Budget

General Information

Type of Policy: 
Administrative
Review Date: 
March 2017
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Jim Kirk
Contact Title: 
Exec Dir-Institute Budget Planning & Administration
Contact Email: 
jim.kirk@business.gatech.edu
Reason for Policy: 

The function of the Georgia Tech Budget Office is to plan, prepare, maintain, monitor and report on all institutional budgets at Georgia Tech according to established Institutional and Board of Regents (BOR) policies. The Georgia Tech budget expresses the intentions of the Institute in terms of dollars. These intentions include a fiscal year (July 1 - June 30) plan for the Institute, which is reflected in the Annual (Original) Operating and Capital Budget. Any changes made during the fiscal year must be reflected through an amendment process.

The President of the Institute is held responsible by the Board of Regents of the University System of Georgia for planning and administering all programs and related budgets for the Institute. Administrative and planning responsibility for budgetary units within Georgia Tech is delegated by the President to the Provost, Senior Vice President, and Vice Presidents. It is further delegated to division heads, including deans and other division heads reporting directly to the President.

Policy Statement: 

The Budget Office is required to follow an established set of guidelines and policies set forth by the State of Georgia, the Board of Regents and the Institute. These are found in Section 702 of the Board of Regents policy manual. Key portions of the BOR policy are cited below.

Organization of Budget and Accounting Structure
Financial and budgetary procedure for the University System shall divide financing, accounting, and operation of fiscal affairs into two parts: first, educational and general programs, such as cost of instruction, research, public service, academic support, student services, institutional support, operation and maintenance of plant, and scholarships and fellowships, and such income as student fees, federal grants, endowment income, vocational funds income from sales, gifts, rentals, and other related items; and, second, auxiliary enterprises, such as dining halls, residence halls, and other related items. (Section 702)

Preparation of Operating Budgets
Each institution of the System shall prepare an operating budget for educational and general activities and an operating budget for auxiliary enterprises of the institution for the fiscal year within the limit of funds allocated plus estimated internal income of the institution. Operating budgets of separately incorporated athletic organizations are specifically excluded from this process, although the transfer of student fees to those separately incorporated organizations must be reflected as a single item in the budget submitted to the Chancellor (BR Minutes, 1946-47, pp. 214-15). (Section 702.02)

Budget Amendments
Institutions are authorized to amend their annual operating budgets without prior approval of the Board of Regents except that any amendment which exceeds $1 million and involves state general fund appropriations, auxiliary enterprise funds or student activity funds shall be submitted to the Board of Regents for approval. Prior Board of Regents approval shall not be required for any budget amendment involving special purpose state funds, non-state funds, or internal revenue sources. Institutions shall be required to report quarterly on all budget amendments to the Vice Chancellor for Fiscal Affairs and the Treasurer under procedures developed by his/her staff. The Chancellor or the Vice Chancellor for Fiscal Affairs and the Treasurer reserves the right to require prior approval of the budget amendments at any institution of the University System which he/she determines has failed to manage its budget within available resources or in a manner consistent with Board of Regents goals and priorities. Under these circumstances, the Chancellor or the Vice Chancellor for Fiscal Affairs and Treasurer may request the institution to develop a remediation plan to assure more appropriate decisions on future budget changes (BR Minutes, 1951-52, pp. 365-66; June, 1999, p. 17). (Section 702.3)

Definitions
The consolidated operating budget for Georgia Tech includes Resident Instruction, Georgia Tech Research Institute (GTRI), Distance Learning and Professional Education (DLPE), Advanced Technology Development Center (ATDC), Economic Development Institute (EDI), Center for Assistive Technology and Environmental Access (CATEA), Auxiliary Services, and Student Services. The consolidated budget includes all the financial resources available to Georgia Tech during a given year. There is a separate budget for major capital projects. The budget for the academic core of the Institute, plus executive management and all general Institute support activities such as Library, Administration & Finance, Information Technology, Plant Operations, etc. is referred to as the "Resident Instruction Budget." See the next section for additional definitions pertaining to Georgia Tech budgets.

