(Supersedes UML 96-3)
The California State University System allocates an annual state appropriation of funds to the campus. This allocation is called the campus "base budget" and excludes any one-time allocations. It is primarily based on the number of individual students and annualized full-time equivalent students enrolled. It forms the base for allocation of the state appropriation the following budget year. The General Fund budget is allocated to the campus with few restrictions regarding its use. The General Fund appropriation cannot be overexpended at the end of the fiscal year, and any remaining resources will be carried forward to the following fiscal year.
Campus Allocation Process
Budget Allocation Plan
The General Fund appropriation, as outlined below, is explained in the materials provided to the University Resource Planning and Budget Committee (URPBC). Subsequently, the URPBC submits its allocation recommendation to the Executive Committee who will review the recommendation and approve a budget allocation plan.
Allocation of resources by administrative area (outlined on Attachment A, Page 1) will be determined as follows:
- Salary and wage allocations for the fiscal year will be calculated based on the status of each established position (identified by individual serial number) as of the immediate preceding June 30 - see Attachment B.
- Operating expense allocations will be based on each area's prior year operating expense allocation. Additions to the final budget operating expense allocations may be necessitated by campus budget augmentations for quality enhancements, inflationary costs, enrollment related reasons, etc. Reductions in operating expense allocations may be a result of a department permanently establishing positions using their operating expense allocation to fund the costs. Changes may also occur as a result of any departmental reorganization between administrative areas. Examples of operating expense line items are supplies and services, travel, equipment maintenance and repair, motor vehicle operation, software, and equipment.
Since staff benefit funds are set aside in a campuswide account, areas are not responsible for their staff benefit expenditures. Funds are to be based on a percentage of each area's salaries and wages budget. At the beginning of the fiscal year, the University Budget Office will determine the percentage after analyzing the previous fiscal year's actual staff benefit expenditures by area. A reserve will be built into the staff benefit pool as a safeguard against any overexpenditure that may occur due to unexpected circumstances such as individual benefit rate increases. When additional resources are allocated to the campus for reasons such as quality enhancements or enrollment related adjustments, it will be the responsibility of the respective area to set aside staff benefit monies to cover costs related to any salary and wage budgets they establish with the additional resources.
The "All University" category consists of budget line items that are not the direct responsibility of any administrative area. Items may need to be added or deleted from this category annually as different circumstances occur - see Attachment A, Page 2.
Reclassifications/In-Range Progression Increases/Grade Level Changes/Promotions
Non-faculty position reclassifications and in-range progression increases, Management Personnel Plan grade level changes, and faculty promotions are funded from within the respective administrative area. Salary costs are funded for the portion of the fiscal year in which the reclassification/in-range progression/grade level change/promotion becomes effective. This suggests the need for administrative areas to set aside funds to meet these requirements. At the beginning of the following fiscal year, the upgraded position will become part of the area's salaries and wages budget (see Attachment B).
Premium Overtime and Night Shift Differential Funds
Premium overtime and night shift differential are part of each area's salaries and wages budget allocation (see Attachment B).
Postage allocations will be in accordance with procedures recommended by the University Resource Planning and Budget Committee.
New Compensation Funds
New compensation funding allocated to the campus for general salary increases will be distributed to administrative areas based on the most current salaries and wages expenditure data available. New compensation allocations will not be based on budgeted salaries and wages.
Settlement Payments for Retiring Faculty
Colleges may not be able to control final settlement payments in June for retiring faculty. If any college wishes to participate, campuswide funds will be made available to them to support these lump sum payments in June with the understanding that the college will be required to repay the funds to the Campuswide Reserve at the beginning of the following fiscal year. This is typically the fiscal year in which colleges budget for lump sum payments.
Financial Aid Grants
Based on CSU policy, the State University Grant and Educational Opportunity Program allocations remain restricted and cannot be used for any other purposes. However, if funds become available, campuses have the option of augmenting their grant allocations. Balances remaining in these financial aid grant allocations will be rolled forward to the following fiscal year and reallocated for the same purpose in which they were originally intended.
Work Study/Perkins Loan Program
Work Study On/Off Campus is primarily funded from a federal award and partially offset by departmental matching funds as well as private reimbursements. When Perkins Loan Program funds are awarded, the campus is required to set aside funds as an institutional match. The amount is usually one-third of the total federal capital contribution and is to be funded from the Campuswide Reserve.
The gross General Fund budget is partially supported by budgeted receipts in two categories:
- Reimbursements are comprised of reimbursements for financial aid and other State/CSU receipts; and
- Revenue is primarily comprised of State University Fees, Application Fees, Non-Resident Tuition Fees, etc. The budget for student fee revenue is based on the number of individual students and the annualized full-time equivalent enrollment data provided by the Chancellor's Office.
Administering the Allocations
Administrative areas are responsible for the administration and control of their allocated resources. The following procedures are to be used to assist with that administration.
Transfer Request Forms
Transfer Request Forms (TRF) arriving in the University Budget Office by the last working day of the month will be posted to the current month Financial Records System (FRS). Exception: at the beginning of the fiscal year, transfers will not be posted until area allocations have been recorded in FRS.
Automatic Budget Reallocation
The Automatic Budget Reallocation (ABR) feature is available on most accounts in FRS When activated, this feature automatically transfers budget from a designated pool account to various subcodes within an account as expenditures occur.
Budget Transfers Between General Fund and Other CSU Funds
Budget transfers cannot be made between the General Fund and other CSU funds, i.e., Continuing Education, Parking Revenue, Dormitory Revenue, Lottery Education Fund, or trust funds. General Fund and auxiliary funds are allocated individually and reported separately at the end of each fiscal year. In addition, budget transfers cannot be made between General Fund Support and Reimbursed Activities accounts.
Colleges/departments must identify and report roll forward funds to each respective Vice President by June 1. The minimum amount to be identified by a department is $250. Roll forward amounts by administrative area will then be reported by each Vice President to the University Budget Office. Any unrestricted savings not identified and rolled forward by an administrative area by June 10 will be made part of a Campuswide Reserve the following fiscal year. Any year-end balances remaining in an "All University" account on June 30, will be rolled forward and made part of the same reserve. The Executive Committee will decide upon the use of such a reserve.
It will be the responsibility of each Vice President to ensure that after identification of any roll forward funds, no department ends the fiscal year with a deficit.
Submitted for Approval
Standing Committee on Budget & Finance to University Resource Planning & Budget Committee
March 1, 1996
Revision Submitted: April 27, 2001
University Resource Planning & Budget Committee to the President March 1, 1996
Revision Submitted: April 27, 2001
Approved by the President
March 14, 1996
Revision Approved: May 10, 2001
Distribution: Deans, Directors, Department Chairs