BT01 Operation and Administration of the Budget
Policy Status:Under Review>
Subject Matter Expert:
Policy Steward:Associate Vice President for Budget and Finance>
To outline the University policy governing the general operation and administration of the University operating budget system.
AUTHORIZATION OF ANNUAL BUDGET:
The annual budget is authorized by action of the Board of Trustees,within state and Federal appropriations and other sources of revenue, all of which are combined to cover anticipated budget requirements of the University in fulfilling its functions of instruction, research and public service.
The budget as finally approved by the Board of Trustees shall be administered by the general officers of the University under such regulations as may be prescribed by the President and the Board of Trustees.
DEFINITION OF TERMS:
Budget Executive - Those individuals who are responsible to the President, Executive Vice President and Provost, or one of the senior vice presidents for a section of the budget. These individuals are normally the President's administrative staff, academic Deans, and Chancellors.
The budget executive approves transactions at the upper dollar levels and specified categories, affirming the programmatic need for the action and that the action is appropriate within University Policies and Guidelines.Certain approval actions may be delegated to the budget administrator (see Policy FN18).
Budget Administrator - Those individuals designated by the budget executive as being responsible for operating and controlling specific budget areas within the budget executive's administrative area. These individuals approve documents in their own name within the limits of policy (see Policy FN18). This group normally includes associate deans, division heads, and department heads.
The budget administrator approves transactions at the specified dollar levels and categories, affirming the programmatic need for the action and that the action is appropriate within University Policies and Guidelines.
Budget Assistant - Those individuals designated by the budget administrator (with the concurrence of the budget executive) to approve transactions in their own name for the budget administrator within the limits of policy (see Policy FN18).Budget assistants are typically full-time, standing staff of a responsible grade level, as determined by the accountable budget administrator.
The budget assistant approves transactions at the specified dollar levels and categories, affirming the programmatic need for the action and that the action is appropriate within University Policies and Guidelines.
Financial Officer - Those individuals who represent the Associate Vice President for Budget and Finance in the various budget executive areas. This position has the responsibility of assuring that budgets and expenditures are controlled, assets of the University are protected, and that all actions are in compliance with University Policies, Guidelines, and Procedures (see Policy FN18). In addition, the Financial Officer is responsible for ensuring the accuracy of all documents/actions through the local and University accounting and budgeting systems.
DELEGATION OF AUTHORITY FOR BUDGET ADMINISTRATION:
Except for an amount designated for contingencies, administration of the budget authorized by the Board of Trustees shall be delegated to the budget executives. It is their responsibility to administer approved budgets in conformity with budget regulations issued separately to supplement the general budget policy. It is the responsibility of the Associate Vice President for Budget and Finance to see that budgets and budget changes are in accordance with allocations, budget policy and regulations. It is the responsibility of the Associate Vice President for Budget and Finance to see that expenditures are in accordance with approved budgets, policies and procedures. The total University operating budget may include an amount for special and general contingencies which shall be administered centrally by the President or his delegated staff members.
DETERMINATION OF BUDGET REQUIREMENTS:
Annually, each budget executive, in consultation with his or her budget administrators, will prepare a proposed budget plan for the ensuing fiscal year. After appropriate review and analysis of the proposed budget plans, tentative allocations may be assigned to budget executives by the Executive Vice President and Provost. The President will present the total proposed operating budget to the Board of Trustees for final approval. Approved operating budgets for each administrative division will be determined after Board of Trustees' action on the University operating budget for each fiscal year.
DETERMINATION AND ADMINISTRATION OF ALLOCATION FUNDS:
The budget of each major area may include an amount known as an Allocation Fund whereby each budget executive may designate a sum which will be available for allocation to their departmental budgets as needed, on either a permanent or temporary basis (see Policy BT05). Transfers may be made between any departmental budgets and the Allocation Fund on either a permanent or a temporary basis.
FUND REQUIREMENTS IN EXCESS OF APPROVED BUDGET:
Any proposed change in the annual budget which requires permanent funds (expense supported by income) in excess of the amount of the budget originally approved by the Board of Trustees, excepting routine additional expenses related to additional departmental revenue realized during the year, shall require approval by the Board of Trustees.
For questions, additional detail, or to request changes to this policy, please contact the Office of Budget and Finance.
Most Recent Changes:
- February 1, 2023 - Editorial changes:
- Added the Budget Director as the Subject Matter Expert (SME)
- Changed the Policy Steward from the University Budget Officer to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
- Changed all references to the University Budget Officer and/or Corporate Controller to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
- Changed the Further Information contact from the University Budget Officer to the Office of Budget and Finance
Revision History (and effective dates):
- August 6, 2014 - Changes throughout the policy to reflect current operations.
- October 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
- April 5, 2007 - Editorial change in Definition of Terms section, under Financial Officer. Changed "central accounting and budgeting systems" to "University accounting and budgeting systems," per request of Financial Information Systems and Accounting Operations.
- October 3, 2005 - Editorial change; under the title Definition of Terms, changed Campus Executive Officers to Chancellors, per request of Budget Office.
- August 23, 2000 -
- "Budget Officer of the University" now called "University Budget Officer."
- Tentative allocations may now be assigned to budget executives by the Executive Vice President and Provost rather than the President.
- Under section DETERMINATION AND ADMINISTRATION OF ALLOCATION FUNDS removed the sentence "All temporary unused amounts for standing salary positions may be transferred at the end of each of the first three quarters of the fiscal year to the appropriate Allocation Fund."
- Under the section FUND REQUIREMENTS IN EXCESS OF APPROVED BUDGET deleted the word "general" from the phrase "additional departmental general revenue."
- Other changes in paragraphs marked by >