Policy Manual

Policy Manual

• University Budget Policy

  University Budget Policy
  Effective Date: March 2015
  Policy Statement
  
  Clemson University will utilize financial resources ethically, responsibly, and effectively. Through appropriate policies, processes and procedures, continual integrated planning, and the accurate and responsible management of revenues and expenditures, the University will ensure prudent and responsible fiscal management and the efficient allocation and utilization of financial resources to support the University’s mission.

  Budgetary and fiscal responsibility for the effective use of resources in compliance with applicable internal policies and external laws, rules and regulations is shared at all levels of the institution. The University Budget Policy applies to all University employees, including, but not limited to, vice presidents, deans, department chairs, program directors, and project managers, with authority over a division, department, program, project or other services granted budgetary authorization. This policy is also applicable to those who manage the budget, including, but not limited to, the Office of Budgets and Financial Planning (University Budget Office), business officers, financial analysts, and departmental administrators.

  Background & Overview
  
  Clemson University is comprised of two separate state agencies: 1) a State-supported institution of higher education that receives an annual lump sum appropriation for operating purposes as authorized by the South Carolina General Assembly through the South Carolina Commission for Higher Education, and 2) a public service agency that receives state funds supporting land-grant related activities directly from the General Assembly. The state appropriations for these two agencies become a part of the legal operating budget for the institution. The Appropriations Act authorizes expenditures from state appropriations, as well as the expenditures of total operating funds including, but not limited to, student tuition and fees, gifts, grants and contracts, sales of educational services and other activities, etc. The laws of South Carolina and the policies and procedures specified for state agencies and institutions are applicable to the activities of the University. As a state agency, the University is included in the State’s budget cycle, which operates on a fiscal year from July 1 to June 30.

  The budget planning and development process is an integrated part of an ongoing planning cycle at the University. The process results in an annual budget for each fiscal year in support of the University’s mission. The Board of Trustees is responsible for approving the annual budget, which establishes revenue and expenditure budgets that comprise the University’s total budget. The Executive Vice President for Finance and Operations reviews the University’s budget performance with the Finance and Facilities Committee periodically throughout the fiscal year and provides a year-end budget performance report annually.

  The planning and management of the University’s budget is a shared responsibility at all levels of the institution. Clemson is comprised of multiple divisions (e.g. academic college, library, finance division, etc.) each of which include numerous departments, (e.g. biology, civil engineering, accounting services, etc.) and programs serving to further the mission of the division and the University. This policy identifies primary roles and responsibilities of the responsible parties for internal budget development, maintenance, monitoring, and performance, as well as for the review and assessment of resource utilization as it relates to meeting the University’s mission and goals. This policy also delegates authority to the administration to perform various fiscal and operating functions on behalf of the Trustees and Clemson University.

• Budget Roles and Responsibility

  Budget Approval & Delegation of Authority to the Administration
  The Board of Trustees of the University requires the administration to submit the operating budget for each fiscal year for approval by the Trustees. In approving budgets, the Board of Trustees recognizes that (1) amounts budgeted as income are estimates and subject to change, (2) amounts budgeted for expenditures are a reflection of plans and workload estimates as of the time the budget is prepared, (3) the dynamic environment of a research university results in changes as a normal course of business and thus requires adjustments in plans, programs, estimates, and budget items. To provide for continuity and essential flexibility in operations, the Board of Trustees reaffirms the delegation of necessary authority to the President to act in all matters and to the Executive Vice President for Finance and Operations to act in fiscal, contractual and other business matters, including specifically, authority to negotiate and make timely changes in contracts, to approve transfers and expenditures of funds permitted in the General Appropriations Act, including those funds commonly referred to as “contribution or gift funds” to be retained at the University, to adjust operating, permanent improvement and other income and expenditure items, and to take such other actions considered necessary in fiscal, contractual or other business matters in response to changing conditions and estimates.

  Role of the University Budget Director
  Reporting to the Executive Vice President for Finance and Operations, the University’s budget director is the primary administrator of the University’s total annual budget. As such, the director is responsible for ensuring the integrity, accuracy, compliance and reasonableness of the total annual operating budget in accordance with the University’s plan. Additionally, the director is charged with monitoring budget performance and alerting the Executive Vice President for Finance and Operations, division heads, and other appropriate administrators of anomalies and significant projected or actual variances from the established budget. The budget director further serves to assist divisions in ensuring prudent and responsible budget administration, including budget development, maintenance, monitoring, performance, and the resolution of budgetary opportunities and challenges. Identifying and communicating trends and internal and external factors that may influence the effective use of resources in support of the University’s mission is a critical function of the budget director. To facilitate effective ongoing planning and assessment, the budget director is expected to communicate such factors to the administration and division heads, as well as incorporate these factors into the budget planning process.

  Role of the Business Officer
  Each division within the University is delegated budgetary authority. Divisions have the autonomy to plan and budget within authorized revenues and expenses. Business Officers serve as the primary administrators of a division’s budget and are responsible for ensuring the integrity, accuracy, compliance and reasonableness of the budget. Business Officers should monitor budget performance and alert the division head and the University’s budget director of anomalies and significant projected or actual variances from the established budget. Business Officers are also responsible for ensuring responsible budget administration at the divisional level and for providing guidance during the planning process regarding important factors that may influence the effective allocation of the division’s resources in support of the University’s mission. For a list of Campus Business Officers, see the Campus Business Officers Group tab at: http://www.clemson.edu/finance/teams.html.

  Budget Development & Effective Resource Allocations
  University employees with budgetary authority have a direct responsibility to align the allocation of resources to invest in priorities and initiatives that support the University’s mission. They also have a responsibility to coordinate with budget administrators to develop a responsible, reasonable, and realistic annual budget for their division.  Budget development coordination should include the analysis of all resources available to the division, reasonably estimating resource targets for the fiscal year, and allocating these resources to meet strategic goals.

  Responsible Budget Management
  University employees with budgetary authority are expected to monitor revenues and expenses regularly. They are further expected to review budget versus actual reports to proactively assess budget performance and ensure that budgeted revenues are realized and that spending is within budgetary authority. As a result of regular monitoring and ongoing planning, changes may be required after the annual budget is approved by the Trustees to more accurately reflect anticipated revenues and expenses. The aforementioned responsible party should communicate such changes when they become evident to the appropriate budget administrator, so the budget can be adjusted in a timely manner. The budget should accurately reflect anticipated financial activities at all times for the fiscal year for both revenues and expenditures within the appropriate categories from the University’s chart of accounts.

  When the budget planning and monitoring processes indicate a shortfall in annual revenue estimates or spending patterns that may result in a deficit, responsible actions to prevent the budget shortfalls should be taken. Vice Presidents, deans, and division heads should notify the University Budget Office immediately of the potential budget deficits or revenue shortfalls.  This notification should be accompanied by proposed plans to address the associated financial challenges. Such actions may include, but are not limited to, the reallocation of resources, cost containment, or an approval from the Vice President or the Executive Vice President for Finance and Operations to exceed authorized spending authority.

  Budget Review and Assessment
  University employees with budgetary responsibility are expected to regularly review and monitor the use of budgeted resources within their area of responsibility and assess the resource allocations for effective utilization supporting the University’s mission. Any adjustments or reallocations should become part of the University’s ongoing planning cycle and reflected in current or future year plans.

  Suggested Procedures for Budget Centers
  Encumbrances
  After the annual budgets have been established and loaded into the CUBS system, departmental or Budget Center staff may begin to process transactions that will establish encumbrances. An encumbrance will subtract from the budgeted amount, and reduce available spending authority for a unit.
  
  Budget Status Reconciliation
  Departmental expenditure transactions are to be reviewed monthly to help assure the validity of financial transactions by comparing supporting documents to the transactions listed on the budget status reports. Expenditures for vouchers/requisitions/procurement card transactions processed, but not appearing on the budget status report within a reasonable time, should be investigated. This becomes more critical near the end of a fiscal year and should be monitored very closely to assure invoices for goods/services are received in a timely manner, in order to charge the appropriate fiscal year.
  Budget Status Revenue reports should be reconciled to ensure that all expected revenue has been received. A Budget Center must know that the revenue received is accurate; to ensure that revenue budgets are accurate.

  Clemson University Policy for Budget Status reconciliations can be found at http://www.clemson.edu/finance/business-manual/as38proc.html.

• CU Budget Planning Process Overview

  Clemson University is a state-supported institution that receives public funds; therefore, it is subject to the budget processes of the South Carolina Executive Budget Office (SCEBO). While Clemson is considered a “lump-sum” funded agency, it is still required to submit detailed budget documents to the SC Legislature via the SCEBO. The State Budget planning process and the CU budget planning process, proceed in concert throughout the fiscal year. A timeline for this process can be found under the heading Calendars at https://www.clemson.edu/finance/budgets/.

  Budget Planning Process

  July thru September

  Yearly, in July, the University Budget Office receives notification, instructions and deadlines from the SC Department of Administration for budget submission. During the early fall of the fiscal year preceding a budget year, preliminary budget requests are due to the state; this is approximately eleven months prior to the beginning of the fiscal year. There are two preliminary budget requests submitted, an Educational and General (E&G) and a Public Service Activities (PSA).

  The South Carolina Executive Budget Office (SCEBO) will publish the submitted budget plans online for the use of the Governor’s Office, the House Ways and Means Committee, the Senate Finance Committee and members of the public.

  A separate, preliminary budget request for Clemson University Public Service Activities is submitted directly to the SCEBO. The SCEBO begins budget hearings in October on the preliminary budget requests. The Governor holds a meeting with agencies in October. The Legislative review begins after January of the following year beginning with the House Ways and Means Committee. After these budget hearings, a proposed allocation of state funds for the coming fiscal year is given to each state agency and institution. The proposed allocation of state funds hinges upon the Board of Economic Advisor's forecast of state revenues.

  September

  State agencies and institutions are required to submit detailed budget requests for the next fiscal year. These detailed budget requests are consolidated by the SCEBO into a state budget recommendation submitted to the Governor’s Office and the State General Assembly.

  January/March

  During the preparation of CU budget development, final permanent budget amendments/allocations for the current FY are processed from central funds as well as between Budget Centers. All permanent amendments are required to be entered into the system by mid-February. Budget Center reorganizations requiring base budget adjustments are also finalized with notifications to the Business Units involved in the reorganization, the CU Office of Human Resources (HR), Accounting Services and the Registrar.

