From: Russell, Bob
Sent: Wednesday, April 15, 2009 2:22
PM
To: Allen, Max; Batson, Sherri;
Chi, Donna; de Angury, Maree; Forsythe, Mary; Freeman, Ann; Glossl, Ann; Hucks,
Cindy; Lee, Elizabeth M.; Magill, Randy; McDowell, JoAnn; Riemersma, Jan;
Russell, Bob; Sova, Adalia Jessie; Thompson, Patricia L.; Ward, Kay; Adkins,
Linda; Beach, Anne; Cook, Gayle C.; Deanes, Patricia; Holland, Nancy; Jolly,
Bev; Jones, Nancy B.; King, Metta; Randall, Elizabeth; Smith, Jonia; Underwood,
Wanda; Bailey, Jane; Beaty, Elizabeth; Ferguson, Joanne N.; Gordon, Rita;
Helms, Suzanne; Schacher, Jennifer; Hendrix, Peggy; Knight, Abby; Turner,
Margaret; Fleming, William; Preiss, Lori A.; Baden, Daniel; Barlow, Cathy L.;
Clark, Lawrence S.; Cody, Sue; Cordle, David P.; McFarland, Stephen; Moore,
Kemille; Pierce, Susan F.; Roer, Robert; Funderburk, Dale C. Jr.; Gibson, Amy;
Gray Siko, Judy
Subject: FY 2008-09 Budget Restrictions
-- Additional Guidance
Attachments: Campus Exception Request
Form.docx
All:
By now I’m sure everyone’s heads are spinning with respect to the current budget restrictions placed on us by Governor Perdue, in order to balance the state’s budget on June 30, 2009; as required by North Carolina law. Let me try and summarize what we know, what allowances we can make, what exceptions we can request.
First, and foremost, as we all know this is a “cash crisis” which means the state does not have sufficient projected cash to meet the projected current obligations. So, although we will have plenty of “budget” left at year end, we don’t have the cash to back it up (sort of like still having checks but no money in your checking account).
A few
general items of note:
1.
This restriction only applies to general funds (i.e., ANY
Banner find that starts w/ 1xxxxx). Trusts, overhead, grants are not subject to these
restrictions. Governor Perdue’s April 9, 2009 memo, which speaks to
special revenue or trust funds, does not directly apply to universities.
2.
UNCW has no authority to grant exceptions (except in two rare instances). Exceptions must go to OSBM for approval.
3.
Unless an exception is approved by OSBM, Office of State
Controller will not give us the cash to pay the bills. In other words, the allocation of cash (needed to pay
the expenses) is directly tied to OSBM approval of exceptions.
4.
All correspondence related to the budget restrictions are on the
Budget Office website, under “08-09 Budget Restrictions”
http://www.uncw.edu/ba/finance/Budget/index.html
Now some specifics:
Vacant positions / hiring: no hires after April 10, 2009 are authorized unless
a verbal or written commitment was made before April 9, 2009. Budget
Office and HR are developing a list of affected positions and I will publish
once finalized.
This applies to temporary
workers as well. If they were working for you prior to April 9, 2009 you
may continue to pay them. If they are new, and the commitment to hire was
before April 9, 2009 (like above) you are okay to continue. For any
other new hires…we are seeking further advice from OSBM and will let you know
when they make their decision.
EXCEPTION:
OSBM does allow the Chancellor to hire against a vacant position that (1)
provides direct classroom instruction (2) is critical to law enforcement,
health care, public safety. If there are vacant positions that fall into
these categories we will work w/ the respective divisions. One last
item, for hires that will be made after July 1, 2009 you can continue w/
your search; however, all search expenses must be from non-state funds (no
exceptions).
Promotions /
Career-Banding Adjustments / Salary increases. Not authorized under any circumstances. No exceptions are
authorized.
Supplemental payments /
Summer Stipends Since these are
payroll expenses they are not covered by the restrictions, and are therefore
authorized under the Governor’s guidance.
Travel: Charlie’s email is very clear … travel after
April 13, 2009 is no longer authorized using general funds.
There
are two EXCEPTIONS:
1.
The
Chancellor can authorize travel involving public safety, public health or
economic development; but we must report this to OSBM. They would
need this information to ensure that we get the cash allotment.
2.
Travel
associated with (1) direct classroom instruction, (2) federal recovery act
compliance or (3) emergency situations related to law enforcement, health care
and public safety. These exception requests
must get OSBM prior approval.
a.
Direct classroom
instruction travel means travel associated w/ a degree-course that is currently
being offered. It does not mean conferences, course development, etc.
Purchases / PO’s: OSBM’s guidance is pretty clear.
Purchases not received by April 16, 2009 must be either (1) cancelled or (2)
moved to non-state fund.
EXCEPTION:
Purchases associated with (1) direct classroom instruction, (2) federal
recovery act compliance or (3) emergency situations related to law enforcement,
health care and public safety. These
exception requests must get OSBM prior approval. Charlie’s
email states that the purchase requests must be approved by the appropriate
Vice Chancellor. This approval is not the final one. It
means that all requests must go through your VC, and not directly from
department to Budget Office. Again, only OSBM can approve exceptions.
Mandatory Obligations: In Governor Perdue’s guidance, paragraph 1, it
states that allotments (cash) will only be approved for mandatory obligations,
including payroll … In subsequent conversations with OSBM, they clarified
“mandatory obligations” as:
Mandatory ongoing contracts do not need to be canceled and do
not require exceptions. Examples would include rental agreements already in
place, maintenance agreements already in place, service agreements for which
the work was/will be in progress by April 16, and insurance payments.
We are putting together a
list of these contracts, leases, etc to submit to OSBM. Once approved
this should ensure we get the cash to pay for them. However, they also
state that “items that would require
exceptions include mandatory services not already in place or for which work is
not already in progress.” This would probably include independent
contractors. Once we have the mandatory contracts
identified we will shift our attention towards requesting exceptions for any
others that warrant one. We will provide more information as we flush out
these items.
Exception Process: Attached is a rudimentary word document that
should be used for requesting exceptions up to OSBM. If you have a
supporting documentation, please attach to the request memo. Divisional
Budget Managers, please serialize your requests for ease in tracking (AA-001,
BA-001, etc).
All
exceptions must follow the following review path: department >>
Dean (if applicable) >> Vice Chancellor >> Budget Office >>
CFO / Chancellor. Once approved internally (within UNCW) I will assign a
tracking number and send to OSBM. Upon OSBM decision, I will inform
everyone affected. Please understand that (1) my office is only the
conduit through which all exception requests flow (the CFO/Chancellor/OSBM are
the approvers), and (2) the exception process will not happen overnight.
I would estimate that once your request hits my office that it will take
upwards of a week to finish; so plan accordingly. Remember prior-approval
of OSBM is needed before we can act.
All
requests should be submitted electronically to my office.
In summary: I hope I
have clarified some of the questions that folks have been asking. The
bottom line(s) the state is in a cash crisis and we need to do our part to help
balance the state’s budget. With the two small exceptions, UNCW has no
authority to grant exceptions, even if it directly affects classroom
instruction. Only OSBM can grant these exceptions, and provide the cash.
As I said, everything will be
out on my website today. If you have general procedural questions please
feel free to contact me directly. Also if there are areas you feel still
need clarification please let me know and I will research the answer.
vr,
Bob
Robert S. Russell
Director of Budgets
University of North Carolina Wilmington
Phone: 910.962.7540
Fax: 910.962.3763