Data Request: Fund Balance Update

Joseph Glover, Provost and Senior Vice President for Academic Affairs
Michael V. McKee, Vice President and Chief Financial Officer

As you know, the Legislature and our Trustees continue to inquire about the unencumbered cash balances maintained by the University. It’s critical that we be able to accurately identify the purposes for holding these funds in a timely fashion, especially in the context of annual budget discussions.

The University began using a Commitments Ledger this past year to document funds that units have set aside for specific purposes but have not formally encumbered in the accounting system. Common examples include faculty startup funds, major equipment purchases and renovations. The Commitments Ledger is available for department personnel to update anytime, and we ask that it be reviewed and updated quarterly at a minimum. This includes not only adding new commitments, but also removing commitments that have subsequently been recorded as encumbered or expended in the accounting system. Failing to remove such items will result in overstating the financial impact.

As the legislative session gets underway, we ask that you take this opportunity to ensure the Commitments Ledger for your unit is up to date. Specifically, we have been asked to provide updated data regarding carryforward funds to the Board of Governors by January 24th, and will be using data in the Commitments Ledger as of January 19th to respond to that request. If you or your staff have any questions about using the Commitments Ledger, please contact the University Budget Office at 392-2402.