  Human Capital Planning (HCP), (a.k.a Salary Roll) begins in February, when the University Budget Centers are given access to the Hyperion system, and they begin the work of budgeting compensation.

  Training Classes for Budget Development and Position Planning Training (Human Capital Planning) is available under the heading Training and Events at https://www.clemson.edu/finance/budgets/.

  February/April

  CU Budget Centers are presented with a preliminary E&G base and target budget figures for planning considerations. The centers then complete budget worksheets called ALL FUNDS Budget Worksheets, and submit detailed budgets to the University Budget Office. The worksheet data is compiled and systematically loaded into CUBS to establish spending authorities against the General Ledger for expenses and establish revenue estimate budgets to maintain a proper balance within each fund.

  

  The State Senate Finance Committee holds hearings on higher education.

  Preliminary budget information is presented to the Finance and Facilities Committee of the Clemson University Board of Trustees.

  February/June

  A proposed Source and Application of Educational and General Funds report is drafted by the University Budget Office to begin discussions of priorities with the campus. The report usually presents two potential levels of funding from state appropriations, and where the increases in academic fees, state appropriations, and other sources of funds will be used for operations, after funding compensation items, if funded at those levels.

  Meetings between University Budget Office staff and Budget Centers are held to discuss budget allocations. Clemson Forward Committee Meetings are held to discuss budget allocations.

  The General Assembly may act upon the budget recommended by the SCEBO, modify it, or develop its own, based on updated revenue forecasts and other considerations. Generally, the appropriations bill is approved by the state prior to beginning the new fiscal year.

  The preliminary budget is presented to the Finance and Facilities Committee of the Clemson University Board of Trustees through the use of the University Budget Office’s Budget Document, a formally printed publication outlining various budgetary sources and uses of funds for the last and upcoming fiscal years. Budget Documents can be found at https://www.clemson.edu/finance/budgets/forms.html.

  Budgets are loaded into CUBS for the new fiscal year and are reconciled to analysis sheets by the University Budget Office.

  July (the beginning of a new fiscal year)

  The final budget is presented to the Board of Trustees for approval by the Executive Vice President for Finance and Operations.

  The prior budget year is closed.

  September-October

  E&G funds’ performance credits are tabulated and reported to Budget Centers by the University Budget Office.

  Fund balances are also reconciled from the prior fiscal year and reported after audit adjustments are performed by Accounting Services.

  January/February

  The University Budget Office staff meets with Budget Center representatives to begin budget-planning process for the upcoming year and to resolve outstanding current year budget issues.

  Budget Planning Evaluation Process

  Periodically, Clemson University’s budget process will be evaluated, which will result in process modifications to continually improve attainment of budgetary goals.

• State Budget Process

  The state budget process involves communicating to the South Carolina Executive Budget Office (SCEBO), the Governor’s Office and the S.C. State Legislature, the institution's plans and associated fiscal needs. In the Fall, in advance of the applicable fiscal year, information is gathered for the Fiscal Year 20xx-xx Agency Budget Plan. This document contains figures for both the existing CU budget and positions (FTEs) and any requests for additional funding and positions.

  Clemson University must estimate and include federal and other non-state funded revenues and expenditures in the agency budget. In addition to the process associated with the Educational and General budget, separate preliminary and detail budget requests for Clemson University Public Service Activities are submitted to the Governor and the SCEBO.

  The SCEBO, using the budget requests received from state agencies, prepares a state budget that is submitted to the state legislature. The legislature may act upon the budget recommended by the SCEBO, modify it, or develop its own budget. Budget hearings are held by the Governor’s Office and legislative committees (the House Ways and Means Committee and the Senate Finance Committee). As the budget moves through the process, it may be modified and revised based on updated revenue forecasts and other considerations.

  The University Budget Director reviews the versions of the appropriations bill as it is updated during the legislative session each year. Changes significantly impacting Clemson University are noted and communicated as considered appropriate. Efforts are made to change or delete provisos adversely affecting Clemson University and higher education. Liaison is also maintained with the University Public Affairs Office and others in state government to stay abreast of legislation applicable to state agencies and Clemson University specifically.

  Once the appropriation bill is passed by the S.C. Legislature, the amounts approved for each agency becomes its authorized level of spending for all fund sources, including federal and other (non-state) fund sources.

  If, during the fiscal year, an agency projects expenses for federal and other funds in excess of estimates reflected in the detailed budget requests submitted to the state, an additional request to increase the authorized level of spending must be approved by the state before expending the additional funds. Therefore, it is very important for federal and other fund sources to be estimated as accurately as possible when preparing the detailed budget requests to the State.

  The University generally knows its state appropriations in June for the fiscal year beginning July 1. The amount of the appropriation is maintained for the year, unless shortfalls between the state's revenue estimates and revenues collected, cause the SCEBO to impose budget cuts during the fiscal year.

  Besides funding, another item that is authorized by the appropriation process is the number of Permanent FTE positions for each state agency. New permanent positions requested must be included in the budget request. This applies to all permanent positions, regardless of the funding sources.

  According to the SC Appropriations Act (PART1B Section 117-X900 General Provisions 117.14 FY2018) “the Executive Budget Office shall maintain and make, as necessary, periodic adjustments thereto, an official record of the total number of authorized full-time equivalent positions by agency for state and total funding sources.” To accomplish this, each year in August, the total number of permanent positions authorized must be established and reconciled between CU and the State Office of Human Resources Management. CU Human Resources provides the information for the FTE reconciliation.

Policies and Procedures

• Allocations

  Campus units may receive revenue or other additions to their budgets via an Allocation. Institutional resources may be allocated to cover mandated cost of living increase, impacts of changes in fringe benefit rates, etc. Not all units receive any/all of these types of revenue funds.

  Allocations include:
  Fringe Impact, Cost of Living Allocations (COLA), Compensation
  Laboratory Fees
  Summer School Revenue
  Traditional Masters Program Revenue
  Online and Distance Education (ODE) Revenue
  Contract Course Revenue
  Employee Tuition Assistance Program Revenue (ETAP)
  Facilities and Administrative Cost

  See individual sections below for details on each of these.

• Billing Rate Policy and Procedure

  This information can be found at https://www.clemson.edu/finance/controller/rates/.

• Budget Amendments

  Budget Centers may make changes to the budget during the year under certain circumstances.

  • Changes to a budget that result in a net zero impact are permissible (e.g., moving resources within funds to various operating department and transferring funds between chart fields.)
  • Changes to a budget that result in a net new expense need to be approved (e.g., recognizing increased revenue)

  
  

  To request approval of a budget amendment that creates a net new expense in funds 10-18, utilize Adaptive Budget Amendment Input Sheet to enter the amendment.  In the "Approval Required" column, use the dropdown to select "yes".  All Budget Amendments entered with "yes" in the Approval Required column will be reviewed on a weekly basis by the Budget Office.  

  For specifics on how to process a budget amendment in Adaptive and for specific examples of when transfers are appropriate please see the Adaptive Budget Amendment PowerPoint (and other useful information) at this link in the Adaptive Planning for Workday Knowledge Center within Resources -> Budget Amendments: https://www.clemson.edu/finance/budgets/adaptive/index.html

• Budget Review and Reporting

  Budgets should be reviewed on a regular basis by department and Budget Center management. Summary budget reports prepared by departmental or Budget Center staff would be very helpful to department and Budget Center management. The reports should inform management on budget items such as, projected revenue shortfalls, revenues in excess of current budgets, expenditure overruns, etc.

  Beginning in FY22 Budget Centers should complete the Cash Transfer and the Mismatched BVA Transfers Reconciliation processes on a monthly basis, at a minimum, to ensure that any budget errors are remediated. Issues found in these reports should be resolved by the date marked “Deadline to Clearing Errors and Posting All Journals” per the Controller’s close calendar. This timing is consistent with existing accounting and other financial reporting activities. The Central Budget Office recommends these reconciliations be performed on a bi-weekly basis to prevent errors from accumulating and therefore impacting month-end reporting. The Budget Office will periodically audit these reports. It is the responsibility of the Budget Center to resolve identified issues and to do so timely. On the Central Budget Office’s website, under the “Resources” page, Budget Center Business Officers can locate a video and corresponding quick reference guide that provide step-by-step instructions on how to perform these reconciliation processes.

• Charging Departments for Services Provided by Auxiliaries and Cost Recovery Operations of Finance and Operations

  Information on this can be found on the University Controller’s website.

• Charging Employer Contributions (Fringe Benefits)

  It is generally understood to mean that employer contributions (fringe benefits) must be charged to the same fund source as salaries. This practice should be followed unless prohibited by other regulations, such as limits on amounts of employer contributions charged to federal cooperative extension funds.

  Through a cost study process, the CU Controller’s Office establishes set fringe rates for each category of employee. This is the rate that will be used to calculate the fringe benefit budgets and that will be used at each payday to calculate actual charges to expenditure accounts. Fringe rates can be found at https://www.clemson.edu/finance/controller/rates/.

  If the fringe rate changes from one fiscal year to the next, it will create a fiscal impact in the accounts in a Budget Center. The University Budget Office will calculate the amount of this impact and allocate funds, as appropriate, to the Budget Center to offset this impact. See the Fringe Benefit (Employer Contributions) Impact Allocation section for additional information.

  
  

  GUIDELINES

  A feature exists in the general ledger module in CUBS to help ensure compliance with the state mandate to match fringe charges to the same source as salaries: fringe benefits are calculated and charged to the account (23 digit chart field string) where payroll is charged. If payroll corrections are deemed necessary, a specific type of journal transaction is processed to move payroll charges and the correct amount of fringe to the account. Manual journal entries to change salary and fringe are not allowed. The Payroll Corrections Procedure can be found at: https://www.clemson.edu/finance/business-manual/as36proc.html

• Clemson Forward Funding (REAL Foundation or Accelerator Funds)

  Clemson Forward is a 10-year strategic plan for the University, with five year funding. Initiated in 2016-2017, the plan aims to ensure that Clemson fulfills its core mission and consistently ranks among the nation’s top public universities and Carnegie tier-one research institutions. Clemson Forward focuses on Research, Engagement, the Academic Core and the Living environment R E A L. When funding is provided to campus units to support these goals, it may be considered a “foundation investment” and the term REAL foundation funds may be used, or the funds may be considered an accelerator investment. Funds will support both foundation investments and accelerator investments. These investments represent permanent, recurring increases in the following major categories: Mandatory and inflationary costs, Compensation and benefits, REAL foundation elements and accelerators, Building Futures capital campaign, Clemson Forward support (non-academic), Scholarships, Reserves, Academic and research reallocations, Facilities and administrative recoveries and Overhead and recoveries. Vice Presidents work with appropriate University leadership to determine what funding will be provided to campus units.

