|Annual Operating Budget Process:
The process may be generally described as follows:
During the fall semester, the VP for Business Affairs’ office compiles information for the submission of proposed increases in tuition, and room and board rates for the next fiscal year. Based on the information compiled and planned rates budgeted for in the University’s Five-Year Strategic Planning Model, along with preliminary estimates of expenditures to be incurred for the next fiscal year, the University’s management presents its recommendations for tuition, and room and board levels for the next fiscal year to the Board of Trustees at its January meeting. Broad-based budgeting parameters are also presented to the Trustee Finance Committee during the January meeting sessions.
In late January/early February, the Controller’s Office e-mails to each budget manager the materials necessary for preparation of a new budget, including: budgeting instructions; a Departmental Budget spreadsheet file listing the previous year “actual” and the current year “budget” for each of the expense categories authorized for the department; an Incremental Operating Expenditure Requests File; and an Expenditure Line Justification File. At this same time, meetings are initiated with departments for information sharing and training.
The budget managers prepare their budgets and return them to their Vice Presidents, who review the budgets and forward them to the Controller’s Office by late February. Vice Presidents may determine that departments can send their Departmental Budget worksheet files directly to the Controller’s Office. Please note that all budget worksheets and supporting schedules must be submitted in electronic format (MS Excel). No hard-copy formats will be accepted. Additional time is allotted for the preparation of the Incremental Requests and the Budget Justification worksheets. Once budgets have been returned to the Controller’s Office, meetings will be set up with all the Vice Presidents to discuss and clarify issues regarding their submitted budgets.
By mid-March, the Controller’s Office compiles all the individual departmental budget requests and, having compared estimated expenditures with estimated revenues, begins to prepare reports for the Cabinet’s review.
The Cabinet reviews the proposed budget in April, paying particular attention to incremental expenditures with significant financial consequences. At its May meeting, the Board of Trustees is asked to review and approve summaries of the proposed operating and capital budgets. After the approval of the Board is obtained, budgets are loaded into the Banner GL module and, by mid-June, the Controller’s Office informs all departments that online reports are available for the upcoming fiscal year.
Click on the link below in order to view the timetable for the current/next fiscal year’s projection/budgeting process.
FY 08 Budget Time Table.xls.
Annual Operating Budget Proposal Preparation
The operating budget proposal process serves as the primary planning and control tool for the linkage of mission-based programs and the financial resources necessary for their success. To ensure that resources are available to meet the programmatic priorities of the University, it is important that all revenues and expenses be budgeted (planned) in a comprehensive manner.
The submission of the budget proposal worksheets and any subsequent revision is the individual departmental budget manager’s responsibility. At the beginning of each semester, the Controller’s Office provides budget training for new budget managers. Budget managers who have attended in the past, and who wish to attend as a refresher, are also welcome to do so.
In late January/early February, the Controller’s Office prepares a budgeting package, which is e-mailed to each departmental budget manager. There are three documents that must be completed as part of the annual operating budget process. They are: the Departmental Budget file, Incremental Operating Expenditure Requests File, and Expenditure Line Justification File. Below are instructions for the completion of each, as well as attached samples to assist budget managers in the process.
How to Prepare the Budget Worksheets:
- Departmental Budget File:
- The departmental budget worksheet is provided for budget managers to fill in the proposed budget for the upcoming fiscal year.
- Data is subtotaled by major account types [revenues (5xxxx), salaries and fringe benefits (61xxxx & 65001), recharges (68xxx), and expenses (7xxxx)] for each organization number.
- The worksheet includes a column that shows last fiscal year-end’s actual revenues and expenditures. This information is provided to budget managers to assist them in developing their budgets.
- The current fiscal year budget column contains permanent budgets as of December 31. This column does not contain any temporary (one-year) budget changes made to departments. Any permanent changes made after December 31, are not reflected in this budget column, and therefore need to be factored into the proposed budget column.
- Based on the information provided in the preceding columns of the worksheet, a proposed budget is to be developed for the upcoming fiscal year and entered into the proposed budget column.
