1.2004 – Budget Planning, Development, and Management

Policy No. 1.2004

Subject: Budget Planning, Development, and Management

Issued By: Budget and Treasury Management Services

Approved: 3/9/2012

Effective: 3/12/2012

Revised: 12/2/2011

POLICY: An annual detailed operating budget for the university must be prepared each fiscal year and must be approved by the university’s Board of Trustees before implementing.  Budget transfers or adjustments must be approved prior to the execution of any purchase orders that will overrun any expenditure line item.  The oversight of the university’s budget is the responsibility of the Vice President for Business and Fiscal Affairs.  

PROCEDURES: 

While budgeting is truly a year-round activity, its development can be broken down into various stages. The process begins with individual program/activity review. Each department within the University reviews and evaluates the effectiveness of their program or activity with respect to the mission, strategic plan, and Vision 20/20 Plan of the University. Budget requests are submitted to the Vice President for Business and Fiscal Affairs for inclusion in the first draft of the budget. The Vice President for Business and Fiscal Affairs and the Director of Budget and Treasury Management Services will meet with the President to determine departmental funding levels in balancing the budget. Budget Development begins in December of each year with a final balanced budget being submitted to the Board of Trustees for approval at their May meeting. The chronological order or activities are as follows:  

  1. The Director of Budget and Treasury Management Services provides the Vice President for Business and Fiscal Affairs with a budget statement of projected revenues, which include enrollment projections from the Division of Student Affairs and statistical enrollment data from the Department of Information Technology, projected rates for tuition, fees, room and board charges for the upcoming fiscal year, projected funding from federal and state sources, as well as estimated expenditures based upon the prior year’s spending levels. 

2. Budget Worksheets are distributed to all Vice Presidents and the Chief of Staff.  

  1. Vice Presidents and Chief of Staff provide their budget submissions to the Vice President for Business and Fiscal Affairs. 
  1. Departmental priorities, annual goals, and critical needs are identified through various discussions and meetings with the Vice Presidents, Chief of Staff, and the President. 
  1. A draft institutional operating budget plan is developed, by the Department of Budget and Treasury Management Services, combining all of the divisional and the departmental budgets to create the statement of projected revenues and expenditures for the upcoming fiscal year. 
  1. The President reviews, analyzes, and approves the budget for submission to the Board of Trustees based upon available funding, priorities, and the Vision 20/20 Plan. 

All budget proposals (including grants and contracts) must be submitted to the Director of Budget and Treasury Management Services for review prior to forwarding to the Vice President for Business and Fiscal Affairs and the President for approval. 

Budget allocations are made annually during the budget process in an effort to meet the basic needs of the University. 

The budget should provide for current operational expenditures and, to the extent funds are available, a minimum of ten percent (10%) for an operational contingency. 

BUDGETARY CONTROL 

All Divisions are provided with their approved budgets which are reviewed with the Vice Presidents, Chief of Staff, and/or other designees. The Department of Budget and Treasury Management Services loads the budgets into the University’s financial software system. The Operating Budget Book is developed and distributed to all planning units. 

Each unit will operate its budget within the institution’s budgetary guidelines. Each unit will ensure that expenses will not exceed budget allocations. 

ADMINISTRATION 

The fiscal management of departmental funds rests with each department head and respective senior administrator. 

BUDGET REVISIONS AND ADJUSTMENTS 

All revisions and adjustments between any budget category except salaries, fringe benefits, and capital expenditures, can be made by the Vice Presidents and the Chief of Staff provided they remain within the overall approved budget allocation for the respective unit. Any other adjustments will require the approval of the Vice President for Business and Fiscal Affairs and the President. 

A Budget Transfer Request Form is required to be executed for any desired changes or adjustments to any expenditure line item within the approved budget allocation. 

BUDGET REPORTING 

The Director of Budget and Treasury Management Services will distribute  monthly Budget to Actual Reports to each senior administrator for his/her respective areas. The reports will be made available electronically using the university’s intranet environment (currently on the P Drive) in the shared folders section. Any discrepancies noted from the reports must be reported immediately to the Director of Budget and Treasury Management Services.

The Director of Budget and Treasury Management Services will distribute monthly, to the Vice President, a University Summary Report featuring Budget to Actual status of all divisional areas.