CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO

YEAR-END FINANCIAL
CLOSURES POLICY

RECOMMENDED BY ADMINISTRATIVE COUNCIL:        September 25, 2000
APPROVED BY PRESIDENT KARNIG:             October 3, 2000

REVISION #1:
RECOMMENDED BY ADMINISTRATIVE COUNCIL:       February 26, 2001
APPROVED BY PRESIDENT KARNIG:        March 14, 2001

RESPONSIBLE DEPARTMENT:    Financial Operations, 909-880-5134

BACKGROUND

Each year as the State Budget Act is enacted, new language appears which governs the budget process and establishes the legal authority under which State funds shall be expended.  Over the last few years, Budget Act language has changed as to how long funds are available to State agencies before they expire.  Typical language establishes a period of time in which the funds are available for expenditure for the purpose for which the funds were provided.  The Budget Act also stipulates when the funds will expire.  After the established expiration date, any funds not expended are taken from the agency and reverted back to the State Treasury.

PURPOSE

The purpose of this policy is to ensure that funds allocated to the University are managed in an efficient and responsible manner to provide the maximum benefit in assisting the University to achieve its mission.  This policy will ensure the timeliness of budget expenditures, limit the amount of funds allowed to be carried forward to the next budget year, and reduce the risk of losing unexpended funds.

POLICY

University divisions shall establish a goal to utilize funds during the budget year and plan to roll forward no more than 2% of their General Fund budgets.

By June 1 of each year, Vice Presidents will submit a report to the Budget Office that includes the following:

• Available General Fund balances as of May 1.

• Projected balances as of June 30.

• Schedule for expending balances after June 30.

By September 30, the Budget Office will prepare a final report for the President.   The report will include a summary of the information listed above, as well as recommendations to ensure that the University is not at risk of losing general fund allocations.  On this same date, divisions will be asked to stop processing financial transactions using prior year funds.  This will allow the Budget Office to close prior year accounts and to move prior year balances to the current year budget.

ADVANTAGES OF POLICY

• Avoids loss of funds due to expiration of allocation.

• Ensures that the campus utilizes its budget resources to the fullest extent possible.

• Increases oversight of prior year funds and improves the expenditure of current year budgets.

TABLE OF CONTENTS