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Policy Manual

Traditional budget systems in higher education tend to focus on requests or needs as a basis for distributing resources. Such systems have a variety of inherent problems ranging from the squeaky wheel receiving more than is justified for a particular program, to the lack of focus on planning and costing problems in higher education. Operating units tend to maximize the resources they receive each year with little or no incentive to manage with less. Such systems tend to be highly centralized with the administration making line item and trade-off decisions concerning financial resources. As a university becomes more complex and incentive oriented, the weaknesses of such an approach become more apparent. Universities need to unshackle the creative energies available at all levels of the institution to address issues of cost control and income generation.

I. Philosophy of Process

  • Introduction

    Traditional budget systems in higher education tend to focus on requests or needs as a basis for distributing resources. Such systems have a variety of inherent problems ranging from the squeaky wheel receiving more than is justified for a particular program, to the lack of focus on planning and costing problems in higher education. Operating units tend to maximize the resources they receive each year with little or no incentive to manage with less. Such systems tend to be highly centralized with the administration making line item and trade-off decisions concerning financial resources. As a university becomes more complex and incentive oriented, the weaknesses of such an approach become more apparent. Universities need to unshackle the creative energies available at all levels of the institution to address issues of cost control and income generation.

  • Planning

    The focus should not be on how creative a program administrator can be in developing budget requests, but on establishing external criteria for determining what constitutes a fair share of the institution's budget for the performance of a particular function, and the proper integration of budgets and planning.

  • Performance Incentives

    Any new approach to institutional resource allocation should clearly articulate the incentives for income generation and sound financial management. An institution can achieve its objectives through centralization and subtle forms of coercion. However, a potentially more successful approach is one that contains both psychological and financial incentives to manage a variety of issues depending upon an individual unit's needs.

  • Budget Roles and Responsibility
  • CU Budget Planning Process Overview

    August thru September

    During the early fall of the fiscal year preceding a budget year, preliminary budget requests are due to the state approximately eleven months prior to the beginning of the fiscal year. There are two preliminary budget requests submitted, an Educational and General (E&G) and a Public Service Activities (PSA).

    The Educational and General budget request must be submitted to the Commission on Higher Education (CHE) which in turn submits a budget request to the State Budget and Control Board on behalf of all South Carolina higher education institutions.

    A separate preliminary budget request for Clemson University Public Service Activities is submitted directly to the State Budget and Control Board. Generally, there are no limitations other than reasonableness on the increase that can be requested for the programs funded through Clemson University Public Service Activities.

    The State Budget and Control Board holds budget hearings on the preliminary budget requests. After these budget hearings, a preliminary allocation of state funds for the coming fiscal year is given to each state agency and institution. The preliminary allocation of state funds is based on the Board of Economic Advisor's forecast of state revenues.

    October

    State agencies and institutions are required to submit detailed budget requests for the next fiscal year. These detailed budget requests are consolidated by the State Budget Division into a state budget recommendation submitted by the State Budget and Control Board to the State General Assembly.

    April

    Final permanent budget amendments/allocations should be recorded from central funds as well as between budget centers.

    Finalize any budget center reorganizations requiring base budget adjustments.

    May

    A proposed Source and Application of Educational and General Funds report is drafted to begin discussions of priorities with the campus. The report usually presents two potential levels of funding from state appropriations, and where the increases in state appropriations, academic fees, and other sources of funds will be used for operations, after funding compensation items, if funded at those levels.

    Meetings are held with budget centers to discuss budget allocations.

    May/June

    Budget Centers are presented with E&G base and target budget figures for planning considerations. The centers then complete budget worksheets and submit preliminary detail budgets to the Office of Budgets and Financial Planning. These worksheet data are compiled and systematically loaded into CUBS to establish spending authorities against the General Ledger for expenses and establish revenue estimate budgets to maintain a proper balance within each fund.

    State Senate Finance Committee holds hearings on higher education.

    Preliminary budget is presented to Budget and Finance Committee of the Clemson University Board of Trustees.

    June

    The General Assembly may act upon the budget recommended by the Budget and Control Board, modify it, or develop its own, based on updated revenue forecasts and other considerations. Generally, the appropriations bill is approved by the state prior to beginning the new fiscal year.

    The preliminary budget is presented to the Budget and Finance Committee of the Clemson University Board of Trustees through the use of the Office of Budgets and Financial Planning’s Budget Document, a formally printed publication outlining various budgetary sources and uses of funds for the last and upcoming fiscal years.

    July (the beginning of a new fiscal year)

    The final budget is presented to the Board of Trustees for approval.

    The prior budget year is closed.

    August

    Budgets loaded into CUBS for the new fiscal year are reconciled to analysis sheets.

    September

    E&G funds performance credits are tabulated and awarded to budget centers. Fund balances are also reconciled from the prior fiscal year and reported after audit adjustments are performed by Accounting Services.

    February

    Meet with budget center representatives to begin budget-planning process for the upcoming year and to resolve outstanding current year budget issues.

  • Budget Planning Evaluation Process

    The following timeline defines the evaluation process for determining the satisfaction level and effectiveness of Clemson University’s open budget planning process. The open process was first implemented during the budget planning cycle for fiscal year 2001-02. Information gained from these evaluative efforts will serve to refine the open budget planning process to its greatest level of efficiency to best serve all stakeholders of the University.

    September

    Review existing procedures to ensure that they remain applicable to the current actual practices. Correct as needed

    • Data collection media and systems identification
    • Administrative approval channels
    • University form names and references

    October

    Survey Budget Center Representatives

    • Was the request for budget issues clear and concise?
    • Did the process enhance budget-planning communications within each budget center?
    • What media were used to transfer budget issues to be considered for central funding?
    • Does the current process contain a means of assigning a departmental, school or budget center priority?

    Survey Administrative Council

    • Do members approve a large volume of requests to be prioritized by them for central funding?
    • Does this system provide adequate information for vetting of requests?
    • Does the current process establish a link to University goals?
    • Does the current process require identification of a proposed exit strategy and associated costs?
    • Does the current process require definition of assessment criteria for each budget issue forwarded through administrative channels?
    • Does the current process identify the cost impact on other areas?

    November

    Evaluate the effectiveness of the open-budget process allocations

    • Were the funds allocated in a timely manner?
    • Were funding decisions on target to direct allocations where needed?
    • Is there a proper audit trail via CUBS or other systems to identify funded expenditures so as to facilitate evaluation?

    December

    Provide a summary of annual evaluation feedback to the Administrative Council with recommendations as to procedural changes to be implemented in the upcoming budget planning process beginning in January.

  • State Budget Process

    The fiscal year of the State of South Carolina and Clemson University is July 1 through June 30. A preliminary budget request is due to the state on or about August 15 each year for the fiscal year beginning the following July 1. The Educational and General budget requests from institutions of higher education are submitted through the Commission on Higher Education (CHE) which makes a request to the State Budget and Control Board for all higher education funded by the state. Clemson University's budget requests for Public Service Activities are submitted separately directly to the State Budget and Control Board.

    The state budget process involves communicating to the CHE, the State Budget and Control Board, and the state legislature the institution's plans and associated fiscal needs. Approximately one year in advance of the applicable fiscal year, statistical information (e.g., data on enrollment, expenditures on externally sponsored research and public service, square footage of campus facilities, costs of utilities, costs of employee fringe benefits, etc.) is provided to the CHE.

    The CHE conducts budget hearings relative to the preliminary budget requests submitted by the state colleges and universities including the technical education system. Institutions are permitted to appear before the CHE to discuss individual requests and needs. The CHE then submits to the State Budget and Control Board, a consolidated request for funding all state supported higher education in South Carolina. Unless state economic conditions dictate otherwise, the State Budget and Control Board conducts hearings on budget requests received from the various state agencies. The CHE represents institutions of higher education before the State Budget and Control Board. After the budget hearings are completed, the State Budget and Control Board gives the CHE an allocation for higher education in total. The CHE distributes the funds to each college and university.

