Business Procedures Manual

Fiscal Affairs Division

8.5 Original Budget

(Last Modified on October 18, 2019)

Each institution submits their original budget for approval by the Board of Regents. The original budget and subsequent amendments serve as the basis upon which institutional financial performance is assessed each year through regular reports to the Board.

During the legislative session and subsequent review of the budget by the governor, institution budget officers should ensure that current fiscal year budget records are accurate and complete. Current, amended budget records in the financial system facilitate the development of the proposed budget for the new fiscal year.

8.5.1 Salary and Wage Increases

(Last Modified on December 22, 2010)

Each year, Fiscal Affairs will issue a salary administration statement that provides guidelines for awarding salary increases for that fiscal year. Salary increases are merit-based, reflecting each employee鈥檚 performance evaluated on an annual basis. Merit increases will generally be distributed on a percentage basis around the average percentage increase as provided for by state appropriations. Merit salary increases that exceed the range established by the salary administration statement must be documented on an individual basis.

Additionally, and subject to Board policy, institutions may make salary increases for promotions and reclassifications or to address issues of salary inequities, subject to the availability of funds. Please refer to Board policy section 8.3.12 for additional information regarding salary and wage increases for faculty.

8.5.2 Budget Allocations

(Last Modified on December 1, 2011)

Upon distribution of the final allocations by the Office of Fiscal Affairs, institution budget officers will work with the allocated budget authority at the campus level to distribute the funds among the various units on campus.

The allocation strategy of formula funds to institutions may include a combination of the following:

  1. A percentage of funds generated by the formula (not including tuition revenues).
  2. A percentage based on performance factors related to graduation, retention and sponsored program funding.
  3. A percentage baed on share of budget reductions.
  4. 鈥淪trategic allocations鈥 from the remaining pool of funds that are allocated based on several factors, such as:
    • System-level priorities and goals
    • Institutional needs
    • Equity adjustments

8.5.3 Budget Preparation at the Institutional Level

(Last Modified on December 1, 2011)

Once the institution鈥檚 budget authority makes funding decisions for the upcoming fiscal year, the financial officers at the institution will complete the development of the proposed budget for the coming fiscal year. This process includes the budgeting of personal services, fringe benefits, and non-personal services for the institution. The process should conclude with the reconciliation of the budget to the final allocation by the Regents and the preparation of summary schedules identified by the Regents. This reconciliation process should utilize queries and reports in the financial system.

The development of the proposed budget for the upcoming fiscal year should also include budgeting for any planned use of reserves from prior years. Current legislation (House Bill 1128) allows institutions to carry forwarad revenue collected from tuition (not to exceed 3 percent of tuition collected), departmental sales and services, continuing education fees, technology fees, and indirect cost recoveries. These revenues do not lapse and are reserved for future use. This legislation is effective through June 30, 2013.

8.5.4 Submission of Proposed Budget

(Last Modified on December 2, 2011)

In order to administratively review proposed budgets prior to approval by the Board of Regents, institutions will need to submit their proposed budgets in accordance with a schedule determined by Fiscal Affairs. Part of the submission process will require the institutions to complete several schedules on-line according to a deadline established by Fiscal Affairs. These schedules can be accessed via the Fiscal Affairs web site: /budgets/.

Note: You will need to select your institution and enter the appropriate Campus Access Code to access this page.

Institutions will be required to submit the following proposed budgets:

  1. Education & General
  2. Auxiliary Services
  3. Student Activities
  4. Capital

Upon completion of the on-line submission, each institution will submit one (1) hard copy of the original budget with the following schedules:

  • Schedule C 鈥 Statement of Revenue
  • Schedule C-1 鈥 Detail of Available Funds
  • Schedule D 鈥 Summary of Budget Functions
  • Schedule D-1 - Summary of Budget Functions by Fund Source
  • Schedule E 鈥 Statement of Personal Services
  • Schedule E-1 鈥 Detail of Institutional Fringe Benefits
  • Schedule F 鈥 Schedule of Non-personal Services
  • Schedule G 鈥 Departmental Budget
  • Schedule G-1 鈥 Detail of Personal Services
  • Schedule J 鈥 Schedule of Employee Salary Ranges
  • Schedule K 鈥 Schedule of Salaries $100,000 and over
  • Schedule L 鈥 Total Raises for Filled Positions Only
  • Revenue/Expense Compare

8.5.5 Board Approval of Institution鈥檚 Original Budget

(Last Modified on October 22, 2010)

In June, the Board approves the educational and general budget, auxiliary budget, capital budget, and student activities budget for all institutions.

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