ALLOCATION DEVELOPMENT
- Annually, upon completion of the legislative appropriation process, the funds contained in the General Appropriations Act must be allocated among the ten universities, special units, and the BOR Office.
- For operational funds, this is accomplished by developing an Allocation Summary and Workpapers and by establishing an Allocation Ledger.
- The Allocation Summary and supporting Workpapers are an abstract control document that distributes resources, both funds and positions, by university, fund, appropriated lump sum or special category. It also provides instructions and guidelines for the use of appropriated resources.
- The Allocation Workpapers document contains the detail worksheets that support the Allocation Summary and articulate the specific methods used to allot the resources appropriated for the different issues among the various entities. It also provides a greater breakdown of resources by program component and traditional expenditure categories.
- Like the legislative budget request process, the allocation of operational funds begins with the prior year budget base.
- Resources representing the budget base are reallocated among the various entities based on each entity’s prior year budget.
- Similarly, in accordance with the specific issues contained in the General Appropriations Act, resources are then added or subtracted and distributed among the various entities.
- The process for distributing the resources varies with the specific issues. As examples:
- Enrollment Growth is based on planned/funded FTEs.
- New Space is based on added square footage.
- Price Level is based on the proportion of each university’s budget base.
- Some issues are distributed based on special legislative proviso or BOR plans.
- The Allocation Summary is reviewed by the Council of Presidents and approved by the BOR.
- The approved Allocation Summary becomes the basis for the initiation of the Allocation Ledger which establishes budget controls for the universities. It also becomes the basis for each university to complete its detailed operating budget reflecting appropriated resources.
- As budget adjustments are made during the course of the fiscal year, the revisions are reflected as amendments to the Allocation Ledger.
- The allocation of appropriated Fixed Capital Outlay funds is done by Memorandum after review and approval by the BOR.
- Allocations are made to the universities on a project by project basis.
- Funds appropriated for system wide issues are normally distributed based on a previously approved BOR plan or on square footage.