  Transparency and accountability are key components of the Clemson Forward plan, and regular reports will be made to the campus community, to the University’s senior leadership and to the Board of Trustees.

  The Clemson Forward website address is https://www.clemson.edu/forward/

• Deficits

  Consistent with the University’s Budget Policy, Budget Centers must utilize financial resources ethically, responsibly, and effectively. Budget Centers are not permitted to end a fiscal year with a deficit balance. Deficit in this context is defined, for each Fund, as the sum of all revenues and/or spending authority less expenses, less projected year-end fund balance. For example, if a Budget Center has a Fund 15 base budget of $1,000,000 and a Fund 15 fund balance of $100,000, it can only spend $1,100,000. Any projected deficits must be resolved in advance of year-end close. Similarly, in preparing the next fiscal year’s budget, Budget Centers are not permitted to begin a fiscal year with an outstanding deficit. Any deficits must be resolved in advance of the budget being finalized. Deficits cannot be resolved by artificially increasing budgeted revenues or reducing budgeted expenses. The source of funds used to resolve a deficit must be appropriate. If a Budget Center is forecasting a deficit either for year-end close or during the budgeting process for the next fiscal year, please reach out to the Central Budget Office early so we can work together to identify solutions.

• Departmental Reorganization

  When an activity or function is transferred from one Budget Center to another, the resources (funds and positions) allocated to that function should also be transferred to the gaining Budget Center. A listing of departments by Budget Center can be found at Chart of Accounts

  Before the transfer occurs, a Reorganization Transfer Authorization form must be submitted to the University Budget Office following established procedures. The form can be found at http://media.clemson.edu/cfo/budgets/Reorganization_Form.pdf

  Reorganization forms need to be submitted to the University Budget Office by established deadlines in preparation for the new fiscal year. These deadlines are found on the University Budget Office Timeline at https://www.clemson.edu/finance/budgets/, under the Calendars heading. Departmental reorganizations have to be implemented on July 1st. No mid-year reorganizations will be accepted.

• Contract Course Revenue Allocation

  The contract course revenue allocation report is prepared by the Clemson Online Office (contact Angela Pearson). After receiving the report, the University Budget Office is responsible for allocating revenue generated from the contract courses to each Budget Center across campus. The Budget Centers are responsible for allocating the revenue to their appropriate departments. The contract course revenue allocation follows the same schedule as the ODE revenue allocation. For any questions regarding the contract course revenue, please contact Angela Pearson, apearso@clemson.edu.

• Employee Tuition Assistance Program Revenue Allocation (ETAP)

  Clemson University is committed to attracting, retaining, rewarding and developing top talent. Effective Fall 2017, Clemson University, as authorized by South Carolina State Code of Laws (59-11-15 & 59-112-60), provides a 100% waiver for graduate and undergraduate education courses for up to six credit hours per academic term (fall, spring, summer) to vested employees who are working 75% time or greater in a permanent, temporary grant or time-limited position and have been accepted into the Employee Tuition Assistance Program (ETAP). The goal of the ETAP is to encourage professional growth, enhance employee performance and support employee career development.

  To increase the resources for the colleges offering ETAP graduate programs, effective Fall 2016, the University Budget Office allocates ETAP graduate program revenue back to the Budget Centers. The Budget Centers are responsible for allocating the revenue to their appropriate departments.

  GUIDELINES

  The allocated revenue is for the graduate programs’ up to six credit hours base academic fee net of the debt service component of tuition. A new revenue account 4033 (ETAP Employee Tuition Asst) and a new project 1401933 (ETAP Employee Tuition Asst) are used for the ETAP revenue allocation.

  ETAP revenue allocation follows a similar schedule as ODE revenue allocation. Two allocations are processed in the Fall including Fall I allocation for Long Fall, First Fall, Minimester A and MinimesterB and Fall II allocation for Second Fall, Minimester C and Minimester D. Two allocations are processed in the Spring including a Spring I allocation for Long Spring, First Spring, Minimester A and MinimesterB and a Spring 2 allocation for Second Spring, Minimester C and Minimester D. Four allocations are processed in Summer including a preliminary and final Summer I and Summer II allocation. The University Budget Office is responsible for allocating revenue to each Budget Center across campus. The Budget Centers are responsible for allocating the revenue to their appropriate departments.

• Facilities and Administrative Cost Allocation

  Facilities and Administrative (F&A) costs - sometimes referred to as indirect costs, overhead, administrative allowance, or occasionally, institutional allowance - are costs that are incurred in support of sponsored programs, in general, and therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. These costs are comprised of a number of components. Facilities includes depreciation and use allowances, interest on debt association with certain buildings, equipment and capital improvements, operation and maintenance expenses, and library expenses. Administration includes general administration and general expenses, departmental administration, and sponsored projects administration.

  The F&A cost rates are negotiated with the University's cognizant federal agency, and they form the basis of the University's request for reimbursement of F&A costs on federally sponsored projects.

  State legislation requires that all F&A cost recoveries generated from federally funded non-research activities be remitted to the State's General Fund. Since the University is not allowed to retain these funds, they are not considered for Incentive Fund calculation purposes.

  For all other F&A cost recoveries the University has established the following distributions process for E&G and PSA Budget Centers.

  E&G F&A Cost Allocation

  The amount of incentive funds to be allocated to Budget Centers is based on F&A cost recoveries generated during the prior twelve-month period of July 1st through June 30th. For instance, FY2018 actuals are used when calculating FY2019 F&A budget allocations. Each business center begins the year with a projected budget amount based on the previous year’s actuals, but is later adjusted based on yearend actuals. The University Budget Office prepares quarterly "FACADM" spreadsheets, which detail the F&A costs for that period. These spreadsheets are used to determine E&G and PSA funding. After the fiscal year closes, the University Budget Office prepares the F&A Cost Allocation report to present total revenues posting to revenue accounts 4205-4208 and total expenses posting to expense accounts 7601-7602. The sum of revenues should match the sum of expenses. Educational & General (E&G) expenses are then separated from Public Service Activities (PSA) expenses. The following departments are excluded from the E&G allocation unless the research program 201 is used: ECDEV, CES, PSAG and CAFLS. In addition, projects with PSA program code 207 or 208 are excluded from the E&G allocation.

  E&G departmental allocations are processed once a year after the fiscal year closes with the exception of the Youth Learning Institute (YLI) (department number 0133). Their allocation is processed twice a year.

  When the negotiated rate (full on-campus rate) is used on a sponsored program, the Budget Center will be entitled to F&A in the amount of the departmental administration component of the negotiated rate. For most departments, this component represents 35% of the currently negotiated rate. There are exceptions to this rule: The Youth Learning Institute (YLI) and the collaboration between the University and Greenville Hospital System. The Budget Centers are responsible for distributing the recoveries to the individual departments.

  PSA F&A Cost Allocation

  All F&A cost recoveries generated from sponsored activities performed by PSA Budget Centers net of state remittances amounts will be returned to PSA Budget Centers. PSA Business Services processes the F&A cost allocation for PSA Budget Centers. PSA Business Services receives the quarterly "FACADM" spreadsheets from the University Budget Office to determine the incentive fund allocations. The PSA departmental allocation includes CES, PSAG and CAFLS Budget Centers unless the research program 201 is used. In addition, the PSA allocation includes projects with PSA program code 207 or 208 because projects with those two programs receive 50% or more funding from the PSA side.

  The PSA F&A cost allocation is performed twice a year. The first and second quarter cost allocations are processed in February and the third and fourth quarter cost allocations are processed in August. Any questions regarding the PSA F&A cost allocation should be directed to PSA Business Services (FY 2019 contact: Melissa Kelley melissk@clemson.edu).

• Fringe Benefit Impact, Cost of Living Allocations (COLA), Compensation

  Central funding is provided to Budget Centers for specific mandated increases associated with compensation and benefits costs.

  Fringe Benefits (Employer Contributions) Impact – Through a cost study process, the CU Controller’s Office establishes set fringe rates for each category of employee, called “pooled fringe rates.” These rates are used to calculate the fringe benefit expense that will be applied to expenditure accounts each pay period. Pooled fringe rates can be found at https://www.clemson.edu/finance/controller/rates/. Increases in the rates from one fiscal year to the next will create a fiscal expense impact for Budget Centers. The University Budget Office calculates the amount of this impact and proposes that the University strategic plan provide central funding to budget centers to offset this impact based on regular full-time employees and lecturers budgeted in Funds 13, 15 and 18. Allocations are processed in the fall as permanent adjustments to base budgets.

  Cost of Living Allocation (COLA) –The S.C. Legislature may approve a permanent salary increase for state employees, and the Legislature usually provides some funding for the COLA. This allocation becomes a part of the base Educational and General E&G) and Public Service Activities (PSA) state budget allocations. A review of the mandated increase is necessary to ensure that all guidelines for the COLA are adhered to by each Budget Center. The University Budget Office funds COLA for regular full-time employees paid from funds 13, 15 and 18. All employees paid on self-generated funds are responsible for these mandated increases. In the Fall, both the University Budget Office and the PSA Business Office will process permanent budget amendments to allocate the funds to Budget Centers.

  Compensation – During the annual strategic planning process, the University may develop a compensation plan with the goal of rewarding and retaining top faculty and staff. The compensation plan may include merit-based salary increases and/or one-time bonuses. CU Human Resources will facilitate the process with recent market compensation analysis, and the University Budget Office will assist as necessary. The plan should identify funding sources for the compensation actions, including internal reallocations within the Budget Centers (“compensation set-asides”), self-generated revenues, and base budget allocations. The University Budget Office will process permanent budget amendments for allocations of central funding for salary increases and non-permanent budget amendments for allocations for bonuses, if provided. These budget allocations will be placed in Budget Center holding accounts.

