Budget Carry-Forward Policy
A commitment is defined as an obligation in
the form of a purchase order or contract before the obligation
is incurred. Commitments are used to reserve budgeted
funds and to ensure that the funds will be available when
payment is due. The commitments that are still open
(unpaid) at the end of a fiscal year are brought forward into
the new fiscal year. This is referred to as a
Purchases Order for service contracts:
When preparing a Purchasing Requisition for a service contract,
you should only commit the amount of funds needed for the period
that falls within the current fiscal year. For example,
you would commit funds from July 1 through June 30.
Carry Forward available balances:
Remaining available balances will lapse at the end of each
fiscal year. Negative balances will carry forward and
automatically reduce the cost center's new fiscal year budget.
The negative balances are based on each individual cost center.
Aggregation of indexes for calculation are not allowed.
Bond Funds will be allowed to roll over for one fiscal year
only. At the end of the subsequent fiscal year, any
remaining funds will revert back to the Budget Office for
redistribution. Bond Funds are not allowed to have a