Policy Terms: 
  • Account (was Object Code)
    A detailed identifier for classifying expenditures. For example, supplies, equipment, health insurance, wages, etc.
  • Allocation
    The process of distributing funds to the campus. Separate processes are used to allocate the funds from the different sources. Resident Instruction funding is usually placed in a unit's budget and forms the base budget for the new year. Additional funds added to the base are called "new workload" funds. Generally, the base budget plus new workload form the budget for the next year.
  • Auxiliary Enterprises
    Operations that support the mission of the institute by providing essential services to students, faculty and staff, including food service, housing, and parking. Fees support these operations. Auxiliary Enterprises are considered self-supporting and therefore do not receive an allocation from the State.
  • B Units
    Other organized activities at Georgia Tech with separate appropriations in the State of Georgia budget. These are: Georgia Tech Research Institute (GTRI), Advanced Technology Development Center (ATDC) and Enterprise Innovation Institute (EII).
  • Budget
    The annual financial plan of the Institute. With the approval of the Board of Regents, the Institute adopts the Original Budget in July of each fiscal year and subsequently approves an amended budget each month. The amended budget must be approved quarterly by the Board of Regents.
  • Budget Amendment
    The process that campus units use to update their Original Budgets. The process involves, but is not limited to, the re-distribution of funds between accounts, function and sources of funds, additions or reductions of funds, or changes in personal services status, such as position changes, title changes, and resignations. According to Board of Regents policy, “any expansion in operations that would necessitate an increase in the budget shall be submitted to the Board for approval before any obligation is incurred…”
  • Capital Budget
    Budget established to account for funds used in the acquisition, construction, renewal or replacement of new or existing physical properties or land.
  • Departmental Sales and Services
    Revenues collected on behalf of a specific program to be used solely for that program, such as a copy fee charged by the Library.
  • Education and General
    All of the Institute’s operating budget with the exception of Auxiliary Enterprises; excludes major capital expenditures.
  • Expenditure Budget
    That part of the budget where the funds will be spent.
  • Fiscal Year
    Twelve-month period that is the basis for the budget and financial statements: July 1 through June 30 for State of Georgia entities.
  • FTE (Full Time Equivalent)
    The effort a person works in a fiscal year expressed in a percent. “FTE” is used to equalize effort expended for personal services by the Institute. For example, a person who works fulltime for twelve months is 1.00 FTE; a person working half time for twelve is .50 FTE. An academic faculty member who works full-time for the fall and spring semesters is .75 FTE.
  • Fund
    Accounting and budgeting entity with its own set of self-balancing accounts. The funds are established on the basis of Generally Accepted Accounting Practices and state law. Operating budgets are included as “current funds.” The Institute’s core functions are included in the major fund category “Resident Instruction.”
  • Group Position
    Personal services budget line that contain more than one non-permanent position, such as graduate students, student assistants, and summer faculty.
  • Internal Revenue
    Revenue derived primarily from tuition and fee income and recoveries of indirect costs from research conducted at Georgia Tech. (Other revenues included in this category are miscellaneous student fees, gifts and grants, sales and services of departments, and any other sources.
  • Lottery
    Special allocations from the State that are funded from the State lottery. These funds are designated and limited in use and must be separately identifiable.
  • Non-Personal Services
    A grouping of project numbers not related to salaries and fringe benefits. These categories include travel, supplies, and books/equipment.
  • Operating Budget
    The "Resident Instruction Budget," together with the “‘B”’ Unit Budgets and the Auxiliary Enterprises, are referred to as the "Operating Budget." It includes all the financial resources available to Georgia Tech for educational, general, research, and auxiliary activities during a given fiscal year. The operating budget, also known as “total current funds,” excludes major capital expenditures.
  • Original Budget
    The budget beginning July 1st of the fiscal year, which must be approved by the Board of Regents.
  • Personal Services
    A grouping of project numbers directly related to salaries, wages and fringe benefits.
  • Program / Function
    A classification of expenditures specifying a major service or program. The program categories as defined by U.S. Department of Education, Instruction, Research, Institutional Support, Public Service, Operation of Plant, Student Services, Academic Support, and Fellowships and Scholarships.
  • Project ID
    For Georgia Tech accounting, the lowest level identifier where funds are budgeted or expended.
  • Research Consortium
    Special allocations from the Board of Regents. These funds are designated for a specific program, such as Georgia’s Traditional Industries, and must be separately identifiable.
  • Resident Instruction Budget
    The budget for the academic core of the Institute that includes academic units plus executive management and all general Institute support activities. The “B” Units, Auxiliary Enterprises, and Student Activities are excluded from Resident Instruction.
  • Revenue Budgets (Sources of Funding)
    There are several sources of revenue for the Institute’s operating budget:
    1. State Appropriations
    2. Internal Revenue
    3. Sponsored Operations
    4. Departmental Sales and Services
    5. Special Funding Initiatives
    6. Research Consortium
    Sponsored Operations includes funding from the Georgia Tech Research Corporation (GTRC) and Georgia Tech Foundation (GTF), two affiliate organizations.
  • Special Funding Initiative (SFI)
    Special allocations from the Chancellor’s Office. These funds are designated for a specific program and also must be separately identifiable. An example is GT Savannah or CEISMIC.
  • Sponsored Operations
    Revenue from sponsor reimbursement of direct and indirect costs of sponsored research, instruction, and other institutional activities funded through Grants and Contracts.
  • State Appropriation
    An authorization by the Legislature to a state entity to spend from public funds, a special sum of money for a fiscal year. For higher education appropriations are made to the Board of Regents for allocation to institutions.

Annual Operating Budget (Proposed Budget)

Type of Policy: 
Administrative
Review Date: 
January 2015
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Reason for Policy: 

The Georgia Institute of Technology budget expresses in terms of dollars the funded programs and plans of the Institute for the specific budget (fiscal) year. Revenue estimates are also identified to support these programs and plans. Budgetary approval by the Board of Regents (BOR) of the University System of Georgia (USG) and by the Institute administration constitutes authorization to expend the funds as budgeted and to collect the anticipated revenue. The approved budget is the primary instrument of fiscal control and must contain all revenue and expenditures of the Institute.

Institute revenue or program support derives from State Appropriations and Internal Income such as Student Fees, Indirect Cost Recoveries from Sponsored Projects, Gifts and Grants, Sales and Services, and Sponsored Operations. Each year the State of Georgia Legislature appropriates funds to the University System of Georgia for support of all Institutions in the system. The BOR in turn allocates state funds to each institution on the basis of a funding formula and specific guidelines established in the state Appropriations Act.

Policy Statement: 

Guidelines & Policies
The Georgia Tech Office of Budget Planning and Administration (the “Budget Office”) is required to follow an established set of guidelines and policies set forth by the State of Georgia, the Board of Regents, and the Institute. These guidelines require an annual operating budget be prepared for each budgetary unit of the Institute.

  • General Policy
    The Board of Regents (BOR) annually allocates funds to each institution at its April meeting or next regular meeting following the approval of the appropriations act or as soon after as practical every year. The BOR approves the budgets of the institutions and Office of the Board of Regents at its regular May meeting each year, or as soon thereafter as practical.
    The Board of Regents is the only medium through which all formal requests are made for appropriations from the General Assembly and the Governor of Georgia.
  • Operating Budgets
    Each institution in the University System prepares an Operating Budget for educational and general activities of the Institution for the fiscal year within the limit of funds allocated, plus estimated internal revenue. In addition, a budget is prepared forAuxiliary operations that are supported by fees and other revenues.
  • Sources of Revenue
    There are five basic sources of revenue for the Institute Resident Instruction operating budget:1) State Appropriations; 2) Internal Revenue; 3) Sponsored Operations; 4) Departmental Sales and Services; and 5) Georgia Tech Research Corporation (GTRC) and the Georgia Tech Foundation (GTF).
    1. State Appropriation
      Annual allocation of funds from the Board of Regents' legislative appropriation, funded by the State of Georgia.
    2. Internal Revenue
      Derived primarily from tuition and fee income and recoveries of indirect costs from research conducted atGeorgia Tech. (Note: Direct cost is anything that is directly related to a sponsored project, such as salaries and work supplies. Indirectcost recovery refers to the funds used to pay for administrative and support costs of the Institute, such as administration, facilities, and the Library.)
      • Tuition and Student Fees
      • Gifts and Grants
      • Indirect Cost Recoveries
      • Sales and Services of Educational Departments
      • Other Sources
    3. Sponsored Operations
      Revenues from sponsor reimbursement of direct costs of sponsored research, instruction and other sponsored institutional activities.
    4. Departmental Sales and Services
      Revenues collected on behalf of a specific program to be used solely for that program, such as students are charged a computer fee to be used to maintain the computer facilities they use and colleges charge fees for non-credit courses offered to businesses and the community.
    5. GTRC and GTF
      Limited resources are available from the Georgia Tech Research Corporation and from the unrestricted (not designated for specific purposes) endowment of the Georgia Tech Foundation.
  • Distinctions in Sources of Revenue
    Sponsored operations and departmental sales and services revenues are collected to support a specific project or program and therefore are limited in their use to that project or program alone. GTF funds are generally used to support students, faculty and staff in non-research activities. GTRC funds are generally allocated to students, faculty and staff for research purposes. State appropriations and internal revenue, on the other hand, can be used for any part of the Resident Instruction program, including state-funded research activities.

