Additional information has been received from the Office of State Budget and Management (OSBM) under the direction of Governor Beverly Perdue concerning the fiscal year 2008-09 budget management restrictions. The restrictions do not apply to any contracts and grants, student activity funds, auxiliary services or Foundation funds (Trust Funds or Non-State Funds). Please note that when "exception request" is referenced, see the final section of this memorandum for further instructions.

For State Funds (all funds that begin with one (1), the following guidelines will apply:

Purchase Orders for goods or services that have been ordered but not received by April 16 must be canceled unless the code can be changed to a Trust or Non-State Fund.

Receipt-Supported Areas Within State Funds
Expenses incurred within any Receipt Supported area in State Funds after April 9, or merchandise not received by April 16 from a previous Purchase Order will require an exception request. Examples include: Summer School (Program 102), Extension (Program 103), ASU Energy Center (Program 142), etc. Carry forward decisions will be made at year-end. OSBM will exhaust every possible option before the possibility of limiting receipt carry forwards.

Postage charges may continue but must be kept to a minimum. OSBM suggests using e-mail or other alternatives as much as possible.

Telephone charges may continue.

Payroll Items
--All state employees who were employed on or before April 9 will be paid.
--One-time payments to individuals contracted on or before April 9 will be paid.
--Summer School faculty payroll will be paid.
--Temporary employment contracted by written or verbal commitment on or before April 9 will be paid.
--Payments for position searches where employees are to begin work after July 1 are allowable if the contractual obligation occurred prior to April 9.
--Overtime pay is permitted, but must be kept to a minimum.
--Search firms used for filling positions will be paid if contracts for services were established prior to April 9. No new contracts should occur without submission of an exception request approved both by the University Budget Office and OSBM.

Student Refunds are allowed to be paid.

State Funded Travel
--Distance Education travel will be paid for professors traveling to teach classes and travel reimbursement for faculty supervising student teachers and interns. Please submit this type of travel reimbursement request(s) to the Controller's Office by April 27 for travel incurred on or prior to April 9. Please submit this same type of travel reimbursement request(s) separately when travel occurred after April 9. The University Budget Office must submit all Distance Education travel after April 9 on an exception request to OSBM for approval before reimbursements can be completed.

--Reimbursements for all other travel where trips occurred on or before April 9th, must be filed by April 27. No other travel may occur from State Funds (even Admissions-related travel for student recruitment). All Trust Funds/Non-State Fund codes may continue to be used.

--All travel advances paid from State funds, must be cleared by April 27.

--Candidate(s) for employment when travel began before April 9 will be paid. The travel reimbursement(s) but should be filed immediately with the Controller's Office, but no later than April 27.

P-Cards
-- P-Cards cannot be used for State Fund purchases (except for utility items-Physical Plant). Any items for State Funds displayed on the May billing must have coding changed to a Trust or Non-State Fund. All Trust Funds/Non-State Fund codes may continue to be used.

Warehouse Purchases:
--No State Fund purchases are allowed except Physical Plant housekeeping items, examples: toilet tissue, cleaning supplies, paper towels and other sanitary items must be kept to a minimum. The University Budget Office must submit an exception request to OSBM before charges can be completed for these items. Per OSBM, if paper, general answer sheets, teacher evaluation forms, or other supplies are required for "classroom use," a Trust Fund or other Non-State Fund code must be used. If a department has no other funds, they are asked to borrow from other departments that can provide those resources. All Trust Funds/Non-State Fund codes may continue to be used.

Small Check Requests
--Small check requests may not be used for State Fund purchases. All Trust Funds/Non-State codes may continue to be used.

Petty Cash Reimbursements
--Petty cash reimbursement may not be made from State Funds. All Trust Fund/non-state codes may be used.

Ongoing Mandatory Monthly Commitments for service or work that was already in progress on April 9 may continue to be paid from State Funds, examples include: already in place rental agreements (copiers, etc.) already in place, service or maintenance agreements, and insurance payments. Contracts for services including licensing and maintenance, contract renewals and extensions, database access, etc., which are due by June 30 and required after the April 9 date, must be submitted as an exception request and approved both by the University Budget Office and OSBM.

Other Items
--Spring commencement expenses may be paid, but kept to a minimum. Items must be submitted as an exception request before purchase orders are issued or invoices are paid.
--Special appropriations received from General Administration for specialized equipment cannot be used. Any purchase orders issued where items were not received by April 16 must be canceled.
--Safety equipment allocations (examples: surveillance cameras, sirens, etc.) must be submitted as an exception request. Requests must contain substantial justification of the specific safety issue, and will be considered on a case-by-case basis.
--Commitments for Grant matching must be submitted as an exception request with substantial documentation.
--The minimum monthly fee for any Motor Fleet Management vehicle(s) must be paid if the vehicle is not turned in to the ASU Motor Pool.
--Library Book purchases received by April 16 may be paid, however, all outstanding purchase orders must be canceled.

Exception Request(s)
Any items to be submitted by the University Budget Office to OSBM for exception request(s) must be submitted by e-mail to Betsy Payne (paynebp@appstate.edu) with the following data included: (a) State Fund/account code; (b) brief description of the item; (c) please note if it is a direct classroom instruction item, a public safety & health item, or an other exception; (d) justification; and (e) impact of denial of the exception(s).

Please adhere very closely to these instructions to expedite requests. Thank you so much for your assistance during these challenging economic times.

Kenneth E. Peacock
Chancellor