THE UNIVERSITY OF TEXAS AT AUSTIN
LAPSING POLICY BY FUND FOR FISCAL YEAR END BALANCES
Fiscal Year Ending (FYE) August 31, 2007
   
           
FUND GROUP/ACCOUNT TYPE   
   
  DEFAULT POLICY
Educational & General (E&G) and AUF (14 & 20 Accounts) Lapse all fiscal year end balances centrally unless exception noted below.
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  E&G - Academic Development (-52 subaccounts)       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean's account for reallocation, based on priorities, with University Budget Council (UBC) approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Advanced Research (14-97xx Accounts)       Carry forward all balances.  These funds are pass through funds from the Texas Higher Education Coordinating Board (THECB) and are restricted.  At the end of the two year period, unencumbered funds are to be lapsed back to THECB.
   
  E&G - Faculty and Teaching Assistants (-01, -02, -03, -04, -96, -97, -98, -99 Subaccounts)       Lapse fiscal year end balances centrally and return one half of these balances to the deans as excellence funding.
   
  E&G - Indirect Cost Return - Research Support and Development (14-748x and 20-748x accounts and -08 subaccounts)       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new research-related programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Scholarships (-70 and -71 subaccounts)       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Deans' Special Reserves (-07 subaccounts and Deans' Excellence funds)       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Special Equipment (-80  subaccounts)       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Start-up Funds       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  E&G - Visiting Lecturers (-60 subaccounts) Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
           
   
  DEFAULT POLICY
Service and Revolving Funds - (18 Accounts) Since most service centers charge federal awards or accounts that are included in the university's federal F&A (indirect) cost rate, federal guidelines must be considered. All transfers to Reserves (18 or 36 accounts) should be reviewed by the Office of Accounting. No transfers to accounts that are unrelated to the service center will be allowed. Excessive balances (more than a two or three month operating reserve plus documented possible repair and replacement funding for the combination of reserve accounts and operating accounts) would require a review and possible reduction of the rate charged.  Balance and use information will be analyzed as possible sources of funds for new related programs and initiatives, prior to providing central sources for these purposes.
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  Service Centers (18 Accounts) - Large Campus-wide service centers that serve the entire campus for central infrastructure purposes (i.e. Information Technology Services, Utilities). Since these service centers support the critical infrastructure of the entire campus, Fiscal Year End balances may be lapsed to a central reserve to hedge rate or price changes for these services in future years.  The University Budget Council will decide on the lapsing amount and the amount of the reserve at the end of each fiscal year.
   
           
  DEFAULT POLICY
Designated Funds - (19 Accounts) Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  Designated Funds - (19 Accounts) - Student Activity Accounts       Student activity accounts must be used to provide materials or services specifically for the purpose assessed.  These accounts cannot be used for other unrelated purposes.  Semi-annually, colleges and departments will be requested to provide justification for all balances, along with a planned spending timeline and budget.  Decisions would be made at that time by the appropriate student budget committee and/or the Provost office, if excessive balances might result in the lowering of certain flat rate budget allocations for student activity purposes.  
   
  Designated Funds - (19 Accounts)  Accounts funded from transfers from Central Sources (i.e. Interest, Administrative fee, Designated Tuition, etc)       Lapse fiscal year end balances to the original central source.
   
  Designated Funds - (19 Accounts)  Scholarship accounts funded from transfers from Central Sources (i.e. Interest, Administrative fee, Designated Tuition, Academic Sustainability Tuition (AST), etc)  This does not include Student Activity Accounts.       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, prior to providing central sources for these purposes.
   
  Designated Funds - (19 Accounts)  Endowment Compliance Fee Accounts       Unspent endowment compliance fee balances will be lapsed to a central pool managed by the central development operation.  This pool will be managed by the University’s Director of Endowment Compliance with oversight by the Vice President for Resource Development.   The Director of Endowment Compliance is instructed to redeploy the monies toward specific endowment compliance activities at the college level that are believed necessary.  Colleges and departments are permitted to apply for an allocation of monies from the central pool for specific endowment compliance needs.  The Director of Endowment Compliance is responsible for assessing the merits of the request and determining what, if any, allocation is made. 
   
  Designated Funds (19 Accounts) receiving external revenue that may be subject to restrictions (i.e. ARL Fixed Fee, etc)        Balances derived from external sources will be reviewed on a case-by-case basis in order determine if there are any restrictions on how the funds are expended.  If no restrictions exist then balances in excess of $50,000 will need to be justified before carry forward is allowed to continue.  Excess balances will be lapsed to the Central Administration.  If the balance has an external restriction then a detailed review will be conducted in order to determine how to best utilize the funds.
   
