University of North Carolina - General Administration
Title: State Budget Codes - General Operating Funds
Administrative Policies and Procedures Manual
FRS Account Number Range 2-01000 - 2-02499
This group of funds consists of state appropriated funds, federal appropriated funds, and receipt supported funds in the state budget codes.
These funds should provide for expenditures for the normal activities necessary to operate the agency. The nature of the purchases will depend upon the mission of the unit and the types of supplies, equipment, etc. necessary to accomplish that mission. To a certain degree, the appropriateness of expenditures will depend on that mission. For example, a purchase of a streetsweeper might be appropriate from the Facilities Division budget, but inappropriate from the English department's instruction budget.
Miscellaneous State Budget Code Rules
The following provides information on many specific items as to their allowability or prohibition for expenditures from State operating funds:
- Membership Dues - Membership dues may not be paid for individual employees or for the benefit of an individual employee. Membership dues paid from state funds must be for the benefit of the agency and not the individual. If the agency is to benefit from an individual's membership in an organization, that benefit should derive not because of the individual, but because of the individual's position with the agency, regardless of who is in the position. Although a membership may be in the name of an individual, his/her member terminates at the same time he/she terminates employment with the agency or transfers to another department.
- Passports and Visas - Reimbursements for costs incurred in obtaining or renewing a passport may be made to an employee who, in the regular course of his/her duties, is required to travel overseas in the furtherance of official agency business. Passport expenses are chargeable to the same fund that supports the employee's trip. The university also interprets this to mean that similar related fees or expenses such as required visas may also be reimbursed.
- Moving expenses - An employee's moving expenses may be paid from state funds only when they meet each of the following criteria:
- A change of residence is deemd to be in the best interests of the agency (i.e. low density or difficult to recruit specialty, the one-time moving expense payment allows UNC-GA to offer a lower annual salary that would have been required if moving expenses were not provided, etc.), when such a change is required as a result of a promotion within the agency or by a change in assignment involving the transfer of the employee for the advantage and convenience of the agency. Moving expenses are not allowable if an existing employee requests the change.
- Move is accomplished within 90 days. The department head or designee may approve an extension of an additional 90 days. An extension in excess of the 180 days must be submitted to the Budget Office and approval obtained in writing from the Office of State Budget and Management.
- The new duty station is 50 miles or more from the existing (or prior) duty station.
- Scholarships - Scholarships may be paid from state funds only if they are part of a legislatively approved and separately budgeted scholarship program.
- Use of State Funds for Recognition of Individuals - The use of State funds for purchases related to the recognition of individuals is restricted. However, expenditures for this purpose are permissible if they adhere to the policies established by the Office of State Personnel (OSP) for meritorious service awards, as authorized in G.S. 126-4(8) (refer to "Service Awards" section of OSP's web site for further information). In addition, State funds may be expended, not to exceed $50, for the purpose of a plaque or for the printing and framing of a certificate. The expenditure of State funds for these purposes is subject to the availability of funds within the agency.
Unallowable Purchases from State Budget Codes
There are some purchases that are specifically not allowable from state funds. Listed below is information about unallowable purchases:
- The purchase of alcoholic beverages and "setups" is prohibited from state funds.
- The purchase of items for personal use is prohibited.
- The purchase of medications (pain relievers, aspirin, etc.) and/or medical supplies for staff/employees other than as may be required by federal or state regulations or for emergency first aid is not allowable.
- The purchase of microwave ovens, coffee pots, refrigerators, or related items for personal office use is not allowable. This prohibition does not extend to equipment or supplies utilized for educational or research purposes or for equipment purchased for all employees' use in the outfitting of a building.
- The purchase of plants or flowers (live or artificial) for decorative use in a office is prohibited.
- The purchase or framing of pictures, art, diplomas, etc. for use in a personal office for decorative purposes is not allowed. Exceptions include the purchase/framing of motivational or informational wall hangings which are functional rather than decorative in nature and are intended for departmental use rather than for one individual's office.
- The purchase of party items or other decorative items to decorate an office for a holiday or party or general decorative use including the purchase of balloons and other like items is not allowable.
- The purchase of picnic tables for a department other than by the Facilities Division as part of the campus maintenance function is not allowable.
- The purchase of picnic items (paper plates, cups, napkins, forks, spoons, etc.) for office/employee use is not allowable.
- The rental of portable water dispensers and the purchase of bottled water from state funds is not allowable and is considered a personal expense.
- The purchase of gifts or flowers for an employee or non-employee is considered a personal expense and is not allowable.
- The purchase of get well cards, sympathy cards, birthday cards, Christmas cards, or other holiday cards is considered a personal expense and is not allowable.
- The purchase of personal clothing items or t-shirts which are not required uniforms, safety related, or program related (for example, use in textile research) is not allowable.
- The purchase of promotional or gift items to be distributed at a conference is not allowable.