Budget Policies

BT05 Budget Regulations for Allocation Funds

Policy Status: 

Under Review

Subject Matter Expert: 

Budget Director, budget@psu.edu

Policy Steward: 

Associate Vice President for Budget and Finance


  • Purpose
  • Nature of Allocation Funds
  • Transfer From Allocation Funds
  • Salary Transfers
  • Transfers to Other Administrative Divisions
  • Further Information

    To present the University regulations pertaining to the budgeting of Allocation Funds.


    The budget of each major area may include an amount known as an Allocation Fund, established to meet changing requirements and emergencies within the existing budget during the current fiscal year. The fund will be considered as a memorandum budget available for allocation at the discretion of the budget executive to any section of his/her administrative area, subject to the following rules.


    Transfers from an Allocation Fund may be made on a temporary or permanent basis in conformity with regular budget regulations. Allocations to cover standing salary provisions must be made on a permanent basis at annual rates, but unused portions of salaries in the position may be transferred temporarily to the Allocation Fund.


    Differences in annual salaries resulting from hiring replacements for standing or fixed-term multi-year positions at salaries lower than those in the budget for the position, may be transferred to the Allocation Fund. The amount needed in the budget to cover actual salary expenditures from the position during the year at the higher annual rate up to the date the replacement is hired, may be provided by a temporary transfer from the Allocation Fund.


    Requests for permanent transfer of funds to other administrative divisions will be routed (via budget amendment form) to the Associate Vice President for Budget and Finance for consideration and approval.


    For questions, additional detail, or to request changes to this policy, please contact the Office of Budget and Finance.

    Most Recent Changes:

    • February 1, 2023 - Editorial changes:
      • Added the Budget Director as the Subject Matter Expert (SME)
      • Changed the Policy Steward from the University Budget Officer to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
      • Changed the Further Information contact from the University Budget Officer to the Office of Budget and Finance

    Revision History (and effective dates):

    • August 6, 2014 - Changes throughout the policy to reflect current operations.
    • August 23, 2000 - The position title "Budget Officer of the University" was changed to "University Budget Officer."