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Finance & Business Services -- Policies
UTAH VALLEY UNIVERSITY
Fiscal Year-End Carryforward Guidelines
For Appropriated Funds
Fiscal Year-End Carryforward Guidelines
For Appropriated Funds
(Updated May 13, 2008)
To facilitate good financial management, the following guidelines for the processing of fiscal year-end account balances in appropriated INDEX codes will be implemented beginning in 2007-08.
- Each fiscal year-end, individual Index balances will be carried forward as outlined below to the current expense account for that specific index.
- Encumbered funds (purchases in process) are not subject to this procedure and will be carried forward in total. To insure encumbrance of funds by year-end, departments are encouraged to begin the purchasing process no later than May 1 of each year.
- Unencumbered, positive balances not exceeding 5 to 7 percent of the total adjusted budget for the index will be carried forward.
- Requests to carryforward balances exceeding the 5 to 7 percent range must be submitted in writing to the appropriate Vice President no later than May 15. This request must identify the specific index, the planned expenditure, the planned date for the expenditure, and the dollar amount for the planned expenditure. Vice Presidents will review these requests and submit the approved requests to the Budget Office no later than May 30.
- Deficit year-end balances are highly discouraged. All negative budget balances will be carried forward in total. Vice Presidents will be provided a list of all deficit indexes and will meet with budget managers to implement corrective action.
- Carryforward amounts will be entered as budget revisions (transfers) into current expense by mid-August each year.
- An annual summary by department/school/college/division will be prepared by the Budget Office and provided to key administrators.
As carryforward funds are one-time in nature, these funds may not be used for on-going salaries/benefits. Temporary hourly help may be hired with carryforward funds. Carryforward funds may be used for current, travel and capital expenses in accordance with institutional policies.
Carryforward Examples
Negative
| Category | Adjusted Budget | Expenditures | Balance |
| Salaries | $194,084 | $194,080 | $4 |
| Hourly | $5,218 | $10,643 | ($5,425) |
| Benefits | $80,273 | $80,276 | ($3) |
| Current | $28,610 | $25,350 | $3,260 |
| Travel | $3,700 | $4,002 | ($302) |
| Capital | $1,751 | $1,751 | $0 |
| |
_________ | _________ | _________ |
| TOTAL | $313,636 | $316,102 | ($2,466) |
A negative $2,466 budget revision would be processed against this index’s current expense budget.
Positive within 7%
| Category | Adjusted Budget | Expenditures | Balance |
| Salaries | $190,043 | $190,043 | $0 |
| Hourly | $25,625 | $25,537 | $88 |
| Benefits | $85,483 | $85,480 | $3 |
| Current | $28,989 | $27,041 | $1,948 |
| Travel | $2,791 | $2,803 | ($12) |
| Capital | $4,720 | $4,722 | ($2) |
| |
_________ | _________ | _________ |
| TOTAL | $337,651 | $335,626 | $2,025 (6.02%) |
A positive $2,025 budget revision would be processed to this index’s current expense budget.
Positive above 7%
| Category | Adjusted Budget | Expenditures | Balance |
| Salaries | $136,163 | $79,653 | $56,510 |
| Hourly | $860 | $2,000 | ($1,140) |
| Benefits | $32,078 | $32,081 | ($3) |
| Current | $34,188 | $45,013 | ($10,825) |
| Travel | $4,935 | $2,461 | $2,474 |
| Capital | $16,000 | $1,366 | $14,634 |
| |
_________ | _________ | _________ |
| TOTAL | $224,224 | $162,574 | $61,650 (27.49%) |
A positive $15,696 (equal to 7% of adjusted budget) budget revision would be processed to this index’s current expense budget. The budget manager may petition his/her Vice President for approval to carryforward more than the 7% for specific projects.
For questions contact Linda Makin, Director of Budgets
makinli@uvsc.edu
ext. 8457