    After receiving an allocation of projected funding from the CHE, a detail budget request must be submitted to the State Budget and Control Board. The detail budget request is due about the middle of September each year. Clemson University must estimate and include federal and other non-state funded revenues and expenditures. In addition to the process associated with the Educational and General budget, separate preliminary and detail budget requests for Clemson University Public Service Activities are submitted directly to the State Budget and Control Board. Generally, there are no limitations, other than reasonableness, of the increase that can be requested in the preliminary budget request for the programs funded through Clemson University Public Service Activities. However, after budget hearings, the state funded portion of the detail request must equal the allocation received from the State Budget and Control Board. Federal and other non-state funded revenues and expenditures must be included in the detail budget request.

    The State Budget Division of the Budget and Control Board, using the budget request received from state agencies, prepares a state budget that is submitted to the state legislature by the State Budget and Control Board. The legislature may act upon the budget recommended by the State Budget and Control Board, modify it, or develop its own budget. As the budget moves through the General Assembly, it is modified and revised based on updated revenue forecasts and other considerations. Once the appropriation bill is passed, the amounts approved for each agency becomes its authorized level of spending for all fund sources, including federal and other (non-state) fund sources. If an agency generates federal and other funds in excess of estimates reflected in the detailed budget requests submitted to the state, an additional request to increase the authorized level of spending must be approved by the state before expending the additional funds. Therefore, it is very important for federal and other fund sources to be estimated as accurately as possible when preparing the detail budget requests to the state. Further, the most recent internal budget is used as a base from which to prepare Clemson University's budget requests to the state. Consequently, it is very important for departments and the University in total to accurately estimate and budget funds expected to be available and expended each fiscal year. The University generally knows its state appropriations in June for the fiscal year beginning July 1. The amount of the appropriation is maintained for the year, unless shortfalls between the state's revenue estimates and revenues collected cause the State Budget and Control Board to impose budget cuts during the fiscal year.

    Permanent FTE positions are authorized to each state agency through the appropriation process. New permanent positions requested should be included in the preliminary budget request, listed separately, and submitted with the detail budget request. New permanent positions recommended by the State Budget and Control Board will be included in the budget it submits to the legislature. Positions not recommended by the State Budget and Control Board must be added and approved by the General Assembly in order to be authorized. This applies to all permanent positions, regardless of the funding sources.

    Each state agency has a fixed number of permanent positions authorized by the state, regardless of the source of funding. Permanent positions are those established for more than six months, excluding sponsored projects positions that may be established for the length of a sponsored project. These temporary sponsored projects positions are not counted as permanent positions.

    The total number of permanent positions is authorized by funding source, i.e., how many are state, federal or other. Changes in the distribution of the funding sources of permanent positions must be approved by the state. The state legislature must authorize increases in the number of permanent positions allocated to each state agency. Requests for additional permanent positions must be included as part of the detail budget request submitted to the state each year.

    Each year in August the total number of permanent positions authorized must be established and reconciled with the state Office of Human Resources Management. According to the appropriations bill, permanent positions may be eliminated by the state "(a) upon request by the agency, (b) when anticipated federal funds are not made available, (c) when the Budget and Control Board, through study or analysis, becomes aware of any justifiable excess of positions in any state agency, (d) when a position has been vacant for nine months, except in the case of an academic position at an institution of higher education when such position has been vacant for eighteen months."

    The Budget Director reviews the several versions of the appropriations bill as it is updated during the legislative session each year. Changes significantly impacting Clemson University are noted and communicated as considered appropriate. Efforts are made to change or delete provisos adversely affecting Clemson University and higher education. Liaison is also maintained with the University Public Affairs Office and others in state government to stay abreast of legislation applicable to state agencies and Clemson University specifically.

  • Internal Budget Process

    Traditional budget systems in higher education tend to focus on requests or needs as a basis for distributing resources. Such systems have a variety of inherent problems ranging from the squeaky wheel receiving more than is justified for a particular program, to the lack of focus on planning and costing problems in higher education. Operating units "naturally seek to maximize the resources they receive each year. "Why try to manage on less if more can be obtained?" Such systems tend to be highly centralized with the administration making line item and trade-off decisions concerning financial resources. As a university becomes more complex and incentive oriented, the weaknesses of such an approach become more apparent. Universities need to unshackle the creative energies available at all levels of the institution to address issues of cost control and income generation.

  • Open Budget Process

    It is the Policy of Clemson University that its budget process will be evaluated annually. This annual assessment will result in process modifications to continually improve attainment of budgetary goals.

    Budgetary goals of the University include:

    • budgeting to a plan vs. planning to a budget;
    • linking all budget requests to specific institutional goals established by the administration; maintaining a collection system that facilitates an open-budget process allowing mass dissemination of budget issues to campus stakeholders;
    • maintaining a system that allows every level of employee to contribute budget-related ideas and ensures the value of each individual idea is maintained throughout an approval process;
    • ensuring a balanced budget is planned and maintained toward the greatest efficiencies for the University;
    • accountability for prior allocations

    The evaluation process would occur as follows:

    The following timeline defines the evaluation process for determining the satisfaction level and effectiveness of Clemson University’s open budget planning process. The open process was first implemented during the budget planning cycle for fiscal year 2001-02. Information gained from these evaluative efforts will serve to refine the open budget planning process to its greatest level of efficiency to best serve all stakeholders of the University.

    September

    Review existing procedures to ensure that they remain applicable to the current actual practices. Correct as needed –

    • Data collection media and systems identification
    • Administrative approval channels
    • University form names and references

    October

    Survey Budget Center Representatives

    • Was the request for budget issues clear and concise?
    • Did the process enhance budget-planning communications within each budget center?
    • What media were used to transfer budget issues to be considered for central funding?
    • Does the current process contain a means of assigning a departmental, school or budget center priority?

    Survey Administrative Council

    • Do members approve a large volume of requests to be prioritized by them for central funding?
    • Does this system provide adequate information for vetting of requests?
    • Does the current process establish a link to University goals?
    • Does the current process require identification of a proposed exit strategy and associated costs?
    • Does the current process require definition of assessment criteria for each budget issue forwarded through administrative channels?
    • Does the current process identify the cost impact on other areas?

    November

    Evaluate the effectiveness of the open-budget process allocations –

    • Were the funds allocated in a timely manner?
    • Were funding decisions on target to direct allocations where needed?
    • Is there a proper audit trail via CUBS or other systems to identify funded expenditures so as to facilitate evaluation?

    December

    Provide a summary of annual evaluation feedback to the Administrative Council with recommendations as to procedural changes to be implemented in the upcoming budget planning process beginning in January.

II. Concept

  • Budget Performance Incentives Program

    An internal budget approach was adopted by Clemson University in Fiscal Year 1989-90 to decentralize the budget process by shifting the responsibilities and rewards for sound financial management to defined budget centers. The budget centers have been established along the lines of vice presidential authority, with unit heads responsible for managing their own budgets. This budget approach, called the Budget Performance Incentives Program, includes four elements:

    1. Block Grant
    2. Revenues Generated
    3. Innovation Fund
    4. Research Matching Fund

    The Budget Performance Incentives Program involves the identification of revenue sources and the assignment of the revenue to a budget center. Each center also receives a distribution of state appropriations and student fees. If additional money from state appropriations and student fees is available in the new fiscal year, budget allocations are made in the form of block grants.

    Budget centers may apply for funding from the Innovation Fund. This fund, administered by a committee, is for unique ideas that do not have an alternative funding source. Funds may also be requested from the Research Matching Fund. This fund, administered by the Provost and the Vice President for Research, is for matching major sponsored program proposals.