  GUIDELINES

  Fringe Benefit (Employer Contributions) Impact Allocation - Once the yearly (final) budget is loaded into Hyperion/CUBS, a snapshot is taken of all salary roll entries and saved to be used for yearly fringe impact calculations for each Budget Center. (This occurs in the Fall.) Fringe impact criteria for fringe impact allocations include full-time regular employees and lecturers paid from funds 13, 15, and 18. The Benefit Program Code (which exists on an employee’s Human Resource record) is used to determine the pooled fringe rate for the current and prior budget year. The fringe impact is the difference in the fringe benefit costs at the old fringe rate vs the new fringe rate for the salary roll. The calculation details for each Budget Center are saved to their appropriate subfolders on the P: Drive. The University Budget Office processes permanent budget amendments to allocate central funding for fringe cost impact.

  A listing of Benefit Program Codes and complete training for developing positions budgets (a.k.a. Salary Roll) can be found at https://www.clemson.edu/finance/budgets/ under the heading Training and Events: FY20xx Position Planning Training Manual

  Cost of Living Allocations (COLA) - The distribution of allocations is determined by criteria approved by the S.C. Legislature. In the Fall, a permanent Budget Amendment will be processed by the University Budget Office or PSA Business Office to distribute the funding received from the state. Cost of living increases in funds other than 10, 11, 13, 15 or 17 are funded by the Budget Center, individual unit, etc.

  Compensation – When the University strategic plan calls for merit-based salary increases and/or one-time bonuses, the University Budget Office will provide central funding as prescribed by the compensation plan. The allocations will be based on salary roll or payroll information for employees’ home departments and will be budgeted in Budget Center holding accounts, permanently for salary increases and non-permanently for bonuses. The Budget Centers will be responsible for distributing the amount to the appropriate individual units. (Example: in FY 2017-18 University leadership approved funding for and the awarding of bonuses equal to 1% of a unit’s salaries in Funds 13, 15 and 18. Budget Centers are responsible for funding bonuses for employees paid on other funds.)

• Fund Balances and Education and General Performance Credits

  The Performance Credit Program is a mechanism to provide greater budgetary flexibility and discretion to the Budget Centers by allowing the carry-over of fiscal year-end balances within certain guidelines. It also incentivizes units to be better stewards of funds, if they know that they have the capability to use those funds after a particular deadline. If deemed appropriate by the Executive Leadership Team of the University, performance credits will be allocated according to established procedural guidelines subsequent to the close of each fiscal year.

  Fund Balances and Performance Credits are both terms applied to funds that are unspent in the current year, but that may be available to spend in the upcoming year. These funds exist in general ledger funds 12, 13, 14, 15 and 16. Fund 12 is managed by the PSA Business Office. Fund 16 is managed by individual Auxiliary units. Funds 13, 14, and 15 are managed by the University Budget Office. Funds 10 and 18 are exclusively for State Appropriations and should not generate performance credits.

  For Fund 15, balances are determined by budget to actual balances, available on the CU Budget Status Report. The University Budget Office reconciles the E&G budget for revenues and expenses to the actual fund balance as posted to the general ledger at year-end close in order to determine the budget to actual variance for each Budget Center, referred to as the Performance Credit. Performance credits are distributed as non-permanent budget allocations to the budget holding accounts of each Budget Center with notifications to Budget Center representatives. Budget Center representatives are then responsible for distributing performance credits to organizations as appropriate according to Budget Center policy.

  Certain other funds in the CU Chart of Accounts will carry a fund balance at the project level. For most departments these will appear in Fund 14 -E&G Non-State Departmentally Generated, and for some departments they will appear in Fund 13 - CU- Student Activities & Orgs. Auxiliary Units will find their fund balances in Fund 16. For Fund 13, 14 and 16 projects, any balance at the end of the fiscal year can readily be identified and carried forward to the new fiscal year. Balances from the prior year will be identified in general ledger accounts with a class 4xx, and on CU Statement of Change Reports. Note: On occasion, the Statement of Change report may vary from the final distribution in Fund 14 due to specific situations (E.g. internal loans, post-closing journal entries, etc.). These types of exceptions are handled on a case-by-case basis between the University Budget Office and the impacted Budget Center.

  Budgetarily, the projected spend amount of fund balance will appear in class 4xx (e.g. checking account). The remaining fund balance “reserve” (e.g. savings account) will appear in class 5xx. The CUBS chart of accounts describes each of these classes: https://coa.app.clemson.edu/Class_Listing.php

  In the event funds are insufficient to support all university needs, priority will be given to needs and requests supporting University strategic plans. If a Budget Center has a deficit in Fund 15 or 14 at fiscal year end, that Budget Center will be expected to reimburse the University in the upcoming fiscal year. The University Budget Office will communicate with the Budget Center as to how this reimbursement should be facilitated.

  GUIDELINES

  Budget Centers are expected to submit requests to spend performance credits and fund balances during the annual budget development process in the spring. Fund Balance and Performance Credit spending plan templates in Excel are provided to Budget Centers along with other budget development worksheets in February. Budgets may be submitted in the budgeting system (Hyperion) as long as these budgets tie to the Budget Center’s spending plan template returned to the University Budget Office in April. Since the prior fiscal year has not closed at this point, these budgets are based on projections of the resources that will be available to the Budget Center by the beginning of the next fiscal year. Budget Centers are expected to provide good-faith estimates of balances during this process, including the impact of balances spent and new resources generated. The University Budget Office will validate that the Budget Load figures match the spending plans figures and will contact Budget Centers to reconcile any differences.

  Beginning in September and continuing into the Fall, the University Budget Office validates fund 14 and 15 fund balances/performance credits and prepares budget amendments for distribution. For Fund 13, Budget Centers are free to budget these fund balances as early as August, after the University books are closed; figures can be validated by running the CUBS Query CU_Fund_Balance.

  After CU Accounting Services closes the fiscal year and year-end figures have been finalized, including post-closing and audit adjustments, the University Budget Office will validate the balances. Budget Centers will receive a report from the University Budget Office to show actual performance credit balances.

  Upon validation, the University Budget Office will budget the difference between the budgeted carryover/deficit in class 4xx and the final actual total available balance into class 5xx in the Budget Center holding accounts. The total of the two budgeted classes will be equal to the total performance credits for that Budget Center. It is the responsibility of the Budget Center to budget the proper amount of performance credits to each individual project. (If a Budget Center wants to budget an amount in a Fund 13 or 14 project that is different from the fund balance amount, a transfer budget amendment should be processed by the Budget Center, and a copy of the amendment sent to CU Accounting Services for the appropriate cash transfer journal entry to be processed.)

  During November, a Budget Center has the opportunity to update their Fund Balance/Performance Credit spending plan and submit requests for additional spending authority of balances through the mid-year spending plan process, if necessary. Budget Centers should send the updated plans with details to the University Budget Office, and, if warranted by the justifications provided and YTD budget vs actual spending, adjustments will be made to the 4xx and 5xx budgets in CUBS. As a measure to contain the fund balance spending budget as close to the University’s initial budget as possible, Budget Centers may be asked to shift a portion of 4xx spending budgets to 5xx reserves budgets if their YTD spending as a percentage of budget is low.

• Laboratory Course Fee Policy

  Laboratory Fee Policy Overview

  Laboratory fees are assessed to students who are enrolled in courses with a laboratory requirement or courses designated as a stand-alone laboratory course. These courses require students to use dedicated laboratory space to engage in the direct use of equipment, materials and/or services to enhance the learning aspect of the course. A small percentage of courses that are assessed a laboratory fee may be conducted at an off-campus facility.

  Laboratory fees are intended to cover the course costs that are above and beyond the normal cost of
  on-campus classroom instruction. The University defines Laboratory fees as “charged per semester, according to the number of Laboratory courses for which the student has registered. Laboratory fees fund individual Laboratory courses as well as maintain and improve the overall Laboratory and classroom infrastructure.” A further explanation of fees can be found in the section below.

  Laboratory fees are requested through the annual Student Fee Request process which begins each January prior to the next fiscal year: January 2018 for Fiscal Year 2018-2019. Student Fee Information can be found in the section below. Only Laboratory fees that support a specific Laboratory objective can be submitted as outlined in the Student Fee Categories listed within the Student Fee Policy and Procedure. Laboratory fees must be used for the originally proposed purpose and cannot be reallocated towards other uses:

  V. Mandatory Laboratory Fees
  Course fees used specifically for materials and services used in concert with the basic foundation of an academic course offering. Course fees support classroom and laboratory instructional activities by providing tangible materials and services that would otherwise be unavailable to students, and which allow students to meet the educational objectives of a given course. Current Laboratory fee revenue allocation policy dictates that 50% of revenues will be allocated to colleges and remaining 50% will be allocated to the Provost for further distribution on specific Laboratory and classroom projects.

  Laboratory Fee Annual Review

  Laboratory fees are reviewed on an annual basis by each academic unit. Changes are submitted through the Office of the Provost for review and approval. The Office of the Provost will verify that each new fee has been approved by the University Curriculum Committee. The Board of Trustees has approved a standard laboratory fee range of $75 - $200. Laboratory fees in excess of $200 require Board of Trustees approval. Removal of a prior laboratory fee should be done in conjunction with the University Curriculum Committee.

  Laboratory Fee Distribution

  Laboratory Fees are split into two categories:

  • Direct Laboratory Support (Unit/Academic Department 50%) funds activities related to the specific academic department course. Use of the Direct Laboratory Support allocation is described as:
    

    Academic Department Laboratory Fee Guidelines

    Academic departments and college administration are tasked with the responsibility and oversight of ensuring that laboratory fee revenue is used in accordance with approved guidelines.

    Acceptable uses for laboratory fee revenue include, but are not limited to:

    1. Supplies provided directly to the students as part of the course.
    2. Items consumed during the course (e.g., chemicals, materials, paper, toner, etc.).
    3. Equipment, repairs and maintenance and maintenance contracts for equipment used solely for instruction.
    4. Software license fees related to course material not covered by mandatory Clemson Computing and Information Technology Services (CCIT) fees.
    5. Graduate student salary and fringe in support of laboratory instruction and maintenance.
    6. Laboratory technician and/or laboratory director salary and fringe for individuals responsible for the oversight, maintenance and scheduling of instructional laboratory space.
    7. Travel and/or registration costs for students directly related to the instruction of the course.
    8. Costs related to programs conducted at off-campus locations (facility rental, transportation, facilitator, etc.)
    9. Renovation and/or construction of instructional laboratory space.
    10. Other direct costs incurred in the delivery of the laboratory course.

