Self-supporting accounts are neither state-appropriated nor grant-funded. Self-supporting accounts typically generate revenue through the sale of goods or the provision of services. Self-supporting accounts are often established for a specific purpose so expenses charged to a self-supporting account must be directly related to the purpose.
Self-supporting accounts may or may not have budgets. The Nevada System of Higher Education (NSHE) Board of Regents policy requires a self-supporting budget to be approved by the Board if expenditure activity exceeds $250,000 annually (excluding transfers out and ending balance/reserves).
A self-supporting account has both a revenue budget and an expenditure budget. The revenue and expenditure budgets for self-supporting accounts must always balance. The need to balance the revenue and expenditures for a given account requires careful monitoring of every self-supporting budget. Planning, Budget and Analysis recommends that account managers review revenue and expenditures at least quarterly to determine if actual experience remains consistent with what was expected when the budget was developed. If a budget revision is processed that increases or decreases the overall revenue budget, corresponding changes need to be made to the expenditure budget.
A self-supporting budget revision should be processed if it appears that revenue will be significantly lower than the budgeted amount. Similarly, if expenditures are projected to exceed the amounts budgeted to specific object codes (e.g., salaries, wages, travel, or operating), a budget revision must be processed prior to the actual expenditure or encumbrance of funds.
Any surplus (or deficit) from the annual operation of a self-supporting account carries over from one fiscal year to the next. Should expenditures in an account appear to be in danger of exceeding revenues, every attempt must be made to reduce expenditures or to charge them against another appropriate revenue source.