On May 5, 2020, President Cross approved Interim Regent Policy Document Waiver #04: COVID-19 Financial Management of Auxiliary Operations- Transfers from Auxiliary Enterprises Waiver to provide campuses with greater flexibility in transferring fund balances between auxiliary operations and from auxiliary operations to other funding sources, to address financial needs resulting from the COVID-19 pandemic.
Revised: June 18, 1999
Section 20.285 (1) (h), Wis. Stats., provides that “… Upon the request of the extension or any institution or center within the system, the board of regents may transfer surplus moneys appropriated under this paragraph to the appropriation account under par. (kp).
Section 20.285 (1) (kp) reads: “Student-related activities. All moneys transferred from par. (h) for the one-time, fixed-duration costs of any student-related activity.”
In addition, Board of Regents Resolution 7555 provides institutions with the flexibility to transfer surplus funding from one auxiliary activity to another; requests to make such transfers are to be made to System Administration and considered at the time of the Board of Regents’ deliberation on the annual operating budget.
The following policies and procedures shall apply to both types of transfers:
- Transfers will only occur within the same institution.
- Transfers will be discretionary (as opposed to automatic whenever a one time surplus occurs).
- Transfers will only occur if initiated by the institution where the transfer is to occur.
- “Auxiliary enterprises” refer to fund 128 operations including both student fee funded (student unions, student activities, etc.) and non-student fee funded (performing arts centers, golf courses, etc.).
- “One-time, fixed duration costs” are costs occurring within a specific time frame.
- “Student related activities” are generally defined as instruction, student services, academic support; however, those other budget activities which are also partially funded from academic tuition may be requested with explanation.
- The sources of surplus moneys for transfer are expected to be:
- unanticipated current revenues
- unanticipated expenditure savings
- project cancellations for which funding provisions had been initiated.
- In making a request to transfer these moneys from one auxiliary to another or to one-time fixed duration, student-related costs, an institution must provide assurance of the following:
- appropriate reserve benchmarks are being met as defined in Attachment 3
- that the purpose for which the transfer is requested is a higher institutional priority for these funds than other possible uses
- the transfer will not increase rates or segregated fees beyond planned levels of increase.
Institutions will assure the preceding by providing information on items 1-4 below.
Request for Transfer
Institutions will submit transfer requests to UW System Administration for Board of Regents approval during the annual budget process. Requests should:
- Clearly identify the source and application of the funds.
- Demonstrate that the transfer is a priority in the strategic and other campus plans.
- Provide a three-year plan projecting the effects of the transfer, including the effects on rates and reserve levels. The plan should demonstrate that the transfer will not adversely affect rates.
- Provide an explanation of the process for consulting with students for student fee funded operations, and the appropriate consultation processes for nonstudent fee funded operations, and resulting comments. If the activity from which the transfer is occurring receives some portion of its funding from segregated fees, and if the segregated fee portion of that funding is to be included as part of the transfer, the transfer request should be submitted to appropriate review bodies with student representation on the requesting campus. If students remain concerned about the final campus decision, they may make a formal request, following standard procedure to address the Board of Regents, to provide testimony as part of the Board considerations of the relevant annual budget action item.
Institutions will report on the benefit of the transfer to System Administration – Budget Office after the Regents approve the transfer and after it has occurred.
As required by s.36.46(2), Wis. Stats., System Administration will report annually, by September 1, on all requests to transfer moneys into appropriation 20.285(1)(kp), including the revenue source of the moneys requested, the proposed use of the funds and whether the transfer was approved by the Board.