Policies & Procedures


Section 1

Business and Financial Affairs

Budget Office

Sec. 703-10: Budget Office Terms and Definitions

Responsible Office: Planning and Budget
August 2001 (reviewed June 2009)

Contact: Budget Office at (949) 824-7676

A. Introduction

The University of California, established under the Constitution of the State of California, receives a significant portion of its total support from the state. Other sources of funds include the federal government, student registration and educational fees, nonresident tuition fees, private gifts and grants, Regents' funds, endowments, hospital/clinics revenue, and income from miscellaneous sources.

Support from the State of California, nonresident tuition fees, registration and educational fees, endowments, hospital/clinics revenues, and miscellaneous sources is incorporated into the University's annual budget and is generally referred to as budgeted funds. Of these, the basic state support, the nonresident tuition fee and certain other general fees and income are combined into a series of fund numbers 199XX--General Funds. Funds numbered other than 199XX are referred to as Restricted Funds because the purposes for which they may be spent are subject to special restrictions established by various outside agencies or by The Regents.

Funds may be allocated on either a permanent or a temporary basis. Permanent allocations are added to the base budget and are automatically reallocated at the start of each fiscal year thereafter. Temporary allocations are ordinarily made for short-term purposes and are for one year only.

Auxiliary and Service Enterprise activities such as the Residence and Dining Halls, Intercollegiate Athletics, Parking Operations, Storehouse, Garage, etc., are also incorporated separately into the annual budget.

Funds received in the form of federal contracts and grants, private gifts and grants, special agreements with state and local agencies, and certain minor other income sources which are excluded from the formal budget are considered nonbudgeted (or extramural) funds, primarily since they are provided for limited time periods and purposes.

B. Budgeted Funds

The University's fiscal period coincides with that of the state (July l - June 30), and, therefore, its budget requests are geared to the state's time schedule. Accordingly, the University starts planning for a particular fiscal year on a tentative basis about eighteen months in advance and on a detailed basis about nine months in advance in order to provide time for discussion and review by the University administration, The Regents, the State Department of Finance (for the Governor), and the legislature.

The departmental allocation includes permanent changes to adjusted budgets as well as salary increases. The budget allocation is reflected in the "Appropriation" column of the department's first (July) Detail General Ledger (FS100). Also shown is the amount carried forward from the prior year as a reappropriation to cover any outstanding purchase orders, agreements, or other contractual obligations as of June 30. Each month the Detail General Ledger shows by account, fund, sub and object (as described in the Accounting Codes, Section 701-01) both budgetary and financial transactions (budgetary in the "Appropriation" column and financial in the "Expenditure" column) for the month, and ending balances. This statement should be reviewed carefully each month as it is the official record of the status of the funds under the department's jurisdiction.

At the beginning of each fiscal year, departmental budgets for staff salaries are adjusted as necessary by the Budget Office to conform with the final authorized staffing pattern as of July l. Academic appointees to the various departments are overseen by Academic Budget. Assignment of staff employees is based on departmental review. The result of these reconciling steps is the Staffing List. Upon completion of the reconciliation process, departments are provided with a copy of the Salary Control Sheet. This control sheet is provided for departmental use in maintaining the current status of departmental salary positions.

C. Extramural Funds (Nonbudgeted)

Appropriations of extramural funds received from donors, federal and nonfederal granting and contracting agencies, etc., are established as the funds become available on the basis of the contract, grant, or gift. The use of such funds is limited to the terms, conditions, and restrictions imposed by the fund source and by the prescribed period of availability of such funds. Funds are appropriated by the Accounting Office in accordance with the budget allocation approved or accepted by the fund source.

Appropriation of gift and private grant funds and assignment of account and fund numbers is made upon receipt by the Accounting Office of the donation and the Gift/Pledge Acceptance Form.

Appropriation of federal contract and grant funds and assignment of account and fund number is made upon receipt by the Accounting Office of a fully executed award document.

Since the state does not provide funds for salary range adjustments or for merit program increases for those programs financed from other than state fund sources, these sources must finance such increases within their own budgetary provisions or fund source.

Adjustments of departmental extramural fund source budgets are made by the Accounting Office on the basis of an electronic "On-line Transfer of Funds" entry generated by the department, provided the adjustment requested is within the terms and conditions of the gift, grant, or contract.

D. Budgetary Savings Target

As part of each fiscal year's budget, the state assigns the University a savings quota, based upon total state funds received, to be realized from savings due to unfilled positions and other unspent General Funds. This quota is then allocated to the individual campuses as a campus budgetary savings target by the President.

Extramural fund sources do not participate in the General Fund budgetary savings program.