1.ÌýÌý Internal Chancellor Policies for Use of Reserves and Income Over Budget
1.1ÌýÌý Authority. Consistent with Board of Trustees Policy BOT IV (Financial Policies, and in particular BOT IV.B.3 - General Policy Concerning Budget Adjustments), the Chancellor will establish the following internal guidelines for delegation of his authority to each respective President for the following use of his/her Unrestricted Education and General (or General Operating Budget) funds:
1.2ÌýÂ Reserves:
1.2.1ÌýÌý Each President may draw upon the respective institutional Reserves (unappropriated fund balance, and for the purposes of this policy section balances will exclude the cost of post-retirement medical benefits) for an amount up to one-half of one percent (.5%) of the prior year's actual GOB expenditures and transfers (including financial aid), provided that withdrawal will not reduce the remaining balance to an amount less than three (3) percent of the prior year's actual GOB expenditures and transfers.
1.2.2ÌýÌý In the event a Â̾ÞÈËÊÓƵ institution's Reserve balance is less than 3%, upon approval of an institutional plan to achieve the 3% level, the President annually will be granted the above authorization to draw down the respective Reserve balance to a level specified by the Chancellor lower than the 3% floor.
1.2.3ÌýÌý Use of Reserves for amounts above the delegation to the President and below levels requiring Financial Affairs Committee approval (generally between .5% and 1.0% of GOB) will be approved on a case-by-case basis by the Chancellor.
1.3ÌýÌý Tuition Income Over Budget:
1.3.1ÌýÌý Each President may recognize and use gross matriculated student tuition income from the regular sessions (Fall and Spring semesters for residential campuses) equal to one hundred one (101) percent of the approved annual matriculated student tuition budget.
1.3.2ÌýÌý Use of tuition income over budget for amounts above the delegation to the President and below levels requiring Financial Affairs Committee approval (generally between 1.0% and 2.0% of tuition budget) will be approved on a case-by-case basis by the Chancellor.
1.4ÌýÌý Miscellaneous Income Over Budget:
1.4.1ÌýÌý Each President may recognize and use miscellaneous income from all other sources, including the recovery of indirect costs and continuing education tuition income, equal to one hundred five (105) percent of the approved annual budget for these purposes. The Chancellor is delegating full authority within this area, as Trustee approval is required for any amounts greater than 5% of miscellaneous income over budget.
