Closing Procedures-Student Government - Carnegie Mellon University


Closing Procedures

At the end of every year, the Student Body Vice President for Finance closes out the books for organizations that receive JFC subsidies and evaluates the fiscal state of all Student Government recognized organizations. The SBVPF follows a set of guidelines to ensure equity and fairness that can be found here. Student Government Fiscal Policy provides good insight into closing procedures, as well as disciplinary actions the SBVPF and SBVPO can take in order to ensure all groups are following procedure and good fiscal practice.


Budget Rollover

Should You Fill Out a Budget Rollover Application?

You should fill out this form if the ending balance in your organization account is positive and you wish to keep some/all of those funds to use in the next fiscal year.

Submitted a Budget Rollover Application

In general, if the money that you are requesting to be rolled over originates from fundraising more than the amount that the JFC expected from your organization, you can expect the following to happen. The SBVPF will rollover the amount of money deposited in your organization and gifts account less the amount of expected revenue (Gift Deposits + Org Deposits – JFC Expected Revenue). The latter number can be found on BudgetTracker. If the revenue difference is negative, you will need to provide extraordinary reasons for why the application should be granted.

If the money that you are requesting to be rolled over originates from your previous JFC subsidy, then you will be asked why the money was not spent and what it will be spent towards during the next fiscal year. The final decision will be up to the discretion of the SBVPF. Please be as descriptive as you can while still being concise. Remember that the SBVPF is not familiar with your organization's structure, and you should assume he/she knows nothing when explaining your situation.

Examples of Reasons Organizations ask for a Rollover: 

  • JFC's revenue expectations were exceeded
  • There is a specific outline/budget of how the rolled over funds will be spent
  • There are unspent funds from a previous rollover

Did not Submit a Budget Rollover Application

If the balance of your gift and organization accounts combined is larger than your JFC subsidy for the respective fiscal year, then your entire JFC subsidy will be returned, but not the amount above and beyond the subsidy amount. If the combined amount is less than your JFC subsidy, all the money in the account will be returned.


Debt Forgiveness

Should You Fill Out a Debt Forgiveness Application?

You should fill out this form if the ending balance in your organization account is negative and you are looking to get the current debt forgiven so your organization's starting balance for the next fiscal year will not be affected.

Submitted a Debt Forgiveness Application

The SBVPF has 2 options after receiving a debt forgiveness application:
(1) He/she can rollover debt, causing a decrease in the organization's JFC subsidy for the next fiscal year, or (2) he/she can forgive an organizations debt, meaning the debt is covered by funds belonging to funds directly under the SBVPF. However, the amount of debt that is forgiven can be vary: a percentage can be forgiven while the rest is rolled over. Each circumstance will be looked at on a case by case basis, taking into consideration an organization's spending history, probation status, gift account balance, etc.

When filling out the application, please be as descriptive as you can while still being concise. Remember that the SBVPF is not familiar with your organization's structure, and you should assume he/she knows nothing when explaining your situation.  Please keep in mind that debt forgiveness is separate from probationary status; probationary status can still result even with the best reasons for debt.

Did not Submit a Debt Forgiveness Application

The SBVPF will get in touch with your organization to see what happened and assess why your organization ended in debt. We have a set of predefined metrics that govern how we forgive debt and put people on probation. Factors include why your organization is in deficit, how many years your organization has ended with a deficit, the amount and precedence of the debt, the clarity and practices of your organization's accounting. Without filling out the form, no debt will be forgiven. 


Applications

The deadline for debt forgiveness applications and budget rollover applications for FY13 has passed.