Education & General Carryforward Spending Plan
SB 190 FY 2019-2020
Senate Bill 190 details specific items that would be expected in the newly-required Education & General (E&G) Carryforward Spending Plans that must be approved by university board of trustees by September 1 and submitted to the Board of Governors for review and approval by October 1. Below is a compilation of questions from university staff that will be updated as needed related to E&G funding and the reporting of planned uses of university E&G carryforward fund balances.
1) Language in Senate Bill 190 (now 1011.45(1) F.S.) stipulates that each university shall maintain a minimum carryforward balance of at least seven percent of its state operating budget. Do the universities need to adjust their 7% reserve amount when administered funding (health insurance, retirement, etc.) is added to their E&G state budget during the year?
|Answer:||Yes, the language in SB 190 states that universities must maintain at least a 7% balance in state operating funds, or submit a plan to the Board of Governors to attain the 7% balance within the next fiscal year. As a university’s E&G state budget allocation for the fiscal year increases, so does the amount necessary to satisfy the 7% minimum reserve requirement. A university’s state operating budget is defined as the funding sources included in the annual General Appropriations Act. The sources are currently General Revenue, Educational Enhancement Trust Fund (Lottery), Student and Other Fees Trust Fund, and the Phosphate Research Trust Fund (Florida Polytechnic only). For the University of Florida, the state budget also includes certain previously-appropriated trust funds for UF-IFAS and the UF-HSC.|
一道本不卡免费高清2) The E&G Carryforward Spending Plan template tab to be used for providing details of planned expenditures has a section for “estimated timeline for completion” of the expenditure item. Should this be based on calendar year or fiscal year?
|Answer:||Thereporting templates were designed for reporting your E&G CarryforwardSpending Plan information using a fiscal year period.|
3) A renovation project totaling $5 million was started with auxiliary funds. As a part of the remodel, we would like to use $2 million in E&G carryforward to renovate some of the space to house Police and Emergency Management. Is this allowed?
|Answer:||Yes.Pursuant to Senate Bill 190, E&G carryforward funds can be used forrenovation as long as the project is consistent with s. 1013.64(1) F.S.|
4) Our university will likely have deviations in the E&G Carryforward Spending Plan line items during the fiscal year. Will we need to bring these spending variances back to the Board of Governors for approval?
|Answer:||You are notrequired to bring amendments to your initial approved E&G Carryforwardspending Plan back to the Board of Governors during the fiscal year. TheChancellor will be asking for a final reporting of actual activity subsequentto the end of the period. You will be asked to explain deviations in your actualspending from the original approved plan. The Board of Governors BudgetOffice is working to design the end of year “true-up” reporting.|
一道本不卡免费高清5) Are universities required to provide a separate E&G Carryforward Spending Plan for each entity as funded in the annual General Appropriations Act?
|Answer:||Yes, theE&G Carryforward Spending Plan is intended to report planned expenditureof accumulated fund balances in each of the E&G funding categories, withthe exceptions of Risk Management Insurances and Student FinancialAssistance, which should be consolidated into the reporting of the entitythat benefited from the funding. These categories include the university maincampuses, UF-IFAS, the health science centers/medical schools, the FAMU-FSUJoint College of Engineering, and the Florida Postsecondary ComprehensiveTransition Program (UCF).|
一道本不卡免费高清6) On the “Carryforward Fund Balance Composition” report that universities were required to submit as supplemental information with their annual operating budgets up to and including FY 2018-19, there were provisions for expenditures to date and encumbrances to date in the July 1 beginning fund balance section. These categories are not included for the “E&G Carryforward Spending Plan” template. Why is there a different beginning fund balance presentation for the new SB 190 reporting requirements?
|Answer:||The previousyears’ reporting of university E&G carryforward composition that accompanied your annual operating budgetswas different in several ways, most notably in the “as of” reporting date andthe intent of the reporting. The operating budget supplemental report was asof the budget files due date (August), while the new spending plan reportingis for your E&G fund balance as of July 1 of the fiscal year. Since thereport is as of July 1, “expenditures to date” doesn’t apply and SB 190mandates that you report an estimated cost per planned expenditure for everyE&G dollar above your 7% minimum reserve carryforward balance. Theencumbrances recorded in your university accounting systems are earmarkedamounts that should be included in your upcoming planned expenditures. Insummary: old report =composition of remaining carryforward balance at August xx less expendituresand encumbrances to date, new report = accounting for the planned expenditure of every E&G carryforward fundbalance dollar by funding entity as of July 1 in excess of 7% of your stateoperating budget, with a projected timeline for the expenditure to occur.|
7) Our university is planning to use a portion of our E&G carryforward balance for fixed capital outlay (FCO) projects as provided in SB 190. What is the correct way to reflect this use of funds on the E&G Carryforward Spending Plan documents?
|Answer:||There arecategories on the E&G Carryforward Spending Plan template for those FCOuses that are defined in SB 190. You would report the planned use of yourE&G carryforward dollars on the operating report and then report acorresponding entry on your university’s Fixed Capital Outlay budget templateso that the use of funds is reflected on both the operating and FCO budget reports.The Board Budget Office will be checking for agreement between the operatingand fixed capital outlay budget reports.|
一道本不卡免费高清8) Senate Bill 190 outlines the permissible uses of E&G carryforward fund balances for certain fixed capital outlay expenditures. May current-year E&G funding be utilized for FCO expenditures?
|Answer:||No. Unlessotherwise provided by law, current-year E&G funding is to be used forE&G operating activities only. Design costs, building permit fees, andactual hard construction costs are not appropriate uses of current-yearE&G funds. As a general rule, any items required to obtain a Certificateof Occupancy for a project would not be an approved used of current-yearE&G funding.|
9) The University of ABC has historically used E&G carryforward funds to pay for certain contracts, some of which come up for renewal annually or semi-annually. Is this practice now not allowed per SB 190 provisions?
|Answer:||SB 190 isclear regarding the use of E&G carryforward funding, particularly thatany use of such funds must be nonrecurring in nature. It will be eachuniversity’s responsibility to determine the nature of the contract inquestion on a case-by-case basis. If the contract is renewable, it willlikely be defined as recurring and not eligible for funding from E&Gcarryforward. Board budget staff is available to discuss these types ofquestions on a case-by-case basis.|
10) A state university experienced an electric panel fire which resulted in material damage to the building. The building is included as Education and General (E&G) space in the Board of Governors Space File. Can payment for the necessary repairs be made from E&G funds?
|Answer:||Yes, repairsto an E&G building may be funded from university E&G sources. Itwould be the university’s discretion to utilize either current-year funds or universitycarryforward for this type of nonrecurring expenditure.|
一道本不卡免费高清11) When reporting budgeted E&G expenditures on the annual operating budget “Summary Schedule I”, where should planned expenditures for fixed capital outlay projects using E&G carryforward funds be reported?
|Answer:||Any planneduse of E&G carryforward funds should be included on the line item “Carryforward(From Prior Period Funds)” regardless of the type/category of theexpenditure. There should be no capitalized expenditures for buildingconstruction or other fixed capital projects from E&G funds except whereexpressly provided by law.|