Administrative Contingency:

Administrative Contingency shall be approximately one percent (1%) of the budgeted revenues each year.  Administrative Contingency shall be allocated by approval of the president.

Principles for use of Administrative Contingency:

• Department funds, including carryover, should be used for new needs whenever possible rather than depleting institutional reserves
• Group funds, including carryover and Special Projects, should be used for new needs whenever possible rather than depleting institutional reserves.
• New and important needs will arise after the budget is approved.  Strategic reserves should be set aside and used for the purpose of funding unanticipated critical needs.
• Administrative Contingency should not be viewed as a “slush fund” or a secondary (“back up”) funding source for rejected budget requests.
• All needs anticipated or known at the time requests are made during the regular budgeting cycle should go through the budget decision process.  Requests should not be postponed anticipating funding by Administrative Contingency.
• Since Administrative Contingency is meant to be an institutional reserve, the president is the person who should control any expenditure of the funds. A budget transfer signed by the president is necessary documentation of her approval. The president and the Executive Team should be informed as to the ongoing status of the fund during the year.