Financial Planning & Budgets Policy 2 – Budgeting Overview

General Statement

Institutional budgeting is the process whereby the plans of an institution are translated into an itemized, authorized and systematic plan of operation expressed in dollars. This plan serves as a control mechanism to match anticipated and actual revenue and expenditures.

Continuous program planning is necessary in order to appropriately administer each program or function (cost center) within the financial resources available and/or budgeted to administer the funds under their supervision in such a manner as to keep expenditures within the budget established for their operation.

An essential element of budgeting is the establishment of effective budget control. Without adequate controls, the utility of a budget is substantially reduced. It is necessary for department heads to plan departmental programs and control the funds in such a manner as to be sure that current budgets at all times represent their financial plans for the various programs. Expenditures should be anticipated and curtailed where appropriate. Program goals in most cases can be met by realignment of budgets provided adequate planning has been done and adequate controls maintained. Realignment of budgets is absolutely essential for all funds when under-realization of revenue is anticipated.

Standardized Chart of Accounts

The University budget and accounting policies provide for the budgeting and accounting of expenditures, receipts, and fund balances by use of a standardized Chart Of Accounts.

The standardized Chart Of Accounts is utilized for all fund groups in the state budget codes, institutional trust funds, endowments, and agency funds.

Request for Budget Transfer

Budget transfers (both state and non-state) may be submitted on-line using Banner Finance or by e-mail. Either method will document the budget amounts to transfer and required approvals. See Procedure 1 for on-line entry and e-mail instructions.

Request for Flexibility Revision (State Accounts Only)

For state funds, there are limitations to the transfers that can be made without the approval of the Chancellor or designee (the Chancellor may delegate this approval authority to the Provost and Vice Chancellors). Should a transfer need to be made that will transfer monies between personnel and non-personnel accounts or between programs, a Flexibility Revision may be required. The University has its own unique policies concerning the use of lapsed salary dollars that are subject to change. Financial Planning & Budgets and the Office of the Provost or appropriate Vice Chancellor’s can provide the current internal policies regarding the use of lapsed salaries.

Request for Budget Revision

For state funds, most budget revisions are initiated by the Legislature or the Office of the President. If you have a state fund supported by receipts that requires a revision, you should contact Financial Planning & Budgets. For non-state funds, any revisions should be requested through the Provost or appropriate Vice Chancellor’s office.