    Laboratory fees are not intended to cover:

    1. The normal costs related to general instruction within an academic department.
    2. Faculty salaries associated with teaching the course.
    3. General departmental overhead not connected with the course (e.g., telephone, department equipment leases).
    4. Equipment that is not directly associated with the instructional purpose of the course.

    It is acknowledged that departments may accumulate balances from laboratory fee revenue for new laboratory equipment purchases, life cycle replacement of existing laboratory equipment and renovation/construction of laboratory space. When carryforward balances exceed the amount of prior year revenue earned by the department, a written plan for the use of the funds will be prepared by the department and submitted to the Dean and Provost’s Office for approval. The Provost’s Office will monitor laboratory fee accounts for compliance with the stated guidelines.

  • Laboratory and Classroom Infrastructure (L&CI) Improvements (Central/Office of the Provost 50%) fund Laboratory improvements across campus as well as support the systems and resources that sustain the classroom environment. Projects are selected and prioritized on an annual basis by the Laboratory and Classroom Review Committee. This committee is led by the Director of Academic Facilities Planning and Operations and comprised of Collegiate Deans. Projects are approved and finalized by the Executive Vice President for Academic Affairs and Provost. The L&CI Policy can be found in the section below.
  • Any exclusions to the standard distribution of department generated Laboratory fees must be approved by the Office of the Provost: Vice President of Academic Affairs and Provost.
• Laboratory and Classroom Infrastructure (L&CI) Policy

  Laboratory and Classroom Infrastructure Fee Allocation Policy Overview

  Each semester, 50% of laboratory fees collected by the University are allocated to the Office of the Provost for laboratory & classroom infrastructure (L&CI) projects. Funds are intended to improve the instructional space at the University, including classroom support systems. Projects are selected and prioritized on an annual basis by the Laboratory and Classroom Review Committee. This committee is led by the Director of Academic Facilities Planning and Operations and comprised of Collegiate Deans. Projects are approved and finalized by the Executive Vice President for Academic Affairs and Provost. Funding is allocated based on anticipated revenue within the year generated. The Laboratory Fee Policy can be found in the section above.

  Laboratory and Classroom Infrastructure Requests

  Each spring, the Office of the Provost requests that each college submit a funding request for L&CI projects. Each college is required to describe the nature of each request, include a cost estimate and rank requested improvements in order of priority. Submitted requests are then compiled and compared against the estimated portion of laboratory fee revenue that will be allocated to the Office of the Provost for the upcoming year. Project requests are reviewed by the Laboratory and Classroom Infrastructure Review Committee and evaluated based on strategic initiatives, academic program needs, long-term academic facility plans and other capital projects plans of the University.

  L&CI project funding is allocated based on the pro rata share of laboratory fee revenue generated by each college in the current year. Office of the Provost specially identified projects will receive initial/priority funding with the remaining balance allocated for college requests.

  Use of Laboratory and Classroom Infrastructure Funds

  L&CI project funding is restricted to project requests approved annually by the Executive Vice President for Academic Affairs and Provost. Colleges may request the ability to reallocate funding to other L&CI projects if:

  • Excess funds remained at the completion of the approved project.
  • Prioritization needs of the college changed since the original request was submitted.
  • The approved project has been delayed to a later fiscal year or is no longer feasible.

  
  

  Academic departments and college administration are tasked with the responsibility and oversight of ensuring that L&CI project funding is used in accordance with approved guidelines.

  It is expected that L&CI projects will be completed within two fiscal years of initial funding. L&CI projects not completed during this time period will need Executive Vice President for Academic Affairs and Provost Approval to extend the project or return unspent funds. The Office of the Provost will monitor L&CI accounts for compliance with the stated guidelines.

  Laboratory and Classroom Infrastructure Request Review Committee

  • Director of Academic Facilities Planning and Operations, Phil Landreth
  • College of Architecture, Arts and Humanities Dean, Dr. Rick Goodstein
  • College of Agriculture, Forestry and Life Sciences Dean, Dr. Keith Belli
  • College of Behavioral Sciences and Health Sciences Dean, Dr. Leslie Hossfeld
  • College of Business Dean, Wendy York, MBA
  • College of Engineering Dean, Dr. Anand Gramopadhye
  • College of Education Dean, Dr. George Petersen
  • College of Science, Dr. Cynthia Young
  • Executive Vice President for Academic Affairs and Provost, Dr. Robert Jones
• Laboratory Fee Allocation

  Laboratory fees are mandatory course fees used specifically for materials and services used in concert with the basic foundation of an academic course offering. Course fees support classroom and laboratory instructional activities by providing tangible materials and services that would otherwise be unavailable to students, and which allow students to meet the educational objectives of a given course.

  Colleges receive a direct distribution for 50% of lab fee revenues generated to the appropriate academic departments. This process is performed automatically, and therefore the department receives their 50% throughout the year, as the lab revenue is generated.

  The remaining 50% of lab fee revenues are retained centrally by the Provost for further distribution by for specific lab and classroom infrastructure projects. In some cases, the Provost has made an exception and several departments receive 100% of lab fees generated. The Laboratory Course Fee Policy and the Laboratory and Classroom Infrastructure (L&CI) Policy can be found at https://www.clemson.edu/finance/budgets/policy-manual.html Policy Manual and at https://www.clemson.edu/finance/budgets/ under the Resources heading.

• Online & Distance Education (ODE) Revenue Allocation

  The off-campus credit programs revenue sharing plan was developed to enable colleges to expand educational opportunities to off-campus students without additional state funding. The intent is to serve the needs of working adults who are unable to move to Clemson to seek a degree. Tuition revenue is shared with the colleges to support the additional expense of offering courses at remote locations or through distance education technologies. This revenue is generated in courses not otherwise funded. Many of these degree programs are not available on-campus and would not exist without the revenue sharing plan.

  Three types of programs are categorized as ODE programs including an off-campus degree program, off-campus certificate program or online degree program. Online courses that are offered as part of an on-campus degree program are funded by other sources and are not part of the revenue sharing plan. Tuition revenue generated by online students in on-campus courses is not part of the revenue sharing plan. The same rule applies to the off-campus courses that are offered not as part of an off-campus degree program. Generally speaking, the criteria for the revenue sharing plan is to evaluate a course for the ability to generate new revenue. If a course was offered on-campus and it is changed as an online course or moved to an off-campus location, it does not qualify as an ODE course for the revenue sharing plan, because it is simply a revenue shifting from main campus accounts.

  The revenue generated from those ODE programs net of CCIT, Clemson Online and UCG charges are allocated back to colleges. The current revenue allocation rate is 85% to colleges; the other 15% is allocated to the Provost Office for CCIT, Clemson OnLine and Clemson Forward initiatives. Masters and PhD in Automotive Engineering (AUE), Masters in Historic Preservation (MSHP), Masters in Real Estate Development (MRED) and Masters in Digital Production Arts (MDPA) off campus programs have a special agreement with CCIT and Provost Office and they receive a 100% direct allocation by the Special Revenue Allocation process.

  GUIDELINES

  Two allocations are processed in fall including a Fall I allocation for Long Fall, First Fall, Minimester A and MinimesterB and a Fall II allocation for Second Fall, Minimester C and Minimester D. Two allocations are processed in the Spring including a Spring I allocation for Long Spring, First Spring, Minimester A and MinimesterB and a Spring 2 allocation for Second Spring, Minimester C and Minimester D. Four allocations are processed in Summer including preliminary and final Summer I and Summer II allocations. The University Budget Office is responsible for allocating revenue to each Budget Center across campus. The Budget Centers are responsible for allocating the revenue to their appropriate departments.

• Projected Source and Application of Funds Statement

  The CU budget process begins with a review of funding sources available to Educational and General Operations. The primary sources are increases in state appropriations and academic fees. Other sources may include increases in facilities and administrative cost recoveries; expenditure reductions resulting from internal reallocations and cost containment efforts; fund raising efforts and miscellaneous sources.

  Once available fund sources are identified, increases in state mandated fixed costs such as fringe benefits and cost of living (COLA), University fixed cost items such as utilities, insurance, and other similar commitments are identified. When these non-discretionary items are subtracted, the remainder is available for allocation. Allocation priority is determined by the University’s Strategic Plan ( https://www.clemson.edu/forward/). Allocations can be made for matters related to; Compliance and Regulatory, Safety and Security, Competitive Compensation, Research, Engagement, Academic Core, and Living & Community Environment.

• Revenue and Expenditure Budgets

  Sources of revenue that support expenditure budgets can be State Appropriations, University Revenue such as Tuition and Fees, Facilities and Administrative Costs or revenues generated by a specific unit. These are described as Unrestricted Funds and are used for accomplishing the primary mission of the institution in compliance with applicable state and federal laws and University regulations. They are housed in Funds 10-18 in the Clemson accounting system.

  Other resources available to units are described as restricted funds. These are gifts, grants or revenues that come to the University or related organizations with specific directions as to how he funds are to be expended. Along with complying with the same laws and regulations as unrestricted funds, these funds must be expended in compliance with the specific directions that pertain to them. They are housed in Funds 19 and above in the Clemson accounting system.

  The primary office for budget administration of E&G Funds (Funds 13, 14, 15 and 18) is the University Budget Office. The primary office for budget administration of PSA Funds (Funds 10, 11, 12 and 17) is the PSA Business Office. All of these fund types are processed through the CU Business System (CUBS), using the forms and controls therein.

  The CU budgeting system includes a mechanism to assist in budgetary control. In order for an expenditure to process, there must be sufficient spending authorization and it must pass “budget checking criteria”; a corresponding budget must exist in CUBS. Posting to the general ledger as an expenditure successfully occurs only when an actual expenditure account string, the combination of valid chart of accounts fields, can be successfully matched to a valid budgeted expenditure account string. Once an initial appropriated budget is established for a new year for E&G funds, revisions to that initial budget must be entered by processing a Budget Transaction Form. For any permanent revisions, the Budget Transaction form is submitted to the University Budget Office.

