Policy on Carry Forward of Academic Program Fees

University of Massachusetts Dartmouth
Division of Academic Affairs; Division of Administration & Finance Policy on Carryforward of Academic Program Fees

Purpose

To establish a campus policy for managing carryforward balances in Academic (College/Major/Program) fee accounts.

Scope

This policy applies to business managers with Signature Authority for Academic Program fee accounts.

Definitions

Carryforward balances (or carryforward funds) are unexpended balances at the end of the fiscal year as described in ACA-031. For Program Fee  accounts the balance consists of revenue less expenditures.

Academic (College/Major/Program) Fees are mandatory fees charged to students for educational and general expenses associated with a specific program of study.

Academic Unit in this policy refers to a college, school, library or academic affairs administration.

Policy

Each Unit receiving Academic Fee revenue as set forth in policy ACA-032 may carry forward up to 10% of program fees for general operations. Higher surpluses may be reserved for financial contingencies, faculty startup expenses, capital improvements/renovations/equipment or other strategic investments to enhance program quality and capacity. Establishment of the latter reserve accounts require an approved spending plan detailing intended use(s)/purpose(s), dollar amount(s), a timeline, and a justification of how the expenditures align with the unit and university strategic priorities.

Procedures

1. Colleges/Schools will submit carryforward requests to the Provost's office by May 15. The proposed reserve amount will be included with a description of the proposed purpose. If approved by the Provost, the reserve amount will be deducted from the fund balance by June 15 and units will be expected to manage their fund to break even at fiscal yearend. Any deficit will be charged to the next year's budget allocation.
2. The division of academic affairs will submit carryforward requests to the Budget Office by May 3pt.
3. Units that are conserving funds for major outlays (renovations, equipment, etc.) in future periods should document a spending plan in writing and these funds will be transferred to a renewal and replacement equipment/plant fund for use in future periods for those specific expenses that can be capitalized.
4. Each unit is required to submit a report to the Provost with a copy to the Budget Office on the use of the previous year's carryforward funds and planned use of carryforward funds for the fiscal year just ended by November 15th. The report is to include the relationship of the use of funds to strategic priorities within the unit.
5. The campus will generally evaluate balances at the level of schools, colleges, and divisions. Each unit has the ability to provide additional guidance to subordinate organizational levels (e.g., departments) to be able to respond to unique circumstances within their units. The summary level calculation should still meet the 10% margin.
6. If an expense comes in under the planned amount, the variance will be deposited in the provost's program fee account with no further carryover. If an expense exceeds the planned amount the overage will be deducted from the next year's unit budget allocation.
7. Preliminary carry forward allocation calculations will be sent by the Budget Office to each unit by September 30th. After closing the books for a fiscal year, comprehensive year end expenditures reports and a carryforward allocation calculation will be sent to each of the units. Upon resolution of any questions, a carryforward allocation will be confirmed in comparison to the budgeted carryforward by unit.
8. In general, program fee carryforward funds will be managed as part of a multi-year budget planning process coordinated by the Office of the Provost and Budget Office.

Policy Changes

The Division of Academic Affairs and the Division of Administration & Finance will review this policy every three years or sooner.