Why must we completely spend our budget each year?

QUESTION:
Why is there an impetus at the end of the budget year to spend the remainder of any such budget? Why can’t budget holders just give back, or get the difference added to next year’s budget, or get a bonus on next year’s budget for coming in under budget? Perhaps the way in which we spend budgetary money should come under a review?

 

ANSWER:
Departments should manage their expenditure in accordance with operational needs and budgetary constraints. This is monitored through the monthly finance returns and also quarterly business reviews.
They are expected to surrender budgets where they are surplus to needs and make a case for expenditure in excess of budget where necessary. Savings can then be used to fund additional expenditure where justified.
Ultimately, we all have a responsibility to generate income and manage our costs to create sufficient surpluses to enable the University to invest for the future.

*This is a question that unfortunately we did not have time for during the last Executive Question Time Event.