Subject: BUDGET PLANNING
The fiscal year for Amberton University is June 1 through May 31.
Budget planning is an annual process that incorporates goals. Goals identification, which is an ongoing process, is evaluated annually and, when funds are required, included in the budget process. The budget process begins in January of each year. The planning takes about 60 days. The proposed budget is presented to the Board of Trustees in March of each year and, when approved, becomes effective on June 1 of the year approved. Because of the size of Amberton University, all full-time employees participate in the budget process.
THE BUDGET PROCESS: TIME/ACTIVITY
* The Chief Financial Officer sends a memorandum to all individuals who have responsibility over an expense account of the University. Each account representative is: (a) given a copy of the current year's budget relative to his/her area, (b) told to share data and solicit requests for funds with all employees relative to needs and/or suggestions (goals), (c) to identify, evaluate, and propose all expense items (salaries, wages, supplies, equipment, travel, etc.) associated with his/her accounts and justify proposals, (d) to return proposals to the director for the budget by February.
* The administrative team comprised of key administrative personnel meets and evaluates present budget performance, economic trends, and anticipated economic constraints that might influence budget planning for the next fiscal year.
A. Evaluate budget performance for the present fiscal year.
B. Identify economic trends (inflation, government regulations, etc.) that could influence budget requirements.
C. Evaluate the performance of endowment funds and anticipate funds to be made available for operations for the next fiscal year.
D. Evaluate any new programs, projects, or goals that could significantly influence budget planning.
E. Predict the amount of revenue to be available for the next fiscal year and identify the maximum amount of tuition and fees increases that could be incurred, if necessary.
* The CFO receives budget proposals from each account representative and shares the information with the divisional Vice Presidents of Amberton University.
* The divisional Vice Presidents, in cooperation with the CFO, reviews budget proposals and notes major changes (increases or decreases in requested funds as compared to the current fiscal year) and, when appropriate, asks account representatives for additional information or explanations.
* The administrative team meets and reviews the budget proposals with special attention given to major increases or decreases. When needed, further information is secured from account representatives (when needed, account representatives meet with the administrative team).
* Budget proposals are tentatively approved.
* Budget proposals are compared to expected revenue. The administrative team works with the budget proposals (and with account representatives) until budget expenses harmonize with expected revenues.
* The budget proposal is presented to the Board of Trustees for review and final approval. The approved budget becomes effective June 1.