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To:     University Business Managers
Finance Advisory Council Members

From:  Roger Patterson, Assoc. Vice Chancellor for Finance

Date:  May 1, 2009

The introduction of Human Resource’s website for the Flexible Furlough Program has resulted in several calls and emails to departments within Finance, so I thought I should provide you with an update.   The University is still awaiting guidance on how the program will work. The Office of State Budget and Management (OSBM), the Office of State Personnel (OSP) and General Administration (GA) have collected a number of questions from the UNC campuses and will notify the campuses when the operational aspects of the program have been finalized.

One particular question that many people are calling and emailing about is whether the furlough program will apply to all fund sources as mentioned in the official releases. The answer is “yes”.  The Office of State Budget and Management (OSBM) has clarified that the furlough will apply to employees regardless of fund source.  The State does not want one employee to be furloughed because he/she is on State funds and another employee not to be furloughed because he/she is on non-State funds.  This does not mean OSBM plans to capture the savings generated by trust funds that result from the furlough.  At this point, OSBM does not intend to capture the savings from non-State funds.

To re-stress, at this point we are still awaiting guidance on the operational aspects of the program. As soon as the central offices have details on how the program will work, you will be notified.

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