     

    Separate processes are used to allocate the funds from the different sources. Resident Instruction funding is usually placed in a unit's budget and forms the base budget for the next year. Additional money added to the base is called "new workload" funds. Generally, the base plus new workload forms the base for the following fiscal year. Funds from the Foundation and the Georgia Tech Research Corporation, on the other hand, are more likely to be treated as one-time grants.

Procedures: 

Applicable Forms
Forms to be used in preparing the Annual (Proposed) Operating Budget are specified each year in the guidelines and instructions provided to campus units. See the Budget Office web site for current forms.

Approval and Budgetary Review of Elective Student Fees and Other Special Fees

Type of Policy: 
Administrative
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Barbara Villa
Contact Title: 
Budget Manager
Contact Email: 
barbara.villa@business.gatech.edu
Reason for Policy: 

Policy Objective
Approval by the President of Georgia Institute of Technology is required for all elective fees and special charges per the Board of Regents (BOR) policy included as an appendix to this document. The purposes of Georgia Institute of Technology’s elective fees and other special fee approval policy are to:

  • Provide a consistent approach to approval and treatment of fees and
  • Ensure that students are not burdened with costs that should be covered by tuition or state funds.
Policy Statement: 

General Policy Provisions
In general, departments are expected to cover normal instructional costs within their general operations budget, and elective fees and other charges should be needed only in exceptional situations. The financial needs of the department or school must be weighed against the impact of the fees on students and also the costs of administering the fees (assessment and collection). Fees must be used to augment, rather than replace general budgeted funds for departmental instructional costs.

Board of Regent approval is required for any fee or charge that is mandatory for all full-time undergraduate students or all undergraduate students in a specific degree program. All other elective fees will continue to be approved by USG presidents.

Increases in these fees should be kept moderate and gradual. Fees approved under this policy must be reviewed by the Bursar's Office to determine the most appropriate way to assess and collect these fees. Fees approved under this policy will be administered and collected directly by the Bursar Office. All new fees and increases to existing fees must be approved by the President, and when approved, will be implemented in the following academic year.

The following are examples of what may be funded through elective fees and special charges:

  • Cost of providing course materials to be consumed, retained or used by the student
  • Special costs associated with the use of University-owned tools and equipment for extracurricular or out-of-class learning activities
  • Cost of other materials or services necessary to provide a special supplemental educational experience of direct benefit to the student
  • Doctoral binding fee
  • Transcript fees

This policy specifically excludes the following cost items to be paid through fees:

  • Salaries, wages, and employee benefits of support personnel (including honoraria)
  • Instructional equipment located and utilized in classrooms and labs primarily during scheduled periods of instruction
  • Reproduction of copyrighted materials
    See the BOR website for a summary of copyright policy: (http://www.usg.edu/copyright/).
  • Course syllabi
Procedures: 

Establishment of New Elective Fees and Special Charges

All elective fees and special charges must conform to stated Georgia Tech policy. Departments may not assess and collect course-related fees that the President has not approved under the policy.

The Provost’s Office, Office of Budget Planning and Administration (“Budget Office”), and Bursar’s Office are responsible for applying the policy and ensuring adequate campus oversight of all fees. This responsibility includes review of fee proposals, review of the costing and proposed fee levels, and the appropriate distribution of collected fees.

  1. Review Process
    All requests to establish a new elective fee/special charge or an adjustment to an existing fee must follow these review procedures and be approved by the President. These requests will be reviewed annually in January for implementation during the following academic year. Separate fee requests are not required for courses taught during the summer if they have already been approved for fall and spring. The approved fee is automatically assessed during the summer if the course is offered under the same course number and course description.
  2. Allowable Costs
    When proposing new fees, departments must follow the following guidelines:
    • Departments must apply a test of reasonableness to ensure that funding has not already been provided to the department or school through other fund sources, such as current state or tuition funds.
    • Guidelines for the types of items that may be included in the fee are listed in Section II. Only direct costs (not overhead/indirect costs) may be included in the computation of the fee, and departments must fully and accurately document the cost of supplies, consumables, and support services associated with each elective fee.
    • Each proposed fee must provide course-specific cost information.
    • If equipment is included in the fee, the cost of the equipment must be allocated over the useful life of the equipment and cannot be fully expensed in the year of acquisition. For the calculation of course materials fees, “equipment” is considered to be tangible property having a useful life of more than one year.
    • If the fee is to be assessed for a course during the summer as well as the academic year, the expected costs and income associated with the summer session should be included in the calculation of the overall fee. Alternatively, departments may request a different fee for the summer.
  3. Designation and Collection of Elective Fees and Special Charges Revenue
    Each fee will be established in the student fee fund/account/project range.

    All approved course fees will be assessed through Banner (student system) to all students enrolled in specific course at the time of registration. The published tuition and fee deadlines for each term will be in effect for these type fees. For all other type fee approvals, a review will be made by the Bursar’s Office to determine the most appropriate method for assessment and subsequent collection. These fees will generally be due at the time of assessment.
  4. Utilization of Elective Fee Revenue
    Revenue from each individual elective fee and special charges must be expended only for costs that were specified in the calculation of the approved fee. Revenue cannot be used for other costs, and should not be used as a profit generating mechanism.
  5. Proposal Format and Submission
    Forms for requesting new fees and increases to existing fees are available in Excel format on the Budget Office’s website (Elective Fee Form) and examples are included as Appendices 2 and 3 to this policy. The forms include a cost table that must be completed to identify specific costs covered by the fee and to show the basis of the proposed fee level. Completed proposals, reviewed and signed by the appropriate department head and dean/division head, should be submitted by December 15 to the Provost’s Office of Financial Administration. Off-cycle proposals will be considered in special circumstances. Following the Provost Office’s review, the Budget Office and Bursar’s Office will review the proposal prior to submission to the President. The Bursar’s Office will review and include a recommendation for the assessment and collection of the fee. Only fees approved by the President should be assessed to students. Once approved, new or increased fees will be implemented in the following academic year.

Requests for Elective Fee Increase/Decrease
Requests for increases in approved elective fees will follow the same procedures and policies as the establishment of new fees. Requests for elimination or decreases of existing elective fees, or application of the fee following a minor change in the course number or description, will be handled administratively by the appropriate college/unit. Notification should be sent to the Budget Office and Bursar’s Office when fees are reduced or eliminated.

