Fund base accounting might have a flaw.
Most state universities have what is called “fund based accounting”. This is where a staff member or department applies for money by making a proposal. Sounds pretty straightforward and simple. Problem is this. There is no incentive to spend less money after the project is approved. Usually if less money is spent a dean or VP sweeps it up at the end of the fiscal year. Very few staff members will try to cut costs. Guess who gets to pay for this little problem?