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IFR Deficit Policy

The campus currently operates under the IFR deficit guidelines approved by the President in 1995. Listed below is a description of this policy:

IFR Deficit Guidelines
SUNY policy provides for the establishment of Income Fund Reimbursable accounts to be managed within a Special Revenue Fund on each campus. The fund (the total of all accounts) must have a positive cash balance at all times. Each IFR account must generate revenue sufficient to cover costs incurred and be managed to positive cash positions. A number of accounts generate revenue through contracts and other entities. In some cases these contracts require an initial outlay of funds before reimbursement can be requested. For these and other accounts with like circumstances where revenue follows expenditures, an accrual basis can be used to assure a break-even status at fiscal year-end. Stony Brook policy maintains that the financial stability of IFR accounts is the responsibility of the President, Provost or Vice President within whose organization the account resides.

The campus' Budget and Accounting Offices have advanced and documented a budget development process for Income Fund Reimbursable Accounts. This process assures a reasonable level of annual review of past operating experience by account, and projects allocation requirements for the upcoming year. In the future, as accounts with serious cash deficit balances are identified, rates, revenue and expenditure projections, and allocation decisions will be structured to correct negative cash conditions within the upcoming fiscal year. When a deficit is of a size that prohibits a solution through these traditional budgeting techniques, vice presidential area representatives will have the option of identifying other resources that can be appropriately used to resolve the deficit.

In order to assure that IFR account deficit elimination plans attain the desired goal, the following procedures will be followed:

A. For accounts with projected negative cash conditions having emerged at June 30, 1995 and fiscal year-ends thereafter, the account deficit elimination plan is the official IFR allocation worksheet, completed on the CBM, as part of the annual budget development process for the upcoming year. Account deficits addressed in this manner must be resolved in one year. The only exception to this policy concerns the management of service-related IFR accounts whose rates are reviewed every two years. If a deficit develops in such an account the elimination of that deficit must be addressed as part of the next rate development exercise. The revised rates in those accounts should be established to eliminate the existing deficits within one year and prevent the development of a new deficit.

B. The Accounting and Budget Offices will monitor progress toward deficit elimination. If a fiscal year-end target is not attained, the Vice President will be notified and given the opportunity to take immediate corrective action. If the deficit elimination plan is not brought into balance by September 1st and a state carry-forward surplus is available from the year in which the IFR target was missed, the carry-forward surplus will be reduced by the amount necessary to complete the IFR account's deficit elimination plan for that year. If no carry-forward surplus is available, or if the carry-forward amount is insufficient, the state allocation for the following fiscal year will be charged for the shortfall.