CALS CARRYOVER POLICY
REVISION FOR 6/30/2003 ONLY



At the present time, CALS units are collectively holding about $870,000 in unexpended and unencumbered budgeted funds. While we don't want to send the wrong message to the legislature by leaving funds unspent at 6/30/03, we can understand that units might want to carry over as much money as possible into the next fiscal year. This policy is intended to address both these concerns.

We are suspending our 50/50 college carryover policy again this year, and will allow units to carryover 100% of unexpended FY03 funds. However, there are some strings attached. Many of our units have the capability to manage their own carryover, by spending down the balances in their budgeted accounts, and maintaining balances in local accounts that automatically carry forward to the new year. To the greatest extent possible, that is what we want you to do.

If you do not have the flexibility to manage your carryover within your unit, or cannot do it to the extent to which you have funds available, contact CALS Administrative Services (Cyndi, Margo, or Sandy) before June 1, and they will work out a plan with you to take back whatever budgeted monies you still have available. We will use those monies at the college level to meet our commitments this fiscal year, and then after July 1, 2003, we will provide you with FY2004 temporary dollars equal to what you returned to us. We will work out the strategy together, but preparing the paperwork to return the money is the unit's responsibility, and all funds must be returned prior to 6/15/03. The mechanism to return funds is the Request for Budget Change form, available on the e-forms web site. Funds returned to us from personnel lines in FY03 will be reloaded into personnel lines in the new year, so that you won't lose out on ERE. The June 15 deadline will allow us time to use the monies for other purposes before the close of the fiscal year.

If you have monies encumbered in FRS by 5/15/03 for equipment that should be delivered by 6/30/03, we will work with you to insure carryover of those funds if there are unexpected problems with delivery by year-end.

The other string attached to this year's change in policy is that unexpended budgeted funds in your accounts at the close of the fiscal year will revert entirely to the College.

And...as before, units with year-end deficits in budgeted funds will have funds withheld from their FY2004 allocations to cover the shortfall.

A few things to keep in mind:

#1: A logistical problem that sometimes occurs at year-end relates to the fact that monies are being spent as Budget Changes are being prepared, and by the time the paperwork is processed by us or FSO, the dollars referenced on the Budget Change are no longer available in the referenced account(s). When this occurs, we won't have time to follow up with you as we have done in the past, to negotiate for another account number or dollar amount. We will instruct FSO to process the Budget Change with whatever dollars are available, if any, and if a budget balance materializes at some later date, it will be swept at year-end.

#2: We have already submitted our federal financial reports covering the period through 9/30/02, so make sure that any expense transfers you initiate for research and extension funds are for expenditures of the current federal fiscal year (10/01/02-09/30/03).

#3: Remember, this exception to the CALS 50/50 carryover policy has been approved for the fiscal year 2002-2003 only.

Please do not hesitate to call CALS Administrative Services if you have questions or concerns. Remember that you must make arrangements to return funds by June 1, 2003; and all Budget Changes to return funds for 100% carryover into FY2004 must be received in CALS Administrative Services, Forbes 320, prior to June 15, 2003.

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Go to the CALS Home Page: http://ag.arizona.edu or

Go to the CALS Administrative Services Home Page: http://ag.arizona.edu/aas/home/