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7.6.4 Funds Availability for Agency Accounts

Policy

  • The majority of Agency accounts are non-budgeted. This means that an account's expenditures are limited to the total available cash balance of the account.
  • Only a few Agency accounts are budgeted: e.g., Athletics, Health Services, University Farm, and the Vidette (student-run newspaper). Budgeted means that expenditure authority (the budget) is set at the beginning of the year for these accounts, usually before any cash is actually deposited. There is only one budget, and it is not broken down by expense class.

Guidelines

Budgeted Agency Accounts

  • The Budget Officer (fiscal agent) must be sure that the amount of the expense does not exceed the available budget, when he or she processes expenditures for an Agency budgeted account.
  • Available budget equals the budget MINUS expenditures MINUS encumbrances.
  • The Budget Officer must also make sure that expenditures for the year do not exceed the cash balance.
  • The Agency (Local Funds) report is issued monthly to all Agency Budget Officers. It shows the funds available at the end of the respective month.
  • Any outstanding vendor's invoices as of June 30th may still be charged against the fiscal year during the period of July 1st through a predetermined date (usually around July 31st). For questions, check with the Comptroller's Office - Comptroller@IllinoisState.edu at the fiscal year’s end. This period is referred to as the lapse period. Any unencumbered funds remaining after the lapse period are returned to the appropriate funding body (rolled forward, except for most student fee accounts – fund 10704).
  • Please note that during the lapse period there are actually two fiscal years going on at once. The Budget Officer must make sure he or she understands which fiscal year an expense is being charged against.

Non-budgeted Agency Accounts

  • The Budget Officer must make sure that expenditures do not exceed the available Cash balance as a whole (true Cash balance MINUS encumbrances).
  • The true Cash balance (available money for expenditures) equals the Cash balance rolled over from the prior fiscal year PLUS current year deposits MINUS current year expenditures.
  • When deposits are made to an account, the Budget Office updates the account budget the following day.
  • It is important to note that funds in student fee accounts (10704_05_…) must be expended or encumbered by June 30th of each fiscal year. Note: Non-budgeted Agency accounts funded from students' classroom material fees can only be used for consumable educational supplies. This is due to restrictions placed on this type of account by the Auditor General of the State of Illinois. For example, it would be a violation to purchase equipment from this type of account.
  • Any outstanding vendor's invoices as of June 30th may still be charged against the fiscal year during the period of July 1st through a predetermined date (usually around July 31st). For questions, check with the Comptroller's Office - Comptroller@IllinoisState.edu at the fiscal year’s end. This period is referred to as the lapse period. Any unencumbered funds remaining after the lapse period are returned to the appropriate funding body (rolled forward, except for most student fee accounts – fund 10704).

Please note that during the lapse period there are actually two fiscal years going on at once. The Budget Officer must make sure he or she understands which fiscal year an expense is being charged against.

Initiating body: Vice President for Finance and Planning

Contact: Comptroller's Office (309-438-2143) or Comptroller@IllinoisState.Edu

Revised on: 10/2014


2016-07-28T12:13:07.194-05:00 2016
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