    The Budget Performance Incentives Program responds to new planning initiatives through the withholding of certain resources from the system for special venture capital proposals, the creation of special funds for cost containment, and to a lesser degree, through the modification of block funding criteria. Policies concerning the use of revenues could also be modified to create new incentives in response to new institutional strategies. Finally, needs assessments will still be conducted, but at a lower and more appropriate level of the institution. As in the case of the University of Pennsylvania, as described by Strauss and Salamon, the primary objective is "independence and authority in academic planning, in return for responsibility in fiscal planning."

  • Projected Source and Application of Funds Statement

    The budget process begins with a review of funding sources available to Educational and General operations.  The primary sources are increases in state appropriations and academic fees.  Other sources may include increases in facilities and administrative cost recoveries; expenditure reductions resulting from the elimination of one-time allocations and cost containment efforts; and miscellaneous sources.

    Once available fund sources are identified, increases in fixed cost items such as utilities, insurance, fringe benefits, and other similar commitments are identified.  When these non-discretionary items are subtracted, the remainder is available for allocation.  At this point, the debate then focuses on allocations for items such as:

    • Compensation Increases
    • Incentive Program Items
    • Strategic Planning Initiatives
    • Affirmative Action Programs
    • Performance Credit Program
    • Critical Funding Needs

III. Policies

  • University Budget Policy
  • Institutional Membership Account

    The University's Institutional Membership Account is reserved for those organizations serving Clemson as a whole. Other memberships will be sponsored from the vice presidential area most affiliated with the organization. A request for classification as an institutional membership must be approved by the Administrative Council.  Invoices for memberships approved for payment from the institutional membership account should be forwarded to the Office of Budgets and Financial Planning.

    Note:  Each vice president should consider the impact additions or eliminations of memberships sponsored from his/her area have on other vice presidential areas. Informal communications on changes should deter the duplication of new memberships and the elimination of memberships affecting another area.

  • Revenue and Expenditure Budgets

    In order for an expenditure to pass budget checking criteria, a corresponding budget must exist in CUBS.  Posting to the general ledger as an expenditure successfully occurs only when an actual expenditure account string, the combination of valid chart of accounts fields, can be successfully matched to a valid budgeted expenditure account string.  Once an initial budget is established for a new year for E&G funds, revisions to that initial budget must be entered by submitting a Budget Transaction Form through the Budget Office when appropriation budget changes are needed.  Budget amendments may be entered online when no appropriation budget change is required.

    Revenue budget maintenance is accomplished in much the same manner as that of expenditure budgets. A valid revenue budget must exist in CUBS prior to successfully receiving and posting revenues to the general ledger.  All changes to existing revenue estimate budgets for E&G funds must be transacted through the Budget Office.

  • Student Activity Fee Allocations

    Student Activity Fee Allocations are made to three colleges:

    STUD — $820,647.00
    AAH — $343,466.00
    BBS — $16,056.00

    STUD also receives the CAMP Revenue budgeted amount for Account 4008 - Student Orgs.  The amount is budgeted at $560,000 in FY03-04 with no significant expected change.

    Each college budgets the Activity Fee as a transfer in revenue budget with a corresponding expenditure budget during the Load.  Student Affairs budgets the $820,647 in Funds 13 and 15.  The split should remain constant Fund 13 $250,760 and Fund 15 $569,887 (included in the permanent base/allocation).

    Fund 13 items must be funded through a cash transfer to each respective P/G.  STUD Fund 15 does not need/receive a cash transfer since it is part of the base and cash is not processed in Fund 15.

  • Departmental Reorganization

    When an activity or function is transferred from one budget center to another, the resources (funds and positions) allocated to that function will also be transferred to the gaining budget center.  Before the transfer occurs, a Reorganization Transfer Authorization form must be submitted to the Office of Budgets and Financial Planning following established procedures.

    Reorganized forms need to be submitted by April 15th to the Budget Office in preparation for the new fiscal year. Departmental reorganizations have to be implemented on July 1st. No mid-year reorganizations will be accepted.

  • Campus Insurance Funds in Facilities and Finance

    FACILITIES MAINTENANCE AND OPERATIONS (FAC)
    Funds allocated for utilities and property insurance are not available for other purposes. Any funds in excess of cost will revert to the University Administration to be reallocated for other needs.  Funds allocated for hazardous materials handling are not available for other purposes.

    FINANCIAL AFFAIRS (FIN)
    All funds related to tort liability insurance of the University and managed through the Financial Affairs budget center in excess of cost will revert to the University's central administration to be reallocated for other needs.

  • Funding Fringe Benefits for New Positions and Reclassifications

    Deleted July 1, 1995

  • Charging Employer Contributions

    The appropriations bill states:

    "It is the intent of the General Assembly that any agency of the State Government whose operations are covered by funds from other than General Fund Appropriations shall pay from such other sources a proportionate share of the employer costs of retirement, social security, workmen's compensation insurance, unemployment compensation insurance, health and other insurance for active and retired employees, and any other employer contribution provided by the State for the agency's employees."

    It is generally understood to mean that employer contributions (fringe benefits) must be charged to the same fund source as salaries. This practice should be followed unless prohibited by other regulations, such as limits on amounts of employer contributions charged to federal cooperative extension funds.

  • Education and General Performance Credits

    The Performance Credit Program is a mechanism to provide greater budgetary flexibility and discretion to the budget centers by allowing the carry-over of fiscal year-end balances within certain guidelines.  If deemed appropriate by the Administrative Council of the University, performance credits will be allocated according to established procedural guidelines subsequent to the close of each fiscal year.

    The Office of Budgets and Planning reconciles the E&G budget to the actual fund balance as posted to the general ledger at year end close in order to determine the budget to actual variance for each budget center, referred to as the Performance Credit.  Performance credits are distributed as non-permanent budget allocations to the budget holding accounts of each budget center with notifications to budget center representatives.  Budget center representatives are then responsible for distributing performance credits to organizations as appropriate according to budget center policy.

    See Performance Credit Procedures for reconciliation details.

  • E&G Infrastructure Revolving Loan Program

    On May 22, 2000, the Administrative Council approved the creation of a revolving loan account up to $500,000 a year to facilitate funding for departmental initiatives.  This program was devised in response to increased requests from the campus to access the State Master Lease Program for funding of multi-year initiatives.

    The source of funds for the program is the management of institutional E&G cash flow.  Institutionally we have very few resources that are not committed to a variety of activities.  However, on any given day we have substantial unutilized cash on deposit.  (For example, funds are encumbered at the time an order is placed, but cash is not used until the invoice is paid.)  Thus, much like a bank that has many small depositors that cumulatively provide a stable resource for making loans, the University has many small accounts that cumulatively provide us with a relatively stable, but untapped resource that we will start using to our advantage.

    This program is designed to function similar to the State Master Lease program with a nominal interest charge indexed to the prevailing five-year Treasury note at loan origination.  All of the interest will be retained in the fund to provide long-term stability and optimally provide future increased loan resources.

