27.04 Budget Authorizations, Limitations, and Delegations of Authority
Approved February 27, 1995 (MO 44-95), Revised September 1, 1995 (MO 286-95), Revised July 26, 1996 (MO 169-96)
The following are the definitions, authorizations, limitations, delegations of authority, and reporting requirements with respect to the annual operating budget as approved by the Board of Regents.
1. DEFINITIONS OF TERMS AS USED IN THE BUDGETS
The terms "Total Payroll," "Other Expenses," and "Capital Outlay," as used in the budgets of the System, shall have the following meanings:
1.1 Total Payroll: All salaries for positions listed in the budget plus such wages or unallocated salaries as are listed, including graduate and research assistants, teaching fellows, lecturers, and sums reserved for longevity and hazardous duty pay.
1.2 Other Expenses: All necessary operating expenses other than total payroll, and capital outlay as set forth below. "Other Expenses" includes items such as professional fees, employee retirement matching, OASI matching, workers' compensation insurance, staff group insurance premiums, consumable supplies and materials, postage, telephone and telegraph, utilities, repairs, travel, rents, insurance and bond expense, scholarships, payments of principal and interest on indebtedness, and merchandise purchases for resale.
1.3 Capital Outlay: Items of a nonconsumable or nonexpendable nature on which inventory control is maintained including furniture, equipment, machinery, motor vehicles, library and reference books purchased for library only, livestock, land and improvements thereto, buildings, and structures.
2. CLARIFICATION OF SALARY ITEMS BY SOURCE OF FUNDS
The approval of the operating budget for each component of the System authorizes the total salary for each position. The sources from which individual salaries are to be paid are for payroll purposes only and no restriction is intended with reference to changes between sources of funds.
3. BUDGET INCREASES
Except as authorized in Paragraph 4, below, an increase to the operating budget from funds not previously appropriated by the Board, including general revenue, Special Mineral Fund, Available University Fund, Higher Education Assistance Fund, Permanent University Fund Bond Proceeds, and Revenue Financing System Bond Proceeds, requires advance approval of the Board of Regents. Increases of $300,000 or less may be approved by the Chancellor and reported to the Board of Regents for confirmation at its next regular Board meeting.
4. AUTHORIZATION FOR BUDGET AND FISCAL CHANGES
With the approval of the Chancellor, or pursuant to delegations of authority by the Chancellor, the following changes may be made in the budgets as approved by the Board of Regents:
4.1 Creation of Additional Positions and Increases in Operating Budgets. Funds from position adjustments, from other salary or wage savings, from savings in amounts budgeted for "Other Expenses" and "Capital Outlay" as outlined below, from balances brought forward, from fund transfers, from income in excess of the budget estimate, or from funds budgeted from unallocated salaries or reserves, may be used to create additional positions and to increase operating budgets when it is in the best interest of the System.
4.2 Transfers between "Total Payroll," "Other Expenses," and "Capital Outlay". It is intended that, as nearly as practicable, expenditures be made in accordance with budgeted categories of "Total Payroll," "Other Expenses," and "Capital Outlay" and in accordance with the justifications for each on which the approval of the budget is based. However, when changing conditions make it in the best interest of the System, savings may be transferred among such items within the fund groups in which the savings or unused budgeted amounts occur.
4.3 Allocation of Sales and Service, Federal Grant Funds, and Gifts and Grants in Excess of Budget Estimates. Income received in excess of budget estimates from sales and services, federal funds, gifts and grants, and other miscellaneous sources may be allocated to the expenditures of such funds.
4.4 Reappropriation of Balances from Previous Fiscal Year. Balances reserved for outstanding orders and contracts as of the last day of a fiscal year are reappropriated for expenditure during the following fiscal year. Unexpended balances in appropriations previously made for extension of physical plants (Plant Fund) are reappropriated for the purposes stated in the original appropriation. Estimated year-end balances of the component agencies and funds other than educational and general funds of the component universities are included in the budget for the following fiscal year and actual balances may be carried forward for that purpose.
5. DISTRIBUTION OF THE AUF
The criteria for allocation of the Available University Fund (AUF) shall be a historical expenditure analysis for each institution eligible for AUF. The appropriate share will be determined and applied to the balance of the AUF after funding debt service and support for the System Administrative and General Offices.
CONTACT OFFICE: System Office of Budgets and Accounting