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1.2 Budget Allocations and Expenditures for Funds Receiving Support from State Appropriations
- Salary and Supplies and Services Accounts. Separate salary and supplies and services accounts are maintained for each department. Allocations to these accounts are available for the fiscal year beginning July 1 each year and are based on annual budgets approved by the Board of Regents, State of Iowa, and supplemental allocations recommended through regular administrative channels and approved by the President of the University. Supplemental allocation requests are made on the Request for Transfer or Allocation of Funds form.
Charges to salary accounts are based on payrolls in accordance with approved appointments. The University portion of retirement and group insurance premiums and taxes are charged to salary accounts by the University Business Office in accordance with the base salaries on which they are applied.
Charges to supplies and services accounts include all charges except those charged to salary and equipment accounts, and are based on requisitions and vouchers approved by departmental executive officers (and other administrative officers as required) and on University-wide contracts for services (such as telephone service and equipment maintenance service). Expenditures and commitments must be limited to the allocations provided. Requisitions for items to be charged to the current year's budgets must be filed in the Purchasing Department not later than June 10 each year.
Free balances in supplies and services accounts are not carried forward to the following year but are lapsed as of June 30 each year. A free balance is the balance remaining after deducting the expenditures and outstanding orders (encumbrances) from the departmental allocation(s). Amounts encumbered for outstanding orders as of June 30 each year are carried forward to the following year to the extent that June 30 balances are available and providing that delivery and payment is completed prior to October of the following year. Expenditures and commitments are not authorized in excess of the amounts allocated. If, by reason of unforeseen expense, or otherwise, a supplies and services account is overdrawn on June 30 of any year, the overdraft becomes a first charge against the departmental supplies and services account for the following year. Amounts are not encumbered for orders outstanding to University stores and service departments as of June 30 each year.
- Equipment Accounts. Separate equipment accounts are maintained, and encumbrances and balances for equipment accounts are handled in the same manner as supplies and services accounts. Allocations to these accounts are based on requests processed through administrative channels for specific items, as approved by the University administration. Special forms for equipment allocation requests are made on the Request for Equipment form.
Following the notice of approval of the equipment allocation, departmental executive officers should submit requisitions to the Purchasing Department for purchases to be made in the regular manner.