    The procedures for the E&G Infrastructure Revolving Loan Program are as follows:

    • Loan requests will be accepted from E&G departments after September 1 each year.  Requests to borrow funds must be fully justified and routed through the appropriate Vice President for approval and guarantee of repayment with final approval by the Administrative Council.
    • After approval by the Administrative Council, the requesting department and their respective Vice President will execute a loan agreement, which will be provided by Fiscal Affairs, to document the loan.  The University Budget Office will then increase the budget/spending authority of the E&G department in CUBS and copy Fiscal Affairs, who will make a journal entry to record the transaction in CUBS, i.e., 1260-15-5599-000-130-1500000 and 2412-15-xxxx-000-130-1500000.  If the budget/spending authority is increased late in the fiscal year, the borrowing E&G department will be authorized to carry forward any unspent balance to the next fiscal year.
    • Beginning six (6) calendar months after the budget/spending authority is increased and semiannually thereafter, Fiscal Affairs will make a journal entry, i.e., 2412-15-xxxx-000-130-1500000 and 1260-15-5599-000-130-1500000 reducing the borrowing E&G department's liability and increasing the central University revolving account that will be established by the University Budget Office.  A portion of each semiannual payment will represent payment of interest and principal as set forth on an amortization schedule, which will be provided by Fiscal Affairs to the University Budget Office and borrowing E&G department at loan origination.
    • The internal loan characteristics will be:
      • The interest rate will be 83% of the prevailing five-year Treasury note at loan origination.
      • Maximum maturity - 5 years.
      • Loan:    $50,000 (minimum) to $500,000 (maximum).
      • Equal semiannual repayments.
  • Laboratory Fee Allocation

    Effective Date:  October 11, 2002        

    Lab fees increased from $25 to $50 in the prior fiscal year, 2001-02. Lab fees were allocated on a lag basis, i.e. assigned to July 1, 2002 budget for the prior summer, fall and spring at the $25 rate.

    There are two issues to address in the 2002-03 allocations:

    1. The Provost requested and the administration approved retention of one-half the lab fees collected to centrally address laboratory upfit across the colleges and
    2. Expeditiously provide funds to both the Provost and the colleges from the new lab fee structure effective with the fall 2002 semester. This new structure establishes a minimum lab fee of $75 with other, more costly lab sections at $100, $150, and $200.

    The proposal to address these issues involves switching to a “real time” allocation of lab fees, i.e. provide funds to the Provost and colleges in the same year as these fees are collected. This brings the benefit of the new fee structure into the current year rather than on a lag basis. There will be three allocations during the year to accomplish this:

    1. Fall Allocation: Gather data on fees collected in the second summer session and the fall semester by the end of October. One-half this amount will be set-aside for the Provost. The remaining half will constitute the college funds. When the distribution is made, one-half of the amount in each college’s base (from the old $25 rate) will be deducted and the remainder allocated.
    2. Spring Allocation: Around the end of February, lab fee data will be collected for the spring semester and allocated in the same manner as the fall, giving half to the Provost and the remainder to the college less the remaining half in your base from the old rate.
    3. Final Allocation: In mid-June, a final allocation will be made using data from Maymester and first session to the Provost for one-half and the colleges one-half.

    The Budget Office will make these allocations to the holding accounts of the Budget Centers. Budget Center Representatives are responsible for any distribution of lab fee revenues to individual departments.

  • Facilities and Administrative Cost Allocations

    Facilities and administrative (F&A) costs are defined as those costs that are incurred for common or joint objectives of the University, and therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.  These costs are comprised of a number of components.  Facilities includes depreciation and use allowances, interest on debt association with certain buildings, equipment and capital improvements, operation and maintenance expenses, and library expenses.  Administration includes general administration and general expenses, departmental administration, and sponsored projects administration.

    The F&A cost rates are negotiated with the University's cognizant federal agency, and they form the basis of the University's request for reimbursement of F&A costs on federally sponsored projects.

    State legislation requires that all F&A cost recoveries generated from federally funded non-research activities be remitted to the State's General Fund.  Since the University is not allowed to retain these funds, they are not considered for Incentive Fund calculation purposes.

    For all other F&A cost recoveries, however, the University has established the following distributions for Non-PSA and PSA budget centers.

    NON-PSA DEPARTMENTS

    The amount of incentive funds to be awarded to budget centers is based on F&A cost recoveries generated during the prior twelve-month period of July 1st through June 30th.

    When the negotiated rate (full on-campus rate) is used on a sponsored program, the budget center will be entitled to Incentive Funds in the amount of the departmental administration component of the negotiated rate.  For most departments, this component represents 40% of the currently negotiated rate.  Currently, though, the National Brick Research Center receives 100% of the rate, and CETL receives 80%.

    The Budget Office receives quarterly "FACADM" spreadsheets from Accounting Services, which detail the F&A costs for that period.  These spreadsheets are used to determine each budget center's incentive allocation annually.  Once determined, the allocations are made to the budget centers' holding accounts; the budget centers are responsible for distributing the recoveries to the individual departments.

    The F&A cost recoveries that are not returned to the academic budget centers as incentive funds are shared between central campus and the Chief Research Officer.

    PSA DEPARTMENTS

    All F&A cost recoveries generated from sponsored activities performed by PSA budget centers and retained by the University will be returned to PSA.

    The PSAG budget center receives the quarterly "FACADM" spreadsheets from Accounting Services as well to determine their incentive fund allocations.  These allocations are made twice a year.

  • Innovation Fund

    Purpose:

    The Innovation Fund exists to:

    • Provide a source of funding for unique ideas that do not have an alternative University funding source;
      Provide an incentive for innovative initiatives and programs that have a mutual benefit to the applicant and to the University;
    • Promote the application of skills, techniques, and knowledge of two or more disciplines toward a common goal or goals; and
    • Promote innovative teaching strategies that enhance University goals

    Priority will be given to proposals that support initiatives that enhance or improve the Clemson students' learning experience.

    The Innovation Fund is not intended to support proposals for which other University funding sources exists. Examples of proposal categories having alternative funding sources include:

    • Research
    • Affirmative Action
    • Renovation and permanent improvements

    Source:

    An amount will be set aside annually from the Educational and General budget to maintain the Innovation Fund. The amount will be allocated during the regular annual budget process.

    Administration:

    The Innovation Fund Awards Committee, composed of two administrative appointees and four faculty appointees, administers the Fund.  Administrative appointees are the Vice President for Academic Affairs and Provost, and the Chief Research Officer and Senior Vice Provost for Research and Graduate Studies.  Faculty appointees are the Chairman of the Assessment Committee, the Chairman of the Strategic Planning Committee, an Endowed Chair, and an Alumni Master Teacher.

    The Innovation Fund Awards Committee will review and evaluate the merits of proposals received.  Proposals will be prioritized based on uniqueness, need, and overall benefit to students and the University.  In general, funds must be spent in the fiscal year in which they are awarded.  Provision for multiple year awards, when applicable, will be specified at the time of the initial award.

    Application:

    Faculty or staff may apply for funds by completing the Innovation Fund Application Form.  The application should include, in the following order, FORM I, a description of the proposed project (narrative limited to 10 pagese), a statement on how the proposal will impact the Clemson students' learning experience, FORM II, and a detailed expense budget.  The completed application must be signed by the applicant, the immediate supervisor and the Dean/Vice President.

  • Vending Committee Fund
    Vending Committee Accepting Fund Requests (May 4 -June 6)

    Every soda, juice, candy bar and pack of crackers purchased from a campus vending machine has the potential to benefit your department.

    Each year, a portion of Clemson’s vending machine revenues is allocated to fund activities not normally supported by departmental operating budgets. Clemson’s Vending Committee accepts requests for Vending Committee funds and awards these funds during its June meeting.

    Any department or recognized University organization may request funds for specific activities – no blanket allocations are made and funds are not intended to supplement inadequate operating budgets. Vending funds cannot be used for alcoholic beverages. According to the Budget Office Policies and Procedures Manual, "priority will be given to local activities that enhance the intellectual and cultural life of the community."

    Click here to make your funding request.

    • Requests can be submitted between May 4th and June 6th
    • Requests should include itemized funding dollar amounts requested along with a summary explanation of the intended use of funds.
    • Requests from academic departments will be communicated back to each budget center business office for final approval.
    • Requests from student organizations should be channeled through student government and then will be communicated back to the Student Affairs Business Office for final approval.

    Funds allocated in a fiscal year must be spent during that fiscal year. Any unspent funds by fiscal year end will be returned to the Vending Committee account.

    Budget Center Business Officers will be sent a letter in June informing them of whether the requested funds were approved or denied.