Appendix 1

University System of Georgia, Board of Regents Policy

7.3.2.2 Elective Fees and Special Charges
Other Elective Fees and Special Charges

Institution presidents are authorized to approve elective fees and special charges as outlined below. However, any fee or special charge that is required to be paid by all fulltime, undergraduate students at the institution or by all undergraduate students in a specific degree program, with the exception of specific course fees for supplementary costs, shall be approved by the Board. Other elective fees and special charges are defined as those fees and charges that are paid selectively by students. These fees and charges may include, but are not limited to:

  1. Resident hall deposits;
  2. Penalty charges;
  3. Non-mandatory parking fees and parking fines;
  4. Library fines;
  5. Laboratory fees;
  6. Post office box rentals; and
  7. Course fees to cover supplementary costs for specific courses, such as art materials, course

packets/kits, software/videos, and special equipment (BoR Minutes, January 2010). Institutional presidents are authorized to establish and adjust these fees, as appropriate. Prior to implementation of such fees, institutions shall be required to report to the Chancellor any establishments and adjustments made thereto under procedures established by the USG chief fiscal officer (BoR Minutes, January 2010).

Budget Amendments

Type of Policy: 
Administrative
Review Date: 
January 2015
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Reason for Policy: 

The Office of Institute Budget Planning and Administration (“Budget Office”) is responsible for the development, implementation, maintenance, and control of Georgia Tech’s non-sponsored budgets, based on allocations approved through appropriate academic and administrative processes. The budget consists of funding from general, departmental services, special funding initiative, research consortium, lottery, sponsored, auxiliary, student services, and agency operations. In addition, budgets are maintained for a large number of capital projects.

Policy Statement: 

The budget for each department or project should be amended to reflect the current estimate of expenditures and income (if applicable) for the fiscal year. The following list shows some, but not all types of transactions that would require a budget amendment:

  1. Establish a budget amount or change the amount budgeted for non-personal services expenditures, such as travel, operating supplies and expense, and equipment.
  2. Establish a budget amount or change the amount budgeted for anticipated income (revenue and departmental sales and services) for the fiscal year.
  3. Establish or change the amount budgeted for a vacant position.
  4. Make an approved increase or decrease to your original budget amount.
Procedures: 

Steps in Budget Amendment Process

  1. Log into the IBS System
    • Enter your Operator ID (GT ID number).
    • Enter your password.
    • Click “enter.”
  2. Check Totals
    • Go to Totals Page
    • Verify approved budget for all funding sources.
  3. Check Amendment
    • Go to Review and Submit Page
    • Check Salary Planning and Distribution for any changes automatically generated by IBS.
    • These changes are driven by and reflect the SPD system the day the amendment was run. Delete/correct accordingly.
    • If increasing or decreasing budget, make adjustments to your personal services and/or non-personal services to reflect the change. After each entry is made make sure you click “Save.”
    • Complete “Amendment Notes” and “Comments” fields (see “Use of Comments Fields” section below)
    • If there is no change to the “bottom-line” budget and funds are being transferred between personal services and non-personal services, there must be a zero balance.
  4. Check Request Prior to Budget Submission
    • Go to “Review and Submit” page.
    • Verify funding source totals for any increases or decreases.
    • Verify total.
    • Make sure funding is not transferred from one source to another. For example, do not move funds from General Operations to Departmental Sales and Services (DSS).
  5. Budget Submission
    • Click “Submit” button.
    • Your department is locked out to allow the Budget Analyst to process your changes.
    • An e-mail is generated and sent to the Budget Office to process your request.
    • Your budget amendment is updated. An e-mail notification is sent to you that your budget amendment is ready to print.
  6. Printing Reports
    1. Go to “Reports” page.
    2. All reports are available in MS Excel.
    3. Note that Bud802 and Bud805 are generated after the BA is submitted.
    4. Print report for use by your unit’s financial administrators in review of authorized monthly budget activity.

Use of Comment Fields in the Amendment Process
Department Level Comments – provide a description of your budget changes.

  • This page differs from the detail level comments on the Personal Services and Non-Personal Services pages in that here you must include any high-level description to document why you made budget adjustments. The description should be similar to the information previously provided on the cover sheets.

Detail Level Comments (on Personal Services and Non-Personal Services pages)

  • Your department is either receiving or giving out a mixture of funding (example: both Tech Fee and Research Consortium funding).
    • Enter totals by funding source in comment.
  • Funding to or from more than one other department/project.
    • Enter each of the other departments’ org numbers and amount in comment. Don’t just enter a lump sum total by department.

Actions that result in a NET change to your department’s budget require comments

  • SPD adjustments or transfers from one account to another within a department do not require comments. Within comments, always include the project number org # or the name of the department that is either providing additional budget to your department or receiving funds from your department. Your analyst can help you with the transition to paperless documentation within amendments.

Any BA submitted with a net change in a department’s budget but without any documentation in the comment fields will need to be corrected before it will be processed

  • Your analyst will contact you to request that you submit the missing information and resubmit the amendment.

Budget Amendment Close-Out Process

  • Budget Office balances the changes to the Original Budget.
  • The files are processed and submitted to update the PeopleSoft General Ledger.
  • The Budget Office notifies the unit budget contacts that IBS is available for your use and the next budget amendment due date.

Please contact your Budget Analyst if you have any questions about these policies and procedures.

Related Documents: 

Capital Budgets

Type of Policy: 
Administrative
Review Date: 
February 2015
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

Capital projects, generally those costing more than $1 million, are funded from various sources. These sources, which include State of Georgia, Board of Regents, Georgia Tech Foundation, and campus funds, usually dictate who has administration of the project.

The State of Georgia funds the construction of buildings and the Georgia State Finance and Investment Commission (GSFIC) coordinates the project and disburses the funds.

The Board of Regents (BOR) receives an allocation from the state legislature referred to as Major Repair and Rehabilitation (MRR) funds. The MRR Fund is generally used for projects costing less than $1 million. The Board of Regents allocates these funds to the various units of the University System. These funds may be funneled through GSFIC if they are bond funds. The administration of the project may be handled by GSFIC or Georgia Tech depending on the type of project.

The Georgia Tech Foundation (GTF) funds various capital projects on campus. GTF retains administration of some of the projects and the facilities office/plant operations administers the remainder. These GTF projects require prior approval from the Board of Regents.

Some projects are funded by resources held by Georgia Tech, i.e. discretionary endowment funds and Auxiliary Enterprises reserve funds. These projects are controlled by Georgia Tech personnel after receiving Board of Regents approval.

