LAPSE GUIDELINES FOR FISCAL YEAR-END BALANCES 5

Lapse Guidelines – Educational & General Funds Disposition of E & G balances are based on each Vice President’s direction for their areas Prior to year end, Budget Office sends year end balance reports to Primary Financial Area Reps for processing budget transfers E&G remaining balances should be zero Any negative balances are addressed and cleared Certain accounts are not subject to the lapse, including VP reserves, GIT & lab fees Most Special Items, must have their FY 2016 funding fully expended by August 31. Examples are: SBDC, Core Research, Institute of Texan Cultures, etc. Plan ahead so any budget corrections are processed by Aug 1st. 6

Lapse Guidelines - Designated Funds Disposition of centrally funded Designated account balances are based on each Vice President’s direction for their areas. Prior to year end, Budget, Planning & Development Office will provide negative year end balance reports to Primary Financial Area Reps for processing budget transfers Budget Transfers are completed as determined by VP Area Any negative balances are addressed and cleared as appropriate Certain Designated Accounts are not subject to lapse and roll forward: Most designated accounts sourced from fees Facilities & Administration (F & A) accounts 7

For questions, please contact your Financial Area Representative Centrally Funded E&G and Designated Cost Centers Recap by VP Area - FY 2016 President’s Office – department balances at year end will roll forward Academic Affairs – department balances in E&G cost centers will lapse to VPAA reserve and designated balances at year end will roll forward. Business Affairs – department balances at year end will roll forward Community Services – department balances at year end will roll forward External Relations – department balances will lapse to VP External Relations reserve Research – departmental balances and balances in E&G salary accounts will lapse to VP Research reserve Student Affairs – department balances and balances in E&G cost centers will lapse to VP Student Affairs reserve For questions, please contact your Financial Area Representative 8

Remaining Balance - Service Centers Not subject to lapse (carry forward 100%) Any surplus/deficit exceeding 10% requires special exception and approval of AVP-Financial Affairs Monitored by Controller area Subject to Service Center Policy for compliance with OMB Circular A-21.For questions please contact: - Sheri Hardison x6774 9

Remaining Balances - Other Fund Groups Year-end balances in the following funds are not subject to lapse (carry forward 100%): Grant and Contracts Auxiliary Enterprise Gift/Restricted Funds Plant Funds 10