    For more information, contact La’Toya Ritter, at latoyaj@clemson.edu or 656-5272.

  • Vending
  • Summer School Revenue Allocation Rates

    Effective April 8, 2002

    Subsequent to the significant fee increase levied during fiscal year 2001-02, the administration reviewed and revised the revenue sharing model supporting summer school expenditures.  The new model facilitates two budgetary functions:

    • Provides a reasonable increase in resources to the academic colleges in support of quality summer school programs
    • Provides additional resources to central campus funds for continued funding of the academically focused "Road Map to Top 20" plan.

    The revised summer school revenue allocation rates are as follows:

    Colleges--

     College of Agriculture, Forestry and Life Sciences  61%
     College of Architecture, Arts and Humanities  51%
     College of Business and Behavioral Science  61%
     College of Engineering and Science  61%
     College of Health, Education and Human Development  61%
     Vice President for Research  61%
     Vice President for Academic Administration and Provost (Honors)  61%

    Library  4%
    Undergraduate Studies  2%
    Campus Contribution  33% + 10% of AAH

  • Assignment of New Revenue Accounts

    Budget Centers must submit requests for new revenue accounts to Accounting Services. Such requests must have an explanation as to the sources of revenue and planned use of funds. The Budget Office will be notified by Accounting Services of the establishment of new revenue account numbers and furnished a copy of the requests and explanations submitted by the budget centers. The Budget Office will review each request relative to the assignment of revenue to the budget center. When necessary, the Budget Office will contact the budget center with questions as to the assignment of revenue. The proposed assignment of new revenue to a budget center will be presented to the Internal Budget and Formula Review Committee and the Provost for comments. Routine requests may be approved by the Associate Vice President for Financial Planning and Management. If a campus-wide impact is involved the proposed assignment will be presented at a Vice President¹s meeting for discussion by and approval of the President.

  • Priority Funding for the Budget Performance Incentives Program

    In the event funds are insufficient to support all university needs, priority will be given to needs and requests supporting the academic roadmap plan.

  • Special Budget Requests

    Special funding requests are discussed by the President, Provost, Vice Presidents, and Deans during the development of program priorities for the new budget year using the projected source and application of funds statement. Such items have resulted in what is commonly referred to as "off-the-top allocations." However, a situation may arise after the original budget has been approved, that a budget center considers special.

    If a budget center submits such a request, Budgets and Financial Planning should analyze the request to determine if all available options have been considered by the budget center. The analysis will also address whether, if funded, the special request will erode the viability of the Budget Performance Incentives Program. If, for example, the basis for the request involves an increase in activity levels, when similar increases in activity levels are routinely being absorbed by other budget centers, approval would erode the integrity of the Block Funding Program. Another example is a correction to the base year allocations, when the original starting point is less critical than the relative change since the inception of the incentive program. Once a staff review has been completed, input should be obtained from the Provost, Vice Presidents, and Deans prior to submitting the final package to the President.

    Note: The policy is not intended to encourage ad hoc requests. It only ensures full discussion and disclosure with the campus leadership prior to a decision.

  • Special University Organizations

    Special University Organizations shall be subject to the same financial controls and auditing scrutiny as any other University department or budget center. Additionally, it will be required to develop, and update annually, a five-year financial plan.

    All Special University Organizations shall be assigned a unique account number that falls within the unit number series of their primary University Affiliate; e.g., Engineering 09XX, Academic Affairs 51XX, etc.

    The Director of a Special University Organization shall be responsible for managing the budget in accordance with established University policies and procedures. In general, the University Affiliate(s) will be responsible for any budget shortfall incurred by the Special University Organization. Special responsibilities and expectations regarding financial accountability should be clearly stated in the operational plans for the Special University Organization.

    Review

    All Special University Organizations shall be subject to financial review every other year unless the University Affiliate requests a special financial review. The specific content of the internal financial review shall be determined by the University Affiliate. As a minimum, their review should cover the following:

    • Identification of funding sources
    • Adequacy of resources
    • Debt service
    • Compliance with five-year financial plan

    The results of the review is one tool that may be used by the University Affiliate to determine if an existing organization should be maintained or eliminated. A copy of the review should be sent to the Provost and the Vice President for Business and Finance.

  • Capital Financing

    Whereas, budget centers may need to borrow funds to finance capital projects or major equipment purchases.

    Whereas, a budget center's incurring of excessive debt may limit the ability of the budget center to meet current and future financial obligations and affect the ability of the budget center to fulfill its mission.

    Therefore, budget centers must prepare a written request to borrow funds for capital projects or major equipment purchases. The University does not provide advances to fund/amortize departmental deficits in restricted or unrestricted accounts.

    The written request must include at a minimum:

    • The requested loan amount and repayment period (generally 5 years for equipment loans and not more than 20 years for bonds)
    • the terms of existing loans from the University, the state or financial institutions
    • an explanation of the source of funds earmarked for retirement of the debt
    • and a signed statement by the appropriate vice president certifying the budget center's continued ability to satisfy its financial obligations and fulfill its mission if the indebtedness is approved.

    The request for financing must first be submitted to Fiscal Affairs for review. Fiscal Affairs will review the request, and will work with the budget center to finalize details of the request for financing. After completing its work, Fiscal Affairs will forward the request to the Vice President for Business and Finance for forwarding to the President for approval. Fiscal Affairs will inform the Vice Presidents of all financial activity through full reporting on a semi-annual basis.

    Note:  This policy is not intended to encourage adhoc indebtedness. It only ensures full discussion and disclosure with the campus leadership prior to a decision.

  • Year End Closing

    The Objective of the year-end closing process is to record all receipts/revenues and disbursements/expenditures in the proper fiscal year. The Closing Calendar gives deadlines for different requests/submissions in order to be classified as current fiscal year items. Accounting Services uses a Fiscal Year-End List of journal entries that need to be processed prior to closing out the fiscal year.  The Budget Office receives this list to prepare corresponding budgets in order for the closing journal entries to pass through the Budget Check process.

  • Budget Responsibility Policy

IV. Budget Control

  • Suggested Procedures for Budget Centers

    Encumbrances

    After the annual budgets have been established and loaded into the Accounting Information System, departmental or budget center staff should encumber recurring costs such as estimated annual expenditures for telephone, postage, and office supplies. The remaining unencumbered balance reflects the portion of funds over which departments have more discretion, provided encumbrances have been estimated accurately. Encumbrances should be reduced as payments are processed for encumbered items.

    Budget Status Reconciliation

    Budget status reports should be reconciled each month to verify the charges posted and those still outstanding. Expenditures for vouchers/requisitions processed but not appearing on the budget status report within a reasonable time, should be investigated. In cases involving requisitions/purchase orders, a follow-up on shipping, invoices and/or receiving reports may be needed. This becomes more critical near the end of a fiscal year and should be monitored very closely to assure goods, invoices and receiving reports are received timely in order to charge the appropriate fiscal year.

    Salary Lapses

    Salary budgets should be monitored very close, since the major portion of most budgets is for salaries. Salary lapses should be projected regularly. This can be done by multiplying the latest pay period costs by the number of remaining pay periods in the fiscal year (including the accrual at year-end), adjusted for additional savings or costs for projected future vacancies and appointments. The level of administrative control at which salary lapses are projected and re-allocated varies from one budget center to another depending upon the policies of the budget center. Budgetary policies established at the budget center level should be communicated to units within the budget center.

    Salary Adjustments, Merit Increases And Reclassifications

    Salary adjustments, merit pay increases and reclassifications should be monitored and the total costs compared with funds allocated by the University, if applicable. Increases granted in excess of applicable University allocations must be absorbed by the budget center. Generally, such increases above University allocations must be absorbed from sources such as block funding, shifting funds from non-salary budget categories, from salary savings due to appointments at less than budgets or eliminating positions.