  GUIDELINES

  Budget amendments may be entered online by authorized Budget Center personnel. For specifics as to how to process a budget amendment in CUBS please see: Budgeting in the Clemson University System (PeopleSoft 9.2) http://media.clemson.edu/cfo/budgets/PeopleSoft-Budget-Training.pdf

  Fund 18 houses the E&G State Appropriations. This fund is in place to track expenditures that tie to recurring allocations received from the State. The University has chosen to restrict Fund 18 to 9 mo instructional faculty salaries (including lecturers) and the associated fringe, except for special allocations for Research and Student Engagement initiatives. These funds may be spent from the following chart of account fields.
  Program Instr (101 is preferred, but any detail code that rolls up to INSTR is allowed)
  Accounts UCLASS, FRINGE, WAGES- 5148 or WAGET- 5164 ONLY. ( Account codes 5148 in WAGES and 5164 in WAGET can be used in Fund 18 but only for teaching faculty/lecturers.)
  Class 128
  Project 1800000

  Deviations from this approach would need to be reviewed and approved by the Budget Office on a case-by-case basis.

  All funds in Fund 18 should be expended within the year they are budgeted.

  
  Special allocations from the State that are recorded in Fund 18 (i.e. University Professional Internship / Co-op Program (UPIC), Clemson University Restoration Institute (CURI), Clemson Center for Human Genetics) are excluded from these guidelines. Budget Centers receiving these special allocations should work directly with the University Budget Office to set up the appropriate chartfield string.

  If a unit recognizes a need for a cost share commitment from Fund 18, that unit must work with the University Budget Office to ensure that the commitment is properly handled.

  Fund 15 houses funds described as E&G. These are University revenues. Revenue budgets for these funds will be established at the University Budget Office level. No Budget Center should establish Fund 15 revenue budgets in their individual units.

  Other University funds have varying guidelines for making expenditures. The Disbursement Grid: https://www.clemson.edu/procurement/documents/DisbursementGrid.pdf contains these guidelines.

  The Disbursement Grid has Header titles that describe the type of funds addressed in each column. Below is the mapping of those Header descriptions to the numerical funds in the CU Chart of Accounts:

  State Funds- Funds 10 and 15, Federal Funds- Funds 11, 17 and 20, Donations and Contributions to CU Funds- 19 and 23, Agency Funds- Fund 49, Self Generated Funds- Funds 12, 14 and 16, 79.2- Funds Specific to Athletics in Fund 16 and Student Funds- Fund 13, Foundation Funds- Fund 55

• Salary Adjustments, Merit Increases And Reclassifications

  Salary adjustments, merit pay increases and reclassifications should be monitored and the total costs compared with funds allocated by the University, if applicable. Increases granted in excess of applicable University allocations must be absorbed by the Budget Center. Generally, such increases above University allocations must be absorbed from sources such as block funding, shifting funds from non-salary budget categories, from salary savings due to appointments at less than budgets or eliminating positions.

• Salary Lapse

  Salary lapse is a term used to mean funds that are budgeted for salary and fringe, but due to a variety of reasons may not be being expended. Some examples of situations that would generate salary lapse are:

  • Vacant position budgeted but not filled until sometime in the fiscal year after July 1
  • Position in which the employee is being paid for a time on a source of funds that was not the budgeted source (Example: A faculty member is being paid on a grant account instead of a Fund 18 account.)
  • Positions in which the employee is on sabbatical and is being paid a lesser amount that the full time annual salary that was budgeted

  
  

  Salary budgets should be monitored very closely, since the major portion of most budgets is for salaries. Salary lapse should be projected regularly. This can be done at a high level by multiplying the latest pay period costs by the number of remaining pay periods in the fiscal year (taking into consideration 9 month vs 12 month employee paydays), adjusted for additional savings or costs for projected future vacancies and appointments. In some Budget Centers where there are a large number of employees on accounts that vary considerably during the year, salary lapse monitoring may need to be done at much more detailed level.

  The level of administrative control at which salary lapse is projected and re-allocated varies from one Budget Center to another depending upon the policies of the Budget Center. The Provost Office will provide direction to the Colleges regarding salary lapse policy. Budgetary policies established at the Budget Center level should be communicated to units within the Budget Center.

• Special Revenue Allocation

  Certain University disciplines and programs have special agreements with CCIT and the Provost Office to receive a 100% revenue allocation.

  • Masters & PhD in Automotive Engineering (AuE)
  • Masters in Historic Preservation (MSHP)
  • Masters in Real Estate Development (MRED)
  • Masters in Digital Production Arts off-campus programs.

  
  

  The University Budget Office allocates the revenue directly to these programs, departments and projects without passing through the Budget Centers. The revenue is allocated back to those programs for the courses that are taken by these program students only. If these program students take the other program courses as elective courses, that course revenue is included in this special allocation. Conversely, if a non-special program student takes these program courses, that revenue is not included in the special allocation.

  GUIDELINES
  The Special revenue allocation is done twice a year. The Fall allocation includes Long Fall, First Fall, Second Fall, Minimester A, Minimester B, Minimester C and Minimester D. The Spring allocation includes Long Spring, First Spring, Second Spring, Minimester A, Minimester B, Minimester C and Minimester D.

• Student Fee Policy and Procedure Effective: January 6, 2020

  Student Fee Information and Forms are also found at https://www.clemson.edu/finance/budgets/ under the Resources title.

  Purpose
  Clemson University’s Student Fee policy defines fee categories and establishes authority, responsibility, and accountability for all student fees. The Student Fee process is a mechanism for communication, review and approval of student fees. Additionally, it provides a basis for estimating revenue for effective budgeting and planning. Budget Centers are encouraged to seek student referenda and/or appropriate and meaningful consultation with student government or other constituencies affected by the proposed increase for mandatory student fees in Category V.

  Policy
  Chapter VI of the Clemson University Board of Trustees (BOT) manual provides that the Board of Trustees retain the authority to establish academic and student room and board fees which include: matriculation fees, full-time student, part-time student, graduate, graduate assistant and off-campus academic fees, tuition fees, laboratory fees, residence hall fees, and meal plan fees.

  Each year, the BOT establishes the fees charged to students. All fees established shall be based upon the recommendation of the Executive Leadership Team. The final decision regarding the submission of fee proposals to the BOT remains with the President.

  I. The Student Fee process is required of departments or divisions charging mandatory or non-mandatory fees to enrolled students. New fees and changes to existing student fees must be submitted to the Student Fee Committee in accordance with the process required for the fee category and approved by the designated authorities as described in the Student Fee Procedures. All student fees are subject to annual review as prescribed in section IV. A student fee for the purposes of this document is defined as any fee and/or charge applied only to students (i.e. student activity fee, technology fee, etc.).

  II. Each budget center is required to appoint a student fee liaison(s) to ensure effective communication throughout the student fee process. The liaison should be knowledgeable of the courses or other requirements for the budget center. The liaison is responsible for coordinating student fee proposals for new and existing student fees in collaboration with Vice Presidents, Deans, Department Chairs and faculty within the respective budget center, as well as student government and/or advisory groups, and submitting proposals to the Student Fee Committee as prescribed in the Student Fee Procedures.

  III. Student Fee Categories shall be defined as follows:

  Category	Title	Definition
  ACADEMIC
  I	Undergraduate Full Time & Part Time	Mandatory student fees paid by enrolled students supporting the general operations of the University. Includes the Base Academic Fee, Tuition, and Other Debt & Retirement.
  II	Graduate Full Time & Part Time	Mandatory student fees paid by enrolled students supporting the general operations of the University. Includes the Base Academic Fee, Tuition, and Other Debt & Retirement.
  III	Graduate Health Insurance	Non-mandatory fee charged to graduate assistants for health insurance. The majority of the insurance cost is subsidized by the University in order to incentivize the graduate assistantship program. The amounts of the student fee and subsidy are determined each year based on the increase in cost to provide the insurance.
  IV	Off Campus/Online Full Time & Part Time	Mandatory student fees paid by enrolled students supporting the general operations of the University. Includes the Base Academic Fee, Tuition, and Other Debt & Retirement.
  V	Mandatory Lab Fees	Course fees used specifically for materials and services used in concert with the basic foundation of an academic course offering. Course fees support classroom and laboratory instructional activities by providing tangible materials and services that would otherwise be unavailable to students, and which allow students to meet the educational objectives of a given course. Current lab fee revenue allocation policy dictates that 50% of revenues will be allocated to colleges and remaining 50% will be allocated to the Provost for further distribution on specific lab and classroom projects.
  VI	Mandatory Activity/Program Fees	Mandatory student fees paid by enrolled students supporting specific activities. Includes Matriculation and Student Activity, Software License, Medical, Career Services, Transit, and Information Technology Fees.
  VII	Differential	Non-mandatory differential base academic fees paid by students enrolled in specific programs. For example, students in Behavioral Sciences or Business pay differential tuition for 300/400 level courses. Mandatory student fees paid by enrolled students supporting specific activities.,Including; Nursing Program and Cardiovascular Technology fees among others.
  VIII	Elective Other	Non-mandatory fees for special programs or courses. Ex.: International Affairs, Music
  VIII	Room & Board	Room and Board Fees paid by enrolled students to reside in University properties and/or receive meals at University dining halls.
  IX	Billing Rate	Fees paid by enrolled students to receive materials and/or services, or for the use of facilities provided by the University. Includes late fees, misuse of property fees and Cooperative Education Fee. These fees fall under the billing rate process.
  X	Billing Rate-Auxiliary	Fees paid by enrolled students to self-supporting programs or auxiliaries, such as,Parking Services and Housing. Includes fees such as materials & services,fees, user fees, fines, and deposits. These fees fall under the billing rate,process.

  Note: Cycle times and required approvals for each category are provided in the Student Fee Procedures.

  IV. The Student Fee Committee will review the revenue collected, unexpended balances and expenditure plans for Category V fees on an annual basis and Category V, VI, and VII fees on a randomly selected basis. If significant unexpended balances exist without a detailed and acceptable expenditure plan, the fee should be reduced, suspended or eliminated.

