Budget Policies

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Budget Management Principles
  1. Decisions regarding approved budgets should be made by the appropriate college or university division and not centrally.
  2. Division leaders (deans and assistant chancellors) may not create unfunded liabilities for the university. This includes new positions, long term contracts, or other commitments of funds that exceed the ability of the college or division to pay for the full cost of the commitment over its entire duration.
  3. Account managers and additional signers are authorized to expend departmental account funds as they deem appropriate if allowable by UW-Platteville, System, State and Granting agency policies.
  4. Account managers and additional signers are authorized to transfer expenditures between departmental accounts as they deem appropriate if allowable by UW-Platteville, System, State and Granting agency policies.
  5. If account managers wish to re-allocate funds between budget categories (i.e. Salary, Supply or Capital) or departments, they must submit a budget transfer request to the budget office.
    1. For GPR funds, a shift from supply to salary will result in an assessment for fringe benefits at the UW System calculated rate (currently 39.61% through FY2015).
  6. Division leaders are responsible for identifying and communicating their plans for lapse obligations or budget reductions to the budget office.  Plans must be submitted using the approved template.
  7. Position Control: The Provost will review all vacant positions, communicate with governance groups as appropriate on vacancies, and allocate positions consistent with any restrictions imposed by funding sources, and report on decisions.
    1. For positions in colleges, deans will be consulted before decisions are made.
    2. For positions in other divisions, senior team members will be consulted.
  8. New Positions: The Provost will review all requests for new positions and communicate with governance groups, as appropriate, and report on decisions.
    1. The Provost will consult with the budget office to determine the ability to fund new positions.
    2. Salary savings from newly created positions that have not been filled, will accrue centrally until the first time the position is filled, whether with an interim hire or otherwise.
    3. Colleges and divisions will continue to keep salary savings related to existing positions as vacancies or savings accrue.
  9. Division leaders should work with the department to identify how to reallocate approved budget resources during the year to address new priorities or manage allocations of state lapses. Division leaders should not request additional funds outside of the annual budget development process.
  10. Carryover funds:
    1. The following funds automatically carryover – 123, 128, 132, 134, 136, 150, 161, 189, 228, 233
    2. The following funds rollover only if the grant period extends beyond the fiscal year – 133 and 144
    3. Fund 131 has a combination of automatic carryover and requested carryover.  Carryover must be requested for TSI accounts (40xxxx).
    4. To carryover funds on Fund 102/402 or Fund 131 (TSI), a request must be submitted by the division leader to the budget office with a plan for the use of the carryover funds.  This plan is needed to communicate planned uses of the funds internally and externally as needed. Carryover requests must be submitted using the approved template.
      1. Carryover may be requested for up to 80% of end of year account balances.  The other 20% will be retained centrally to improve the core financial model or for specific one-time expenditures as communicated in August of each year; these will not be available for ad-hoc requests during the year.  Other carryover funds not approved in August of each year will also be allocated in August or set aside as a fund balance until the next annual budget cycle.
        1. TSI Fringe Benefit savings: Starting with the 2014-15 savings, these will be retained centrally by the institution rather than included in amounts that colleges and divisions may request as carryover.
        2. The funds will be used to support the additional augmented compensation for faculty.  Any remaining funds will be used to improve the core financial model.
      2. Requests will be approved, modified or denied by the Vice Chancellor for Administrative Services based on the specifics of each request and management of overall fund balances and reserves.
      3. To align with the goal of tracking costs per program, the carryover budget will be posted to the program that makes the expenditure and not a central college or division account.
      4. Any funds carried-over from the prior fiscal year, not expended or encumbered by the end of quarter two, may be reallocated from the college or division.  The second quarter report will note the funds that are being reviewed for reallocation and colleges and divisions will have two weeks to object to the reallocation.
    5. Before TSI departmental funds can be carried over, all GPR departmental funds must be fully expended.
  11. Current Year Expenditures: The Vice Chancellor for Administrative Services will review college and division budgets and expenditures monthly; a report will be provided to the Chancellor, Provost, deans, senates and senior staff quarterly regarding expenditures.  If a college or division is not utilizing budgeted funds, the Vice Chancellor will review the situation with the dean or division head and may recommend reallocation of funding to the Chancellor during the current year.
  12. Internal University Loans: Colleges and divisions may request loans from university balances to purchase equipment and other one-time items including facility expenditures.
    1. Loans will be repaid based on an agreed-upon schedule not to exceed five years.
    2. This will allow colleges and divisions to purchase needed equipment and other items instead of waiting several years to accumulate adequate balances in their accounts.

 

Updated May 8, 2014

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Budget Forms

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