    Budget Review And Reporting

    Budgets should be reviewed on a regular basis by department and budget center management. Summary budget reports prepared by departmental or budget center staff would be very helpful to department and budget center management. The reports should inform management on budget items such as, projected revenue shortfalls, revenues in excess of current budgets, expenditure overruns, etc. After budgetary review by the appropriate administrators, budget revisions should be processed as needed in order to keep budgets current and reflect management's budgetary decisions.

  • Financial Accountability

    Some people may believe overspending can be controlled solely through computers. In actuality, no matter how sophisticated the computer system, an authorized person will always be able to obligate the University by effecting a purchase commitment to a salesperson. Thus, a combination of administrative and computer controls is necessary.

    The strict adherence by the institution to holding units accountable for deficits and the administration of appropriate Presidential discipline (such as deauthorizing budget authority) when deficits occur will determine whether spending is controlled.

    Financial responsibility and accountability for special University organizations, defined as centers, institutes, associations, alliances, and programs, also rests with the budget center. Creative suggestions from the administration to establish such organizations does not shift financial responsibility from the budget center. The establishment or continuation of the organization must follow objective financial assessments as part of the budget center's plan.

V. Management Accounting

  • Indirect Cost Proposal Preparation

    Overview:

    An indirect cost proposal is prepared each fall for submission to the Federal Department of Health and Human Services (DHHS) by the end of the calendar year. The proposal is used to negotiate indirect cost rates for all federal grants and contracts. It may be used for grants and contracts from other governmental entities and private industry, although they are not bound by the rate, and the University may negotiate different rates with each of these potential grantors. The proposal is mailed to the state to be forwarded to DHHS. The basic rate proposals submitted by the University are applicable to:

    • Research conducted in schools and colleges other than Agriculture and Natural Resources. 
    • Research conducted in Agriculture and Natural Resources. 
    • Instruction conducted in schools and colleges other than Agriculture and Natural Resources. 
    •  Public service conducted in departments other than Agriculture and Natural Resources.
    • Information system development.
    • Cooperative meat inspection programs.

    The rates are based on expenditures for the just ending June 30 fiscal year, with the computed rates applicable to grants and contracts two years hence. For example, the rates computed with fiscal year 19X0-19X1 expenditures will be applied to grants and contracts acquired for the 19X2-19X3 fiscal year.

    Procedure:

    Expenditures are analyzed and any non-applicable items, based on OMB Circular A-21, are removed by adjusting the balances with memo journal entries not recorded in the University¹s computerized accounting system. The result of these adjustments is the calculation of the Modified Total Direct Cost (MTDC).

    After analyzing all accumulated information, a draft proposal is prepared for review and discussion. If necessary, several drafts will be issued. After the final draft has been discussed and any adjustments made, the final proposal is prepared for submission.

  • Space Utilization Study Procedures

    Policy currently under revision pending space utilization consultant. Consultant's report due Summer 2002.

  • Guidelines for Assigning Costs to Auxilaries, Quasi-Auxilaries, Cost Recovery and Revenue Producing Activities

    Auxiliaries

    An essentially self-supporting activity that furnishes goods and/or services directly or indirectly to students, faculty and staff, and/or incidental to the general public, and charges a fee related to, but not necessarily equal to, the cost of those goods and services. An auxiliary enterprise should contribute to and relate directly to the mission, goals and objectives of the University. It should not be merely a service activity or business, but an active expression of the University reflecting its history, style and relation to students, alumni, faculty, staff and community.

    Auxiliaries should be self-supporting and charged for the following:

    • Direct operating expenses
    • Fringe benefits
    • General and administrative expenses
    • Debt service
    • Funded reserves for replacement of equipment and repair of building
    • Facility maintenance
    • Utilities

    Currently the following areas are designated auxiliary enterprises:

    • Bookstore
    • Food Services
    • Laundry and Dry Cleaning Services
    • Intercollegiate Athletics
    • Housing
    • Student Health Services
    • Parking
    • Printing Services
    • Transportation Services
    • Communication Services
    • Card Access System

    Quasi-Auxiliaries

    An activity with the properties of an auxiliary in that it provides goods and/or services to the University community as well as the general public. The principal difference is it may not always be self-supporting and sometimes a portion of student fees or other support is allocated to assist the activity. Like auxiliaries, quasi-auxiliaries should be charged with total costs. Currently the following areas are designated as quasi-auxiliaries:

    • Information Systems Development (ISD)
    • Continuing Education

    Cost Recovery Activity:

    An activity that provides goods and/or services to University departments rather than to individuals or the general public. Charges are generally processed via internal transfers in lieu of cash payments. The rates charged should reflect total costs of the activity. This includes both direct and indirect costs. Indirect costs not allocated directly to the activity should be treated as overhead and distributed as part of the overall University general and administrative expense. Cost recovery activities are generally not self-supporting and must be subsidized by the University. Currently the following areas are designated as cost recovery activities:

    • Risk Management
    • Facilities Maintenance and Operations
    • Computer Center
    • Central Stores
    • Utilities Department

    Revenue Producing Activities:

    Certain departments or colleges generating a nominal amount of product or service revenue in the process of conducting their main function of instruction, research or public service. Such activities may generate revenue, but the total support for these entities is the Educational and General budget. The revenue generated is used to reduce expenditures.

    Currently the following activities fall in this category:

    • Auditorium and Conference Room Rentals
    • Items such as unused fringe benefits and general and administrative charges are recovered into the Central Fiscal Unit.
  • Guidelines for Charging Departments for Services Provided by Auxilaries and Cost Recovery Operations of Business and Finance

    Cost:

    All billing rates should be constructed to recover total costs. This includes both direct, and indirect costs paid by the billing department. Indirect costs not distributed as part of the billing rate should be treated as overhead and distributed as part of the overall University general and administrative overhead expense.

    A use or depreciation allowance should be included for operating equipment. Major equipment items may need to be lease-purchased or purchased on installment, since the University generally cannot accumulate and carry forward unrestricted funds for such purposes.

    The billing rates should be developed by the billing department and submitted to the Managerial Accounting Office for review and to be submitted to the Office of the President for approval. The Managerial Accounting Office will review all rates and will either recommend their acceptance, recommend adjustments, or construct alternative rates based on the above criteria and cost information supplied by the department. The following is a discussion of some of the unique items in each of the operations of Business and Finance:

    Cost Recovery Operations

    Risk Management:
    In setting insurance premiums, only the cost of premiums (estimated, if actual is not available at the time of billing) should be charged to non-Educational and General fund sources and certain self-supporting operations within the E&G budget. Costs for the operation of the Risk Management Office should be allocated as part of the University general and administrative overhead.

    Facilities Maintenance And Operation:
    A separate rate should be constructed for each billing shop. Included in the rate are direct costs and applicable indirect costs. The rates will be constructed to recover total costs. However, in order to remain competitive with outside vendors, the University may discount the rate when billing the campus.

    Auxiliary Operations:

    Communication Services:
    In addition to the actual costs of local service, long distance and equipment ordered by University departments, an overhead amount should be added to departmental billings to recover the current operating costs of the Communications Office. University-wide infrastructure (fiber optics, cable, etc.) costs should not be included in monthly billings to departments. Infrastructure costs identifiable with auxiliaries should be funded by that enterprise.

    Printing Services:
    Billing rates should reflect total operating costs. Included in the rate is an operating equipment use allowance, or depreciation charge, based on the expected life of the equipment. As previously mentioned, major equipment purchases should be financed or lease-purchased. A survey of outside vendors offering similar services may also be made to compare the rates developed by the University.

    Postal Services:
    Actual cost of postage and shipping and handling should be billed to University departments. Standard postal box rates should be used for billing students. Regular operational costs will be distributed as part of the University general and administrative overhead and, therefore, should be a part of the billing rate.

