Policies & Procedures


 

Section: ACT
Part: POL
Statement No.: 8.0
Date: 05/25/2012
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Budget Policy 8.o0

North Carolina Executive Budget Act

The State Budget Act constitutes the legal basis for the budget system in North Carolina. The State Budget Officer issues directives to the University System to serve as the basis for the preparation and submission of budgets as may be required by the General Assembly, on either a biennial or an annual basis.

The Board of Governors of the University of North Carolina is required by G.S. 116-11 to present requests for funds for the continuing operation of each constituent institution of the University System, including UNC General Administration.

The statute further specifies that appropriations made in response to such Continuation Budget requests be made directly to the individual units of the University System, including UNC General Administration. The statute specifies that all Expansion Budget and Capital Improvement requests are to be submitted by the Board of Governors. After legislative approval is obtained, the Board of Governors of the University of North Carolina will allocate to UNC General Administration those portions of the Expansion and Capital Improvement Budgets that they determine are necessary for the programs and activities. The allocations may be on a specific one-time basis (e.g., Capital Improvements and one-time Expansion Budgets) or on a continuing basis, as is usually the case for most Expansion Budgets for educational and service activities.

State Appropriation Budgets and Controls

The Budget Officer establishes and maintains budgets of state funds and carries out the following activities for UNC General Administration:

  • Prepares the biennial base continuation budget for budget codes 16010, 16011, 16012, and 16015
  • Establishes budgets as approved by the President for the various agency departments
  • Adjusts these budgets upon properly approved requests for revisions
  • Requests and maintains periodic allotments for state budget codes to cover estimated period operations
  • Controls FRS budget input and reconciles controls to financial reports produced as well as all other reports
  • Provides financial planning and assists departments as requested

Salary and Position Control Section

Establishes and maintains budgetary controls on all EPA and SPA positions, both FTE (full-time equivalent) and dollars, funded partly or entirely by state appropriations. This also includes receipt-supported positions budgeted through a state budget code.

General

The Chief Operating Officer has delegated administration of approved state budgets for UNC General Administration to the Assistant Vice President for Finance & Budget Officer. The Budget Officer establishes the various UNC General Administration departmental budgets as soon as possible after approval has been obtained from the Legislature, the Board of Governors, and the President.

Continuation Budgets

The Board of Governors, the President, Office of State Budget and Management, Fiscal Research, and the Legislature may make changes in the continuation budgets before including them in the Appropriations Act. The State Budget Officer then advises each agency 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 Budget Officer allocates departmental 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 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

The Budget Officer 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

The Budget Officer 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 agency 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.

Operating Budget

The operating budgets include the continuation and expansion budgets. After the operating budgets are established, the Budget Officer notifies each department head of the department's budgets. Thereafter, it is the department head's responsibility to see that expenditures are kept within the detail budget established for each account.

Budget Revisions

Budget revisions should be based upon continuous program planning and review of cost trends for the current fiscal period.

Approval for Changes

Requests for changes should be made through the appropriate department head and/or Vice President, who in turn will forward the requests to the Budget Officer. The Budget Officer will determine whether the budget change will have to be approved by the Office of State Budget and Management (OSBM) or if it meets the requirements for either authorized internal transfers or "flexibility." (Flexibility is a term that is used to describe the participation of UNC General Administration as a Special Responsibility Constituent Institution.)

Budget requests that meet the criteria for flexibility revisions will be reviewed and signed by the Budget Officer. If the justification is sufficient, approval will be granted.

Authorized internal transfers will be approved by the Budget Officer. Requests for budget transfers that require approval of OSBM will be approved by the Budget Officer, before being submitted to OSBM. The Budget Officer will notify the department when changes are approved or disapproved by OSBM.