Frequency of Review
The University Budget and Planning (UBPO) Budget Manager will maintain consistent communication with the Major Budget Unit (MBU) through quarterly documented reviews, and in-person meetings at least twice annually. If a financial concern has been identified, the Senior Director for University Budget and Planning will be included on communications. The MBU’s division Vice President and CFO may be included at the Senior Director’s discretion.
Content To Be Reviewed
The Budget Manager will use the quarterly reports and bi-annual meetings to report on budget to actuals, budget revisions, year-end projections, budget planning, Debt Service Coverage Ratio, and UBPO updates. The budget to actuals, and projections will be entered and tracked through Excel. The projections for the remainder of the year will be coordinated between the Budget Manager and MBU campus budget partner. When calculating projections, the following items/topics should be considered:
- Any compensation actions, including both base and one-time items
- Anticipated equipment purchased
- Open encumbrances
- Budget transfers to either increase or decrease funds
- Annual single expenses that may still post (ex: Lease Payment)
- Vacant positions with an estimated hire date
- Historical actuals
The Budget Manager will provide updates at the total MBU, fund, and GL Account Category levels.
At fiscal year-end all MBU balances will be sent to the MBU Lead Administrator and division Vice President.
Corrective Action to Address Financial Concerns
If the Budget and Actuals Review reveals a budget variance at the total MBU level, the Budget Manager will respond as outlined below:
If the variance is within 25% what would normally be expended at the fiscal quarter the Budget Manager will provide written notification to the MBU campus budget partner. The Budget Manager should clearly define if the budget variance is acceptable or problematic. For example, if the MBU has expended 57% of its OE at the mid-year review, but it usually pays a large one-time invoice in the second quarter; it may be considered an acceptable budget variance, but will still warrant written notification. Budget Managers should provide written notification if a GL Account Category has a drastic variance, but the total MBU is within the acceptable range.
If the variance exceeds the 25% range due to reasons that are not recurring and timing related, it will be considered a financial concern, and the MBU campus budget partner will be asked to fill out a Certification of Corrective Action Form which will require: reason for occurrence, actions to be taken to resolve the occurrence, and a timeline of the corrective actions. The Certification of Corrective Action Form should be signed by the MBU Lead Administrator (e.g. Dean, AVP, Director). The MBU’s division Vice President and CFO will be notified at the discretion of the Senior Director of University Budget and Planning.
MBUs should be under or at budget at the close of the fiscal year. Those units that exceed budget by more than 0% will need to fill out a Certification of Corrective Action Form.
Quarterly reviews and completed Certification of Corrective Action Forms will be retained by UBPO in accordance with the campus retention policy.
Capital Project Review
The Budget Manager overseeing Capital Projects and the AVP of Facilities and Chief Capital Planning Officer will perform a bi-annual review of all capital projects in order to ensure that project expenses are aligned with the proper budget lines, that projected expenses post against the project, and that the project is on target to meet spend-down requirements. This review will apply to all major and minor capital projects, and will include budget to actuals, projected expenses, cash flow projections, and anticipated timelines. If the projected expenses exceed the available budget, or timelines may not be met, the AVP of Facilities will be required to complete a Certification of Corrective Action Form and follow the same procedures as outlined in Section III.