    Transportation Services:
    Mileage (vehicle rate) or hourly (shop rate) rates which cover total costs will be charged. Included in the rate are the cost of supplies, parts, labor and depreciation of equipment, which provides an amount for the replacement of vehicles. This replacement amount will be accumulated and carried forward as a reserve until needed. (Note: The state has mandated motor pool shop labor rates be computed utilizing the state computation formula.)

    Summary:
    When constructing University billing rates, total costs will be the basis. These costs should be clearly identified, accurate, reasonable, and include indirect cost paid by the billing department. Outside vendor rates may be surveyed, but should not be a basis for constructing University rates. Rates should be developed to recover costs (including replacement cost of vehicles). Therefore, amounts should not be added to the rate to cover contingencies.

  • Billing Rate Policy and Procedure

    SECTION: Controller

    Responsible Office: Controller

    Policy

    The University Billing Rate process is required of departments or divisions that provide goods or services to internal and/or external customers on a recurring basis. Annual billing rates and changes to existing billing rates must be submitted to the Controller’s Office following the steps listed in the “Billing Rate Procedure.” Any new billing rates or significant changes to existing billing rates must be submitted to the Controller’s Office and approved by the Administrative Council.

    Discussion

    The University Billing Rate process is designed as a mechanism for communication, review and approval of University department billing rates for use in budgeting and effective planning. As rates are being developed department or business office staff should communicate with University customers any significant changes. All rates must be documented with a cost or market basis.

    When rates are established for goods or services that may be charged to federal programs, government cost principles, as defined in Office of Management and Budget Circular A-21, must be followed. Circular A-21 helps insure the federal government bears its fair share of total costs.

    Legislative appropriations and student fees provide a level of support for the Educational and General (E&G) and Public Service Activities (PSA) of the University. These resources are used to pay salaries, operating costs and build many of our facilities. It is not appropriate for E&G and PSA units to recharge other similar funded units for services and space.

    Billing rates that result in a major change in philosophy or have a significant impact on campus users will be forwarded to the Administrative Council for review and resolution.

    Billing rates will be posted on the Controller’s website at for all users.

    This policy does not apply to general student fees that require the Administrative Council and the Clemson University Board of Trustees approval.

  • Space Financing Policy

    Clemson University space is assigned to a budget center, through the appropriate vice president, to carry out its stated mission "free of charge" with no proprietary allocation or claims implied by such assignment. A consideration in the assignment for use of a given space is the total University need, with all assignments intended to provide the most effective and efficient usage. The available space is assigned "free of charge" to all budget centers with the exception of auxiliaries and/or cost recovery units, and certain student groups, that are required to pay a rental fee. The following are the basic criteria that govern the policy:

    • If a budget center is forced to move as the result of an institutional decision, the institution will be responsible for any resulting capital costs up to the square footage of the vacated space as well as maintenance and moving costs. The University contribution will be limited to providing comparable space of equal square footage.
    • If a budget center chooses to move into its own space, the budget center will be responsible for the total cost associated with the move including capital, maintenance, and moving costs.
    • If funding is received by FM&O via the CHE formula to maintain leased space (utilities, custodians, etc.), then FM&O will reimburse the budget center its pro rata share of the funded amount. All leased space may be sublet to other budget centers or non-University users if not prohibited in the lease agreement.Assigned E&G space can be either space built or purchased by the University, or space built or purchased by a budget center.
    • Space built, purchased or leased by the University and funded "off the top" is assigned to a budget center for its use. The maintenance and upkeep of this space is generally covered in the CHE formula funding and the assigned budget center should incur no cost for its usage (i.e., ESE research building). Therefore, the assigned budget center may not charge other budget centers "rent" for the use of this space. It may, however, recover any ancillary cost incurred in making the space available, such as additional supplies and rental equipment.
    • Space built, purchased or leased by a budget center, at its discretion, with donated, block, or auxiliary funds is considered University assigned space (i.e., Architecture). Budget centers, including auxiliaries, may charge University lessees an amount to recover its capital investment, as well as, any ancillary costs. In accordance with the applicable bond resolution, after the debt service has been satisfied, University budget centers, including federal programs and auxiliary enterprises, may only be assessed ancillary costs such as supplies and equipment rental. Non-University users may be charged a rental fee. In the case of leased space, the budget center should try to negotiate maintenance services as a part of the base lease.
    • Auxiliaries may sublet its space to budget centers for an amount not to exceed its cost.

VI. Appendices

  • Budget Centers

    Revised: 5/31/02

    Following is a current list of budget centers with associated CUBS budget organization codes:

    Academic Colleges

    College of Agriculture, Forestry and Life Sciences (CAFLS)
    College of Architecture, Arts and Humanities (AAH)
    College of Business and Behavioral Science (BPA)
    College of Engineering and Science (COES)
    College of Health and Human Development (HEHD)
    School of Education (SoE)

    Academic Support

    Provost and Vice President for Academic Administration (PROV)
    Division of Computing and Information Technology (DCIT)
    Administrative and Programming Services (DAPS)
    Cooper Library (LBRY)
    Chief Research Officer (RES)

    Facilities

    University Facilities (FAC)
    Utilities (UTIL)

    Administrative Support

    Student Affairs (STUD)
    President (PRES)
    Secretary to the Board of Trustees (SEC)
    Vice President for Public Service and Agriculture (PSAG)
    Chief Business Officer (FIN)
    University Advancement (A+A)
    Campus Central Funds (CAMP)

    Auxiliaries

    Athletics (ATH)

  • Glossary of Terms

    ACADEMIC FISCAL UNIT (AFU)

    A temporary budget account established at the time the University's budget is finalized for budget items earmarked for a specific purpose when the actual amount to be distributed to various unit is not known.

    APPROPRIATION BUDGET

    One of the four types of budget ledgers within CUBS that organizes budgets by budget center.  The appropriation budget acts as the spending authority and budget control level for funds 10-17.

    ACCOUNT NUMBER

    The account number is a numeric string compiled by using all six chart fields from the University's official Chart of Accounts.  The Chart of Accounts is maintained by Accounting Services using the CUBS system.  These strings are used to classify, record, and report financial data and program activity. There are three basic types of accounts in Clemson University's accounting system. These are expenditure accounts; revenue accounts; and asset, liability, additions and deductions to fund balance and fund balance accounts. For a detailed explanation of the University's accounting system, please refer to Clemson University Policies and Procedures for the Accounting Services Division.

    ANNUAL OPERATING BUDGET

    A detailed projection of anticipated revenues and expenses from all sources and for all budgeted activities for one fiscal year, developed by the University and approved by the Board of Trustees. The annual operating budget is effective for the 12-month fiscal period between July 1 of one year and June 30 of the following year.

    AUXILIARY ACTIVITIES

    Activities that primarily furnish goods and services to students, faculty, staff, or the general public, charging a fee directly related to cost. These activities are essentially self-supporting. Examples of auxiliary activities are athletics, housing, dining services, and the bookstore.

    BASE BUDGET

    The ongoing and recurring budget for each budget center of the University. Changes in the base can be permanent or temporary.

    BLOCK GRANT

    Clemson University uses a system of block grants to fund Education and General activities.  These grants are allocated as a budget center's share of state appropriations and student fees.

    BUDGET AMENDMENT FORM 

    Template used as a source document for changing amounts budgeted differently from the original system-loaded balanced budget. This form must be used for revenue and appropriation budget changes and must be rounted through the Office of Budgets and Financial Planning.

    BUDGET AMENDMENT

    An increase or decrease to an alpha-numeric budget account string. Amendments may be non-permanent or permanent. Permanent amendments are changes that permanently affect the base budget allocated to a budget center. Non-permanent changes are one-time changes that only affect the spending authority of a budget center during the fiscal year in which it is made.  

