Budget and Cost Analysis

Effective Date: 07/01/95

Policy Statement 4: University State Budgets


General

The Chancellor has delegated the administration of approved State budgets to the Vice Chancellor, through the University Budget Office. The University Budget Office then establishes the various University budgets as soon as possible after approval has been obtained from the legislature, the Board of Governors, and the Chancellor.


CONTINUATION BUDGETS

Continuation Budget

The Board of Governors, the Governor's Office, and the State Legislature may make changes in the Continuation Budgets prior to including them in the Appropriations Act. The State Budget Officer then advises each institution of its Continuation Budget after necessary legislative approval and coordination and review by the Board of Governors and the President. Upon receipt of the approved Continuation Budgets, the Chancellor reviews and refers them to the University Budget Office to be allotted to departmental budgets and to be transmitted to the various deans, directors, and department heads.


Allocations

Upon receipt of the approved Continuation Budget requests from the Chancellor, the University Budget Office contacts the principal administrative officers, such as the Vice Chancellors, and deans, responsible for the educational, research, clinical, and service areas of the University, to work out the assignment of individual program allocations. The University Budget Office provides staff support in making these Continuation Budget allocations.


Revision

The University Budget Office prepares budget revisions to continue into a new fiscal year those requests of a continuing nature which were approved after the Continuation Budget requests were originally submitted by the University.


Distribution

The University Budget Office distributes the approved Continuation Budgets (after adjustments for the continuing revisions) to the departments.

The funds contained in each departmental budget are in turn split up and budgeted at the Major Object Code level (2000, 3000, 4000, & 5000). See Appendix Statement on Object Codes for Budgets and Expenditures.


Additional Funds

The State Budget Officer and the Board of Governors may allocate additional funds for enrollment changes and/or for EPA salary increases as a part of the Continuation Budget rather than as a part of the Change Budget. When either or both of these changes are allocated along with the Continuation Budget, it is then generally referred to as the Base Budget.


CHANGE BUDGETS

Change Budgets

The President's Office and the Board of Governors review the East Carolina University requests for the Change Budget, along with those for other branches of the University. The Change Budget is to provide funding for the expansion of existing programs and for new programs. These requests are submitted to the State based upon relative need and in the priority determined most desirable to meet the objectives of the University System.


Additional Funds

The Board of Governors may also include requests for enrollment changes and/or EPA salary increases as Change Budget requests, if determined more appropriate, rather than including them along with the Continuation Budget requests.


Allocations

After the Legislature makes its appropriation to the Board of Governors for the Change Budget, the Board of Governors makes allocations to each constituent institution, based upon their evaluation of relative need and importance in helping the University System meet its responsibility as an educational institution and to the people of North Carolina. At this point the Chancellors are given an opportunity to make recommendations as to the relative importance of the various changes originally requested, as well as any new changes which should take priority over those originally requested.


East Carolina University Allotment

The Board of Governors then allocates appropriations to East Carolina University to support expansion of programs and new programs.


Notification of Allocation

The Chancellor through the University Budget Office advises the Vice Chancellors of the Change Budgets approved for their areas of responsibility. This also applies to enrollment changes and faculty and EPA salary increases when these items were not handled as Base Budget changes.


CAPITAL IMPROVEMENTS

Capital Improvements

The President's Office and the Board of Governors review the East Carolina University requests for Capital Improvement funding along with those from the other branches of the University System. Requests to the State are made for selected projects based upon relative need and in the priority determined as most desirable for the various institutions making up the University System.


East Carolina University Projects

After the Legislature makes the appropriation for Capital Improvements, the Board of Governors and the President advise the Chancellor of the projects approved for East Carolina University. The University is then authorized to proceed with the planning, designing, and letting of contracts for each project (see Physical Plant and Architectural Planning Section of the Business Manual).


Departmental Involvement

Department heads and their associates are consulted by the Facilities Planning Office in the planning and designing phases of each project. The construction phase is the responsibility of the University Director of Physical Plant and the architect for each project. Department heads involved are requested to develop equipment lists and forward them to the University Director of Physical Plant for the allocation of funds for movable equipment.