Budget approval

The University seeks to allocate resources most efficiently to achieve its goals. The University has a responsibility to submit annually a balanced fiscal budget to the Board of Trustees. The following policies outline the University’s annual operating and capital budget processes.

Purpose

The purpose of the policy is to establish the principles and procedures that govern the Board of Trustees’ approval of the University’s fiscal year operating and capital budgets.

Policy

The Board of Trustees shall annually approve the University’s fiscal year operating and capital budgets in conformance with the procedures of this policy. The fiscal budget presented to the Board of Trustees includes projections for all operating fund activity. Both during the fiscal year and at the close of the fiscal year, the Vice President for Business and Finance is responsible for preparing for the Board of Trustees, a comparison of budget to actual expenses and a projection for year-end results. The comparison will include a written explanation of variances.

Definitions

Not applicable.

Procedures/Guidelines

I. Fiscal Budget Approval

The Vice President for Business and Finance will present the annual fiscal budget to the President before submission to the Board of Trustees for comment, adjustment, and approval. The Board of Trustees will review and approve the annual budget and submit it to the full Board of Trustees. The Board of Trustees will provide the final approval of the annual fiscal budget. See the Board of Trustees By-Laws for additional information.

II. Submission of Department and Program Budgets
University departments and programs are responsible for submitting detailed operating budgets to the Vice President for Business and Finance in accordance with a schedule published annually.

III. Capital Project Budgets
For any type of project greater than or equal to $10,000, a budget will be provided by the appropriate vice president to the Vice President for Business and Finance. Capital budgets will include a summary of all appropriate expenses associated with the project and will include such expenses as utilities, interest expense, and project management. The capital budget when submitted will include the funding source for the project. The actual expenditures will be tracked against budget until the project is completed and placed in service.

IV. Budget Accountability
The University’s departments are responsible for the management of their budgets. The Finance department continuously monitors departmental expenditures. When necessary, appropriate steps are taken by the Finance department in concert with the Vice President of the relevant department to ensure adequate funding.

When overspending does occur the department is responsible for covering the excess expenditures. The Finance department notifies the Vice President for Business and Finance of the overspending and then works with the relevant department or program to determine the appropriate funding source to cover the negative variance.

V. Budget Adjustments
Between the time the budget is approved by the Board of Trustees and the start of the fiscal year, there could be adjustments to the budget, due to increases or decreases in revenue and/or fiscal year expenses. Such adjustments are submitted by budget managers and reviewed by the Finance department prior to posting. These adjustments will be reported to the Board of Trustees.

VI. Fiscal Year End Budgetary Transactions
At the end of the fiscal year, the Finance Department will close the budgeted funds by making the necessary transfers into reserve funds and ensuring that the funds are in balance (revenues equal expenses).

To learn more about this policy or the supporting procedures, please contact Finance.

Policy updated on: Oct. 24, 2018