Internal Governing Policies


 

#99 - Budgeting Process


Approved: March 11, 1998

Nomenclature changes: December 22, 2006

Monitor: President


OPERATING BUDGET

The process for developing the University's annual operating budget is designed to provide allocations of available funds which best promote the accomplishment of stated University goals and priorities in a manner which motivates units of the University to operate in an effective, efficient, and economical manner. Departments, under the direction of the appropriate Vice President, develop and maintain internal operating budgets utilizing a decentralized budget philosophy. That is, most resource allocation decisions are made within individual units and Vice Presidential areas rather than centrally. Vice Presidents and account managers are encouraged to reallocate funds from lower to higher priority needs so that resources are used in the most effective manner possible. The following general principles have been established.

  1. The best interests of the total University shall guide all recommendations/allocations.
  2. The highest priority shall be assigned to meeting the instructional needs of students.
  3. Adequate flexibility for account managers and administrators shall be protected through the maintenance of a decentralized budget management process, and an emphasis on the maintenance of purchasing power for existing budgets.
  4. Periodic reallocation of funds among University units may be necessary to meet the changing needs of the University.

PERSONAL SERVICES: Each year the Budget Office shall provide Vice Presidents with their base personal services budgets.

Implicit in this system of establishing the Personal Services budget is the function of establishing, changing, or canceling positions by the Vice Presidents/President. Requests are processed through the Personnel Authorization Request (PAR) form.

  1. Specific Position Approval

Vice Presidential approval is required for the following actions:

a. Any change in appointment percentage.

b. Reclassification of civil service positions.

c. All replacements and substitutes for existing faculty, administrative/professional, and civil service staff positions.

d. All temporary faculty, administrative/professional, and civil service staff appointments, including extra help appointments.

In addition, Presidential approval is required for the following actions:

Establishment of new positions.

INTERNAL BUDGET DOCUMENT: The Budget Office shall produce an Operating Budget Book annually, which reports established budgets for appropriated, revenue bond, and other auxiliary accounts.

FIXED COSTS BUDGET

Fixed costs are defined as those resources necessary to fund adequately the basic operating requirements which are central to University operations. Fixed costs budgets are established by the President after review and recommendation by the President's Council.

Funds shall not be transferred to or from appropriated fixed costs budget accounts without prior approval of the President, after review and recommendation by the President's Council.

CAPITAL BUDGET

Budget requests for regular capital and capital renewal projects included in the University's annual budget request are established by the President's Council for submission to the Board of Trustees, in accordance with the University's strategic plan and the recommendations of the Vice President for Business Affairs.

BUDGET TRANSFERS

Budget transfers are required to move funds between budget accounts within the same fund, to transfer funds between line items, and to increase local and revenue bond budget accounts. Transfers of significant amounts among internal budget appropriated accounts must be referred to the Council on University Planning and Budget.

NEGATIVE BALANCES

Vice Presidents are responsible for identifying and eliminating negative account balances within their areas of supervision. All negative account balances shall be eliminated by the close of the fiscal year, unless an account manager's plan for eliminating the negative balance over a longer time period has been approved by the appropriate Vice President and filed with the Director of Business Services.