1. Budget Flexibility Financial Planning & Budgets http://fsv.uncg.edu/budgetflex.ppt

2. Budget Flexibility

3.  What is Budget Flexibility?  When is Budget Flexibility applicable?  What is reported to the Board of Governors?  What are the requirements for UNCG to retain budget flexibility?  How is the Budget Flexibility Form completed?

4. Budget Flexibility  What is Budget Flexibility? applies only to State Funds applies only to State Funds is the result of Legislation is the result of Legislation allows Universities to transfer budget in ways that were previously not available without the State Budget Office approval allows Universities to transfer budget in ways that were previously not available without the State Budget Office approval increases the campus purchasing benchmark increases the campus purchasing benchmark allows Universities to carryforward monies from one year to the next (with institutional limits) allows Universities to carryforward monies from one year to the next (with institutional limits)

5. Budget Flexibility  When is Budget Flexibility applicable? Transfer budget between personnel accounts (for example between SPA and Temporary Wages) or between personnel and non-personnel accounts (for example utilizing lapsed Teaching salaries for equipment) Transfer budget between personnel accounts (for example between SPA and Temporary Wages) or between personnel and non-personnel accounts (for example utilizing lapsed Teaching salaries for equipment) Transfers between Programs Transfers between Programs Chancellor’s allocation of year end carryforward funds Chancellor’s allocation of year end carryforward funds

6. Budget Flexibility  What is reported to the President and/or Board of Governors? Monthly report of revenues and expenditures Monthly report of revenues and expenditures Financial plan for use of prior year carryforward and use of current year projected lapsed salaries (due July 15- subject to delays in the State budget process) Financial plan for use of prior year carryforward and use of current year projected lapsed salaries (due July 15- subject to delays in the State budget process) Previous fiscal year’s Annual Report (due following October 10) Previous fiscal year’s Annual Report (due following October 10) describes management initiatives undertakendescribes management initiatives undertaken (continued)(continued)

7. Budget Flexibility  What is reported to the President and/or Board of Governors (continued)? increased efficiency and effectivenessincreased efficiency and effectiveness documentation of reallocation of resources (including actual uses of lapsed salaries)documentation of reallocation of resources (including actual uses of lapsed salaries) actual uses of prior year carryforwardactual uses of prior year carryforward positions established and abolishedpositions established and abolished positions vacant > than 9 months and an explanation for the vacancypositions vacant > than 9 months and an explanation for the vacancy Chancellor’s compliance certificationChancellor’s compliance certification

8. Budget Flexibility  What are the requirements for UNCG to retain budget flexibility? Chancellor is personally responsible Chancellor is personally responsible Adequate internal controls and capable staff Adequate internal controls and capable staff No significant audit findings; resolution No significant audit findings; resolution President must approve plan for uses of carryforward and lapsed salary President must approve plan for uses of carryforward and lapsed salary Annual reporting Annual reporting Internal Auditor report to the Chancellor concerning his review of transactions involving Budget Flexibility Internal Auditor report to the Chancellor concerning his review of transactions involving Budget Flexibility

9. Budget Flexibility  The Chancellor must also submit to the President: Plan of previous year’s carryforward Plan of previous year’s carryforward Plan for campus-wide use of lapsed salaries Plan for campus-wide use of lapsed salaries List of /and explanation for vacant positions which have been vacant for > 9 months List of /and explanation for vacant positions which have been vacant for > 9 months

10. Budget Flexibility  Other Issues: Chancellor cannot delegate flexibility approval authority below Provost or VC level Chancellor cannot delegate flexibility approval authority below Provost or VC level Internal Auditor’s role has increased in relation to increased reporting requirements for the use of lapsed salaries Internal Auditor’s role has increased in relation to increased reporting requirements for the use of lapsed salaries

11. Budget Flexibility  How do you process a Flexibility Request? Plan! Try to limit volume; we suggest an informal $500 minimum due to the time and amount of people involved with approving Plan! Try to limit volume; we suggest an informal $500 minimum due to the time and amount of people involved with approving and processing each flexibility request and processing each flexibility request Must be approved by the Provost or VC Must be approved by the Provost or VC (continued) (continued)

12. Budget Flexibility  How do you process a Flexibility Request (continued)? Identify position if using lapsed salaries Identify position if using lapsed salaries SPA lapsed salaries can only be used to hire a Temporary to fulfill the vacant position’s duties SPA lapsed salaries can only be used to hire a Temporary to fulfill the vacant position’s duties Determine most applicable “Reason” for the flex Determine most applicable “Reason” for the flex (continued) (continued)

13. Budget Flexibility  How do you process a Flexibility Request (continued)? Describe the initiative that was made possible by the flex Describe the initiative that was made possible by the flex Please consider that the information on all flexibility requests is compiled into the Budget Flexibility Report each year-if explanations are not sufficient, the process takes more time and creates additional work Please consider that the information on all flexibility requests is compiled into the Budget Flexibility Report each year-if explanations are not sufficient, the process takes more time and creates additional work

14. Budget Flexibility  In summary, Budget Flexibility has allowed UNCG and other UNC institutions to accomplish significant initiatives that otherwise would not have been possible  Budget Flexibility is a privilege that may be rescinded  Please be descriptive on the Flexibility Requests and respond to our inquiries as soon as possible. GA’s deadlines are real and may be short!

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