Allocation, Expenditure, and Revenue Transfers

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1 IV. Allocation, Expenditure, and Revenue Transfers Background In 1992, Guidelines for the Decentralized Management and Control of Personal Service Regular Funds were issued which transferred authority and responsibility for management of Personal Service Regular (PSR) to the Provost and Vice Presidents and their designees. In 1993, Guidelines for Budget and Expenditure Transfers were issued to provide assistance and direction to administrators in managing their resources under the enhanced flexibility. Since then the University has moved increasingly to an "all funds" environment where reliance on revenue sources other than the State Operating Budget has increased. In recognition of the related additional increases in authority and responsibility, Principles for Decentralized Financial Management have been issued. As a consequence, these guidelines for allocation, expenditure, and revenue transfers have been updated. Principle four requires that individual accounts or Financial Responsibilities for the State Operating Fund and DIFR must be balanced within each fund. Integral to maintaining a balanced condition is the appropriate use of allocation, expenditure, and revenue transfers. This document identifies when and how to properly initiate these transfers. Since Financial Administrators have developed different approaches to managing and controlling their accounts, these guidelines are not intended to restrict any sound approaches, but rather to provide information on the requirements that exist, the tools that are available, and recommended practices. Allocation Transfers Two allocation amounts are carried in the University s financial system. The first is the fiscal allocation and refers to the allocation available in the account for the current fiscal year. For State Operating accounts, the allocation referred to as the annual allocation, is the ongoing permanent amount that will be available in subsequent years. For Income Fund Reimbursable, State University Tuition Reimbursement, Dormitory Income Fund Reimbursable and Endowment Income Fund accounts, the annual allocation will reflect the future year s allocation upon completion of the budget development process, which occurs each spring. This section deals with the general topic of transfers of fiscal and annual allocation. A. All Appropriated Operating Funds 1. Allocation transfers must be within a given appropriated fund State Operating (SO), Income Fund Reimbursable (IFR), Endowment Income Fund (EIF), Dormitory Income Fund Reimbursable (DIFR), and State University Tuition Reimbursable Account (SUTRA).

2 2. Allocation and Full-Time Equivalent (FTE) transfers can be designated as temporary (current fiscal year only) or permanent (current, plus future fiscal years). For temporary changes, only the fiscal allocation and FTE are involved in the transfer. For permanent changes, the annual allocation and FTE, and possibly the fiscal allocation and FTE are involved in the transfer. The annual and fiscal amounts may be different. 3. Transfers of allocation within any appropriated fund can be made between all objects of expenditure (PSR, TS, and OTPS). The decrease side of a transfer of allocation cannot create a negative free balance for Temporary Service (TS) or Other Than Personal Service (OTPS) within an individual account. 4. Allocation transfers are implemented by completing and transmitting a Budget Revision Form. B. State Accounts 1. State Operating and DIFR Budget Accounts a) Transfers of allocation must be balanced i.e., increases must equal decreases for both fiscal and annual changes. b) A best practice for budget management is to fully fund, on an annual basis, all of the ongoing PSR positions within an account or sub-account. If this is done, FTE levels will be consistent with PSR allocation available. Although the University has flexibility in establishing positions and FTE levels, there is a requirement that SUNY provide the State Division of the Budget and the Legislature with plans and periodic reports on the State University Financial Plan. State University is required to set a level of staffing which can be supported by its Financial Plan, and therefore requires the same of each campus. 2. Income Fund Reimbursable Accounts a) Net increases or decreases in allocation or FTE may be requested. A request to increase allocation must be supported by sufficient cash balance in the account and corresponding reduction in Reserves if necessary. If an account has excess allocation, it is important that the Program Director reduce the allocation, as this amount can then be used to accommodate other requested increases at UB. b) The total IFR allocation for the campus sets an upward limit on spending. Increases in allocation for individual programs depend on the availability of uncommitted allocation. 3. Endowment Income Fund Accounts a) Net increases or decreases in allocation or FTE may be processed. A request to increase allocation must be funded by new gifts, unallocated balances, or

3 restricted expendable or unrestricted funds. For EIF programs the use of funds must be consistent with the deed of gift. b) The total EIF allocation for the campus sets an upward limit on spending. Increases in allocation for individual programs depend on the availability of uncommitted allocation. C. Approval/Process 1. Transfers of allocations for all State appropriated funds may be completed any time during the current fiscal year prior to the last week of June. The exact date will be announced in the annual memorandum that notifies the campus of year-end financial transaction cut-off dates. 2. Transfers of allocation require appropriate approval as determined by the policy of each administrative unit. Expenditure Transfers A. General 1. Expenditure transfers are permitted between accounts within the same State fund and between accounts in different State funds (SO, IFR, EIF, DIFR and SUTRA). 2. Expenditures must remain in the same object of expenditure when they are transferred (i.e. PSR expenditures cannot be transferred to OTPS). 3. Expenditure transfers to IFR programs must be consistent with the purpose of the IFR program. 4. Expenditure transfers to EIF accounts must be consistent with the deed of gift for the fund involved. 5. Instances may occur when the incorrect agency is indicated at the time that an Other Than Personal Service (OTPS) expenditure is processed. The following represents the proper procedures to transfer these expenditures to the appropriate agency. a) Transfer of Expenditures to a Research Grant from a State Account: (reimburse/credit a State Account from/charge a Research Grant) Complete an Interdepartmental Invoice (IDI) form ( identifying the Research project/task/award as the charge account and the State account as the credit account. The RF account holder

