Section 3.2 Financial Services: Budget - Contingency Reserve
Issued: May 2016
Replaces: October 2001
The Southern Illinois University Board of Trustees annual budget guidelines specify:
"Contingency Plan – Major decisions about resource allocation should not be forced during the fiscal year by emergencies or unanticipated expenditures. Without a contingency reserve, the institution becomes vulnerable to negative shifts in resources. Therefore, at least two percent of each year’s appropriated and income funds will be reserved for contingencies. Each campus will develop a plan to expend these funds during the last two quarters of the fiscal year if they are not required for unanticipated expenditures."
Each campus may hold in reserve appropriated and income fund dollars consisting of support line items (other than salary funds) as well as uncommitted salary funds.
The Chancellors and the Dean and Provost of SIU School of Medicine, after consulting with and securing approval of the President, may release their campuses’ remaining contingency reserves during the last two quarters of the fiscal year.
The release of these funds during the last two quarters of the fiscal year should be consistent with originally planned expenditures. Changes in planned expenditures that occur when the funds are released should be reported to the Vice President for Financial Services.