Handbook of Business Procedures

3.4. DISPOSITION OF FISCAL YEAR-END ACCOUNT BALANCES

A. Introduction

To maximize use of account balances that are held centrally as well as departmentally by The University of Texas at Austin, the Budget Office prepares semiannual account balance review reports for each dean and vice president. The goal of this policy is to promote strategic spending for priority needs and to give dean/vice president offices more control and responsibility

The first report is distributed midyear and is informational. The second report requires detailed explanations and justifications for balances and is distributed after the end of the fiscal year when final balances are known. The university has broadened the review to include accounts that have dormant balances for two or more years. A formulated threshold, which is a calculated amount based on a formula, is established for each dean and vice president office, based on the size of the operation. If the threshold is exceeded, either in positive balances or deficits, the dean/vice president must provide an explanation. Once the fiscal year-end balance reports are returned, they are analyzed by the Budget Office and may be used in the decision-making process for funding considerations.

B. Guidelines for Disposition of Fiscal Year-End Account Balances

Prior to fiscal year 2008-09, year-end balances in Educational and General Funds (E&G), centrally funded non-E&G balances, and Plant Funds were transferred to central university accounts. Effective fiscal year 2008-09, remaining balances from these fund groups will not be transferred to a central university account. Current guidelines include the following:

• In the new fiscal year, the balances of all E&G (14- and 20-) accounts will be brought forward to the subaccounts in which the balances ended.
  
  Exceptions: Instructional and Instructional Reserve subaccounts will lapse to Dean’s Excellence accounts. Advanced Research Program/Advanced Technology Program (ARP/ATP) accounts will continue to be governed by the Texas Education Code (TEC) and Texas Higher Education Coordinating Board (THECB) policies and guidelines. The TEC and THECB set the expiration, condition, and restrictions of these grants. Special Research grants administered by the vice president for research will continue to follow their lapsing policies.
• All non-E&G account free balances will come forward into the income subaccounts or into the expenditure accounts in which the balances ended, depending on the balance forward rule.
  
  Exception: In accordance with Endowment Compliance rules, the Endowment Compliance fee accounts will continue to lapse manually by Accounting and Financial Management.
• All 36-account Unexpended Plant project free balances will come forward in the subaccounts in which the balances ended. When the project is ready to be closed, the funds will be returned to the original funding sources.
  
  Exception: Some construction projects cannot be funded directly from the 14-account group (state funds). If funds were exchanged to eliminate the use of state funding, the transaction to return the funds could be complex. Therefore, these transactions will need to be handled by the Budget Office on a manual basis and will be subject to a $1,000 minimum threshold.

For the complete current lapsing policy, please visit the Budget Office website.

Part 3. Budget - Table of Contents