Budget Process, Controls, and Purchasing Policies
Budget controls and purchasing policies are necessary to enhance the University’s ability of achieving its budget objectives. The Business Office will act as a central agency or clearing house for the administration of these controls and policies.
The budget process begins with the preparation of a “pro-forma I” budget which is developed no later than the April preceding the beginning of a fiscal year. This pro-forma budget is revised in the fall after registration, establishing a “pro-forma II” budget. Another review and revision is made after spring registration. The preparation of each budget is the responsibility of the VP of Finance, Operations & Administration. The VP of Finance, Operations & Administration will act as coordinator for the collection, assimilation, and presentation of budget information. The VP of Finance, Operations & Administration will solicit information regarding budget requests from all academic school and administrative departments having budgetary responsibilities. This information, once assimilated, will be reviewed by the University’s administrative officers and adjusted as necessary. Once a budget has been approved by the administration, it will be presented to the Finance Committee of the Board of Trustees for approval. The Finance Committee presents the budget to the full Board of Trustees at the spring and fall meetings. It then becomes the official budget under which the University operates.
The achievement of budgetary objectives is the responsibility of all administrative officers, administrative staff, and academic deans. These officials will be responsible for accomplishing the objectives of each budget area within the financial limitations of that budget. Certain officials are responsible for achieving revenue sufficient to meet income budgets.
The President and Provost are responsible for seeing that all academic schools and administrative departments meet their objectives.
The controller and/or bookkeeper, who are responsible for all accounting and bookkeeping, will prepare and forward monthly budget statements to each administrator and department chair. These budgets should be reviewed for accuracy as well as status. Any questions regarding the budget reports should be directed to the controller. The controller will also contact administrative department heads when he/she recognizes problems or potential problems in the administration of a particular line item of the budget; however, all responsibility rests with the budget manager. In an effort to permit management of a budget, the budget manager may request in writing, to the VP of Finance, Operations & Administration, that funds be reallocated among line items for which he/she is responsible. Authorization to grant this request will lie with the VP of Finance, Operations & Administration. To reallocate funds from one department to another will require the review and approval of the President. To alter the budget objectives will require approval of the Finance Committee of the Board of Trustees.
Persons exceeding budget limitations may be required to submit written explanations for this occurrence to the appropriate Vice President or the President. Persons may be relieved of their budgetary responsibilities in the case of budget overruns due to mismanagement, or failure to follow University Policies and Procedures.