The College Community,

As we begin Fiscal Year 2026, we’d like to share some important updates regarding budgeting and purchasing processes:

Effective July 1, 2026, we will implement four dedicated OTPS (Other Than Personnel Services) program codes to manage and track expenses in the following categories:

• Accreditation
• Contracts
• P-Cards
• New Initiatives
  
  

These program codes will be used exclusively for their respective categories to ensure that budgets are managed independently. This change is intended to improve budget transparency and prevent overspending by avoiding the commingling of funds within the general OTPS budget.

P-Card Process Improvements:

Currently, departments submit a requisition (REQ) to initiate P-Card purchases. Once the purchase is complete, the REQ is canceled, and the expectation is that the original budget remains available to cover the charge. However, this often leads to issues where the budget is consumed by other transactions, resulting in insufficient funds at the time of reconciliation.

To resolve this, we are introducing a revised workflow:

1. Department submits a P-Card request to the Purchasing Department.
2. The Budget Office transfers the requested amount to the new P-Card program code.
3. The department submits the requisition in CUNYBuy, using the P-Card program code to encumber the funds.
4. Purchasing Department completes the transaction using the P-Card once the Requisition is fully approved.
5. Purchasing reconciles the P-Card transactions.
6. If the expense is for a specific program, it can be reclassified to that program code once reconciled and paid.
   
   

Contracts, Accreditation, and FY 2026 New Initiatives:

A similar approach will be taken for expenses in the Contracts, Accreditation, and New Initiative categories:

• Budgets for these categories will be allocated directly to their respective program codes based on the FY 2026 approved budget.
• These funds will only be used for their designated purpose, ensuring they are not unintentionally pooled into the other OTPS category.

This structure promotes better fiscal oversight and helps ensure that spending aligns with budget.

Fee-Based Programs:

Starting in FY 2026, budget allocations for all fee-based programs, including Material Fees, Academic Excellence Fees, and Differential Tuition, will be based on actual collections instead of billed amounts, which was the previous practice. This change ensures that spending is limited to funds that have actually been received.

Process:

• At the start of each semester, budgets will be allocated based on collected fees per program.
• Mid-semester adjustments will be made for the current semester, and further adjustments will occur at the start of the next semester based on prior semester collections.
  
  

We appreciate your cooperation and are here to support you through this transition.

Please let us know if you have any questions or require additional information.

Best wishes for an enjoyable summer break.

Ajisa Dervisevic

Assistant Vice President, Planning and Budget

Ofice of Planning and Budget |Room 2H06M

Phone: 718.262.2013

Email: adervisevic@PROTECTED

MS Teams: ajisa.dervisevic59