Business and Finance (Includes Physical Plant)

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Budgeting Policies and Procedures

04:02:00 Budgeting Policies and Procedures

1. Introduction
   1. The policies presented here deal primarily with the interaction between the Business and Finance Division offices and the campus community. Department heads need to know how to request a new account, initiate annual budget requests, and how to get a change made to the existing budget.
2. Budget Preparation Process
   1. Preparation of the annual operating budget and capital spending budgets involves all employees. Wide-spread participation increases both the reliability of the final document and its degree of acceptance by responsible faculty and administrators.
3. Prosposed Budget/Current Estimate
   1. Preparation of the budget document and any subsequent revision is the Executive Vice President for Business’s responsibility. The budget preparation process may be modified each year to reflect improvements in the process and/or circumstances germane to the year. The process may be generally described as follows:
   2. In February, the Executive Vice President for Business and Finance emails to each department chairperson and office head the materials necessary for preparation of a new budget. These materials include instructions, forms for requesting new positions (regular and temporary), student work, educational benefits, travel, operating expenses, equipment, renovation of facilities, etc.
   3. Deans and Directors prepare their budgets and forward them to the administrator to whom they report for review and necessary modification. This initial review stage takes place in early March. The administrators then forward the budget requests to the Budget Office.
   4. The Executive Vice President for Business and Finance assembles the revenue side of the budget. This includes estimating tuition and fees, gifts and grants, and other revenue.
   5. By mid April, the Budget Office compiles all individual departmental budget requests and, having compared estimated expenditures with estimated revenues, begins to prepare reports for the meetings of the President’s Cabinet.
   6. The President’s Cabinet sets the criteria for the use of new resources by identifying goals or needs included in the strategic plan. The Cabinet reviews the proposed budget in mid April, paying particular attention to major equipment needs and those changes and additions to programs and staffing with financial consequences. The budget is then finalized and submitted to the TBR for review in early May.
   7. In its June meeting, the TBR is asked to review and approve summaries of the proposed operating budget and capital budgets. After the TBR approval of the Board is obtained, the Budget Office updates the budget electronically in Banner.
   8. Revised Budget:
      1. The Board sets tuition and fees in June of each year. The Budget Committee (members of the Budget Committee includes the Vice Presidents and the Presidents of the Faculty Senate, Professional Staff, and Clerical Support Staff) holds open budget hearings in September, devoting its attention to the review and approval of additional new programs and funding requests that were not funded in the proposed budget cycle.  
4. Budget Changes
   1. Budgets are established for departments at the beginning of each fiscal year. In certain circumstances, it becomes necessary for a department to modify a particular category in its budget. Such circumstances may include, but are not limited to, preventing over expenditures and meeting unusual events.
   2. Budgets can be modified by submitting to the Executive Vice President of Business and Finance’s Office a Budget Revision form that must have the respective Vice President’s approval.
   3. Restrictions in making budget changes include:
      1. Available budget funds from vacant faculty or staff positions and adjunct positions cannot be used to increase any other budget category.
      2. Approval necessary on the Budget Revision Form will depend upon who initiates it. The usual signatures are as follows, in ascending order:
         1. Chairperson, Director
         2. Dean
         3. Vice President
         4. Executive Vice President for Business and Finance
   4. When an event requires a budget adjustment, the change request must be submitted prior to the event with proper justification. Generally, requisitions will not be approved if budget funds are not available.

Approved: Executive Staff, 05/20/09
Approved: President’s Cabinet, 05/20/09
Approved: President, 05/20/09
Revised: Business and Finance, January 28, 2009