Policies

Designated and Auxiliary Funds

Units supported by revenue producing programs recorded in the designated fund group (fund 2XXX) and auxiliary fund group (fund 3XXX) will have base and current revenue (REVEST) and expense (ORG) budgets loaded to PeopleSoft from the Budget Development Module in September.  This provides programs and auxiliary units that incur costs, prior to the receipt of revenue, the flexibility needed to start operations each year.

It is the responsibility of each unit, with the assistance of the Business Coordinator, to provide a revenue estimate based on program activity and rate structure.  At the end of the fiscal year, actual expenses may not exceed actual revenue plus budget balance requested from the previous year.  The Budget Office staff will monitor the revenue and expense patterns throughout the year and work with the Business Coordinators to make adjustments to refine their revenue projections as needed.

Budget balances available at year end will not automatically carry forward for designated or auxiliary cost centers.  The remaining balances will be held in the department’s unbudgeted reserve for use in future years.  Departments relying on reserves to support the base expenditure budgets should use B4035 (Fund Balance) as the offset to balance revenues to expenditures.  Funds must be available in unbudgeted reserves. As other funding needs arise during the year, funds held in unbudgeted reserve may be accessed by processing a budget journal.

It is the responsibility of each unit, with the assistance of the Business Coordinator, to provide a revenue estimate.  For restricted funds (fund 4XXX), extra caution should take place to ensure that at the end of the fiscal year actual expenses do not exceed actual revenue plus fund balance budgeted from the previous year.  The Budget Office staff will monitor the revenue and expense patterns throughout the year and work with the Business Coordinators to make adjustments to refine their revenue projections as needed.

Base and current revenue (REVEST) and expense (ORG) budgets will load to PeopleSoft in September, using the projected amount in the Budget Development System.  Budget balances available at year end will not automatically carry forward for restricted cost centers.  The remaining balances will be held in the department’s unbudgeted reserve for use in future years.  Departments relying on reserves to support the base expenditure budgets should use B4035 (Fund Balance) as the offset to balance revenues to expenditures.  Funds must be available in unbudgeted reserves. As other funding needs arise during the year, funds held in unbudgeted reserve may be accessed by processing a budget journal.

Contract and Grant Funds

All contracts and grants (fund 5XXX) will be budgeted in holding cost centers established for each division and will not load to PeopleSoft.  In addition to estimating a balance available at year end, each division, with the assistance of Research Administration, will project any anticipated new awards.