Procedures: 

State of Georgia Funding
Each year a "Five-year Capital Outlay Budget Request" is prepared by the units of the University System of Georgia and submitted to the Board of Regents. The Board of Regents examines all requests and prepares a consolidated priority list. Only a portion of the list is funded by the legislature's allocation. The unfunded projects normally remain on the priority list the following year. Funds for the approved projects are transferred to GSFIC for disbursement and project administration. These projects are defined as new buildings, building additions, and building renovations estimated to cost $1,000,000 or more.

Board of Regents Funding
The Board of Regents receives a special allotment from the State of Georgia called Major Repair and Rehabilitation (MRR) funds. Each unit of the University System submits to the Board of Regents a prioritized list of repair/renovation projects estimated to cost less than $1,000,000 each. At Georgia Tech this list is prepared by the Space Administration Committee. The Board of Regents reviews each submission and decides which projects will be funded from the MRR allocation. The Board of Regents assigns a project number and authorizes GSFIC to make disbursements from the MRR allocation if the source is bond proceeds. Occasionally projects in excess of $1,000,000 will be funded from MRR funds. When this happens they are usually funded in phases.

Georgia Tech Foundation Funding
GTF funds special projects as determined by the President of Georgia Tech and the Board of Trustees of GTF. These projects may be coordinated by GTF or the funds may be transferred to Georgia Tech and handled by Georgia Tech personnel.

Campus Funds
These are discretionary funds held by Georgia Tech consisting mainly of endowment funds and Auxiliary reserve funds. The use of discretionary endowment funds must have the President's approval or his designee prior to establishing a project budget. The Auxiliary Reserve funds are used to renovate existing Auxiliary Enterprise facilities, construct new Auxiliary Enterprise facilities, and purchase equipment needed by Auxiliary Enterprise units.

Unexpended Plant Funds
This fund group is used to account for the construction or acquisition of physical properties, renovation of existing properties, and purchase of inventories and non-inventoried equipment.

Expenditures in this fund group are categorized as follows:

  • Land
  • Buildings - New
  • Buildings - Additions (Cost a minimum of $5,000 and a useful life of more than three years)
  • Buildings - Renovations (Cost a minimum of $5,000 and a useful life of more than three years)
  • Improvements Other Than Buildings - landscaping, parking lots, fences, etc.
  • Equipment/Inventories - items costing $1,000 or more; (items made of glass or other fragile materials are supplies)
  • Equipment items costing $5,000 or more are capitalized and depreciated
  • Equipment/Non-inventoried - items costing less than $1,000 are considered supplies

Applicable Forms
Capital Budgets Form
The Capital Budgets Form is used to establish plant fund projects and is provided to the units by the Budget Office. The project account numbers for new projects will be assigned by the Budget Office after the project has been approved. If discretionary endowment funds are shown as the source, the President or his designee must approve the project. All plant fund projects must have the Board of Regents' approval.

Firm Fixed Price (FFP) Residual Balances

Type of Policy: 
Administrative
Review Date: 
January 2018
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

Some grants and/or contracts awarded to the Institute are considered “firm fixed price” contracts. For these types of contracts, a unit will produce a product for a pre-set price. (Most other grants and contracts are based on reimbursement of actual expenditures.) If a product is delivered and not all the sponsor funds have been utilized, the department may request the remaining funds.

Procedures: 

Procedures for obtaining FFP Residual Balances

  1. Request documentation of FFP residual balance amount from Grants and Contracts.
    Note: Units only receive the direct portion of the residual balance.
  2. Obtain approval of funds transfer from Budget Office. This may be done via email. Please contact the Director of Budget Planning and Administration, copy to the Associate VP of Financial Services. Include Grants and Contracts documentation as an attachment.
  3. Once approved, the Unit may include the new funding in the next monthly budget amendment.
  4. The Budget Office will establish a unique project number for these funds and post the appropriate budget amount.
    Note: The revenue generated by this transaction is unique. The BOR classifies these funds as either Indirect Cost Recoveries or Other Miscellaneous Income, depending on details of the transactions. Expenditures must be charged to the same fund as the revenue. Budget amendments to these projects are not allowed.

Indirect Research Support Allocation

Type of Policy: 
Administrative
Last Revised: 
August 2016
Review Date: 
August 2019
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

Georgia Tech allocates 30% of the Resident Instruction F&A (facilities and admin) indirect cost recoveries generated by academic units back to those units. This includes all colleges. Depending on actual performance, a unit may generate additional or reduced budget allocations each fiscal year. Incentive allocations are approved by executive staff, subject to availability of funds. The allocation is made to the college level (not the department level), and funds are distributed at the discretion of each dean.

Procedures: 

Original Budget Allocation
Each academic unit’s Original Budget for the next fiscal year contains an F&A base. This base is 30% of the Office of Grants and Contracts' revenue estimate for the current fiscal year as of March 30. The Institute Budget Planning and Administration Office provides estimates to the units of their allocations during the budget development process to permit them to plan their expenditures and budget accordingly.

Mid-Year Budget Allocation
Mid-year permanent budget allocations may be approved by executive staff based on changes to F&A recoveries during the fiscal year. If approved, the allocations will be based on the most current Office of Grants and Contracts' revenue estimates for current fiscal year.

Reconciliation
After the close of the fiscal year, the allocations will be re-computed based on actual earnings for the previous year. These funds will be distributed as permanent additional or reduced budget adjustments in the first budget amendment of the new fiscal year. This will make the units whole for recoveries from the prior fiscal year.

Mandatory Student Fee and Budget Approval Process

Type of Policy: 
Administrative
Last Revised: 
January 2016
Review Date: 
January 2019
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Jim Kirk
Contact Title: 
Executive Director, Institute Budget Planning and Administration
Contact Email: 
Jim.Kirk@business.gatech.edu
Reason for Policy: 

This policy implements the following Board of Regents policy pertaining to mandatory student fees.

Board of Regents Policy 7.3.2.1 (February 9, 2000, amended in June 2009, January 2010, and May 2010)
Mandatory Student Fees:
“Proposals to increase mandatory student fees and proposals to create new mandatory student fees, submitted by an institution, shall first be presented for advice and counsel to a committee at each institution composed of at least 50% students. The committee shall include at least four students, who shall be appointed by the institution’s student government association. Institutions and student government associations should make a concerted effort to include broad representation among the students appointed to the committee.

Mandatory student fees shall be used exclusively to support the institution’s mission to enrich the educational, institutional, and cultural experience of students. All payments from funds supported by student mandatory fees shall be made according to approved business procedures and the appropriate business practices of the institution."

