Difference between revisions of "Budget Administration"

Revision as of 13:50, 12 August 2011

Policy 501.1

1 Introduction

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2 Scope

3 Definitions

3.1 Base Budget

The Base Budget allocated to the University at the beginning of each fiscal year is generally the same as the previous fiscal year's final allocation, except for non-recurring funds specified by the Board of Governors, or increases/reductions made by the Office of State Budget and Management under mandates by the NC General Assembly.

A Base Budget is established for each division (headed by Chancellor and Vice Chancellors)within the University and is deemed effective as soon as the Certified Budget is adopted by the NC General Assembly and signed by the Governor. The ideal date is July 1 of each fiscal year, with North Carolina fiscal year being July 1 through June 30 of the following year. The Base Budget contains only continuing allocations and all non-recurring (one time) allocations are dropped at the beginning of the fiscal year.

4 Policy and Procedure Statements

4.1 Budget Administration

4.1.1 State Appropriations

The University receives State appropriations for operations and support on a year to year basis. The primary factor in determining the appropriated support received is the enrollment level approved by the Board of Governors of The University of North Carolina and the North Carolina General Assembly. Allocations to the University are received in the form of a "Certified Budget" (also called the Continuation Budget) and an "Expansion Budget". Both budgets are originally prepared by the University Budget Office. The Continuation Budget is submitted to the General Administration of The University of North Carolina and to the Office of State Budget and Management for their verification, approval and submittal to the North Carolina General Assembly. Upon approval of the General Assembly, Appalachian State University receives the approved Continuation Budget, known at this point as the "Certified Budget". Expansion Budget monies are approved by the Board of Governors upon the General Administration's recommendations based on the total student credit hours to be administered as dictated by the UNC Funding Model and certified by the NC General Assembly for The University of North Carolina.

4.2 Flexibility Budgeting

In the 1991 session of the General Assembly, legislation was enacted to allow the Board of Governors of The University of North Carolina to designate specific constituent institutions in which additional management authority and discretion would be delegated. These institutions are referred to as Special Responsibility Constituent Institutions (SRCI). Appalachian State University was designated a SRCI on April 9, 1992.

The SRCI designation is not permanent, and can be lost if management staffing standards, internal controls and safeguards are not met; if there are significant audit exceptions or findings; or if the mandated reversion is not met. Flexibility legislation was set to end June 30, 1994, because of a sunset clause. The 1993 General Assembly in the regular and reconvened sessions voted to continue Flexibility Budgeting.

Beyond the University's control, deterioration in the general economic condition of the state could cause the Office of State Budget and Management to intercede and impose its authority to negate the flexibility until the situation has improved.

4.3 Major Provisions of the Flexibility Legislation (N.C.General Statute 116-30.1, et seq)

• The Board of Governors, acting on recommendations made by the President after consultation with the State Auditor, may designate one or more special responsible constituent institutions (N.C.G.S. 116-30.1).
• All General Fund appropriations made by the General Assembly for the continuation budget of a special responsible constituent institution shall be made in a single sum for each budget code(Appalachian State University has only one budget code, 16080, for these purposes)(N.C.G.S. 116-30.2).
• Funds appropriated may be expended in the manner deemed appropriate by the Chancellor to maintain and advance programs and services of the institution; consistent with the directives and policies of the Board of Governors (N.C.G.S. 116-30.2).
• The University may carry forward into the next fiscal year unexpended balances of general fund appropriations. Such amounts cannot exceed 2.5% of the general fund appropriations and may be expended for one-time costs that do not impose additional financial obligations on the State (ie. equipment, travel, capital projects such as roofing projects)(N.C.G.S. 116-30-30.3).
• Positions may be established or abolished, acting in accordance with State Personnel policies and procedures with respect to SPA employees and in accordance with Board of Governors policies and procedures with respect to EPA employees(N.C.G.S 116-30.4).
• The Board of Governors shall require each special responsible constituent institution to include in its institutional assessment plan those assessment measures that are determined to be standard measures of student learning and development in general undergraduate education (N.C.G.S 116-30.5).
• The current benchmark established by the Board of Governors for Appalachian State University purchased that are required to be bid through the State Purchasing Office is $150,000 (N.C.G.S. 116-31.10). The special responsible constituent institution may enter into contracts for items currently under contract at the State level, should the price be less locally.

For a more in depth analysis of Flexibility Budgeting, please see the white paper on Budget Flexibility filed in the Budget Office.

4.4 Current Year vs. Permanent Budget Adjustment/Budget Revision

Budget adjustments or budget revisions are identified as one of the following types:

• Current Year Transfer: Affects the budget for the current year only; is not reflected as a component of the Base Budget in the following year.
• Permanent Transfer: Changes the budget for the current year and is reflected as a component of the Base Budget in the following year; becomes a permanent component in the next biennial Continuation Budget.

4.5 Allocations

Departmental Budgets - The "Certified Budget" is the Base Budget. The Chancellor and Vice Chancellors may adjust the Base Budgets as they deem necessary for their respective areas of responsibility. The Certified Budget is submitted to, and approved biennially by the General Administration of the University of North Carolina System, the Office of State Budget and Management (which reports directly to the Governor), and the North Carolina General Assembly. Additional increases/reductions to the Certified Budget (mandated by the NC General Assembly) are passed along to each division by the University Budget Office at the direction of the Chancellor and Vice Chancellors. The Chancellor and Vice Chancellors then allocate the increases/reductions to the Base Budgets of their respective areas of responsibility. When the increases and reductions have been determined, the individual responsible for each division's budget must submit the budget allocation form to the Budget Office. The form is an Excel spreadsheet disbursed by the University Budget Office to the Chancellor and Vice Chancellor's designated financial person which contains the budgets by both individual accounts and by budget pool. A copy of the Budget Allocation Form can be obtained by contacting the University Budget Office.

The budgeted amounts are verified and entered (WFUPLOADED) into Banner Finance System by the University Budget Office.

Budget pools are listed as follows:

• 719000 Contracted Services
• 720000 Supplies and Materials
• 731000 Travel
• 732000 Communications
• 733000 Utilities
• 734000 Current Services
• 740000 Fixed Charges
• 750000 Capital Outlay
• 756000 Library Books
• 785000 Other Expenses

The Banner Self-Service module and various E-Print reports can be accessed to view the budget pool(s) and the individual line-items applicable to that budget pool. See Procedure 3 for instruction on accessing the Banner Self-Service module.

5 Additional References

6 Authority

7 Contact Information

8 Effective Date

9 Revision Dates

Last modified 01/07/2011 12:24:29 PM by Anita