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How are funds used that are budgeted in the categories called mandatory and nonmandatory transfers?

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How are funds used that are budgeted in the categories called mandatory and nonmandatory transfers?

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Departments may break out funds that are budgeted as transfers as either nonmandatory or mandatory. Mandatory transfer funds are committed for either debt service or grant matching requirements, and departments cannot freely use these funds, whereas nonmandatory transfer funds generally do not have restrictions. Funds budgeted in either of these categories can be transferred to other fund types, such as designated, restricted or plant funds.

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