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Definition of Non‐Recurring Expense Items

Vetted by CAFA as of 8‐13‐2019

Senate Bill 190 details specific items that would be expected in the newly‐required Carryforward Spending Plans that must be submitted for approval.

The annual Legislative Budget Request Instruction Manual glossary indicates that non‐recurring means “expenditures or revenues that are not expected to be needed or available after the current year.”

An E&G non‐recurring expenditure is defined as an expenditure that is not expected to be needed or available after the current fiscal year. Non‐recurring expenditures have distinct elements:

  • Time‐limited in nature, where an end date to a given contract or activity is known
  • There is no promise or guarantee of future funding
  • May cross multiple years, but the above two provisions apply
  • May address financial challenges resulting from external factors (examples could include federal government shutdown, drop in state revenue resulting in a mid‐year reduction)

The following is a list of non‐recurring expenditure examples vetted by the Council for Administrative and Financial Affairs (CAFA) group, to be updated as new items are identified :

A unified understanding of non‐recurring expenditures will be critical for the planning process and consistency of operations for all of the institutions.

Some examples of non‐recurring expenditures include, but are not limited to:

  1. Summer Appointments
  2. OPS Appointments
  3. Adjunct Faculty Appointments
  4. Visiting Faculty Appointments
  5. Limited / Time Specific Employment
  6. DROP Employees
    • If there is an overlap for cross‐training. Focus on the position. For example, if a CFO enters DROP or announces his / her retirement, that should not make the position non‐ recurring as someone will replace him or her (or the university could reorganize)
    • If the position (position responsibilities) is being eliminated or reassigned
  7. Start‐Up Funds
  8. Repairs and Maintenance
  9. Equipment Purchases
  10. Student Financial Aid Payments
  11. Travel
  12. Office Supplies
  13. Bonus / Temporary Payments
  14. Utilities Expense (such as a mid‐year, unexpected increase, that wasn’t built into the original budget)
  15. Consultant Fees
  16. One‐Time / Annual Contracts (case‐by‐case determination by each university)
  17. Rentals (short‐term)
  18. Transportation (such as transportation cost for site visits, additional buses required on a short‐term basis, etc.)
  19. ERP Updates
  20. Demolition
  21. Leases (case‐by‐case determination by each university)