  Designated Funds - Indirect Cost Return (19 accounts) - Research Support and Development - 19-7400-06 VP for Research (funded from 19-0610-1096, 19-0610-2096, and 19-0610-4096); 19-7423-09 Center for Electromechanics (funded from 19-19-7400-06);19-9700-11 IAT (funded from 19-0610-2096);19-7900-99 Engineering (funded from 19-0610-4096); and accounts funded with transfers from these accounts. Accounts should be coded as either ICR RSV or ICR on CA3.       Carry forward all balances, but monitor accounts and uses.  At fiscal year end, all excessive balances would need to be justified, along with a planned spending timeline and budget.  If appropriate, the funds could be lapsed to a central dean or vice president's account for reallocation, based on priorities, with UBC approval.  This balance and use information will be analyzed as possible sources of funds for new research-related programs and initiatives, prior to providing central sources for these purposes.
   
  Designated Funds (19 Accounts) - Vice Presidents' Travel and Official Occasions - Accounts funded by transfers from Central Sources (i.e. Interest, etc)  One half (50%) of the original allocation for official occasions will carry forward in the same account.  Any amount over the 50% will lapse to the original central source.
   
           
   
  DEFAULT POLICY
Auxiliary Funds (29 Accounts) Carry forward all balances in the same account
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  Auxiliary Funds (29 Accounts) - Accounts funded from transfers from Central Sources (i.e. Interest, Administrative fee, etc)  This does not include Student Activity Accounts.       Lapse fiscal year end balances to the original central source.
   
  Auxiliary Funds - (29 Accounts) - Student Activity Accounts       Student activity accounts must be used to provide materials or services specifically for the purpose assessed.  These accounts cannot be used for other unrelated purposes.  Semi-annually, colleges and departments will be requested to provide justification for all balances, along with a planned spending timeline and budget.  Decisions would be made at that time by the appropriate student budget committee and/or the Provost office, if excessive balances might result in the lowering of certain flat rate budget allocations for student activity purposes.  
  Auxiliary Funds (29 Accounts) - Vice Presidents' Travel and Official Occasions - Accounts funded by transfers from Central Sources (i.e. Interest, etc)  One half (50%) of the original allocation for official occasions will carry forward in the same account.  Any amount over the 50% will lapse to the original central source.
   
           
  DEFAULT POLICY
Contract & Grant Funds (26 Accounts) Carry forward all balances in the same account, Contracts and Grants monitors and closes accounts based on contract guidelines.
   
           
  DEFAULT POLICY
Restricted Funds (30 Accounts) Carry forward all balances in the same account.  The restrictions of each account should be documented.  This balance and use information will be analyzed as possible sources of funds for new programs and initiatives, and support for on-going departmental activities, prior to providing central sources for these purposes.   Refer to the Quasi-Endowment Policy for alternative investment options for restricted fund balances (add website if available).
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  Restricted Funds (30 Accounts) - Accounts funded from transfers from Central Sources (i.e. Interest, etc)       Lapse fiscal year end balances to the original central source.
   
  Restricted Funds (30 Accounts) - Vice Presidents' Travel and Official Occasions - Accounts funded by transfers from Central Sources (i.e. Interest, etc) One half (50%) of the original allocation for official occasions will carry forward in the same account.  Any amount over the 50% will lapse to the original central source.
   
           
  DEFAULT POLICY
Plant Funds (36 Accounts) Projects are reviewed throughout the fiscal year on a project-by-project basis.  If the project is complete (or partially complete) any remaining balances will be lapsed to the original source with the exception of E&G (14's & 20's) and centrally funded accounts.  Note that centrally funded accounts include, but are not limited to accounts originally funded with Flat Rate Tuition, Designated Tuition, ITAC, Investment Income, Indirect Cost Return, Administrative Fee, Provost Construction Allocations (Academic Space Funds and Classroom Improvement Funds), Facilities Services / PMCS R&R funds, and lapsed salaries.  
   
  EXCEPTIONS POLICY FOR EXCEPTIONS
  Projects funded with E&G and/or Central Sources within the immediate prior and/or current fiscal year       Funds can be returned to the department.  For FY 06-07 this means that only projects funded in FY 05-06 and FY 06-07 will be eligible for return to original source.  Normally, these E&G/Central Sources funds would lapse back to the Central Administration at the end of each fiscal year (FYE 05-06 in this example).  This additional time will be granted in order to allow for the final completion of the project and reconciliation of accounting records.      
  Projects funded with a combination of E&G/Central Sources and Departmental Sources will return funds as follows:  
  1)  A project funded from both E&G/Central Sources and Departmental Sources  1) Balances remaining at the end of the project will be returned to the last funding source. 
  2)  A project funded from both E&G/Central Sources and Departmental Sources with a work specification funded for a specific amount. 2) Balances remaining at the end of the project, will be returned to the original funding source for the specified work, if the cost was less than the specified amount.