As required by Board of Regents policy and in conjunction with UW System Administration, UW–Madison annually reports program revenue balances to the Board of Regents in its Program Revenue Balances Report.
This policy provides information on the UW–Madison specific program revenue fund balance reporting requirements in relation to Regent Policy Document 21-6 - Program Revenue Calculation Methodology and Fund Balances Policy.
All campus units with estimated unrestricted fund balances, excluding the fund group identified as unrestricted program revenue, of more than $1,000,000 are required to adhere to this policy.
Annually, campus reporting units (schools, colleges and administrative) are required to submit their fiscal year-end fund balance justifications for each unrestricted fund group, excluding other unrestricted program revenue, for each fund that is expected to end with a balance greater than $1,000,000. Central campus completes the fund balance justification reporting requirements for other unrestricted program revenue.
Campus units with balances in excess of $1,000,000 will need to categorize balances in accordance with definitions prescribed by the Legislative Audit Bureau (LAB) and provide supporting documentation. The allowable categories for balance reporting purposes are obligated, planned, or designated. There should not be anything categorized at the unit level under undocumented or reserves.
Specific definitions, guidance and timeline information will be distributed near the end of each fiscal year to provide campus units with any updated information regarding submission requirements.
The VCFA Office will review all campus submissions and prepare the final report submission to UW-System. Although campus fund balances may be distributed across hundreds of campus accounts, the submission will consolidate the balances at the total campus level. The campus submission will assign fund balance categories and organize supporting documentation based on the university level priorities and ensure there is no duplication of balance justifications.
Consistent with Wis. Stat.§ 36.09(3)(a), the chancellor is responsible for all institutional allocation decisions. It is this authority that allows central campus to access balances distributed across campus units as needed to meet the financial obligations and priorities of the institution.
Units should not categorize any balances as “Undocumented” or “Reserve” as these are held for use at the campus level. Reserve levels are established at the campus level in amounts authorized by the Chancellor and/or Vice Chancellor for Finance and Administration. Reserve levels are reviewed annually and may be adjusted at this time as circumstances warrant.
