Why are Functional Totals frozen?
Each spring the final current year budget is submitted along with the proposed budget for the next fiscal year. It contains the education and general control totals against which final year-end amounts are compared. After this submission, education and general functional totals are frozen. Tennessee Board of Regents Policy 4:01:00:00 states that “once approved the institution may not exceed those functional control limits established by the Board without prior approval of the Chancellor”. During the year end closing process, functional expenditure totals are analyzed for adherence to the approved control levels. The financial information is examined for compliance with all budget guidelines and/or Board policies in effect for the fiscal year just completed. The Chancellor reports any institutional and school deficiencies or non-compliance with budget controls and guidelines to the Board.
