Northeastern State University

General

The Account Sponsor is responsible for insuring that expenditures do not exceed the allocations for the departmental fiscal year budget. Account Sponsors should periodically review account balances.

Budget Management Procedure

1. The approved budget for the department is maintained in the University accounting system.
2. All encumbrances entered by the department are checked by the system for sufficient allotment by the line items on the approved budget. An encumbrance that overdraws the allotment cannot be completed.
3. At the end of each month, a statement of activity is sent to the Account Sponsor for each account reflecting the following information:
   Budget
   Expenditures
   Outstanding Encumbrances
   Unencumbered Budget Balance
4. For those accounts that operate on a cash income/expense basis, an additional report of unexpended cash is provided. Account Sponsors should reconcile the information on these reports. Questions or errors should be directed to:
   Budget: Budget Director
   Other Information: Office of Business Affairs
5. Transfers between line items may be made by using a Budget Transfer Request Form as follows:
   
   a. Salary money and fringe benefit money is transferred into the department as positions are filled. Salary money for unfilled positions is not available in departmental budgets and, therefore, cannot be transferred.
   b. Funds for Wages cannot be transferred to other areas of the budget. However, funds from other areas can be transferred into Wages.
   c. Transfers are subject to justification and detailed explanation.
   d. Transfers of $500 or more must have the approval of the respective Vice President.
   e. The last possible date for a transfer is March 31 of the current budget year.
6. The transfer is forwarded to the Budget Director. When it is completed, a printout of the current budget status is sent to the Account Sponsor.
7. At the end of the fiscal year (June 30), the following policy will apply: Ninety percent of any surplus (unencumbered balance) in the operating budget is restored to the subsequent year's budget during the first quarter of the year. This policy applies to the following line items:
   Professional Services
   Operating Expense
   Travel
8. Any deficits in the account is charged against the budget of the subsequent year.