Memo UNC FY2026Closeout-Carryfwd

STATE OF NORTH CAROLINA
OFFICE OF STATE BUDGET AND MANAGEMENT

JOSH STEIN
GOVERNOR

KRISTIN WALKER
STATE BUDGET DIRECTOR

May 4, 2026

TO: UNC Chief Fiscal Officers and Budget Officers
All UNC Institutions

FROM: Kristin Walker

SUBJECT: Budget Guidelines for UNC Carryforward and Closing Fiscal Year 2025-2026

The Office of State Budget and Management (OSBM) is beginning the carryforward and closeout process for FY 2025-26. This memo contains information, links to job aids UNC institutions should follow, and deadlines for carryforward and closeout. We appreciate your partnership and collaboration in ensuring this process goes as smoothly as possible. OSBM will review this information during our Carryforward & Closeout Kick-Off, and we strongly encourage attendance.

Job Aids

OSBM has developed job aids for Carryforward, Operating Closeout, and Capital Closeout, which can be found on the OSBM website here: OSBM Carryforward & Closeout Job Aids. Please refer to these resources, which provide step-by-step guidance in completing the carryforward and budget closeout process. If after consulting these resources you have questions about these procedures, please contact your OSBM budget execution analyst.

Deadlines

June 1, 2026
Capital allotment requests for June due to OSBM

June 17, 2026
Preliminary carryforward request estimates due to OSBM
UNC institutions should use the OSBM Carryforward Template to submit requests along with any required supporting documentation.

June 20, 2026
Certification of Capital Improvement reports due to OSBM

July 8, 2026
Final carryforward requests due to OSBM
State agency requests are due by July 2nd, but we understand UNC institutions may need to finalize their year-end accounting before submitting final requests. Final UNC carryforward requests are due no later than the 5th business day of July (July 8th).
Submit carryforward requests using the updated OSBM Carryforward Template along with any required supporting documentation.

Mid-July
OSBM approves carryforward and notifies universities
OSBM will review requests to carryforward funds from FY 2025-26 to FY 2026-27 in compliance with G.S. 143C and other general statutes.

July 24, 2026
Reversion Allotment due to OSBM no later than Open of Business
UNC should follow the year-end reversion process outlined in the UNC year-end reversion job aid to ensure proper reversion to the General Fund.
OSBM recommends requesting the year-end reversion allotments at least 24 hours prior to the deadline to allow for review and approval.

July 27, 2026
OSC Cash Closing Deadline
This is the final date when cash can move between budget codes.

Allotments for the First Quarter 2026-27

If the General Assembly does not enact the 2026-27 budget (Current Operations Appropriations Act) by July 1, 2026, first quarter allotments will be estimated using the BD 307 Certified Budget for FY 2026-27. Allotments are subject to adjustment by OSBM in the event the General Assembly later passes the Current Operations Appropriations Act.

Thank you for your attention to these guidelines as you continue to serve the citizens of North Carolina as excellent stewards of taxpayer dollars.

STATE OF NORTH CAROLINA
CERTIFICATION
2025-26 Quarterly & Fiscal Year-End Budget Reports

UNIVERSITY NAME: __________________________________________________

This certification should be completed and provided to your OSBM analyst at the time of pre-certification with the Office of the State Controller at the end of each quarter and fiscal year. OSBM reviews both operating and capital budgets for each quarterly close. This is the operating checklist.

BUDGET REPORT REVIEW CHECKLIST

BD 701 Report

1. Certified and authorized budgets reconcile between NCFS, IBIS, and University ERP Budget System at detailed account level
2. No negative certified or authorized budgets at detailed account level
3. No over-expended Budget Funds
4. No over-expended accounts at the pooled account level
5. Consistent use of NCFS program field at the detailed account level; no “000000” program used.
6. Type 14 revisions do not affect 57xxxxxx or 58xxxxxx accounts (exception: 58210000 for dual employment receipts); all Type-14 revenue changes are below the type-14 receipt adjustment threshold.
7. Over-realized receipts were budgeted and approved by OSBM prior to expenditure of receipts
8. No appropriation in Budget Funds for Non-Credit Instruction / Program Code U001103.
9. FTE counts reconcile between IBIS and University ERP Budget System. Internal salary control systems are in balance and do not contain any negative salary reserves.
10. No negative cash balances in special funds (UNC System Office only)
11. Reserve accounts (57xxxxxx) are distributed (unless reverting or carried forward) (year-end requirement)
12. Clearing budget funds and accounts are not budgeted and all expenses have been correctly categorized (year-end requirement)
13. Carryforward is correctly recorded in NCFS and in IBIS (year-end requirement)

BD 702 Report

14. Year-to-date allotment totals reconcile between NCFS, IBIS, and University ERP Budget Systems
15. Year-to-date requirements and appropriation:
    • Do not exceed total allotment and available cash on hand (quarter-end requirement); OR
    • Equals total allotment with no available cash on hand (year-end requirement)
16. Unexpended appropriation indicates proper cash reversions (year-end requirement)

I certify that the BD 701 & 702 Budget Reports are complete, accurate, and comply with OSBM’s guidance.

Note: Please submit copies of this signed checklist and your University ERP Budget System 701 and 702 Reports. If any requirements outlined above are not checked, please explain to your OSBM Analyst why the step was not completed via a memorandum or email.

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