Carryforward Expenditure Policy

Michael V. McKee, Vice President and CFO

Recently passed legislation is prompting changes to Board of Governors regulations with respect to university operating budgets. Based on the proposed regulation changes, the university is implementing new restrictions for E&G state appropriations. Effective with the current FY19-20 fiscal year, the university is required to submit a detailed carryforward spending plan for approval by both the Board of Trustees and Board of Governors, which will serve as a budget for that year. The commitments included in the spending plan will come from the information supplied by colleges and departments through the Commitments Ledger, and it is important that the data maintained in that system be updated regularly.  Furthermore, any construction-related spending over $250,000 or involving new square footage must be coordinated through the Planning, Design and Construction department to ensure it is included in the university’s separately reported Fixed Capital Outlay budget.

Carryforward expenditures will now be restricted to the following categories:

• Renovation, repair, or maintenance projects up to $5 million
• Replacement of a minor facility not exceeding 10,000 gross square feet up to $2 million
• Remodeling or infrastructure projects up to $10 million
• Repair or replacement of buildings damaged by natural disasters
• Additional funding toward an approved PECO project
• Non-recurring operating expenditures (generally defined as expenditures that are time-limited with a known end date and have no guarantee of future funding)

Some examples of non-recurring expenditures that would be allowable on carryforward funds include the following:

• Summer appointments
• OPS appointments
• Adjunct faculty appointments
• Visiting faculty appointments
• Short-term appointments with a fixed termination date
• Overlapping appointments, such as cross training a new hire before an incumbent retires
• Faculty start-up
• Repairs and maintenance
• Equipment
• Financial Aid
• Travel
• Office supplies
• Temporary/lump sum payments
• Consultants

Recurring salary costs for permanent faculty and staff appointments are not allowed on carryforward funding.  Any recurring costs that have been charged to carryforward funds since July 1 should be moved to another source of funds, such as current year appropriations.  Please contact the University Budget Office at 392-2402 if you have any questions about the new restrictions.