Policy Statement: 

The Georgia Institute of Technology Mandatory Student Fee Advisory Committee (“Committee”) is created to implement the provisions of Board of Regents Policy 7.3.2.1. The Committee shall make recommendations to the President on changes to existing mandatory student fees or on any new mandatory fees. Fees considered by the Committee shall exclude elective fees that are paid by the students who choose to receive specific services. Mandatory fees are defined in the Board of Regents' Policy manual as follows in BOR Policy 7.3.2.1:

"Mandatory student fees are defined as fees that are assessed upon enrollment to all students, all undergraduate students, or all full-time undergraduate students on one or more campuses of an institution. Fees assessed to one of the aforementioned groups of students with an exclusion for distance learning students are also defined as mandatory fees. Mandatory fees may be required by the Board of Regents or by the institution subject to approval by the Board of Regents."

The Committee shall be composed of twelve members selected as follows:

  • Eight students appointed by the Graduate and Undergraduate Presidents of the Student Government Associations (SGA);
  • Two faculty members appointed by the Provost;
  • The Executive Director, Institute Budget Planning and Administration (IBPA);
  • One additional staff member appointed by the Executive Vice President, Administration and Finance (EVP A&F).

The Executive Director, IBPA, is a permanent member of The Committee. The two faculty members and the second staff member shall serve two year terms. The Committee is co-chaired by one of the eight student members appointed by the SGA Presidents and by the Executive Director, IBPA. The IBPA Office provides staff assistance to the Committee and submits the required documentation to the BOR in support of Georgia Tech’s fee recommendations.

In addition, there shall be non-voting, ex officio members of the Committee as follows, unless these individuals are appointed as voting members. The ex-officio student Committee members shall be the Presidents of the Graduate and Undergraduate Student Government Associations, the Editor of the Technique, the Vice President for Finance and Chair of the Joint Finance Committee, and any other students appointed by the Student Government Association Presidents. Ex-officio faculty and staff Committee members may include the Vice President for Student Affairs, the Associate Vice President for Auxiliary Services, and up to two faculty or staff appointed by the Provost or Executive Vice President, Administration and Finance.

Below are the fees for which the Committee provides recommendations to the President, along with the organizations that provide recommendations to the Committee:

  • Technology Fee - Technology Fee Committee (for recommendations on fee levels only and not on projects to be funded)
  • Transportation Fee - Parking and Transportation Advisory Committee
  • Student Health Fee - Student Health Advisory Committee
  • Student Activity Fee - Student Government Association
  • Athletic Fee - Georgia Tech Athletic Association.

Excluded from the Committee’s review are any “general purpose fees” approved by the BOR, as stated in the BOR policy (BOR Policy 7.3.2.1). Other offices or student organizations also may propose new fees to the Committee. It would be up to the Committee Co-Chairs and the SGA presidents whether such proposals are to be considered.

Procedures: 

The Committee is responsible for reviewing proposals for rate changes to current mandatory student fees and any newly proposed mandatory fees, and to review budgets funded from the fees. The Committee then provides its recommendations to the Georgia Tech President, who submits the request to the Chancellor of the University System of Georgia for approval.

The following guidelines shall govern voting by the MSFAC:

  1. The Committee votes on all mandatory fees, whether changes are proposed or not, and to add any new fees. (NOTE: The BOR policy only refers to the committee’s consideration of increases to existing fees and new fees. By inference this policy also includes recommendations to reduce existing fees.)
  2. Where a staff Committee member works in a program funded through a fee, he or she must recuse him/herself from the vote on that particular fee.
  3. When a Committee member is absent from a meeting, a substitute may be requested for that member, subject to approval of the co-chairs.
  4. In no case shall the number of voting student members at a meeting fall below one-half of the total voting Committee members.

The Committee meeting schedule shall be structured so as to provide the Chancellor with mandatory student fee and budgetary recommendations in sufficient time for approval, typically in January of each year. The Committee should strive to complete its review and prepare a preliminary recommendation prior to the end of the fall semester. The staff chair will coordinate with BOR staff to ensure that fee recommendations are made on a timely basis. Submitting organizations are responsible for preparing the forms required by the BOR and by Georgia Tech to support fee submissions, with the assistance of the Office of Institute Budget Planning and Administration.

Posting Dept Video-Based Instruction System (VBIS) Revenue

Type of Policy: 
Administrative
Review Date: 
February 2015
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

The current method of posting VBIS revenue is to debit a Departmental Sales and Services (DSS) project ID and revenue account for Distance Learning and Professional Education (DLPE) and to credit a Departmental DSS project ID and revenue account. Since VBIS revenue is tuition revenue, the Institute needs to ensure the transfer of funds between DLPE and the Departments is consistent with the original revenue source (tuition). Listed below are the new procedures for transferring VBIS revenue:

  • As VBIS revenue is receipted in the BANNER system, it will post to DLPE project ID 221105000 and to the appropriate VBIS revenue account (4019XX).
  • After all tuition and adjustments have posted for the semester, DLPE will prepare a journal entry to transfer VBIS revenue to the department. Example Journal Entry:
    Project Account Amount
    22110500040197410,000.00
    250XXXX401974(10,000.00)
  • Note that the tuition revenue account is used when posting the transfer. DLPE will provide the Budget Office and Departments appropriate documentation regarding the transfers for each semester.

In the same month the VBIS revenue is transferred, each department should prepare a budget amendment to amend both the revenue and expense budgets of their VBIS Tuition project number. The amended amount for both revenue and expense should match the information provided to the Budget Office by DLPE.

  • Departments should request new project numbers from the Budget Office by September 20, 2010 so the Summer Semester transfer may be processed. If a project number is not requested by the deadline, one will be assigned.
  • Departments should note that VBIS Tuition Project numbers will be responsible for their own fringe benefits costs.

This new procedure only impacts VBIS tuition revenue. All other non-credit hour professional education revenue will be recognized as DSS.

Project ID and Revenue Account Number Request (Non-sponsored)

Type of Policy: 
Administrative
Review Date: 
January 2015
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

Georgia Tech units may request new non-sponsored project ids and revenue accounts be established by accessing the Budget Office website. Units may also use the site for the revision of project and account titles or to delete existing non-sponsored expenditure project ids. The websites may be accessed from the Budget Office homepage or by clicking below:
Project Number Maintenance Request
Revenue Account Request

Policy Terms: 

Non-sponsored funds include the following activities funded by General Operations, Special Initiative Funding, and Departmental Sales and Services:

  • Instruction
  • Research
  • Public Service
  • Academic Support
  • Student Services
  • Institutional Support
  • Plant Operations

Non-sponsored funds also include Auxiliary Enterprises and Student Activities.

