Policy and Procedures
Functional Responsibility of Budgeting
The Office of Financial Planning & Analysis 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.
The Office of Financial Planning & Analysis also coordinates the preparation of the biennial budget request and administers those budgets when approved.
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 Administration and Finance.
Office of Financial Planning & Analysis
East Carolina University
Bldg. 165, 209 E. Third Street
Greenville, NC 27858
Budgeting Overview
General Statement
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.
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 Transfer rule codes in SSB will allow a Banner Finance user to cross Fund codes. For State Funds, the only restriction is the first 3 digits of the Fund must match all transactions. For Funds that begin with 31, the entire 6-digit Fund must match all budget entries. Authorized budget transfers are based on ORGN security.
Funds that begin with 111, 112, and 31 are the only funds authorized to process B11/B22/B44 entries.
The electronic Budget Transfer form (Banner Journal Voucher Entry Form) should be completed for transfers to salary accounts.
Request for Flexibility Revision (State Accounts Only)
For state funds, there are limitations to the transfer 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. The Lapsed Salary Policy has been developed to provide internal policies regarding the use of lapsed salaries.
Request for Budget Revision
For state funds, most budget revisions are initiated by the Legislature or General Administration. If you have a state fund supported by receipts that requires a revision, contact the Office of Financial Planning & Analysis.
State Budget Policy
The State Executive Budget Act (Chapter 143C of the General Statutes of North Carolina) constitutes the legal basis for the budget system in North Carolina. The Office of State Budget and Management issues directives to ECU through the UNC General Administration. These directives serve as a basis for the preparation and submission of budgets as may be required by the General Assembly.
The Board of Governors of The University of North Carolina System is required by G.S. 116-11 (9) to present a single unified request for funds for the continuing operation of each institution of the University System. The statute specifies that appropriations in response to the Continuation Budget requests be made directly to individual units of the University System.
The Change Budget requests and Capital Improvement requests are submitted by the Board of Governors without regard to the individual campus affected. After legislative approval is obtained, the Board of Governors allocates to ECU those portions of Change Budgets and Capital Improvements Budgets which they determine are necessary for the programs and activities at ECU.
The Executive Council is responsible for the preparation of the budget estimates for the institution and the assignment of the institution priorities.
The Financial Support Team is a ten member team consisting of a representative from each division plus the Financial Planning & Analysis Director. The FST plays a key role in the allocation of resources- both new allocations, and allocations over the next several years. The Executive Council looks to this group as a resource to resolve issues as well as a source for identifying key issues that need Executive Council’s attention. Ultimately, all of the work performed by the FST will be based on the Strategic Plan of the University.
Lapsed Salary Policy
State lapsed dollars are salary and benefit dollars lapsed due to a vacancy in a position or temporary move of employees to a different funding source.
Approved budget entries can move lapsed dollars to operating lines (i.e. supplies, equipment, current services, temporary employment etc.). These entries must be processed by the Office of Financial Planning & Analysis.
Here are some examples of using lapsed salaries that do not require Executive Council approval:
State lapsed dollars may be used to provide incentive for and encourage units and individuals to seek external funding. This is accomplished via the buy-out process.
State lapsed dollars are used by the Graduate School to support graduate students via tuition remissions and awards. The Dean of the Graduate School makes these allocations after conferring with the Vice Chancellor for Research and Graduate Studies.
State faculty lapsed dollars may be used to conduct faculty searches for new faculty positions up to a maximum of $2,500 per search. All costs related to the search are allowable, including advertising. If the cost related to searches exceeds the $2,500 maximum, use of additional lapsed salary dollars requires the approval of the appropriate Vice Chancellor.
Units may use their lapsed dollars to support temporary payroll expenses, including temporary support, over-time, shift, longevity, etc. (EPA Teaching and Non-Teaching lapsed dollars may not be used to cover SPA temporary wages, over-time, shift, longevity, etc.) Note: Faculty lapsed dollars may also be used to support honorariums, contractual salaries, or temporary faculty salaries directly related to academic or research activities.
All other budget entries against lapsed salary dollars must be approved by the Executive Council.
State Lapsed Salary Dollars Procedure
For Budget Code 16065, the Office of Financial Planning & Analysis prepares a projection of lapsed dollars and communicates that information to the Vice Chancellor for Administration and Finance. The Vice Chancellor for Administration and Finance gathers non-recurring requests from other divisions and makes recommendations regarding the amount to allocate for each item (requests must be consistent with the use of state appropriated funds). These recommendations are then reviewed, prioritized and approved by the University’s Executive Council (the Chancellor, Vice Chancellors and the Chancellor’s other direct reports).
Each Vice Chancellor has the authority to redirect funds allocated to his/her division among pre-approved initiatives from the Non-Recurring list as long as the Office of Financial Planning & Analysis has prior notification and documentation. If a Vice Chancellor determines that he/she will be unable to spend allocated funds by June 30th and does not have another approved initiative on which the funds can be spent, then he/she should notify the Financial Planning & Analysis Director so that funds can be redirected centrally in a later phase.