University of Connecticut (Storrs & Regional Campuses)
Budget Office
FY 2009 Budget Guidelines for Current Unrestricted Funds

I.  Current Unrestricted Funds
The following are guidelines for Current Unrestricted Funds and some Office of Sponsored Programs (OSP) administered Current Unrestricted Funds. OSP administered accounts are identified on FRS screen 6 as accounts with a 'G', 'C' or 'S' in the Grant/Contract field. Some general guidelines for budgeting non-OSP Current Funds in ledgers 2, 3 and 4 are (specific differences for budgeting by ledger are enumerated further below):

• Personal Services for temp labor (subcode 1030), student labor (subcode 1040), overtime (subcode 1070) and grad assistants (subcode 1150) must be budgeted by line item.
• Personal Services for all permanent, continuing positions (subcodes 1010, 1310, 1410, 1510, 1610, 1710) will draw from the subcode 1000 pool as expenditures and encumbrances are generated. (Personal Services Encumbering Procedures are described on a separate page.) Permanent or recurring budget funds must exist for all permanent, continuing positions.
• Fringe Benefits (subcode 5320) and Workers' Compensation (subcode 5325) must be established as line item budgets at the beginning of the fiscal year. Fringe benefits and workers' compensation must be calculated for all permanent, continuing positions (subcodes 1010, 1310, 1410, 1510, 1610, 1710). Any budget adjustments to fringe benefits and workers' compensation because of a leave, resignation, or new hire must be initiated by the department using an A-1 Form.
• Pending Refills (subcode 1009) is used to identify funds specifically identified by position currently in the search process. The funds in this subcode are committed for future salary, fringe benefits and workers compensation. When the hire is made, the funds for the specific position held in Pending Refills (subcode 1009) must be transferred using an A-1 Form to the appropriate subcode (1000 salary pool, 5320 fringe benefits and 5325 workers compensation) by the department.
• Departments are responsible for funding personal services, fringe benefits and workers' compensation costs due to reclassifications, promotions (except for AAUP faculty promotions as a result of the annual Promotion, Tenure & Reappointment Process), upgrades, reevaluations, temporary positions and refills.
• Current Unrestricted accounts will be assigned the standard Automatic Budget Reallocation (ABR Rule 3)
  • RULE 3:  (STANDARD) Pools the personal services, fringe benefits and workers' compensation expenditure budgets in subcode pool 1000 and all other budget items in pool 2000.  Personal services for temp labor (1030), student labor (1040), overtime (1070) and grad assistants (1150) must be budgeted by line item.  All other personal services will draw from the 1000 pool.  
    • Pool 1000 Range 1001 - 1999 
    • Pool 2000 Range 2001 - 5319
• Pool 1000 Range 5320 - 5329
• Pool 2000 Range 5330 - 9399

Budget DataMart reports will be useful in making projections for FY 2009 budgets.  Every effort should be made to review and cancel open commitments or encumbrances that are not needed before the fiscal year closes and to close FRS accounts which will no longer be used.

The Inflationary Guidelines schedule is provided for use in developing personal services, fringe benefits and workers' compensation budgets.  Personal services, fringe benefits and workers' compensation will be encumbered in FRS at the start of the fiscal year through the employee's payroll authorization end date or through the end of the fiscal year, whichever comes first.  Encumbrances for employees on probation will be calculated through the end of the probationary period or through the end of the fiscal year, whichever comes first. The personal services encumbering process draws budget funds equal to the actual expenditures plus the amount encumbered for all personal services, other personal services, fringe benefits and workers' compensation.  Encumbrances for employees coded to project year accounts will be calculated for the duration of the payroll authorization, provided the authorization does not exceed the project end date.