  
  

  Student Fee Procedures

  Introduction
  Oversight of the tuition and fee recommendation process rests with the Student Fee Committee. The Student Fee Committee consists of representatives from the Budget Office, Office of the Executive Vice President for Academic Affairs and Provost, Student Financial Services, Controller’s Office, and the Office of the Vice President for Finance and Operations. Members of the current Student Fee Committee are as follows:

  • Jessica Marchant, Senior Budget Analyst ( jstoots@clemson.edu)
  • Tyler Saas, AVP Budget, Financial Planning and Analytics ( saas@clemson.edu)
  • Christopher Wood, Academic Affairs Financial Officer ( wood6@clemson.edu)
  • Linda Henderson, Director of Student Financial Services ( lindah@clemson.edu)
  • Sherri Rowland, Accounting Services ( sherrir@clemson.edu)
  • Beverly Leeper, Director of Tax and Cost Accounting ( bkl@clemson.edu)

  
  

  Attached are detailed flowcharts showing the timing and steps needed to recommend an addition or elimination of a fee or a change in an existing fee. These procedures exclude the recommendation of general tuition and auxiliary related fees. The request detailed in this procedure, are submitted via the Student Fee Request Web Application which can be accessed from the Budget Office website.

  For assistance with fee requests, please contact Greg Ball (656-9816) or a member of the Fee Committee.

  
  

  ACADEMIC FEE PROCESS

  (applies to Category V, VI, VII only)

  
  

  LAB FEES - PHASE I:

  Process to Establish a New Course with a Lab OR
  Change an Existing Course to a Lab

  1. Login to https://clemson.curriculog.com. This is Clemson University’s online workflow process for approving course and curriculum additions, changes and deletions.
  2. When adding a new course, you will select Lab With Fee (LWF) as the schedule type. If the schedule type is being changed so a lab fee may be charged, you will change the existing schedule type to Lab With Fee (LWF).
  3. Once you have completed and approved the form in Curriculog, the form will automatically move on to the appropriate person or committee. In most cases, this will be the department curriculum committee.
  4. As each person or committee representative in the process approves the form, it will continue to move forward automatically in the workflow process. If the form is rejected at any step, it will automatically return to the person or committee at the previous step.
  5. The University-level curriculum committee (undergraduate and/or graduate) is the final approval step before the course form goes to the Provost or the Provost’s designee for final University approval.
  6. The University Undergraduate Curriculum Committee (UCC) meets the first Friday of each month from September through April. However, the March meeting of the UCC is the last meeting of the academic year at which the committee reviews course forms for the following academic year.
  7. The University Graduate Curriculum Committee (GCC) meets the second Friday of each month from September through April or May. However, the March meeting of the GCC is the last meeting of the academic year at which the committee reviews course forms for the following academic year.
  8. Upon the approval of the appropriate University Curriculum Committee and based on the effective term listed on the course form the course is entered or changed in iROAR and university publications for the following academic year are updated to reflect the course as a lab with fee (LWF) course.
  9. All approvals for the next academic year must be completed by the March curriculum committee meetings in order for the course to be picked up as a lab with fee (LWF) course for the next academic year.
  10. In late March, all lab with fee (LWF) courses are extracted from iROAR. Each college is provided a list of all courses designated as lab with fee (LWF) so college personnel can review the courses and their associated lab fees. A newly-established lab course is assigned a default a lab fee of $75.00. Requests for changes in the amount of lab fees can be made on the spreadsheet provided to each college.
  11. Lab fees cannot be inactivated during this review process. Nor can the schedule type of a course be changed to or from “Lab With Fee” during this review and update process. Inactivation of a lab fee or a schedule type change can only be made via the same process outlined in steps 1-9 above.

  
  

  LAB FEES (up to $200) Phase I

  (applies to Category V-New Course or Change to existing Course)

  

  LAB FEES (up to $200) Phase II

  (applies to Category V-Rate Changes Only)

  
• Summer School Revenue Allocation

  In summer, all revenues earned are allocated back to colleges to provide a reasonable increase in resources to the academic colleges in support of quality summer school programs. The revenue earned by main campus programs is allocated 100% back to colleges by the Summer School revenue allocation process. The revenue earned by off-campus or online programs is allocated back to colleges net of CCIT and Clemson Online charges by the ODE revenue allocation process. The revenue earned by study aboard programs is allocated by the Study Aboard revenue allocation process.

  GUIDELINES
  Because summer terms are across the fiscal years, summer revenue is allocated in two processes including the preliminary allocation and the final allocation. At the beginning of July, a preliminary Summer I revenue allocation is processed to include the revenue from the summer terms-Long Summer, First Summer, Minimester A and Minimester B. Also, a preliminary summer II revenue allocation is processed to include revenue from the summer terms-Second Summer, Minimester C and Minimester D. Those preliminary summer revenue reports include the revenue portion only belonging to the current fiscal year and they are prepared to allocate the summer revenue before the current fiscal year closes. Then, in the middle of August, a final Summer I and Summer II revenue allocation is prepared to capture any changes for the preliminary summer allocation due to the student enrollment changes for the prior fiscal year and also to allocate the summer revenue belonging to the new fiscal year.

• Traditional Masters Programs Revenue Allocation

  As part of efforts to share revenue with colleges from the increased enrollment and new tuition pricing, as well as to develop new revenue in support of the goals and objectives in the University's strategic plan, the Provost Office is implementing a new tuition return policy for all master's degree programs starting FY 2019. 80% of all masters programs base academic fee revenues, excluding any revenue allocations processed (Online & Distance Education (ODE) and other special allocations) will be returned to the budget center, and 20% will be allocated to support initiatives in the University's strategic plan.

  GUIDELINES

  Two allocations are processed in Fall including a Fall I allocation for Long Fall, First Fall, Minimester A and Minimester B and a Fall II allocation for Second Fall, Minimester C and Minimester D. Two allocations are processed in the Spring including a Spring I allocation for Long Spring, First Spring, Minimester A and Minimester B and a Spring II allocation for Second Spring, Minimester C and Minimester D. The University Budget Office is responsible for allocating revenues to each Budget Center across campus. The Budget Centers are responsible for allocating the revenues to the appropriate departments.

• University Fee Accounts

  The University Fee Accounts are reserved for those expenditures serving Clemson as a whole such as institutional memberships, legal and audit fees, risk management, computer system maintenance and support, utility costs and property and liability insurance expenses.

  University Memberships - Other memberships will be sponsored from the vice presidential area most affiliated with the organization. A request for classification as an institutional membership must be approved by the Executive Leadership Team (ELT).  Invoices for memberships approved for payment from the institutional membership account should be forwarded to University Budget Office. Note:  Each vice president should consider the impact additions or eliminations of memberships sponsored from his/her area have on other vice presidential areas. Informal communications on changes should deter the duplication of new memberships and the elimination of memberships affecting another area.

  Utility and Property Insurance – University Fee Accounts allocated for utilities and property insurance are not available for other purposes. Any funds in excess of cost will revert to the University Administration to be reallocated for other needs.  Funds allocated for hazardous materials handling are not available for other purposes.

  Liability Insurance - All funds related to tort liability insurance of the University and managed through the President’s Budget Center in excess of cost will revert to the University's central administration to be reallocated for other needs.

• Vending Committee Fund

  Vending Committe FY25 Fund Requests - Completed

  Vending Committee FY26 Fund Requests (Jan 15, 2025 - Feb 21, 2025)

  Every soda, juice, candy bar and pack of crackers purchased from a campus vending machine has the potential to benefit your department.

  Each year, a portion of Clemson’s vending machine revenues is allocated to fund activities not normally supported by departmental operating budgets. Clemson’s Vending Committee accepts requests for Vending Committee funds and awards these funds during its summer meeting.

  Any department or recognized University organization may request funds for specific activities. Funds are not intended to supplement inadequate operating budgets. Vending funds cannot be used for alcoholic beverages. According to the University Budget Office Policies and Procedures Manual, "priority will be given to local activities that enhance the intellectual and cultural life of the community." Vending Committee requests range in amount depending on the submitting party's desired use. Historically, amounts requested range from a few hundred dollars to a few thousand dollars. All, some, or none of a request may be approved depending on the outcome of the Vending Committee's discussions around each submission.

  Click here to make your funding request.

  • Requests for FY26 can be submitted between Jan 15th and Feb 21st, 2025.
  • Requests should include itemized dollar amounts requested along with a summary explanation of the intended use of the funds.
  • Requests will be communicated back to each budget center business office for final approval.
  • Requests from student organizations should be channeled through student government and then will be communicated back to the Student Affairs Business Office for final approval.

  
  

  Funds allocated in a fiscal year must be spent during that fiscal year. Any unspent funds by fiscal year end will be returned to the Vending Committee account and reallocated in the following year.

  Budget Center Business Officers will be sent a letter folloiwng committee proceedings informing them of whether the requested funds were approved or denied. For more information contact Michael Doheny, mdoheny@clemson.edu.

• Year End Closing

  The Objective of the year-end closing process is to record all receipts/revenues and disbursements/expenditures in the proper fiscal year. The Closing Calendar gives deadlines for different requests/submissions in order to be classified as current fiscal year items. Accounting Services uses a Fiscal Year-End List of journal entries that need to be processed prior to closing out the fiscal year.  The University Budget Office receives this list to prepare corresponding budgets in order for the closing journal entries to pass through the Budget Check process. The closing calendar can be found at https://www.clemson.edu/finance/controller/schedules/.

Appendices

• Budget Centers

  Departments by Budget Center

  Business Officers

  Academic Colleges

• Glossary of Terms

  APPROPRIATION BUDGET
  One of the four types of budget ledgers within CUBS that organizes budgets by Budget Center.  The appropriation budget acts as the spending authority and budget control level for funds 10-18.

  ACCOUNT NUMBER
  The account number is a numeric string compiled by using all six chart fields from the University's official Chart of Accounts.  The Chart of Accounts is maintained by Accounting Services using the CUBS system.  These strings are used to classify, record, and report financial data and program activity. There are three basic types of accounts in Clemson University's accounting system. These are expenditure accounts; revenue accounts; and asset, liability, additions and deductions to fund balance and fund balance accounts. For a detailed explanation of the University's accounting system, please refer to Clemson University Policies and Procedures for the Accounting Services Division at https://cubs.sites.clemson.edu/fscm/Chart_of_Accounts_Overview.pdf.

