TO: Faculty and Staff
RE: Spending Freeze
At the beginning of the fiscal year I sent out an email describing the 2012-2013 budget situation and the effects that reduced state support was going to have on the university. In that email, one of the initiatives that I described was reduced operating budget allocations for all but mandated and absolutely critical travel, supplies, equipment and other operating expenditures. While expenditures have been monitored and all departments have done a tremendous job of curtailing expenditures during the year, some important spending has still been allowed as long as it was within budget. However, as we attempt to prepare for the uncertainty of the upcoming fiscal year, which begins July 1, 2013, we find ourselves at a point where a full or even a more intense spending freeze must be implemented.
Since almost all of our self-generated revenue for this year has been received, as expenditures increase, the amount of Academic Enhancement Funds (or reserve funds as some call it) needed to balance the budget also increases. In order to retain as high an Academic Enhancement Funds balance as possible for next fiscal year when those dollars will be needed the most, the current fund balance available must be preserved. Therefore, effective with this notification, all non-essential or non-emergency purchases for the remainder of the fiscal year are subject to a spending freeze. Only requests for essential type expenditures or emergency purchases should be submitted. All requests for non-essential or non-emergency purchases should not be sent forward as they will not be approved. This includes P-Card purchases.
This spending freeze shall be spread across the Operating budget and all Auxiliaries, including Athletics. The freeze to Auxiliaries is to allow its unallocated fund balance to increase as much as possible in the event these funds are needed to fill in any shortfalls that might occur in the future. The spending freeze does not apply to grants or restricted accounts.
All funds will be subject to the annual university spending deadline that will be announced soon by the Purchasing Department.