A. Current Unrestricted Funds - University Supported

1. University Supported-Ledger 2 FRS Accounts (FRS Accounts with a first digit of 2)

• Collective Bargaining increases (including fringe benefits and workers' compensation) are funded by the Budget Office on a permanent basis, as applicable, based on the actual increases for individual employees.
• Other Personal Services are funded by the Budget Office from a central source as expenditures are incurred and encumbrances are calculated.  Other Personal Services include:
  • Longevity (1060, 1330, 1430, 1530, 1630, 1730)
  • Shift Differential (1080, 1350, 1450, 1550, 1650, 1750)
• Snow & Ice Differential (1100, 1360, 1460, 1560, 1660, 1760)
• Holiday Pay (1140, 1370, 1470, 1570, 1670, 1770)
• Accrued Vacation at Termination or Retirement (1120, 1380, 1480, 1580, 1680, 1780)
• Accrued Sick at Retirement or Death (1090, 1220, 1390, 1490, 1590, 1690, 1790)
• AAUP 1% Buyback (1950)
• Unspent, uncommitted budget funds (net of deficits) for University Supported accounts carry forward from one fiscal year to the next.  The carry forward budget is identified and recorded in September after the University's financial records are closed for the previous fiscal year.  This carry forward budget is capped at 5% and made available to the Dean, Unit Head or Executive Level Head, as applicable.  The amount carried forward may be net of any deficit (including ledgers 2 and 4) and other budget issues. Carry forward funds are made available in the new year as one time, not permanent commitments.
• Pending Refills (subcode 1009) is used to identify permanent and one-time funds specifically identified by position currently in the search process. The funds in this subcode are committed for future salary, fringe benefits and workers compensation. When the hire is made, the funds for the specific position held in Pending Refills (subcode 1009) must be transferred using an A-1 Form to the appropriate subcode (1000 salary pool, 5320 fringe benefits and 5325 workers compensation) by the department.
• Permanent recurring budgets will be automatically entered into FRS by subcode as of the end of June 2008.  Should a reallocation be necessary, please use an A-1 Form or contact your Budget Analyst.  The unit total must equal the permanent funds within the account. 
   

B. Current Unrestricted Funds - Non-University Supported and Certain Current Restricted Accounts

1. Auxiliary Enterprises-Ledger 3 FRS Accounts (FRS Accounts with a first digit of 3)
2. Other Self-Supporting Activities-Ledger 4 FRS Accounts (FRS Accounts with a first digit of 4) excluding OSP (1171) unrestricted accounts, Gifts (0000330), and other Sponsored Program administered accounts.  (See FRS screen 6 - Grant/Contract field in the lower right hand corner.  G, C or S indicates Sponsored Program administered. Contact OSP at 486-3622 to adjust any account with an attribute of G, C or S).
3. Gift and Local Funds-Ledger 4 and Ledger 6 FRS Accounts with FUNDSID equal to 0000330 and Local Funds with FUNDSID equal to Prizes, Design or scholar.

As Applicable for the above account types:

• Revenue must be budgeted by subcode.  Refer to the subcode listing on the FRS Manual website.
• Personal Services for all permanent, continuing positions (1010, 1310, 1410, 1510, 1610, 1710) and Other Personal Services will draw from the 1000 pool as expenditures are incurred and encumbrances are calculated.
• Collective Bargaining increases including fringe benefits and workers' compensation for ledger 3 and 4 accounts must be funded by the department.
• Each School/College/Department's operating budget should balance on an annual basis, that is, on an annual basis expenditures should not be greater than revenue.  Any spending plan that relies on substantial use of prior year fund balance will be subject to review by the appropriate Vice Provost.
• When fund transfers are necessary, provide details including general ledger account numbers, amount and an explanation of the reason for the transfer.  Supplemental fund transfers from other sources including the UConn Foundation must be accomplished prior to any corresponding budget adjustment.
• Except for Gift and Local accounts, budgets for these accounts must be completed on the Budget Submission form.  Budgets for Gift and Local accounts in FRS will be automatically adjusted to the fund balance.  Updates will be made biweekly throughout the fiscal year.

II. Capitalized Equipment
When requesting funding for Capital Equipment purchases, please note that the definition of equipment is an item costing $1,000 or more with a useful life of over one year.  Books, with the exception of University Library books, are categorized as commodities.  Items that do not meet this definition of equipment must be properly categorized as a commodity.  Use the Extended Subcode Descriptions listing found on the FRS web page  in the FRS User Manual.

IMPORTANT:

• Please complete the Budget Submission form and submit it to the Budget Office no later than April 4, 2008.  
• If you have any policy issues regarding the above, please contact Lysa Teal.  Should you have any specific budget related questions please contact your designated Budget Analyst.

Updated: 3/11/08