Procedures: 

Units access the appropriate request page and submit a completed request form. The Budget Office receives the completed form and creates the new project id or revenue account in the PeopleSoft financial system. The requesting unit receives an email containing the new project id or revenue account. Project numbers and revenue accounts are available for use the next business day.

Resource Allocation and Overall Budget Process

Type of Policy: 
Administrative
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Policy Statement: 

The President of Georgia Tech, within the constraints established by the Board of Regents, ultimately determines Georgia Tech’s internal budget allocations within the constraints imposed by sponsoring organizations, donors, and the Board of Regents (BOR) of the University System of Georgia. Georgia Tech's internal budget process requires all campus units to develop requests on the basis of the Strategic Plan of Georgia Tech and their own strategic plans. Institute executive staff receive input from the college deans and directors of other units and also from committees that make recommendations on fees for the coming year.

The following factors enter into decisions about resource allocations to colleges and other units:

  • Revenue projections, including the level of expected state funding and tuition and fee and other revenue
  • Budget requests from the units
  • Expected impact of requests on Georgia Tech’s overall strategic plan and on individual unit plans
  • Committee recommendations

The process begins in the fall with a review by executive staff and division heads of performance metrics that are to be used to help determine budget allocations. The process also involves the review of mandatory and elective fee increase requests from Auxiliary and other units funded through student fees and development of tuition recommendations to be provided to the BOR. Early in the calendar year units are required to prepare budget requests for the following fiscal year. Budget proposals address funding above base budgets and, if required, reallocations or reductions. Requests include the assignment of unit‐wide priorities and an explanation of how the requests address their strategic plans. In most years the President's Office conducts meetings on unit budget priorities.

The attached flow chart summarizes the budget process, explained in more detail as follows.

Procedures: 

Allocation Schedule
The process for determining resource allocations for the following fiscal year generally follows the following schedule:

  • July through January
    • Institute Planning Activities
      The Office of the President, which includes the Provost, Executive Vice President for Research, and the Executive Vice President for Administration and Finance, review the Institute’s strategic plan and the related action plans and also review performance metrics of the Institute’s academic and administrative units. The President establishes unit operating and capital budget request guidelines, Institute operating budget request priorities, capital plan guidelines, operating budget allocation policy and guidelines, and capital plan priorities.
    • Unit Strategic Planning Activities
      Each Georgia Tech unit reviews its strategic plan, including strategies, objectives, and action plans accompanied by resource requirements. Also, each unit reviews its performance metrics from the previous fiscal year and projections for the current year, to be used in developing budget requests for the following year.
    • Preliminary Central Budget Analysis
      Offices of the Institute Planning and Resource Management (IPRM) team perform preliminary planning activities, including revenue estimates, preparation of fee and tuition recommendations, and determination of mandatory cost increases anticipated for the following fiscal year. The IPRM office coordinating this effort is the Office of Institute Budget Planning and Administration (IBPA, or “Budget Office”).
    • Tuition and Fee Recommendations
      The following four efforts proceed during the November through January time period related to tuition and fee review and approval:
      • IPRM staff prepare recommended graduate and undergraduate tuition recommendations on the basis of comparisons of Georgia Tech with its peer institutions. The primary office conducting this work is the Office of Institutional Research and Planning (IRP).
      • The Mandatory Student Fee Advisory Committee receives recommended fee changes from the following units partially funded through such these fees paid by all students: transportation, student activities, technology, student health, and athletics. The Committee recommends the fee levels to the President, who in turn recommends mandatory fees to the Board of Regents. See the separate policy describing this fee process, which is coordinated by the Budget Office.
      • Units that administer fees may recommend changes to these fees for the following year to the Budget Office for review. Except for the mandatory fees noted above, the President approves new fees or changes to existing fee levels. See the separate policy on non-mandatory fees.
      • Academic units may seek approval of tuition differentials for professional masters programs. These are submitted to the Budget Office for initial review and must be recommended by the President to the Board of Regents, which approves all tuition differentials. See the separate policy on tuition differentials.
  • January through March
    • Central Budget Analysis Activities
      Preliminary allocation figures and detailed budget instructions, including salary administration guidelines, are distributed to units. Revenue and institutional expense estimates are updated on the basis of preliminary information from the Board of Regents and the status of the state appropriations act. The General Assembly is scheduled to complete the appropriations act by the end of March each year.
    • Budget Request Activities
      College deans and other division heads prepare budget requests for the following fiscal year based on guidelines issued by the Budget Office. Requests must be linked to the Institute and unit strategic plans and must reference performance metrics to justify the requests. The requests could involve reallocation of existing resources or budget reduction plans, depending on the Institute’s expected budget status and the guidelines provided by the President. The Office of the President reviews the Institute budget situation with input from IPRM and holds budget meetings with the major division heads. The Office of the President establishes priorities for the Institute budget following consideration of unit requests and projections of resources available.
    • Preliminary Resource Allocation Decisions
      The Office of the President determines preliminary allocations and/or budget reductions based on expected resource level information available at the end of March. These decisions are made on the basis of a review of the Georgia Tech Strategic Plan and previous and projected performance data such as student enrollment.
  • April and May
    • Resource Allocation Activities
    • The Board of Regents is scheduled to approve the following at its April meeting:
      • Tuition rates
      • Mandatory fee rates (fees paid by all students such as student activities, student health, transportation, and athletics)
      • Budget allocations to Georgia Tech on the basis of the approved appropriations act.
      Budget letters with allocations and guidelines are issued to the campus units by IBPA per instructions from the Office of the President. These include pay raise guidelines based on the Legislature’s and the Board of Regents’ guidelines.
    • Detailed Budget Preparation
      Campus units prepare detailed “Original Budgets” within the resource allocation and pay raise guidelines. The tool used for this preparation is the Internet Budgeting Solution (IBS).
  • May and June
    • Final Budget Activities
      The individual unit budgets are reviewed and incorporated into the Institute's budget. This final Original Budget is sent to the Board of Regents.
    • Establishing and Executing Approved Original Budget
      The Budget Office works with campus units to establish final budgets for implementation in the new fiscal year.

Related Documents: 

Tuition Differentials & Studies Abroad Revenue

Type of Policy: 
Administrative
Policy Owner: 
Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Reason for Policy: 

Units have the option to budget estimated Tuition Differentials and Study Abroad Program revenues for the current fiscal year in September. This allows use of funds before the actual revenues for Fall and Spring are known.