  ALL FUNDS BUDGET WORKSHEET
  Formatted spreadsheet provided to Budget Centers for the planning and preparation of detailed budget submittals. The worksheets provide the current year's budget and estimated expense, last year's budget, and a blank column in which to enter upcoming fiscal year's budgeted amounts. Salaries and fringe benefits determined from salary roll data entered earlier in the budget process for the upcoming year are preprinted on the form.
  

  
  

  ANNUAL OPERATING BUDGET
  A detailed projection of anticipated revenues and expenses from all sources and for all budgeted activities for one fiscal year, developed by the University and approved by the Board of Trustees. The annual operating budget is effective for the 12-month fiscal period between July 1 of one year and June 30 of the following year.

  AUXILIARY ACTIVITIES
  Activities that primarily furnish goods and services to students, faculty, staff, or the general public, charging a fee directly related to cost. These activities are essentially self-supporting. Examples of auxiliary activities are athletics, housing, dining services, and the bookstore. Auxiliary accounts are found in Fund 16.

  BASE BUDGET
  The ongoing and recurring budget for each Budget Center of the University. Changes in the base can be permanent or temporary.

  BUDGET AMENDMENT
  An increase or decrease to an alphanumeric budget account string. Amendments may be non-permanent or permanent. Permanent amendments are changes that permanently affect the base budget allocated to a Budget Center. Non-permanent changes are one-time changes that only affect the spending authority of a Budget Center during the fiscal year in which it is made.  Instructions for preparing Budget Amendments can be found at http://media.clemson.edu/cfo/budgets/PeopleSoft-Budget-Training.pdf. The Budget Amendment form can be found at https://www.clemson.edu/finance/budgets/forms.html.

  BUDGET AMENDMENT FORM 
  Template used as a source document for changing amounts budgeted differently from the original system-loaded balanced budget. This form must be used for revenue and appropriation budget changes and must be routed through the University Budget Office. The Budget Amendment form can be found at https://www.clemson.edu/finance/budgets/forms.html.

  BUDGET CENTER
  A grouping of identified, cost-related departments.  Each Budget Center's financial affairs are managed through what is commonly referred to as a Business Officer who is the chief point of contact for each center for all budget matters.  For a listing of the Budget Centers and their departments, please refer to https://coa.app.clemson.edu/Dept_by_bud_center.php . Business Officer names can be found under the Campus Business Officers Group tab at http://www.clemson.edu/finance/teams.html.

  BUDGET CHECKING (Commitment Control)
  The coded system of edit checking within CUBS that ensures a budget is established and in certain instances, funded, before an expenditure or revenue transaction may be processed through the General Ledger posting process. 

  BUDGET STATUS REPORTS
  Revenue and expenditure reports generated on a monthly basis through the Clemson University Business Systems (CUBS) and made available to all University units via the Business Data Warehouse. These reports reflect actual posted activity and encumbrances as compared to budget activity.

  CENTRAL FISCAL UNIT (CFU)
  A temporary budget account established at the time the University's budget is finalized for budget items earmarked for a specific purpose when the actual amount to be distributed to various unit is not known.

  CLEMSON UNIVERSITY BUSINESS SYSTEM (CUBS)
  Clemson University's internal accounting system through which all business and financial transactions are organized, recorded, reported, and managed. CUBS maintains all university accounts in accordance with a system of fund accounting.  CUBS is an internal acronym given to the financials and human resource management systems distributed by People Soft Systems, Inc.

  COMMISSION ON HIGHER EDUCATION (CHE)
  An agency established by act of the General Assembly responsible for the coordination of higher education in the state to achieve more effective and efficient programs and services at the state's institutions of higher learning.

  FACILITIES AND ADMINISTRATIVE COSTS/ INDIRECT COSTS
  Costs the University incurs for common or joint objectives and therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. Costs such as building and equipment use charges, computer equipment depreciation, plant maintenance, administrative and general, indirect departmental expense, sponsored projects administration, library services, and a departmental administration allowance are reimbursed to the University at a percentage rate.

  FISCAL YEAR
  The annualized, accounting cycle established for Clemson University occurring from July 1 through June 30.

  FUND ACCOUNTING
  A methodology that identifies and classifies resources according to their intended use into specific units called funds. Resources are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Within each fund, costs are broken down by functional programs such as instruction, research, extension and public service, academic support, institutional support and department administration; and by object of expenditure such as personal services, fringe benefits, supplies and other, scholarship, fellowships and grant-in-aid, and equipment. For a detail explanation of the University's accounting system, please refer to Clemson University Policies and Procedures for the Accounting Services Division which can be found at https://cubs.sites.clemson.edu/fscm/Chart_of_Accounts_Overview.pdf.

  FUND BALANCE
  Most simply, fund balance is the difference between assets and liabilities in a governmental fund. Most commonly in CU budgeting, Fund Balances and Performance Credits may both be terms applied to funds that are unspent in the current year, but that may be available to spend in the upcoming year. These funds exist in general ledger funds 12, 13, 14, 15 and 16. Funds 13, 14, 15 and 16 are managed by the University Budget Office. Fund 12 is managed by the PSA Business Office. For more details on Fund Balance, see Section Fund Balances and Education and General Performance Credits in the University Budget Office Policy Manual at https://www.clemson.edu/finance/budgets/.

  GENERAL AND ADMINISTRATIVE COSTS (G&A)
  A type of indirect cost incurred for the general executive and administrative offices of the University and generally other expenses which do not relate solely to instruction, organized research, other sponsored activities, or other institutional activities.

  HUMAN CAPITAL PLANNING (HCP) (a.k.a.Salary Roll)
  Generated listing of budgeted vacant positions and active employees with related information provided to Budget Centers for the preparation of budgets during the spring of each year. The salary roll lists the distribution of each salary among account numbers for each permanent classified and unclassified position entered into the position database. The sums of these distributions are transferred to the budget worksheets and included in the total base budget loaded into the Clemson University Business System (CUBS). Training for HCP can be found at https://www.clemson.edu/finance/budgets/ under the heading Training and Events: FY20xx Position Planning Training Manual.

  NON-PERMANENT BUDGET AMENDMENT
  Changes to a budget which do not affect a Budget Center's permanent base budget.

  ORGANIZATION BUDGET
  The CUBS system organizes departmental budgets by organization or department number.  Organization budgets are required for funds 10-18 due to the commonality of funding being limited to a singular fiscal year.  The sum of all organization budgets for a Budget Center should not exceed the appropriation budgets (spending authority) for that center.

  PERFORMANCE CREDITS
  An incentive mechanism that provides greater budgetary flexibility and discretion to Budget Centers by allowing the carry-over of fiscal year-end balances within certain guidelines.  The performance credit initiative promotes a greater efficiency of spending across the University. For more details on Performance Credits, see Section Fund Balances and Education and General Performance Credits in the University Budget Office Policy Manual at https://www.clemson.edu/finance/budgets/.

  PERMANENT BUDGET AMENDMENT
  Changes to a budget which permanently affect a Budget Center's base budget.

  PROJECT GRANT BUDGET 
  The CUBS system organizes budgets at the project grant level.  Project grant budgets include detail budgets for all six chart fields of the University's chart of accounts.  Funds 19 and higher require project grant budgets due to the commonality of funding resources crossing multiple fiscal years.  

  PUBLIC SERVICE ACTIVITIES (PSA)
  As a land-grant university, Clemson is part of a national system created by the U.S. Congress to improve the quality of life for citizens in every state through teaching, research and outreach. While faculty members teach Clemson students, Clemson Public Service and Agriculture (PSA) conducts research and outreach programs to improve the quality of life for citizens in South Carolina. At the CU Budget Level, PSA funds are housed in Funds 10, 11, 12 and 17, and are found in Budget Centers in which there are public service related programs. At the State Budget level, PSA includes Agricultural Research (includes Agricultural Experiment Stations), Cooperative Extension, Regulatory and Public Service Activities, Livestock-Poultry Health, Forest and Recreation Resources, State Energy Programs and Bio-engineering Alliance.

  REAL FOUNDATION FUNDS
  REAL is the acronym that stands for the four major strategic priorities in the Clemson Forward initiative, developed in the 2016-2017 year. The letters stand for Research, Engagement, Academic Core and Living. Some funds provided from central administration to campus units are described as REAL Foundation funds; so named as they are considered “foundation investments”.

  REVENUE BUDGET
  The CUBS system organizes projected revenues by project grant level of budget detail.  All six chart fields are required for the revenue budget-all at the greatest detail level except for the program chart field.  Only funds 10-18 require a revenue budget.

  REVENUES (DEPARTMENTALLY GENERATED)
  Revenues generated by, or allocated to, a Budget Center. These may include such sources of funding such as seminars and short courses, laboratory fees, facilities and administrative costs, general and administrative charges, and other cash revenues generated by the center.

  REVENUES (INTERNAL vs. EXTERNAL)
  Internal revenues are those resources received into a department or organization internal to the University from another department or organization of the University as in a goods and services exchange.  Revenues are booked as internal (cost recoveries) revenue using account code 48XX to distinguish them from external revenues. External revenues are those resources received into the university and booked into the General Ledger for the first time from external sources outside the University.

  SALARY ROLL  (a.k.a. Human Capital Planning HCP)
  Generated listing of budgeted vacant positions and active employees with related information provided to Budget Centers for the preparation of budgets during the spring of each year. The salary roll lists the distribution of each salary among account numbers for each permanent classified and unclassified position entered into the position database. The sums of these distributions are transferred to the budget worksheets and included in the total base budget loaded into the Clemson University Business System (CUBS). Training for HCP can be found at https://www.clemson.edu/finance/budgets/ under the heading Training and Events: FY20xx Position Planning Training Manual.

  SOURCE AND USE OF EDUCATION AND GENERAL FUNDS STATEMENT
  A financial statement that identifies the sources of funds available for spending from revenue increases (decreases) and expenditure increases (decreases) along with the uses of the funds for programs. The statement is used in the planning phase of a new budget to provide a platform for the debate of macro-issues affecting the source and application of new monies. The statement presents the disposition of actual excesses or shortages from the budget estimates as approved by the President and the Provost during the current year.