M24_Carryover

Carryover

Click to review through good to know facts related to calculating carryover.

Be prepared to answer questions as you are learning!

WHAT IS CARRYOVER?

Carryover is the leftover E&G balance to move over to the new fiscal year, but is not limited to the 1000 BAVL. For some departments there are funds that stand alone for non-sufficient funds control. They still contribute to the E&G balance for the purpose of carryover.

SHOULD I HAVE AN E&G BALANCE AT THE END OF THE YEAR? 

Most of the E&G balance should be spent by the end of the fiscal year. Remember that E&G funding is the funding from the state and tuition and fees and a majority of the expenditures on these accounts are for salaries and fringes. 

Multiple Choice

E&G funding is the funding from the research sponsors and a majority of the expenditures on these accounts are for salaries and fringes.

• True

• False

WHAT ARE THE GENERAL RULES?

As a general rule you should spend your E&G balance down close to zero. Your dean’s office or vice-presidential area can provide guidance on the exact target. Sometimes they want certain departments to overspend and finish with a negative balance, which must be repaid in the following year. Other times it’s okay to have a positive balance, which becomes the carryover amount in the new year.   

Multiple Choice

The leftover E&G balance to move over to the new fiscal year is called

• carryover

• carryfoward

• both are true

WHAT ARE THE BUDGET OFFICE REQUIREMENTS FOR A CARRYOVER PLAN?

Be aware that the Budget Office requires each college dean’s office to submit a carryover plan in the April to May time frame. 

The plan addresses two questions:  

1) How much money will your college carry over (an estimate)?

2) How will you use the balance carried forward in the new fiscal year? 

 If you are in a department, your dean’s office may or may not ask for similar information as they prepare their plan. It’s up to each college how they deal with individual departments regarding carryover.

WHY WOULD I WANT TO REQUEST CARRYOVER?

Some reasons why a college might want to carry money forward to the next fiscal year:

Putting money together for a major renovation.

To pay for an item on order that is currently encumbered.

There are things that you can do to manage the amount of E&G budget that you need to roll over. The first step is understanding how much money you will need to carryover.

Multiple Choice

Which of the items below is NOT a good reason to request for carryover funding for the next fiscal year?

• Putting money together for a major renovation.

• To pay for an item on order that is currently encumbered.

• Saving for a rainy day.