Policies & Procedures Manual - Elizabeth City State University

400.4.4Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYContinuation BudgetThe continuation budget refers to that portion of the budget which maintains the existing levelof services. Generally, increases in the continuation budget over the actual expenditures of thelast fiscal year and/or the authorized budget of the current year are restricted to:a. Increases and adjustments required by law, such as Social Security or retirement rateincreases, longevity costs and premium pay amounts.b. Inflationary cost increases in necessary items such as food, medicine, clothing, fueland utilities. (Applicable items and rates of increase allowable are determined by theoffice of State Budget and Management each budget cycle and communicated toagencies for application).c. Annualization of programs begun by legislative action within the current year.d. Minimum operating costs for the opening of new facilities previously authorized bythe legislature. These costs generally are budgeted as a single line reserve supportedby sufficient documentation.e. Documented rate increases in rental contracts for such items as data processing,copiers, and word processing equipment or service and maintenance contracts.f. Replacement of worn out or damaged equipment with comparable equipment.g. Adjustments to departments and federal receipts to more realistic levels.h. The continued payments for the purchase of data processing equipment being boughton an installment basis.i. Items budgeted on an irregular basis, such as periodic painting and periodicaccreditation studies, for which funds were not provided in the authorized year butfor which funds are needed in the continuation year. (Irregularly budgeted ornonrecurring items for which funds were provided in the authorized year but are notnecessary for the continuation year should not be continued).2. Decreases should be shown in requirements, receipts and appropriations in the continuationbudget where cost and receipts associated with caseloads, enrollments, etc. are expected todecline.