Encumbrance and Budget Carry Forward Policy

The current University Carry Forward Policy allows units to carry forward their Available Balance/Variance and the budget for Non-Payroll Encumbrances up to a maximum of 2.5% of their total Current Budget for University Supported (OPTUI) accounts (2-Ledger).

The current Encumbrance Policy permits units to carry forward their year-end, non-payroll encumbered Purchase Orders (P.O.s) into the new fiscal year. This holds true for all accounts.

If the 2-Ledger encumbrances exceed 2.5% of a unit’s Current Budget, they are limited to carry forward only 2.5% of the Current Budget regardless of the total encumbrances being carried forward and no additional Available Balance/Variance carry forward is given.

The policy remains the same; however, a revision has been made to the process.

Effective for the FY16 year-end, encumbrance carry forward budget for University Supported (2-Ledger) only will now be given at the same time as the Available Balance/Variance, as one transaction. It will be given directly to the carry forward account of the unit (see example).

If you believe that you have a valid reason to carry forward Encumbrance Budget above the 2.5% cap, please send a request for additional Encumbrance Budget Carry Forward with justification to your Budget Analyst and the Provost’s Office or the Office of the Executive Vice President for Administration & Chief Financial Officer.

Carry Forward Budget is not automatic and must be evaluated every year in light of the fiscal environment.

*For purposes of Carry Forward calculations, Current Budget excludes utilities, financial aid, University Foundation Agreement and certain other accounts.