EXHIBIT 1: UNIVERSITY OF PUERTO RICO’S FISCAL YEAR 2019

COMPLIANT BUDGET AND ENFORCEMENT

EXHIBIT 1

BUDGET

*Expenditures and net cash flow before contractual debt service detailed on the following page.

EXHIBIT 1 ( )

BUDGET

EXHIBIT 1 ( )

ENFORCEMENT OF THE UNIVERSITY

Section 1. The President, Executive Director, Chief Financial Officer and the Director of

in the budget certified by the Oversight Board.

Section 2. The allotments for the expenditure line items approved in the budget certified by the Oversight Board may not be reallocated or transferred without prior approval of the Oversight Board.

Section 3. Within 60 days of certification of this budget, the UPR will submit to the Oversight Board allocations of the consolidated expenditure budget for all campuses and component units receiving allocations across the Fiscal Year. These campus and component unit-level budgets should sum to the total expenditures of the consolidated budget, with any unspent contributions allocated to reserve as per the certified budget.

Section 4. Only existing campuses and component units receiving allocations from the UPR central budget in FY 2018 will be eligible to receive allocations from the FY 2019 consolidated budget.

Section 5. After the 60-day budget allocation period, appropriations may not be reallocated or transferred across campuses and/or component units without prior approval of the Oversight Board.

Section 6. Cost reductions in payroll and related expenses, professional services, and required in the FY 2019 budget. The

allotments for the Controlled Categories may be reallocated or transferred solely with the approval of the Oversight Board.

Section 7. An implementation plan outlining the roadmap to implement all measures should be created and submitted to the Oversight Board on July 31 for approval.

Section 8. Performance indicators are to be submitted one month post-certification along

and implementation milestones outlined in the implementation plan referenced in Section 7. The KPIs are subject to agreement with the Oversight Board.

Section 9. The President, Executive Director, Chief Financial Officer and the Director of the Budget Office shall each be responsible for preparing and issuing a report with the cumulative status of all expenditure line items at a campus and component unit level. This report shall be issued monthly for the prior month with the first report due on August 31.

Section 10. If at any point the Oversight Board determine the UPR is not on track to achieve operating revenue expectations in the FY19 budget, it may require at its sole discretion that additional expenditure measures be identified to ensure budget neutrality is maintained

across the fiscal year.

Section 11. Cash surplus and existing cash reserves cannot be used to close any variances in budget to actuals unless written request is submitted to and approved by the Oversight Board.