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ESTABLISHING UNIVERSITY STATE BUDGETS

Financial Planning and Budgets Section (FPB)

POLICY 4

Effective Date: 01/01/1999

Last Modified Date: 03/19/2002


General

The Chancellor has delegated the administration of approved state budgets to the Director of Financial Planning and Budgets. The Financial Planning and Budgets Office (FPB) establishes the various University budgets as soon as possible after approval has been obtained from the Legislature, the Board of Governors, and the Chancellor.

Continuation Budgets

The Board of Governors, the State Advisory Budget Commission, and the Legislature may make changes in the continuation budgets before including them in the Appropriations Act. The State Budget Officer then advises each institution of its continuation budget after necessary legislative approval, and coordination and review by the Board of Governors and the President. Upon receipt of the approved continuation budgets, the Chancellor reviews them and refers them to the Director of Financial Planning and Budgets.

Allocations

The continuation budget is permanently allocated to departmental accounts and is automatically rolled over from one fiscal year to the next by the computerized financial reporting system (FRS). Adjustments are made to these accounts as needed to reflect the action(s) taken by the Legislature.

State Budget Office Approval

FPB prepares budget revisions to continue into a new fiscal year those requests of a continuing nature that were approved after the continuation budget requests were originally submitted by the University.

Distribution

FPB distributes the approved continuation budgets (after adjustments for the continuing revisions) to one or more departmental accounts (X-XXXXX), consisting of subsidiary ledger and account identifier for each. Attributes are assigned to each account to identify the state code, purpose, and department in which the activity is located. Each account is for an activity for which the University must maintain separate cost records for operating, budgeting, and financial reporting purposes. The funds contained in each account are, in turn, split up and budgeted among the Budget Control Level object codes.

See also: FPB Appendix 1, Object Codes for Budget and Expenditures

Expansion Budgets

The President's Office and the Board of Governors review UNC-Chapel Hill's request for expansion budget, along with those for other branches of the University. The expansion budget is to provide funding for the expansion of existing programs and the creation of new programs. These requests are submitted to the State based upon relative need and in the priority determined most desirable to meet the objectives of the University system.

Allocations

After the Legislature makes its appropriation to the Board of Governors for the expansion budget, the Board of Governors makes allocations to each constituent institution, based upon the Board's evaluation of relative need and importance in helping the University system meet its responsibilities as an educational institution and to the people of North Carolina. At this point, the Chancellors are given an opportunity to make recommendations as to the relative importance of the various changes originally requested, as well as any new changes that should take priority over those originally requested.

UNC-Chapel Hill Allotment

The Board of Governors allocates appropriations to Carolina to support expansion of programs and creation of new programs.

Notification of Allocation

The Director of Financial Planning and Budgets advises the provost, vice chancellors, and the appropriate department heads of the expansion budget approved for their areas of responsibility. This also applies to enrollment changes and to faculty and EPA salary increases.


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