The General Fund BudgetPresentation by Presentation by

UNC School of the Arts UNC School of the Arts

Budget OfficeBudget Office

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Budget WorkshopGeneral Fund Session

The General Fund

State Budget Process

UNC Management Flexibility

Budget Revisions

Budget Pools

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Made up of State Tax Revenues

– Sales Tax

– Individual Income Tax

– Corporate Tax

– Franchise Tax

Other Miscellaneous Non-Tax Revenues

What is the State General Fund?

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State Budget requests (including Universities)

require General Assembly approval

General Assembly reviews Biennial Budget

requests during the “Long Session” in odd-

numbered years– Example: In 2013, the General Assembly will

convene to review and approve a Biennial Budget for fiscal years 2013-2014 and 2014-2015

The State General Fund Budget Request

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The State General Fund Budget Request

General Assembly can make revisions to

the Biennial Budget during the “Short

Session” in even-numbered years– Example: In 2010, the General Assembly will

reconvene and make adjustments to the budget for fiscal year 2010-2011 (2nd yr of the biennium).

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It takes TIME!

What is Significant About the State General Fund Budget

Request Process?

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State Appropriation71%

Tuition & instructional fees

27%

Other revenues2%

General Fund: Where does the $ come from? (FY10)

Source: 6/30/08 BD701

The Budget Process at UNC School of the Arts

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In 1991 the General Assembly enacted the

UNC Management Flexibility Legislation– All General Fund appropriations made in the

form of a single lump sum to Universities– Enables Universities to use budget revisions to

reallocate resources between personnel and non-personnel accounts and between purpose codes

UNC Management Flexibility

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A request to increase or decrease budget for

a fund code or an account due to:

– Change in expenditure plans

– Reallocate excess personnel budget to non-

personnel or vice versa

– Create or abolish positions

What is a Budget Revision?

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Budget Flexibility Request –see Budget

Transfer form

Budget Revision Form – see Budget

Transfer form

How Do I Request a Budget Revision?

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MUST use this form to:

– Move personnel budget (61XXX), to non-personnel (7XXXX) or vice versa

– Move budget (personnel or non-personnel) from one purpose code to another

• Example: From 101400 to 152400 (Purpose 101: Regular Term Instruction to Purpose 152: General Academic Support)

Budget Flexibility Request

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Other notes

– Explanation/justification for request is required for the annual flexibility report

– Form is available from Financial Services/Forms web page

Budget Flexibility Request

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Give as much detail as possible about budget reallocation. For example…– If purchasing equipment, what kind of equipment and

who is it for (i.e., student labs, offices, help desk, etc.)?

– If #1 or #2, how does it benefit instruction? List any academic programs involved (i.e., special lecturer series, learning community, new PhD program, etc.).

– If paying for contracted services, what is it for and who does it benefit (i.e., subcontract for anesthesia program, interpreters for Disability Services, etc.)?

What kind of explanation is needed?

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Make sure the increases/decreases on the budget revision form net to zero

Make sure there is sufficient budget in the fund you are decreasing - if there is not, the budget revision will be returned

Don’t forget to sign and indicate the phone number of a contact person in case the Budget Office has questions

Additional Notes Regarding Budget Revision Forms

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Budget put into budget pool account– Ends in ‘P’ (example 72000P)

– One exception: 730170 (Academic Services)

Expense occurs in expenditure account– Ends in other than ‘P’ (example 723000)

Budget Pools

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Budget Pools Use budget pool accounts only for setting up

budgets and preparing budget revisions

After expense occurs, budget will continue to reside in budget pool account and expense will be reflected in expenditure account

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The General Fund is generated mostly by tax revenue UNC School of the Arts is part of a statewide budget

allocation Universities are fortunate to have the flexibility to

reallocate resources Budget entered in budget pool accounts (end in ’P);

expenses occur in expenditure accounts (end in other than “P”)

In Summary

The End