Commitments

Please keep the following in mind:

• Commitments are made to departments and faculty from a variety of sources. Each commitment is given a unique commitment identification number and it should be referenced when creating a new chart string, requesting transfers, requesting budget adjustments, submitting FAO business plans, and in budgeting/forecasting usage.
• In general, departments accrue expenses throughout a fiscal year. The Office of Finance & Administration coordinates the reimbursement process and the transfer of revenue to the departments. 
• When a commitment sourced from NMCat or NMGrant is over $25,000, departments should create a chart string specific to the commitment with the source in the name of the chart string (e.g., NMGrant Dr. Adams PI String). Please reference Budget Journals.
• When a commitment is given for the purpose of recruiting several new faculty within a department, it is essential to track these subcommitments and useful to communicate them clearly with the Office of Finance & Administration and other concerning departments/centers. Departments should create a chart string for each new faculty member.
• Commitment balances will be loaded into NUPlans Web during the annual budget planning process. Departments should only budget what is anticipated to be spent in a specific fiscal year.
• If expectations change throughout the year, departments should update revenue and expense in NUPlans forecast and follow the budget request process forms as needed.
• With the exception of funding cost share, please avoid expense transfers out on commitment chartstrings.
• At the end of the fiscal year, the Office of Finance & Administration coordinates with departments to transfer revenue into chart strings based on expenses accrued throughout the year. Carryforward buildup is not allowed. Funding commitments should not build/add to carryforward surplus on a chart string. Please use existing chart string balances before requesting commitment funds transfers. Generally, restricted funds (gifts, endowments, etc) should be used before utilizing dean’s commitments, when appropriate.
• If expenses are in a chart string that contain either NMCat or NMGrant in the name, the Office of Finance & Administration will automatically transfer NMCat/NMGrant revenue to fund the expenses in these chart strings during our normal closeout process. If the department needs to fund expenses in additional chart strings, a spreadsheet will be uploaded to departments’ Sharepoint Year End Closing folder. Update the spreadsheet with the chart string and amount request and upload to the folder. Upload copies of the GL005s for NMCat/NMGrant designated chart string.  Upload the GL008s and, if applicable, the HR004, with the specific expense transactions highlighted for the non-NMCat/NMGrant designated chart strings and any other relevant information/reports to the folder as backup documentation, adhering to FSM fiscal year close deadlines. This pertains to all  Commitments (NMCat/NMGrant, NMH Grant, Chair Discretionary, Dean’s Commitments, etc.) except for Appropriation.