The use of fund balance to support ongoing operating expenses is not permitted as part of the University's annual operating budget. Units are expected to manage recurring expenditures within current-year revenues and their approved budget.
Because fund balance represents a one-time resource, it should not be used to support recurring commitments, address structural deficits, or balance an operating budget.
Only the Board of Regents may authorize USM institutions to deploy fund balances. Therefore, any proposed use of fund balance for a specific one-time purpose must be reviewed and approved in advance by the Chief Financial Officer (CFO).
Units should not assume that fund balances are available for use without prior authorization. Expenditures may not be committed against fund balance until approval has been received.