1.2.1.1 Budget Development

Administrative Responsibility:   Assistant Vice President, University Budget

PURPOSE

The following procedure describes the basic flow for developing a General Fund budget. Auxiliary Fund budgets are initiated when the budgetary unit submits an estimate of revenue and expenditures to the Office of University Budget (OUB) but otherwise follows the same approval track.

SCOPE

All operating units under the general fund

DEFINITIONS

  1. Approved Operating Budget - Budget as approved by the Board of Governors, which does not include any rolled encumbrances or carryforward amounts.
  2. Revised Budget - Budget that includes approved amounts, rolled prior year encumbrances, carryforward amounts and any current year budget adjustments.
  3. Major Budget Units - University subdivisions identified as primary budgeting units for the purposes of reporting. These units are typically schools, colleges or divisions. Major budget units have the primary responsibility for managing budgets for themselves and any subordinate units within the major budget unit.
  4. University Stakeholders - Include individuals, groups, committees or other bodies that have a role in budget development and review of budget proposals. This role may be consultative or authoritative.
  5. Budget Planning Council - A budget advisory body consisting of representatives of faculty, administrators, and students and is convened by the CFO and Provost on behalf of the President.
  6. Business Affair Officers – University employees charged with the responsibility of financial management and oversight, reporting to an executive level individual such as a Dean, Vice President or designee.

POLICY

The WSU Board of Governors vests the President of the University with the responsibility of managing the administration of the institution. As part of this responsibility, the President and the President's designees propose annual General Fund and Auxiliary Activities Fund operating budgets to the Board of Governors for approval.

The operating budgets for the General and Designated Fund, at a minimum, should be balanced.  The operating budgets for the Auxiliary Funds should be managed as a business with anticipated re-investment in capital and other resources to ensure long-term viability.

Responsibility for overall management of the University's General Fund budget lies with the Office of University Budget. That responsibility includes, but is not limited to, the review and analysis of major expenditures on an ongoing basis, reallocation of budget savings that may become available, the preparation of periodic reports on budget performance, and verification of adherence to budget policies and procedures.  The Office of University Budget, if applicable, should recommend mid-year budget action based on projection analysis in order to meet the board approved net budgeted surplus (shortfall). 

Business Affairs Officers are to provide appropriate administration and monitoring of budget units to ensure each unit functions within the approved operating budget and all expenditures are properly recorded and expended in accordance with applicable state and federal statutes, regulations, and university statues, policies, and procedures.  Business Affairs Officers are to provide the Office of University Budget with periodic projections, analysis, and variance explanations to ensure proper university financial controls and overall budget monitoring. 

Each Dean or VP will operate within the approved operating budget as appropriately revised per university policies.

PROCEDURE

Responsibility/Action

  1. OUB - Issue budget calendar of events and deadlines.
  2. Budget Planning Council - Conduct budget hearings with major budget units; conduct reviews and discussions of budget issues.
  3. OUB - Prepare budgeting software for compiling new budget.
  4. Major Budget Units - Financial managers, in consultation with unit executives, enter adjustments and revisions to budgeting software as needed.
  5. OUB - Enter adjustments and revisions to budgeting software as needed.
  6. OUB/CFO/Provost - Prepare summary and detail documents for decision makers; provide budget information to university stakeholders for feedback.
  7. OUB - Revise draft budget as needed following input from stakeholders.
  8. OUB - Prepare Current Funds Budget Book and Board of Governors budget recommendation documents.
  9. OUB/CFO/President - Present budget recommendations to the Board of Governors; obtain approval.
  10. OUB - Following budget approval, utilize budgeting software to update the university enterprise financial management system of record (Banner) with the approved budget for the upcoming fiscal year.

APPENDICES

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RELATED UNIVERSITY/BOARD POLICIES

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Effective Date: N/A

Revised Date: 1/16/2019

Reviewed Date: 11/21/2018

To be reviewed, at minimum, every three years and/or revised as needed by:  Assistant Vice President, University Budget

Next Review By Date: 11/21/2020

SUPERSEDES POLICY

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HISTORICAL DATES

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