Allocation Transfer

At the beginning of each fiscal year, funds are allocated to University accounts in accordance with the University's financial plan. 

Allocation is assigned to accounts in nine objects: Personal Service (IFR's only), Temporary Service, Supplies and Expense (S&E), Equipment, and the five Recharge Areas. Account managers are responsible for carrying out program activities within the amounts allocated to the objects. Over expenditure of the object allocations is not allowed. Account managers should ensure adequate funds are available in the appropriate object before initiating transactions to use the funds. Failure to do so could result in a curtailment of services.

Funds can be transferred into accounts or between objects through allocation transfers. Transfers can be achieved by using the Allocation Transfer Form or a memorandum providing the information required on the form.

The account manager submits State Purpose Allocation transfer requests are submitted by the account manager to the Accounting Office. Accounting Office staff review all transfers to ensure the transfer is in accordance with the account's purpose. IFR transfer requests are also reviewed by Office of Financial Management staff. The Accounting Office normally takes one week to process an allocation transfer.

Departments may execute transfers of funds between S&E and the Recharge objects or Equipment throughout the fiscal year. Transfers involving Temporary Service funds to or from S&Eor Equipment may also be done, but must be authorized by the appropriate vice president and received by the Accounting Office by June 1. Transfers to or from Temporary Service will be allowed after June 1 only in extraordinary circumstances as determined by the Office of Financial Management, the appropriate vice president and the account manager.

The Accounting Office monitors object balances throughout the year and, if warranted by the circumstances, may initiate corrective action to eliminate a deficit. In early June, the Accounting Office will clear negative balances in Supplies and Expense, Equipment, or the Recharge areas by transferring available allocation in any of the objects to the deficient object. Temporary Service funds will not be affected by this "drawdown" process and it is not intended as a surrogate for responsible account management. Account managers should monitor their accounts to avoid such drawdowns.

At the end of the fiscal year an analysis of each deficit is conducted to determine how the deficit occurred. A report of all deficits is provided to the vice presidents for their respective areas.