What is the difference between cash and budget authority?
Cash is generated through revenues/fees assessed for the provision of a good or service. Cash is the driving force behind auxiliaries and local funds, thus the key to financial sustainability. All expenditures whether salaries, other personnel services, expense or operating capital outlay in nature are paid for from cash balances. A negative cash balance is indicative of a problem that needs to be addressed immediately to prevent the problem from getting worst and in order to avoid negative balance interest penalties which will make the deficit grow. One of the primary goals of any auxiliary should be to maintain a healthy cash flow and preferably to grow bottom line cash balances. A healthy operating cushion can provide funds for a slow down or an unexpected charge. The full understanding of cash balances in the Auxiliary Trust Funds and Local Funds is central to operations and any remaining questions should be forwarded to the University Business Office without hesitation. Budget aut
