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| SUBJECT: |
FINANCIAL AFFAIRS |
EFFECTIVE: September 17, 2009 |
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| Section: |
802.6 Budget Management and Control |
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- The purpose of this policy is to provide clear and specific responsibility for proper budget management and control among university system institutions, the Board and the system office.
- "Budgeting" means the process whereby the plans of an institution, the Board or the system office are translated into an authorized and systematic plan of operation, expressed in dollars, for a given period. "Budget" means the blueprint for the orderly execution of program plans; a budget serves as a control mechanism to match anticipated and actual revenues and expenditures.
- The Board shall:
- Establish all budget requests of the legislative and executive branch;
- Set annual budget guidelines that promote equity and appropriate investment of state resources throughout the system and encourage accomplishment of institution and systemwide outcomes;
- Establish priorities for facility requests to promote facility funding on the basis of systemwide need;
- Allocate funds directly appropriated to the Board on behalf of the institutions and entities;
- Act on all fiscal matters statutorily requiring Board approval;
- Establish fiscal accountability measures and reporting format; and
- Approve the Board and system office annual operating budgets.
- The Chancellor shall:
- Have authority to approve annual institution budgets, subject to compliance with Board guidelines;
- Develop recommended annual and biennial budget guidelines for review by the Budget, Audit and Finance Committee and approval by the Board;
- Consistent with Board budget guidelines, develop and review with the Budget, Audit and Finance Committee an annual system office operating budget to be recommended to the Board;
- Prior to Budget, Audit and Finance Committee recommendation to the Board regarding the annual system office budget, report to the Budget, Audit and Finance Committee annual system office employee salary decisions;
- Consistent with this Policy 802.6 and Policy 302.7, establish annual and biennial budget procedures outlining action items and deadlines for budgeting and budget approvals with allowance for appropriate consultation with the Budget, Audit and Finance Committee and other Board members; and
- Have authority to approve the format of annual budgets.
- Institution presidents shall:
- Allocate institution resources in a manner consistent with expected Board outcomes and pertinent laws, rules, policies and governing accounting policies and procedures, and, within limits established by this policy, reallocate resources within the institution. Annual budgets are approved at the institutional level, not functional or departmental level. Institutions may make budget revisions if the revisions are adequately documented and the president or other institution officer who is delegated that authority has approved the revisions. Institutions may spend income collected from non-general fund and non-tuition income sources provided the president or other institution officer who is delegated that authority has approved the expenditures;
- Ensure that the Board's budget guidelines for a given fiscal year are incorporated into the institution budget and are carried out operationally;
- Be accountable for all funds, property, equipment and other facilities assigned or provided to the institution to ensure that all are used consistent with laws, policies or other specific requirements;
- Periodically report budget and other fiscal status to the Board, consistent with the format and intervals as established by the Board, to alert the Board to significant budget and fiscal variances;
- Adequately plan and make necessary budget or spending adjustments to avoid unusual deficit fund balances at fiscal year end;
- Ensure that monitoring procedures are in place to ensure that the campus operates within the annual budget as approved, except as otherwise permitted by this policy; and
- Ensure that all institution officers and employees act in a manner that is consistent with established university system priorities.
Reference: NDUS Procedure 802.6 |
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| HISTORY: |
New Policy. SBHE Minutes, June 16, 2000.
Amendment, SBHE Minutes, September 17, 2009. |
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