Policy 16 - Budget Incentive Plan and Unbudgeted Spending Requests
DATE ISSUED: October 1, 2004
Budget Incentive Plan:
The University Budget Incentive Plan provides financial awards for areas that realize a favorable year-end budget surplus.
The criteria of the Plan is determined and approved by the Budget Committee. The Budget Committee has the final word on the application and interpretation of Plan criteria.
The Budget Committee may alter or suspend the distribution of the incentive awards in a given year if warranted by the University's financial condition.
In the fourth quarter of the fiscal year, Vice Presidents with reasonable expectation of year-end budget surplus may submit requests for renovation projects and other spending. The Budget Committee will review all of these requests together, along with general University projects to determine a priority list of potential uses of the University's portion of anticipated budget surplus under the University Budget Incentive Plan. Final approval of these projects will be made only to the extent that the University budget surplus is assured. Approval to commit University surplus and to begin the project could be made before the end of the fiscal year.
Requests for renovation projects or other spending approved by the Budget Committee will not be charged against an area's budget prior to the calculation of awards under the University's Budget Incentive Plan (usually the first week in August). In other words, the expense or transfer will not be made before an area's Incentive Plan award is calculated.