Budget

 

In keeping with our shared commitment to be responsible stewards of University resources, this document outlines the Student Affairs budget model to assist you to reliably forecast the fiscal consequences of budgetary decisions taken by you and your staff.  The model will also enable us to establish a stabilization fund to deal with any unanticipated financial situations that a department might encounter.

Closing Out the Budget at Year End

 

Distribution of budget savings

At the end of the fiscal year, each department’s actual revenues and expenses for its education and general (E&G) activities will be compared to its revised budget to determine whether budgeted net revenue was achieved. The following distributions will be made upon determining a department’s final budget status after second close:

 

·         Salary: Any unused salary budget authority (salary savings) that is not recovered by the University shall be distributed as follows:

o   55% of the salary savings will be maintained by the department and transferred to a department’s 12-fund, 20-fund, or 25-fund account, as appropriate.

o   45% of the compensation savings will be transferred to the Vice President for Student Affairs Special Projects account.

o   Any compensation deficit will be funded by the department’s current year non-compensation savings.

·         Non-compensation: All unused general and administrative net revenue budget authority (savings from all revenue and expense accounts not related to compensation) that is not recovered by the university shall be retained by the department.

o   100% of these savings will be transferred to a department’s 12-fund, 20-fund, or 25-fund account, as appropriate.

o   All departments are expected to have a balanced budget at the end of the year.  Should unforeseen circumstances arise that result in a net deficit, it would be funded first by the 55% departmental compensation savings.

·         Net Deficits:  A department that ends the year in a net deficit will be supported by the stabilization fund upon advance approval by the Vice President of Student Affairs.  Otherwise, the deficit will be funded from the department’s accumulated 12, 20, or 25 fund balances.

 

Procedure

The budget will be closed out by the Executive Director of Finance after the fiscal year’s second close.  Any funds carried over will be distributed to funds at the discretion of the department head.  However, any building fund contribution agreements must be honored before funds are otherwise distributed.  The department head may apportion the carryover funds among offices at his/her discretion.

 

Examples

Example 1 – A $25 compensation surplus and a $50 non-compensation surplus:  Total compensation savings of $25 are distributed 55-45 to the department and VPSA.  The entire non-compensation savings of $50 are kept by the department. Total departmental carryover is $63.75.

 

Example 2 – A $25 compensation surplus and a $50 non-compensation deficit: The compensation savings of $25 are distributed 55-45 to the department and VPSA.  The department needs to use its share of the compensation savings and an additional $11.25 from the stabilization fund (if approved) or departmental funds to pay back the non-compensation deficit.

 

Example 3- A $25 compensation deficit and $10 non-compensation surplus:  The non-compensation surplus of $10 plus additional stabilization funds or departmental funds of $15 are required to cover the $25 compensation deficit.