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. 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.
For organizations that end the year either in debt or with a remaining balance in their accounts, there are two applications that may be applicable – the Budget Rollover Form and the Debt Forgiveness Form. Details about the applications are listed below.
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. Money in the org account will not be automatically rolled over.
Budget Rollover Request Submitted
In general, if the organization spent at least their JFC allocation, the SBVPF will rollover the remaining money. If an organization has submitted a rollover request for a specific line item, that request will be considered by the SBVPF regardless of amount of JFC allocation spent.
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 allocation was spent, and funds remaining in the account originate from fundraising
- There is a specific outline/budget of how the rolled over funds will be spent
- There are unspent funds from a previous rollover
Budget Rollover Request Not Submitted
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.
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.
Debt Forgiveness Application Submitted
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.
Debt Forgiveness Application Not Submitted
If your organization ended in debt, 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 organizations 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.