Carryforward State Funds

Units and Associate Deans are encouraged to prioritize the spending of state funds first to avoid unnecessarily large state balances when there is no specific savings plan.  Large state balances should not occur given the dire economic needs for resources, and they send the wrong message to our stakeholders.

Divison Business Services audits for over-saving and inappropriate spending.  Unit heads and ADs are expected to employ ALL funds to achieve unit, ALVSCE, and UA mission goals and objectives.  This may require the partnership with faculty to leverage funds that have been delegated to faculty by unit leaders.

Unit heads and ADs have the authority, responsibility and accountability to establish unit-level cost recovery policies for faculty-generated funds within their respective units (e.g conferences, sales and services, auxiliaries, etc.).  This might, for example, manifest as the unit charging a cost-recovery fee for business and administrative support on revenue-generating activities.

Monitoring of Carryforward Balances

Large and unplanned state balances will be moved into the central ALVSCE budget at the end of each fiscal year.  As general guidance, unplanned state carryforward balances greater than 3% of a unit’s current year budget are defined as excessive.  Balances can be monitored and reviewed using the  ALVSCE Carryforward dashboard which does not include ERE by default in accordance with the ALVSCE ERE Management policy.

Request Process

Submit a Request

To carry forward more than 3% in state accounts units must develop and submit a specific plan.  Savings plans must be submitted using the online form to Request for Carryforward, clearly identifying the exceptional, critical, and mission-oriented savings or planning goals.  Saving for a “rainy day” is not a plan.  Units that do not provide an acceptable plan will forfeit their balance above the 3% level on July 1 of each fiscal year. Once your request has been reviewed, you will be notified of the decision. 

Justification

The justification must specifically address how funds will foster and grow mission areas and the potential for a return from those areas (e.g., meeting student demand, growing student enrollment, obtaining more research sponsorships, partnering with important internal and external allies to leverage funds, etc.)  As these are strategic savings plans, it is assumed there will be consistency in the plan from one quarter to the next and one year to the next.  These plans must include numbers, be time-specific and have specific processes, outputs and outcomes associated with them.

Due Date

The completed request, which includes the justification, must be submitted using the online form to Request for Carryforward to Division Business Services during the first full week of June.

Contacts

Academic Units, AZ Experiment Station Units, and Administrative Units Contact:

Kina Barton / 520.626.5795 / kina@email.arizona.edu

Cooperative Extension Service Units Contact:

Carolyne Greeno / 520.621.7207 / cagreeno@email.arizona.edu

Category

Display on Which Audience Pages

Date Policy Created

Monday, June 22, 2015

Date Policy Revised (If Applicable)

Tuesday, June 5, 2018