4 must sign and submit the form to the Office of Grants and Contracts, 402 Crofts Hall, North Campus. Attach to the IDI copies of State purchase requisitions representing the expenditures to be transferred. All Research Foundation purchasing guidelines apply. b) Transfer of Expenditures to a State Account from a Research Grant: (reimburse/credit a Research Grant from/charge a State Account) Complete a State purchase requisition identifying The Research Foundation of SUNY as the vendor. Be sure to indicate the full project/task/award number on the purchase requisition. Attach to the requisition copies of the Research purchase requisitions representing the expenditures to be transferred. All State purchasing guidelines apply. Purchase requisitions may be obtained from and should be submitted to Procurement Services, 224 Crofts Hall. c) Transfer of Expenditures to a UBF Account from a State Account: (reimburse/credit a State Account from/charge a UBF Account) Complete a UBF Activities Disbursement Request Form ( designating the check to be issued to the order of the University at Buffalo. Attach to the request copies of the State purchase requisitions representing the expenditures to be transferred. Upon receipt of the check, complete a cash receipt transmittal form designating the IFR account to be credited. Send the check and transmittal form via campus mail to the Student Response Center, Bursar Area, 232 Capen, North Campus, or present in person at 122F Porter. d) Transfer of Expenditures to a State Account from a UBF Account: (reimburse/credit a UBF Account from/charge a State Account) Complete a State purchase requisition identifying the University at Buffalo Foundation (UBF) as the vendor. Attach to requisition copies of the UBF Activities Disbursement Request Form representing the expenditures to be transferred. All State purchasing guidelines apply. Purchase requisitions may be obtained from and should be submitted to Procurement Services, 224 Crofts Hall. e) Transfer of Expenditures to a Research Account from a UBF Account: (reimburse/credit a UBF Account from/charge a Research Grant) Complete a Research Foundation purchase requisition form identifying University at Buffalo Foundation (UBF) as the payee. The RF account holder must sign and submit the form to

5 Procurement Services, 224 Crofts Hall, North Campus. Attach to the requisition copies of the UBF Activities Disbursement Request Form representing the expenditures to be transferred. f) Transfer Expenditures to UBF from Research: (reimburse/credit a Research Grant from/charge a UBF Account) Complete a UBF Activities Disbursement Request Form ( designating the check to be issued to the order of Research Foundation of SUNY. Be sure to indicate the full project/task/award number on the disbursement request. Also attach to the request copies of the Research purchase requisitions representing the expenditures to be transferred. Upon receipt of the check, forward to the Office of Grants and Contracts, 402 Crofts Hall, North Campus, for deposit. B. PSR and Temporary Service Expenditure Transfers 1. Complete this online form, identifying expenditures that are to be transferred. Once complete, journal transfers may be viewed in People and Money or BARS. For People and Money visit the UB Business website. On the right hand side of the page click People and Money in the UB Business Systems area. Once logged on, select, Money Home, click State and enter account number. Payroll transactions may be found under the PSR and Temp Service tabs. Transactions are also located on the BARS Financial System, within the data retrieval process (DAR), in the Payroll Inquiry Line Detail Action (PIL). All or part of the expenditures for a payroll period may be transferred. 2. Future expenditures are not transferable. They may be recorded in the correct account by timely processing of a Personnel Transaction Form. If the change is temporary, a Personnel Transaction Form reversing the transaction will be required. 3. Expenditure transfers are processed through the payroll distribution system on a bi-weekly basis. C. Other Than Personal Service Expenditure Transfers 1. Send a memorandum or IDI to Heidi Retzer at 418 Crofts Hall, North Campus and identify the OTPS expenditures to be transferred. The memorandum must include the account(s) to, account(s) from, Purchase Order number or other reference, vendor, and amount. 2. To transfer expenditures for honoraria, the voucher number, payee and amount are necessary.

6 D. Approval Process 1. Transfers of expenditures for all State funds (SO, IFR, DIFR, SUTRA and EIF) may be requested at any time during the current fiscal year and up to the following mid-july. The exact date will be announced in the annual memorandum, which notifies the campus of year-end financial transaction cut-off dates. 2. Transfers of expenditures require appropriate approval as determined by the policy of each administrative unit. Revenue Transfers A. General 1. Transfers of revenues between IFR accounts, between SUTRA accounts, and between IFR and SUTRA accounts are permitted. 2. A revenue transfer between a designated Summer Sessions account and either a General IFR or SUTRA account must take into consideration the impact of the flat tax effect on the Summer Sessions account. If the flat tax should not be charged to or retained by the Summer Sessions account, perhaps an expenditure transfer is a better avenue. 3. Send a memorandum to Endowment and IFR Account Services identifying the amounts and accounts involved. B. Approval/Process 1. Transfers of revenue may be completed anytime during the fiscal year and will be effective on the date processed. 2. The cash balance in the account to be debited must be sufficient to accommodate the transfer. 3. Transfers of revenues require appropriate approval as determined by the policy of each administrative unit.

7 Questions General questions regarding these guidelines should be directed to Beth Corry at For questions regarding specific transactions, please contact: A. Allocation/Fiscal Savings Transfers Davina Desnoes Tricia Canty Debbie Schmigiel B. Expenditure Transfers 1. PSR and TS: Tricia Canty Debbie Schmigiel OTPS: Mark Mariglia Nancy Kreppenneck Patti O Farrell C. Revenue Transfers Sean Gardner