Budget and Planning

Carry-forward

 

A revised program of carry-forwards for designated accounts has been implemented effective FY15.  For FY15, the carry-forward balances from FY10 to FY13 have been reviewed by the business managers of each college in collaboration with budget office.  All carry-forward balances have been netted and only positive carry-forward balances have been loaded into Banner.

In future years, the carry-forward balances will be calculated after the fiscal year is closed (typically October) and will be available for distribution the following fiscal year creating a one year lag.  The new carry-forward balance will be added to any remaining, unspent carry-forward budget from the previous fiscal year.

Carry-forwards only apply to designated funds and cannot be used for general fund operating expenses.  Carry-forwards require cash and the University must be able to plan for cash flows appropriately.  Therefore, a department will develop a plan for spending requested carry-forward budget and the plan needs to be approved by the dean of the college and the University provost before submitted to the AVP of Finance & Administration for review and final approval.

The procedures for requesting and spending carry-forward budget is as follows:

    • Carry-forwards are available for designated funds only.  Excluded from this are small grants and URAF indexes due to the nature of how these dollars are to be spent (within one year).  Also excluded are non-college designated funds.  The EVP of Finance & Administration may grant exceptions to this rule.
    • Carry-forwards will be determined by the actual revenue/transfer and expenditures in a designated fund each year.
    • A plan for spending carry-forwards will be developed by each college, and the Dean and Provost must approve the plan.  The plan will be shared with the EVP of Finance & Administration for planning purposes to help monitor cash flow issues.  The plan must be submitted and approved by the Provost and shared with the EVP of Finance before spending occurs.  Colleges/departments are encouraged to use carry-forward balances on items that can be capitalized (such as construction projects in excess of $50K or tangible equipment of at least $5K).
    • Carry-forward balances will be calculated each year after the fiscal year is closed.  Since this does not happen until October, the carry-forward for the current year will not be available for use until the following fiscal year.  For instance, FY14's carry-forwards will not be confirmed until October 2014 (which is FY15).  The balance from FY14 would then be added to any remaining carry-forward balance from FY10-FY13 and be available in FY16.
    • The Office of Financial Planning, Analysis, and Budget will monitor carry-forward balances and spending on a monthly basis.  Budget staff will meet with their respective areas' business managers to review how the areas are doing comparing budgets to actuals including the carry-forwards.

Mechanics

Total carry-forwards for each college will be loaded into a new index that has been created for each dean in their designated fund. The positive carry-forward will be loaded into the 79940 account code.  To balance this positive, a new account code (79941) has been created and will also be loaded into the same index.  This account code will have a "contra" carry-forward amount.  This is so that when a business manager wants to run a report to see what their operating budget is for the year the positive carry-forward budget will not inflate their numbers.

As plans are submitted and approved (through the Dean, Provost, and EVP of Finance) a transfer can be done to move the approved amount to the designated index where it will be spent.  Nothing can be spent out of the carry-forward index.  Inter-fund transfers will done for the movement of these funds.  In this way determining the carry-forward in future years will be simplified as the plan (as outlined above) is to use just the actual column in the designated funds that receive carry-forward.

Last Updated: 10/23/17