Revised Spending Guidelines 08-18-09
As previously announced, the North Carolina Office of State Budget and Management (OSBM) issued a memo on Friday, August 14, regarding the 2009-10 budget. Because of continued uncertain economic conditions and the state's current cash position, Governor Perdue and the OSBM are requiring state agencies (including Appalachian) to reduce its certified budget by 5%. This order is effective September 1, 2009 and will continue until informed otherwise.
Also, on Friday the UNC Board of Governors approved the overall budget for the UNC system. While Appalachian and the other constituent institutions have not received its detailed campus budget, we expect to receive it soon. Appalachian's tentative certified budget includes a 5.2% cut in addition to the aforementioned 5% reduction, bringing our estimated total reduction to 10.2%. While the 5% reduction mandated by OSBM could be rescinded this year, we must plan as if it will be effective for the entire year.
Consequently, although some spending actions may now occur, we must remain diligent in our efforts to control spending in the 2009-10 fiscal year. The guidelines listed below should be followed until otherwise notified:
- All hiring and travel requests must be approved by the appropriate Vice Chancellor (or to the Chancellor for those directly reporting to him).
- Departments may purchase essential classroom and office supplies but are asked to keep those purchases at a minimum.
- Equipment purchases remain suspended unless approved by the appropriate Vice Chancellor (or to the Chancellor for those directly reporting to him).
- Maintenance agreements and standing purchase orders previously denied by the OSBM may be processed.
- Membership dues should be carefully scrutinized for necessity before renewal.
- All purchase orders in excess of $1,000 must be approved by the appropriate Vice Chancellor (or the Chancellor for those directly reporting to him).
- In the future, Purchase Orders, and Purchase and Contract bids, will include the following statement: “Any and all payments to the contractor are dependent upon and subject to availability of funds to the agency for the purpose set forth in this agreement.&rdquo
These spending guidelines apply to all state fund accounts (funds beginning with a 1). However, the Chancellor's Cabinet has agreed to apply these guidelines to all other University funds.
We realize these budgetary restrictions may hinder the execution of your responsibilities, but the uncertainty of the state's current cash position, the continued difficult economic environment and the potential for additional budget restrictions prevent any significant relaxing of spending guidelines at this time.
Thank you for your patience, cooperation and understanding during these challenging times. Please contact Betsy Payne in the Budget Office if you have questions about your individual departmental budget.
Gregory M. Lovins
Interim Vice Chancellor for Business Affairs
Appalachian State University