- For expenditure items that have any inflationary increases budgeted, the amounts are calculated and entered by the Controller’s Office and shown in the inflationary increase column. Budget managers should add such inflationary increases in the proposed budget column.
- If additional funds have been initially allocated to your departmental expenditures by your divisional Vice President, who has funded such approved expenditures out of an expenditure increase pool of funds that they maintain, the dollar amount of such funds will be added at the bottom of each qualifying ORG’s total under the title of “VP Expenditure Increase Pool – Initial Allocation.” Such dollars can be added to the proposed budgets of any line items managed by the budget manager in any manner they deem appropriate or as directed by their divisional Vice President.
- If a divisional Vice President allocated additional funding for specific organizations out of their VP Expenditure Increase Pool (over and above the amounts initially allocated as explained above), such increases must be allocated among the account codes for the given Organization and identified with the notation “$xxxx funded from VP pool” in the comment column.
- Budget managers are not required to fill in budgets for exempt and non-exempt permanent, full-time position salaries (Account codes 611xx through 615xx). No full-time salary lines are to be increased by budget managers. Any adjustments for such increases will be made by the Controller’s Office and automatically reflected in opening budgets (which will be loaded into the Banner Finance module in June).
- Managers must fill in budgets for all part-time wages including student wages, stipends, overtime, and overloads (in the 616xx account categories.)
- Fringe benefits budget for part-time or full-time positions (65001) are not required to be filled in.
- In the case that an account code for a given expense is not listed on the spreadsheet, the appropriate code can be added, but budget managers must ensure that the formulas for the subtotal lines are updated to include any new lines that are added. Financial managers are encouraged not to use the miscellaneous expense account code (#73201) to bundle expenses. A comprehensive list of account codes can be obtained by logging into Banner and querying on the FTVACCTscreen.
- Proposed budgets for all revenues (5xxxx) and recharges (68xxx) are entered as negative whole numbers (no decimals). Proposed budgets for expenses are entered as positive whole numbers (no decimals).
- Budget managers can move funds between various organization and account codes under their control. However, the total proposed expense budget should not exceed the permanent budget plus any VP Expenditure Increase Pool allocations and inflationary dollar increases.
- Budget managers can increase their proposed expenditure budgets higher than the budget amount only if such operations are solely funded by program revenues. However, such increases can only be justified if revenues and operating margins are proposed to increase proportionately.
- Any additional/incremental requests for spending should not be added to this worksheet.
Please click on the link below to see a sample budget worksheet. Click on the headings at the top of each column for descriptions and explanations of each item.
Sample Operating Budget Worksheet
- Incremental Operating Expenditure Requests File :
- If additional funding is required for operational purposes that is not covered by (or partially covered by) inflationary increases and the VP Expenditure Increase Pool, please fill in the worksheet in the Incremental Operating Expenditure Requests File.
- Provide details about your request in the box in Column A.
- Dollars requested should be entered in Column B.
- Enter the Organization and account code for each item for which additional funding is being requested.
- Please copy additional blocks if needed to provide details for more than six records.
- Please ensure that such amounts are not added in the proposed budget column of the Departmental Budget worksheet file.
- The completed Incremental Operating Expenditure Request file must be returned to your Vice Presidents, who will review all such incremental expenditure requests and assign divisional priorities to them. Divisional Vice Presidents will directly communicate the due date for submission of such requests to their respective office. Please do not forward your incremental requests directly to the Controller’s Office.
Below is a link to an example of the Incremental Operating Expense Request.
Sample – Incremental Operating Expense Requests
- Expenditure Line Justification File:
- Separate written justifications are required for all part-time salary (616xxx) and expense (7xxxx) account codes with proposed budgets over $10,000. This amount must equal the dollar amount that was shown as your proposed budget for the new fiscal year in the Departmental Budget worksheet file.
- We strongly encourage financial managers not to use the miscellaneous expense account code (#73201) to bundle expenses. If you do budget to this account, you must provide detailed justification for such items over $1,000.
- Please enter the organization and account code for each item that you are justifying. Dollars justified should be entered in Column B.
- Please copy additional blocks if you need to provide justification for more than six records.
Below is a link to an example for the expenditure justification.
Sample – Expenditure Justification