Educational and General Programs include all of the University's academic programs and support services. Revenues are derived mainly from state appropriations and student tuition and fees. Under the biennial budget process, the University submits funding proposals to the Commonwealth for operating and capital needs. These proposals are based on the University's proposals, the Governor's priorities, and an estimate of the total revenues expected to be available for appropriations. The Governor presents a budget for all state agencies and institutions to the General Assembly. The General Assembly appropriates funds for a two year period.
Commonly referred to as E&G Funds, Educational and General Programs are State funds and may not be used for expenditures such as gifts, alcohol or social memberships. Please see Allowable and Non-Allowable Expenditures for a complete list.
The Educational and General Programs Budget Plan is prepared in accordance with the assumptions used in the appropriation process. However, certain adjustments may be made to reflect University priorities and needs. Initial permanent and current operating budgets are established based on the Consolidated Budget Plan approved by the Board of Visitors.
Please see: Definitions of Permanent, Current and Adjusted Budget
During a fiscal year, changes may be made to individual departmental budgets subject to the following policies and procedures. Budget & Resource Analysis will provide staff support and serve in a coordinative role in the preparation of budget reallocations. All budget reallocations will be reviewed for compliance with state restrictions.
a. All reallocations, both permanent and current, must be reviewed and recommended by the appropriate dean/director and approved by the appropriate senior executive officers. Reallocations of $250,000 or more for an organization or set of similar organizations require the approval of the appropriate Vice President. If a reallocation crosses executive levels, all areas must approve the transaction. Reallocations of $500,000 or more for an organization or similar set of organizations which do not change program direction require the approval of the President upon the recommendation of the Vice President for that area. Reallocations of $500,000 or more which change program direction require the joint recommendation of the Vice Presidents. Departments should not split budget reallocations to circumvent the $250,000 and $500,000 approval requirements.
b. Permanent budget may not be reallocated to/from instructional and administrative/professional faculty or classified positions without the approval of the appropriate senior executive officer. The budget for an non established faculty or classified position may be reallocated to wages. Reallocations requested in accordance with Outside Professional Activity and Employment, Research, and Continuing Education are exempt from this restriction.
c. Budget may not be reallocated from fixed cost budgets to other areas of expenditure without an accompanying impact statement. (Fixed costs are defined as technical service costs, energy costs, rent and insurance costs, family practice payments and library books and periodicals.) This impact statement must address future year funding requirements and be approved by the appropriate senior executive officer. This authority cannot be delegated.
d. Expenditure budgets supported by dedicated revenue accounts may be adjusted based on revised revenue estimates. If the permanent or current budget for an account is increased or decreased by more than 10 percent during the fiscal year, specific justification for the change must be approved by the appropriate senior executive officer for the area. Current expenditure budgets supported by revenues will be adjusted by Budget & Resource Analysis at year end on actual collections.
e. Unless specifically restricted, senior executive officers and deans/directors may delegate their expenditure authority. Delegation of authority must be documented and a copy kept on file in Budget & Resource Analysis for use in review of reallocations.
f. All reallocations from the University Contingency account must be approved by the President upon the joint recommendation of the Vice Presidents.
Budgets may not be overspent at the organization (index) level. Individual Vice Presidents have oversight responsibility for monitoring and controlling operating budgets for units under their purview. The Senior Vice President for Finance and Administration has overall responsibility for ensuring that the University as a whole remains within authorized budget levels.
a. Normally, budget will be loaded and budget control will be established at the individual Banner org/index level. An individual Vice President may approve selected exceptions to budgeting at the individual E&G org level as long as (1) there are sufficient funds in the unit / executive level to support expected activity and (2) compensating budget control is in place. Any exception must be documented in writing and approved by the Office of the Vice President, with a copy on file with the University Office of Budget and Resource Analysis.
b. Departmental administrators and fiscal personnel are responsible for reviewing information in Banner Finance for accuracy and ensuring that sufficient revenue budget and expenditure budget is available to support the fiscal year activities. In the event that a Banner org/index goes into a deficit, the deficit must be resolved as soon as possible but no later than the next month-end. Budget and Resource Analysis is responsible for central University monitoring of deficits in E&G Funds and will work directly with the individual Vice Presidents’ offices regarding appropriate follow-up actions. There may be instances where it is necessary for a Banner org/index to go into a deficit. These deficits must be authorized in advance by the Senior Vice President for Finance and Administration.
c. In order to fill a vacant position (faculty or classified), sufficient permanent and current budget must be allocated to support the salary and fringe benefits to the selected candidate. Employment offers cannot be made until full funding is identified.
d. In order to process part-time or wage appointments, sufficient current budget must be allocated to support projected annual costs for the fiscal year. Departments are required to identify the annualized cost of each hourly wage or part-time appointment and process a budget reallocation if sufficient current budget is not available in the organization (org/index).
Transfers Between State and Local Funds
Since E&G Funds are state supported, transactions that debit (charge) E&G Funds and credit University Funds (also called local funds or cash accounts that belong to the University) are not allowed.