Financial Planning & Budgets provides basic information and guidance to all departments/schools and offices of the University concerning the establishment, revision, reporting, administration, and control of budgets as directed by the Chancellor, Board of Governors, State Budget Director, and North Carolina General Statutes.
Financial Planning & Budgets coordinates the preparation of the biennial budget request and administers those budgets when approved. The office also administers budgets for auxiliary operations, the Chancellor’s allocation of unrestricted gifts and investment income, student fees and overhead receipts. The office prepares financial projections for the issuance of bonds, auxiliary operations, and student fees.
The budgetary administration of state and trust funds are administered under state budget policy. The nature of each fund type determines whether formal budgetary controls are required. Ultimate responsibility for accountability, administration and control of all budgets has been delegated by the Chancellor to the Vice Chancellor for Business Affairs.
The budgetary administration and special policy considerations of Contracts and Grants are covered in the Contracts and Grants Section of the Policies and Procedures Manual.
Institutional budgeting is the process whereby the plans of an institution are translated into an itemized, authorized and systematic plan of operation expressed in dollars. This plan serves as a control mechanism to match anticipated and actual revenue and expenditures.
Continuous program planning is necessary in order to appropriately administer each program or function (cost center) within the financial resources available and/or budgeted to administer the funds under their supervision in such a manner as to keep expenditures within the budget established for their operation.
An essential element of budgeting is the establishment of effective budget control. Without adequate controls, the utility of a budget is substantially reduced. It is necessary for department heads to plan departmental programs and control the funds in such a manner as to be sure that current budgets at all times represent their financial plans for the various programs. Expenditures should be anticipated and curtailed where appropriate. Program goals in most cases can be met by realignment of budgets provided adequate planning has been done and adequate controls maintained. Realignment of budgets is absolutely essential for all funds when under-realization of revenue is anticipated.
Standardized Chart of Accounts
The University budget and accounting policies provide for the budgeting and accounting of expenditures, receipts, and fund balances by use of a standardized Chart Of Accounts.
The standardized Chart Of Accounts is utilized for all fund groups in the state budget codes, institutional trust funds, endowments, and agency funds.
Request for Budget Transfer
Budget transfers (both state and non-state) may be submitted on-line using Banner Finance or by e-mail. Either method will document the budget amounts to transfer and required approvals. See Procedure 1 for on-line entry and e-mail instructions.
Request for Flexibility Revision (State Accounts Only)
For state funds, there are limitations to the transfers that can be made without the approval of the Chancellor or designee (the Chancellor may delegate this approval authority to the Provost and Vice Chancellors). Should a transfer need to be made that will transfer monies between personnel and non-personnel accounts or between programs, a Flexibility Revision may be required. The University has its own unique policies concerning the use of lapsed salary dollars that are subject to change. Financial Planning & Budgets and the Office of the Provost or appropriate Vice Chancellor’s can provide the current internal policies regarding the use of lapsed salaries.
The State Budget Officer and the State Personnel Director on January 1, 1967, issued a joint directive specifying a revised Uniform Dual Employment Policy to be followed by all State Agencies. This policy statement authorizes the State agencies to secure service of an employee of another State agency on a “temporary, consulting or contractual basis” by entering into a dual employment agreement. The term “dual employment” refers to the situation where a specifically identified State employee performs services for a State agency other than his or her parent agency with the specific approval of the borrowing and the parent agencies. The Dual Employment Policy applies to all full-time Permanent, State employees, both EPA and SPA, and to all State agencies. Any compensation to the employee must be paid by the parent agency through reimbursement from the borrowing agency. The borrowing agency is not authorized to make direct payment to full time-permanent employees of another State agency.
Dual employment should be used for unique and one-time service requirements and not for continuing arrangements except where valid joint appointments are involved. Dual employment should be used to authorize employees with special skills and abilities to participate in a loan arrangement between the parent and borrowing agencies in such a manner as to strike a sound balance between interests of the State, the agencies, the employee, and the public.
The following are not considered State agencies and their employees are exempt from the policy:
- ♦ The Public School System
- ♦ The Community College System
- ♦ Employees of cities and counties
Dual Employment Definitions
The State department, agency, or institution having control over the services of the employee and from which the employee receives his regular pay check is the parent agency.
The State department, agency or institution seeking on a temporary or part-time basis the services of an employee of another State agency is the borrowing agency.
Contact the Office of Financial Planning and Budgets for further information concerning Dual Employment.
It is to be mutually agreed between agencies as to which agency is the parent agency. In most instances, it will be the agency who first employed the employee.
In cases of joint appointments (involving base pay), the borrowing agency reimburses the parent agency for matching social security and retirement contributions. The employer portion of hospital medical insurance will be borne by the parent agency and not prorated to the borrowing agency. The parent agency prepares a CP-30 form for joint appointments.
The purpose of this policy is to provide uniform guidance for establishing new departments, combining, or collapsing departments, moving departments within the university structure, or moving occupied or unoccupied positions between departments.
Many functions and activities of the University follow the academic calendar and the fiscal year. Planning is normally done in advance so that most everything new or changed can be orchestrated and ready for the beginning of the new fiscal year. Circumstances including changes in leadership and resources may call for organizational changes to be made at other times. However, because UNCG has a robust and fully implemented ERP System (Banner), making changes to the key elements have to be well coordinated in order to avoid significant problems. Since organization is one of the key elements, it can only be changed in the Banner system at the beginning of a new fiscal year without severe negative impacts.
The organization or department code In Banner is a fundamental component of transactions in the Finance, Advancement, and Human Resources modules. These codes are defined in the Finance Chart of Accounts table. An organization change of any kind that is entered into Banner could have an impact on Banner Security, access to positions, access to Electronic Personnel Action Forms and approvals, access to departmental leave reporting process, ability to determine available funds on affected positions, access to purchasing cards, access to E-Print, and other systems across campus that use Banner data in granting access or in processing.
This policy applies to all Divisions and Departments.
All notification of division/department changes should be communicated by May 1 in a given year in order to be effective at the beginning of the new Fiscal Year on July 1. Because of the complexities of Banner, making changes at any other time of the year could cause erroneous reporting, as well as deny access to certain financial and human resource information.
See Procedure 2 - Organization Change Procedure.