    BUDGET CENTER

    A grouping of identified, cost-related departments.  Each budget center's financial affairs are managed through what is commonly referred to as a Budget Center Representative who is the chief point of contact for each center for all budget matters.  For a listing of the budget centers, please refer to

    BUDGET CHECKING MODULE (BCM)

    The coded system of edit checking within CUBS that ensures a budget is established and in certain instances, funded, before an expenditure or revenue transaction may be processed through the General Ledger posting process. 

    BUDGET PERFORMANCE CREDIT PROGRAM

    An internal budget approach adopted by Clemson University in Fiscal Year 1989-90 to decentralize the budget process by shifting the responsibilities and rewards for sound, efficient financial management to defined budget centers. The program includes four elements:

    • Block Grant
    • Revenues Generated
    • Innovation Fund
    • Research Matching Fund

    BUDGET ALLOCATION WORKSHEET

    Formatted spreadsheet provided to budget centers for the planning and preparation of detailed budget submittals. The worksheets provide the current year's budget and estimated expense, last year's budget, and a blank column in which to enter upcoming fiscal year's budgeted amounts. Salaries and fringe benefits determined from salary roll data entered earlier in the budget process for the upcoming year are preprinted on the form.

    BUDGET STATUS REPORTS

    Revenue and expenditure reports generated on a monthly basis through the Clemson University Business Systems (CUBS) and made available to all University units. These reports reflect actual posted journal entry activity and encumbrances as compared to budget activity. For a detailed explanation of the University's basic financial reports, please refer to Clemson University Policies and Procedures for the Accounting Services Division.

    CENTRAL FISCAL UNIT (CFU)

    A temporary budget account established at the time the University's budget is finalized for budget items earmarked for a specific purpose when the actual amount to be distributed to various unit is not known.

    Clemson University Business Systems (CUBS)

    Clemson University's internal accounting system through which all business and financial transactions are organized, recorded, reported, and managed. CUBS maintains all university accounts in accordance with a system of fund accounting.  CUBS is an internal acronym given to the financials and human resource management systems distributed by People Soft Systems, Inc.

    COMMISSION ON HIGHER EDUCATION (CHE)

    An agency established by act of the General Assembly responsible for the coordination of higher education in the state to achieve more effective and efficient programs and services at the state's institutions of higher learning. The CHE is also responsible for initiatives in research and academic excellence.  In 1996 the General Assembly enacted legislation (Act 359) to provide performance-based funding to state-supported institutions. The CHE coordinates, collects, and audits supporting data for Act 359.

    FISCAL YEAR

    The annualized, accounting cycle established for Clemson University occurring from July 1 through June 30.

    FUND ACCOUNTING

    A methodology that identifies and classifies resources according to their intended use into specific units called funds. Resources are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Within each fund, costs are broken down by functional programs such as instruction, research, extension and public service, academic support, institutional support and department administration; and by object of expenditure such as personal services, fringe benefits, supplies and other, scholarship, fellowships and grant-in-aid, and equipment. For a detail explanation of the University's accounting system, please refer to Clemson University Policies and Procedures for the Accounting Services Division.

    GENERAL AND ADMINISTRATIVE COSTS (G&A)

    A type of indirect cost incurred for the general executive and administrative offices of the University and generally other expenses which do not relate solely to instruction, organized research, other sponsored activities, or other institutional activities.

    INDIRECT COSTS

    Costs the University incurs for common or joint objectives and therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. Costs such as building and equipment use charges, computer equipment depreciation, plant maintenance, administrative and general, indirect departmental expense, sponsored projects administration, library services, and a departmental administration allowance are reimbursed to the University at a percentage rate.

    INNOVATION FUND

    Innovation Funds are budgeted under the Budget Performance Incentives Program to provide a source of funding for unique ideas that do not have an alternative University funding source.  The funds provide an incentive for innovation initiatives and programs that have a mutual benefit to the applicant and the University, and are awarded by the Innovation Fund Awards Committee from a review and evaluation of written proposals.

    MISSION RESOURCE REQUIREMENT (MRR)

    The mathematical methodology that calculates the resource need base of an institution in South Carolina prior to the institution's award of scores on the Performance Funding report card.  Points scored on the report card are weighted against the MRR calculation to determine the performance funding allocation awarded by the State.

    NON-PERMANENT BUDGET AMENDMENT

    Changes to a budget which do not affect a budget center's base budget.

    ORGANIZATION BUDGET

    One of four types of budget ledgers within the CUBS system that organizes departmental budgets by organization or department number.  Organization budgets are required for funds 10-17 due to the commonality of funding being limited to a singular fiscal year.  The sum of all organization budgets for a budget center should not exceed the appropriation budgets (spending authority) for that center.

    PERFORMANCE CREDITS

    An incentive mechanism that provides greater budgetary flexibility and discretion to budget centers by allowing the carry-over of fiscal year-end balances within certain guidelines.  The performance credit initiative promotes a greater efficiency of spending across the University.

    PERMANENT BUDGET AMENDMENT

    Changes to a budget which permanently affect a budget center's base budget.

    PROJECT GRANT BUDGET 

    One of four types of budget ledgers within the CUBS system that organizes budgets at the project grant level.  Project grant budgets include detail budgets for all six chart fields of the University's chart of accounts.  Funds 18 and higher require project grant budgets due to the commonality of funding resources crossing multiple fiscal years.  

    PUBLIC SERVICE ACTIVITIES (PSA)

    Activities (programs) in the College of Agriculture, Forestry, and Life Sciences, the College of Behavioral, Social and Health Sciences and the College of Engineering, Computing and Applied Sciences for which there are distinct state and federal appropriations separate from education and general funded activities in those areas. PSA includes Agricultural Research (includes Agricultural Experiment Stations), Cooperative Extension, Regulatory and Public Service Activities, Livestock-Poultry Health, Forest and Recreation Resources, State Energy Programs and Bio-engineering Alliance.

    REVENUE BUDGET

    One of four types of budget ledgers within the CUBS system that organizes projected revenues by project grant level of budget detail.  All six chart fields are required for the revenue budget-all at the greatest detail level except for the program chart field.  Only funds 10-17 require a revenue budget.

    REVENUES (DEPARTMENTALLY GENERATED)

    Revenues generated by, or allocated to, a budget center. May include such sources of funding such as seminars and short courses, laboratory fees, indirect costs, general and administrative charges, and other cash revenues generated by the center.

    REVENUES (INTERNAL vs. EXTERNAL)

    External revenues are those resources received into the university and booked into the General Ledger for the first time from external sources outside the University using account code 47XX.  

    Internal revenues are those resources received into a department or organization internal to the University from another department or organization of the University as in a goods and services exchange.  Revenues booked as internal (cost recoveries) revenue using account code 48XX have been previously booked into the University's accounting system as external revenue.

    SOURCE AND USE OF EDUCATION AND GENERAL FUNDS STATEMENT

    A financial statement that identifies the sources of funds available for spending from revenue increases (decreases) and expenditure increases (decreases) along with the uses of the funds for programs. The statement is used in the planning phase of a new budget to provide a platform for the debate of macro-issues affecting the source and application of new monies. The statement presents the disposition of actual excesses or shortages from the budget estimates as approved by the President and the Provost during the current year.

    SALARY ROLL 

    Generated listing of budgeted vacant positions and active employees with related information provided to budget centers for the preparation of budgets during the spring of each year. The salary roll lists the distribution of each salary among account numbers for each permanent classified and unclassified position entered into the position database. The sums of these distributions are transferred to the budget worksheets and included in the total base budget loaded into CUBS.

    Clemson University's internal accounting system through which all business and financial transactions are organized, recorded, reported, and managed. CUBS maintains all university accounts in accordance with a system of fund accounting.  CUBS is an internal acronym given to the financials and human resource management systems distributed by People Soft Systems, Inc.