Expense Prioritization Procedures [7/7/10]
July 7, 2010
Expense Prioritization Procedures
Fiscal Year 2011 Budget Administration
Given the current state of the Illinois budget crisis, the President's cabinet has approved the release of a modified budget for departments in FY'11. Following are the procedures being employed for FY'11 budget administration:
• Encumbrances for Specific General Operating Expenses
The following operating expenses will be encumbered: Telecommunications, postage, copier program expense, and assigned vehicle expenses (op of auto). Business Services will determine the amounts to be encumbered based on FY'10 expenses, and funds will be transferred to cover those amounts. No adjustments will be made to encumbered amounts unless reviewed and approved by the area vice president.
In addition to these encumbrances, a portion of FY'11 departmental operating budgets are being released as follows.
• Operating Budgets
Twenty-five percent (25%) of the FY'11 proposed budget will be released for departmental operating budgets. This 25% is intended to cover all other departmental expenditures including commodities, travel, equipment, and other contractual obligations.
In cases where contractual obligations such as compliance-related inspections and maintenance, life safety expenditures, essential equipment or software purchases or maintenance, required accreditation and organizational memberships, and other essential products or services cost more than the 25% operating budget provided, those obligations should be reviewed by the appropriate vice president and presented to the president for consideration. Upon approval, these expenditures will also be encumbered in FY'11 budgets.
Additional Spending Considerations
• Employee Travel
Any employee with a critical business need to travel must complete a Request for Travel form prior to ANY travel arrangements being made or registration fees paid. The Request for Travel must include a reasonably accurate projection of ALL expenses associated with the proposed trip (i.e. transportation, per diem, lodging, registration fees, parking, tolls, etc.). There is a recommended limit of $750 per employee per trip for all travel.
The Request for Travel form has been revised and can be found at: www.wiu.edu/BusinessServices/forms/travreq.pdf. A Request for Travel must be submitted to the area vice president for pre-approval. Once approved, the request for travel should be forwarded to Business Services where the total amount approved for the travel will be encumbered in the department's budget. Once approved, departments can begin making travel arrangements.
Use of state vehicles or reimbursing for personal vehicle use at the state vehicle rate rather than reimbursing at the full rate for personal auto mileage is strongly recommended.
Travel between the WIU Macomb and Quad Cities campuses and admissions travel is excluded from this procedure.
• Non-Immediate Operational Needs: Purchase Requisitions and Purchase Orders
All non-immediate purchase requisitions and orders, including furniture, equipment, and other items, are being held pending the area vice president submitting prioritized requests to the president for approval. This includes purchases from all accounts – appropriated, local, and AFS. Most grants are excluded from this hold.
• $500 Purchase Approval
All purchases of $500 or greater must continue to be pre-approved by the area vice president.
Purchasing cards will remain active and will maintain current limits. It is critical, however, that proper approvals as described above be obtained PRIOR TO making purchases with a P-Card.
• Financial Aid and Student Employment
Neither financial aid nor student employment expenditures are affected by these procedures. They are expected to be fully funded as proposed for FY'11.