University Policies
Policy Contact
The Office of Financial Strategy and Planning; Director, Budget, Planning and Analysis Email 401-863-3191

Staff Compensation Vacancy Savings Policy

Policy No. Issue Date Effective Date
07.25.01

1.0 Policy Purpose

Departments may reallocate funding from unspent budgeted staff positions to support compensation needs within their units.

2.0 To Whom the Policy Applies

This policy applies to all operating cost centers with regular and fixed-term staff including union positions funded by unrestricted funds (FD100 and FD110).

3.0 Policy Statement

Departments must consider all staffing needs for the fiscal year when planning and developing annual budgets. Throughout the year, departments may incur salary savings due to employee attrition or other organizational changes. This policy allows departments to reallocate salary savings to support their operation’s staffing needs.

3.1 Permanent Salary Savings

Permanent salary savings are defined as changes that are beyond the current fiscal year such as the elimination of a current position, a reorganization or other position changes. These savings can be reallocated to fund permanent staffing and salary needs, such as:

  • Funding new or replacement positions
  • Equity
  • Job Audits

3.2 Temporary Salary Savings

Temporary salary savings are defined as an occurrence that will not carry over to the next fiscal year such as during a period of position vacancy. These savings can be used to fund temporary staffing and salary needs resulting from the vacancy, such as: 

  • Pay Supplements
  • Temporary employment (e.g., nextSource)
  • Temporary support from internal resources (e.g., shared services teams)
  • Overtime
  • Increasing FTE (temporary)

3.3 Operating Expense Savings (Non-Compensation)

Operating and compensation budgets are not fungible (except for temporary agency expenses). Any non-personnel operating expense surplus resulting from changes in the department’s activities should be reduced from subsequent budgets or forecasts and cannot be used to fund additional compensation expenses. 

4.0 Definitions

N/A

5.0 Responsibilities

All individuals to whom this policy applies are responsible for becoming familiar with and following this policy. Department heads and supervisors are responsible for promoting the understanding of this policy and for taking appropriate steps to help ensure compliance with it.

Human Resources Business Partners and budget liaisons are responsible for ensuring that approved salary changes are funded in accordance with the stipulations of this policy.

6.0 Consequences for Violating this Policy

Failure to comply with this and related policies is subject to disciplinary action, up to and including suspension without pay, or termination of employment or association with the University, in accordance with applicable (e.g., staff, faculty, student) disciplinary procedures.

7.0 Related Information

Brown University is a community in which employees are encouraged to share workplace concerns with University leadership. Additionally, Brown’s Anonymous Reporting Hotline allows anonymous and confidential reporting on matters of concern online or by phone (877-318-9184).

The following information complements and supplements this document. The information is intended to help explain this policy and is not an all-inclusive list of policies, procedures, laws and requirements.

7.1 Related Policies

N/A

7.2 Related Procedures

N/A

7.3 Related Forms

N/A

7.4 Frequently Asked Questions (FAQs)

N/A

7.5 Other Related Information

N/A

Policy Owner and Contact(s)

Policy Owner: Vice President for Finance and Chief Financial Officer

Policy Approved by: President

Contact Information:

The Office of Financial Strategy and Planning; Director, Budget, Planning and Analysis Email 401-863-3191

Policy History

Policy Issue Date:

Policy Effective Date:

Policy Update/Review Summary:

This policy replaces the previous guidelines related to vacancy savings “sweeps.”