will provide units with details of general unrestricted balances from the prior year eligible to carry forward.

Funds carried forward in most cases are divided between carryforward accounts within operating units and an operating carryforward reserve held centrally. This division allows for the strategic use of the reserved funds over time. Each fiscal year at year end, the carryforward balance is divided into three sections with the first 1/3 remaining the operating units and the other 2/3 reserved. Each reserved third is returned to the operating unit in subsequent fiscal year, year-end processes. 

Units are responsible for covering their own deficit balances.  Units carrying forward deficits are required to complete a carryforward plan for OUB that establishes how the deficit balance will be cleared.

Units are to use carryforward balances to support one-time/non-recurring expenditures or costs. Carryforward funds cannot support or establish ongoing, or permanent, obligations, or expand or create new programs. There is recognition that certain carryforward balances do support longer-term research and capital activities. If necessary, these amounts will be allocated to appropriate plant or operational fund accounts.

The President or VP of Finance and Business Operations may amend the carryforward policy in any fiscal year if warranted due to economic or other conditions.

PROCEDURE

Responsibility/Action                         

1. OUB - Maintain and update records of carryforward methodologies for General Fund units (units that use single school/college/division carryforward indexes, indexes that carryforward in current FOAPALs, etc.).
2. CFO - Identify any changes in the carryforward allocation calculation based on the financial needs of the institution.
3. OUB - Provide preliminary carryforward allocation calculation to each unit by January. After the completion of the financial audit and closing of the fiscal year books, provide a final carryforward allocation calculation to each unit.
4. Units - Determine uses for carryforward funds in the next fiscal year in alignment with the strategic priorities of the unit.

APPENDICES

N/A

RELATED UNIVERSITY/BOARD POLICIES

N/A

Effective Date: N/A

Revised Date: 1/16/2019

Reviewed Date: 1/16/2019

To be reviewed, at minimum, every three years and/or revised as needed by: Assistant Vice President, University Budget

Next Review By Date: 11/21/2020

SUPERSEDES POLICY

N/A

HISTORICAL DATES

N/A