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Scope

This policy provides authoritative guidance to the university in requisitioning state appropriations for General Operations, Capital Projects, and other programs of the University.  

Reason for Policy

To ensure a coordinated effort in the requisition of state appropriations.

Policy Statement

State appropriations are funds granted by the State of Missouri, as determined by the State Legislature, for the purpose of providing funding to the °ÄÃÅÁùºÏ²Ê¹ÙÍø¿ª½±.  In addition to operations and Capital Projects, state appropriations can be granted for specific university programs such as Missouri Kidney Program and Telehealth.  A State of Missouri house bill indicates the annual amount appropriated for the fiscal year.  The bill is public information, accessible from the State of Missouri’s website. 

The amount on each appropriation line item for general operations to be requisitioned each month by the UM System Controller’s Office is directed by the State of Missouri in an allotment schedule. Other program appropriations or capital appropriations are either directed through the allotment schedule or requested by the University on a reimbursement basis. Division of Finance-Office of Budget and Planning coordinates the allocation of the state appropriations to the campuses and their departments. 

Capital appropriations are coordinated through UM System Office of Facilities, Planning and Development.  As directed by the State of Missouri, requisition of state appropriations for Capital Projects will be submitted to the state, only to the extent that there are paid invoices.  The University department undertaking the Capital Project is responsible for processing invoices for allowed expenditures.

Definitions

Requisition – drafts from the State of Missouri for funds legislatively approved for the operation of the university. 

General Operations – the University’s Operations fund is where the majority of the University’s instructional, public service and support activities are budgeted and accounted for.  It is funded primarily by tuition and fees and state appropriations for operations.

Capital Project – project costs that will result in the capitalization of the expenditure as an asset to the University.  Generally a capital appropriation from the state would reimburse the expenses of the construction or renovation of a building.

Accountabilities

UM System Controller’s Office: 

• Ensure adequate segregation of duties and security for those responsible for entering, approving and reconciling requisitions of state funds.
• Prepares schedule of anticipated requisitions of state funds, in conjunction with System Budget Office.
• Prepares monthly requisitions into the State of Missouri financial system based on pre-established time-lines and expenditures against capital funding.
• Approves the requisition of funds and releases the requisition into the State of Missouri’s system authorizing the transaction.
• Reconciles funds received against funds requisitions to ensure accuracy, completeness and timeliness.
• Allocates distribution of funds to campuses based upon pre-established budgets or expenditures of capital funds.
• Reviews the schedule of anticipated requisitions against House Bill and allotment schedule and tests the monthly requisition amounts to ensure accuracy and authorization.

UM System Treasurer’s Office:

• Receives ACH transfer of funds from the State of Missouri and prepares Cash Position Current Day Report within the treasury workstation.
• Forecast for deposits of state appropriated funds based on schedule of anticipated requisitions.

UM System Facilities Planning and Development:

• Coordinate Capital Projects for reimbursement with the departments, budget offices, and the UM System Controller's Office

Campus and System Division of Finance-Budget:

• System Budget and Planning Office coordinates the allocation of state appropriations to the campuses.
• Campus Budget Offices coordinate the allocation of General Operating funds to the university college/school/divisions as determined by the annual budget process.

Additional Details

Forms

Related Information

History

This policy combines the following former policies:

• Accounting Policy Manual 35.05 – State Appropriations for Capital Projects (revised 8/1/2007)
• Accounting Policy Manual 35.15 – State Appropriations for General Operations and Programs (revised 8/7/2007)

Procedure