Whereas, budget centers may need to borrow funds to finance capital projects or major equipment purchases.
Whereas, a budget center's incurring of excessive debt may limit the ability of the budget center to meet current and future financial obligations and affect the ability of the budget center to fulfill its mission.
Therefore, budget centers must prepare a written request to borrow funds for capital projects or major equipment purchases. The University does not provide advances to fund/amortize departmental deficits in restricted or unrestricted accounts.
The written request must include at a minimum:
The request for financing must first be submitted to Fiscal Affairs for review. Fiscal Affairs will review the request, and will work with the budget center to finalize details of the request for financing. After completing its work, Fiscal Affairs will forward the request to the Vice President for Business and Finance for forwarding to the President for approval. Fiscal Affairs will inform the Vice Presidents of all financial activity through full reporting on a semi-annual basis.
Note: This policy is not intended to encourage adhoc indebtedness. It only ensures full discussion and disclosure with the campus leadership prior to a decision.
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