Fayetteville Policies and Procedures 305.3
Carry Forward at Year End
Wise stewardship of all unrestricted revenue including state appropriations, student tuition and fees, and other resources suggests effective and timely use of such funds to carry out and improve the quality of activities of the University.
Because deficit spending is allowed neither by state law nor university policy, some carry forward of funds is necessary to allow reasonable financial management near the end of the fiscal year. This year-end carry forward policy does not obviate the institutional “retention of annual surpluses” but facilitates managing the amount effectively.
A mechanism allowing departments and colleges to save funds for emergencies or major one-time expenditures is necessary to promote effective management of funds and is included in this policy. Any unexpected emergency for which funds may not exist must be brought to the attention of the appropriate Vice Chancellor.
Unaffected Fund Types
The following fund types are handled differently from the above principles regarding year-end carry forward.
Restricted Gift & Foundation Funds (Workday Code FD 210)
Funds fully carry forward (to subsequent fiscal years) and deficit spending is not allowed at any time.
Agency Funds (Workday Code FD60x)
Agency funds are not considered to be funds of the institution and are not affected by carry forward limitations. No deficits are allowed in agency funds at any time.
Funding of Deficit
Cost Center Hierarchy Level 5 (Dean/Director, Associate Vice Chancellor level) must have available funds to cover any negative driving worktags at fiscal year-end within unrestricted funds or funds with the same restriction as the deficit. As a general rule, negative worktags will not be rolled forward. Limited exceptions may be allowed with the approval of the Vice Chancellor of Finance and Administration.
As a general rule, Cost Center Hierarchy Level 5 and Fund Hierarchy funds are allowed to carry forward, however, carry forward authority may be limited at the discretion of the Vice Chancellor of Finance and Administration.