Policy Statement: 
  • Departments are allowed to “pre-budget” up to but not exceeding the total actual revenue earned in the prior fiscal year. Actuals information is provided by the Bursar’s Office. The 5% administrative overhead retained by the Institute should not be included in the department’s budget. It is the responsibility of units to submit a budget amendment in September to receive their early allocations.
  • The Bursar’s Office will report to units the actual Fall and Spring differentials and studies abroad revenue earned. Fall totals will be reported no later than the first work day of December, and Spring totals no later than the first work day of May. Units will be required to adjust any pre-budgeted September amount to the actual differentials/study abroad revenues earned in the current fiscal year. For departments that chose not to take advantage of the “pre-budget” opportunity in September, the current year actual revenue amount must all be budgeted no later than the May budget amendment. Board of Regents policy requires that available allocations must be expended during the same fiscal year that the revenues are earned.
    • When students are enrolled in dual degree programs with differentials, both programs will receive a portion of the total differential paid. The distribution is determined by the ratio of differentials to each other between two programs. A template for calculating the split of such differentials is available on the Budget Office website (See Appendix A for a sample).
    • Summer semester revenues: Units receive 60% of the upcoming summer revenue in the current fiscal year. The remaining 40% will be budgeted for the following fiscal year. This split coincides with requirements for reporting Summer tuition & fees from all sources to the Board of Regents. If desired, a carry-forward of the current year’s 60% may be requested via e-mail to the unit’s assigned budget analyst, no later than May 31. For purposes of estimating the 60%, the maximum allowed carry-forward is 60% of the PRIOR summer’s revenue. A ‘true up’ opportunity is provided in the next fiscal year after Summer semester ends and information about actual revenue earned is provided by the Bursar’s Office in September (See Appendix B for an example of budgeting adjustments).

 

Units should contact their assigned analysts with any questions or concerns regarding the procedure. To look up the contact information for the analyst assigned to a division/department, go to "Institute Budget Planning & Administration Staff" and click on the link “Budget Analyst Assignments” below the list of Budget Development & Management staff.

Procedures: 

Year-End Deficits and Division Carry Forwards

Type of Policy: 
Administrative
Last Revised: 
April 2015
Review Date: 
April 2018
Policy Owner: 
Institute Budget, Planning and Administration
Contact Name: 
Lisa Godfrey
Contact Title: 
Dir-Institute & Capital Plan Budget Mgt
Contact Email: 
lisa.godfrey@business.gatech.edu
Reason for Policy: 

This policy establishes procedures for handling year-end deficits or surpluses incurred by Georgia Tech divisions.  The policy pertains to Resident Instruction General Operations funds budgeted in the following fund numbers: 10010 (State Appropriations), 10015 (Indirect Cost Recovery), 10500 (Tuition), and 10600 (Other General).

Policy Statement: 

General Operations Funds
At the beginning of each fiscal year, an expense budget is established for General Operations funded projects. These budgets are funded by the following revenue streams: State Appropriations, Indirect Cost Recoveries, Tuition, and Other General. During the year the Institute may allocate additional budget authority to units, depending on need and funding availability. At year end budgets should equal expenditures plus encumbrances (total expenses). When a college or other division’s spending exceeds or is less than the final amended budget, either an adjustment must be made to balance the total Institute budget or a documented carry forward plan must be in place.

Departmental Sales Funds
Please refer to the DSS policy for DSS carry forward requirements and request forms;
http://www.policylibrary.gatech.edu/business-finance/departmental-sales-and-services-dss

Operating Deficits
Audit guidelines state that Institutions shall not overspend their Board of Regents approved budget authority, nor will expenses exceed revenues. When budgets are overspent or expenses exceed revenues, an operating deficit is created. Before the fiscal year can be closed, the operating deficits must be corrected. To help facilitate more effective management of the Institute’s budget as a whole, divisions will be responsible for any year end deficits that are not previously approved by the administration.

Surplus
A division may request the return of a surplus funds at year-end for use in the next fiscal year, often referred to as a “carry forward of funds.” To meet the needs of the division, the Office of Institute Budget Planning and Administration (“Budget Office”) must manage the carry forward in the year of close and in the following year as well. Because of the restrictive state rules governing carrying forward funds and year-end closing, surplus/carry forward arrangements must be documented and reviewed to ensure proper accounting and budgeting methods have been followed. This policy establishes carry forward guidelines to ensure that all requirements are met.

Procedures: 

Rules and Guidelines
Division Deficits
If, during the fiscal year, a division becomes aware of a deficit situation, the Budget Office should be notified by the division head or chief division budget director as soon as possible. The Executive Director, Institute Budget Planning and Administration will inform the administration of the situation. In some cases, operating deficits may be allowed by the administration due to special circumstances. After the fiscal year closes, the Budget Office will conduct an analysis of budget to actual total expenses. If any division has an unapproved net operating deficit, the division’s current fiscal year budget will be reduced on a one-time basis by the year-end deficit amount in the first budget amendment or an approved re-payment plan will be established.

Division Carry Forwards
If a surplus or excess budget is anticipated for year end, and the college or other division would like those funds returned in the next fiscal year, complete the online request form (http://forms.budgets.gatech.edu/view.php?id=14652) before April 15. These will be reviewed by the Executive Director, Institute Budget Planning and Administration, and where appropriate, by executive staff, with a final decision to be communicated to the division by May 15. Requests submitted by individual departments, programs, centers, or schools will not be accepted except for tuition differential or studies abroad 60/40 split of summer semester revenues. In the request, the division should explain:

  • the explanation of the source of funding
  • the projected amount to be carried forward
  • an explanation of why the funds will be available, and
  • the purpose for which those funds will be used in the next fiscal year.

If, prior to June 1st, the division’s estimate of the year-end surplus changes, the Budget Office should be notified. The division should keep in mind that expenses funded from carry forward funds are subject to audit. Documentation should be kept to verify that purchases were in accordance with the purpose originally stated.

Approval is subject to the Institute’s generation of an overall surplus of at least the approved amount. These are one-time funds that will not be built into the unit’s permanent base budget. If the unit’s net year-end balance for General Operations is less than the amount requested, only the year end-balance may be budgeted in the upcoming fiscal year. If the net year-end balance exceeds the amount requested, the maximum amount approved per the request may be budgeted in the upcoming fiscal year. The Budget Office will verify final carry-forward amounts with the units in the first budget amendment of the new fiscal year.

Policy History: 
Revision DateAuthorDescription
April 2015Budget OfficeClarification of language/added link to online form