EFFECTIVE DATE: June 22, 2021
ISSUE #: 4
PRESIDENT: Dr. Loren J. Blanchard
PURPOSE
This PS states the policy and procedures relating to the responsibilities of the cost center
managers in the area of budget maintenance, including the execution of budget transfers.
DEFINITIONS
There are no definitions associated with this policy.
POLICY
3.1 General. The University of Houston System Board of Regents approves the annual
operating budget of each component. Once the budget is approved and becomes
operational, it is the responsibility of each cost center manager to effectively monitor
their unit's budget to ensure that the funds are expended in a manner consistent with the
intent of the Board.
3.1.1 Designation of the cost center manager. The cost center manager is indicated on
the university's 1074 reports. Only by changing the cost center manager can the
responsibility be transferred. The cost center manager may delegate the task of
monitoring and maintaining the cost center, but the responsibility for all activity
within that cost center remains with the cost center manager.
3.1.2 Responsibilities of the cost center manager. The cost center manager, in
maintaining the department's budget, is responsible for the following:
1. Verifying that the base budget, as indicated on the September financial reports,
is consistent with the final version of the budget that emerged from the budget
development process.
2. Reviewing all budget entries relating to expenditures that carried forward
from the previous fiscal year to verify accuracy.
3. Ensuring that revenue generation, when applicable, is monitored so that any
shortfall or surplus can be identified and adjusted for at the earliest possible
opportunity.
4. Monitoring actual expenditures and encumbrances in both the financial and
payroll systems to ensure that they are in line with the approved expenditure
budget.
5. Initiating, securing approval for, and routing through the Budget Office any
transfers necessary to keep the budget in order.
3.2 Budget Transfers
3.2.1 Budget transfers of any kind, whether originating in the Budget Office or in a
department, will only be processed upon submission of properly completed and
approved Budget Transfer with appropriate back-up (examples: Taleo UHD Offer
Notification email, ePAR, ePRF and email request) . The following information
must appear on the Budget Transfer:
1. Date;
2. Cost Center(s) and budget nodes(s) involved in the transfer. All transfers
must be balanced, two-sided entries;
3. Amount;
4. Description/Justification of the transfer;
5. Approval of the cost center manager and/or Department Business
Administrator (DBA) a signature, email, or electronic approval is acceptable
3.2.2 Position Number. The Position Number is a mechanism for identifying and
tracking employees in the payroll system. Benefits-eligible employees (a.k.a.
line-item employees) have, within each cost center, unique Position Numbers.
Non-benefits eligible employees, including part-time, college work-study, noncollege work-study, and temporary workers have position numbers which allow
multiple employees within the position. These are often referred to as "lump sum
positions".
3.2.3 Intra-Cost Center Transfers. The cost center manager/Department Business
Administrator has the authority to transfer funds within a cost center. Intra-cost
center transfers are allowable between the lump sum Salary and Wage positions,
the Maintenance and Operations budget node, and the Equipment budget node
only. Any transfer involving funds budgeted for line-item positions among the
various Salary and Wage budget nodes will be subject to the restrictions outlined
in section 3.2.5.
3.2.4 Inter-Cost Center Transfers. To affect a budget transfer between cost centers, the
budget transfer must have the approval of the cost center manager/Department
Business Administrator from whom the funds are being transferred. As with the intra-cost center transfers, the cost center manager may transfer funds only
between the lump sum Salary and Wage positions, the Maintenance and
Operations budget node, and the Equipment budget node. Any transfer involving
funds budgeted for line-item positions among the various Salary and Wage
budget nodes will be subject to the restrictions outlined in section 3.2.5.
3.2.5 Vacant Positions. Funds budgeted for line-item positions among within the
various Salary and Wage budget nodes may be used only as outlined in the
original budget. Lapsed salary dollars resulting from vacant positions will be
transferred into holding cost centers and considered "unallocated funds" at the
beginning of the fiscal year and during the fiscal year as positions become vacant.
These transfers will be initiated by the Budget Office.
Exceptions to the vacant position/lapse salary policy are as follows:
1. Funds originating from faculty positions held vacant in the Fall and/or Spring
will partially be transferred to the adjunct cost center to cover the increased
cost due to the vacancy. The remaining budget will be lapsed.
2. A vacant position is deemed to be critical, whereupon all or part of the lapsed
salary funds will be held in the cost center to cover the cost of temporary
personnel pending the hiring of a permanent employee. Such determinations
will be made by the Division Business Administrator under whom the
position resides.
3. The area in which a position resides has engaged in significant reorganization.
In such a case, with the approval of the appropriate Division Business
Administrator, the funds associated with the vacant position may be
redirected toward the creation of a new position or the augmentation of
existing positions.
3.3 Responsibilities of the Budget Office. The Budget Office is responsible for reviewing,
approving, and processing all budget transfers . In reviewing transfers, Budget Office
personnel will verify the following:
3.3.1 The funds, as indicated are available for transfer;
3.3.2 The transfer adheres to generally accepted fund accounting principles; and
3.3.3 All of the required approvals have been secured.
If all is in order with the budget transfer , the reviewer will input it into the appropriate
financial system and upload all supporting documentation, The budget transfers created
within the Budget Office and transfers created by other departments will be submitted for approval and posted. It shall be the responsibility of the Budget Office to track all
transfers in the financial system, ensuring that the entries have been processed correctly.
PROCEDURES
There are no procedures associated with this policy.
REVIEW PROCESS
Responsible Party (Reviewer): Executive Director, Budget, Procurement & Contracts
Review: Every three years on or before June 1st
.
Signed original on file in Employment Services and Operations
POLICY HISTORY
Issue #1: 09/30/94
Issue #3: 03/19/18
REFERENCES
UH System Administrative Memorandum 03.C.01
UH System Administrative Memorandum 03.C.02
