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Chapter 05.01 - Budget Development and Maintenance

REGENTS’ POLICY
PART V – FINANCE AND BUSINESS MANAGEMENT
Chapter 05.01 - Budget Development and Maintenance

P05.01.010. Budget Policy.

1. The budget of the university represents an annual operating plan stated in fiscal terms. All budgetary requests shall be adopted by the board prior to submittal to the Office of the Governor or the legislature. 
2. All administrative units within the university system shall operate strictly within the fiscal limits established by their respective annually adopted budgets and approved amendments, in accordance with procedure established by the chief finance officer.
3. The designated chief financial officer of each MAU and the designated fiscal officer of each sub-unit within the university system shall be understood to be responsible and accountable for conducting the annual operation of the officer’s administrative unit strictly within the fiscal bounds of its budget as approved and amended in accordance with procedure established by the chief finance officer. For purposes of this subsection, each chancellor shall designate a chief financial officer for the MAU and establish procedures for identifying in writing the designated fiscal officer for each and every subunit. 
4. All income realized by administrative units shall be reported and accounted for in accordance with federal law, state law, regents’ policy , and university regulation. 
5. Income exceeding that of an approved budget shall not be expended without having first obtained authority to expend such funds in accordance with procedure established by the chief finance officer. 
6. Deficit spending, that is, action designed to create or resulting in the creation of a fiscal position where actual expenditures are in excess of available revenues, is prohibited by any administrative unit. Transfers of receipt and expenditure authority within one MAU, and from one MAU to another MAU may be made only with (1) the concurrence of the chief financial officer of each affected MAU and (2), the approval required by procedures established by the chief finance officer. The chief finance officer is responsible for system-wide deficit control and shall establish procedures for all administrative units to follow with regard to monthly and other periodic review of receipts and expenditures.

(09-30-94; 09-24-75)

P05.01.015. Fiscal Year.

The fiscal year of the university shall end on June 30 and commence on July 1 of each year.

(09-13-02)

P05.01.020. Deficit Spending and Professional Responsibility.

The chief finance officer, chancellors, the designated chief financial officers of each MAU, and all designated fiscal officers of sub-units are responsible for ensuring that deficit spending does not occur within the person’s respective administrative units and for compliance with this section. Deficit spending or other violation of this section by persons with budget control constitutes just cause for termination or such other disciplinary action as determined appropriate by the president.

(09-30-94)

P05.01.030. Transfers and Budget Augmentation.

1. The following types of budget augmentations shall be subject to the approval of the board and to additional approvals as may be required by the state: 
   1. requests for supplemental funding from the legislature to augment a current fiscal year budget; 
   2. requests for budget amendments from the governor to augment or revise the governor's budget request to the legislature for a future fiscal year. 
2. Requests for new positions in the officer and senior administrator job group as defined under P04.01.050 shall be subject to the approval of the president.

(09-27-13)

P05.01.035. Reimbursable Services Agreements.

1. All agreements between a state agency and the university shall be considered a contractual relationship. Certain agreements that involve the transfer of funds shall be documented on, or accompanied by the official state Reimbursable Services Agreement (RSA) form, documenting the fund transfer in accordance with procedures established by the chief finance officer and the State of Alaska. Accounting for encumbrances and revenues associated with RSA’s shall be in accordance with procedures established by the chief finance officer. 
2. The indirect cost overhead recovery rate on agreements between a state agency and the university shall be: 
   1. the rate approved by the State of Alaska and the university for all contracts; 
   2. the rate approved by the university and the federal government; or 
   3. such other rate approved in advance by the chief financial officer for the MAU.

(09-30-94)

P05.01.040. Acceptance of State Appropriations.

The board must accept state appropriations to the university before any expenditure may be made against the appropriation.

(09-30-94)

P05.01.050. Lapsing of Capital Appropriations.

All expenditures of capital funds shall be in accordance with the purpose or legislative intent of the respective appropriation and budget requests, unless modified by the chief finance officer under revised program procedures approved by the state. Any unspent capital appropriation shall lapse upon completion or termination of the project or purpose of the appropriation in accordance with procedures established by the chief finance officer.

(04-15-04)

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