Departmental Business Management Guide - Budgeting

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

Budgeting is the process of planning and maintaining a budget. A budget is an itemized summary of estimated or intended expenditures for a given period along with proposals for financing them. Budgets should be used as a comparison to monitor the actual performance of activity throughout the fiscal year and as an aid to help make adjustments to the distribution of resources.

University Guidelines

In general, for State appropriated Education & General (E&G) funds, the State Legislature finalizes appropriations; the University Budget Advisory Committee determines allocations by Division; Division Vice Presidents determine allocations for their Schools/Colleges; and Schools/Colleges determine allocations for their departments by budgetary account. Spending on E&G funds is controlled by budget. In order for a transaction to post to a department-fund-account combination, it must have sufficient budget. If necessary, budget may be transferred within E&G funds.

For non-appropriated (i.e. revenue producing/non-E&G) funds, budgets are generally developed by departments for Auxiliary and Local (Student Activities, Agency and Scholarship) funds and are developed centrally for Sponsored Research, Vending, and Athletics funds. For Auxiliary and Local funds, spending is not tracked by budget; therefore, departments should monitor cash balances closely to prevent overspending. Non E&G budget transfers are not permitted.

Auxiliary operations are overseen by the Auxiliary Service Board (ASB), which has the responsibility for approving the establishment of new auxiliary operations. In addition the ASB reviews the administrative overhead assessments, cash balances, pricing policies/rates, and fund balances.

(Policy OP-D-1 – Budget & Analysis)

Internal Controls

• Ensure all departmental auxiliary operations have been reviewed and approved by the Auxiliary Service Board.
• Ensure all operating budgets are approved by the OMNI Dean, Director, Department Head, or Chair (DDDHC) prior to submission to Budget & Analysis.
• Monitor all activity within departmental budgets throughout the year to ensure the completeness, accuracy and validity of all transactions.

Departmental Responsibilities

• Planning for the effective use of departmental financial resources.
• Entering operating budgets in July each fiscal year.
• Completing and submitting to Budget & Analysis required budget documentation, including the Annual Auxiliary Information Form.
• Monitoring departmental balances to ensure that E&G departments have a positive Available Balance and that non-E&G departments have a positive Cash Balance.

Resources

• University Policy OP-D-1 – Budget & Analysis
• Budget and Analysis
• Managing a Budget Training Materials
• Auxiliary Information
• Budget Forms

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