Sonoma State University
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University Budget Oversight Process

I. University and Self-Support Operating Funds

The Office of University Budget and Resource Planning (UBRP)will use the quarterly reports to report on budget to actuals, budget revisions, year-end projections, budget planning Debt Service Coverage Ratio as appropriate and any relevant UBRP updates. The budget to actuals, and projections will be entered and tracked through the budgeting software. The projections for the remainder of the year will be coordinated between the Budget Manager and Budget Unit’s Campus Budget Partner. When calculating projections, the following items should be considered:

  1. Any compensation actions, including both base and one-time items
  2. Anticipated equipment purchases
  3. Open encumbrances
  4. Outstanding budget transfers
  5. Annual expenses that may still post such as software costs or lease payments
  6. Vacant positions with an estimated hire date
  7. Historical actuals

The Budget Manager will provide updates at the total Budget Unit and fund.

At fiscal year-end, all Budget Unit balances will be sent to the Lead Administrator and Division Vice President.

II. Non-Operating Funds

The Budget Office will conduct a quarterly budget-to-actuals review for all budgeted non-operating funds and send it to the Budget Unit Campus Budget Partner. The report should indicate whether there are any budget variances identified that are acceptable or problematic. If a problematic variance is identified at the fund level, the Campus Budget Partner will be required to complete and submit a Corrective Action Form and follow the same procedures as outlined in Section III.

III. Corrective Action For Quarterly Review

If the budget and actuals review reveals a budget variance at the total Budget Unit level, the Budget Manager will respond as outlined below:

  1. If the variance is within 25% of what would normally be expended at the fiscal quarter, the Budget Manager will provide written notification to the Budget Unit campus budget partner. The Budget Manager should clearly define if the budget variance is acceptable or problematic. For example, if the Budget Unit has expended 57% of its operating expense 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.
  2. 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 Budget Unit  Campus Budget Partner will be asked to fill out a 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 Corrective Action Form should be signed by the Lead Administrator. The Budget Unit’s division Vice President and the Chief Financial Officer (CFO) will be notified at the discretion of the AVP of University Budget and Resource Planning (AVP).

    Budget Units 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 Corrective Action Form. The form should be completed and returned to UBRP within 45 days of the close of the fiscal quarter.

If the significant variance cannot be resolved within the division, the AVP will refer the issue to the CFO and the relevant division Vice President to achieve a resolution. If no resolution can be found, a formalized request will be submitted by the division Vice President to the President and Cabinet for consideration and resolution. Detailed documentation, including the financial reviews and any additional actions taken to address significant variances will be retained electronically within UBRP in accordance with the campus retention policy. Budget Units that required unanticipated additional funding in order to finish the fiscal year in a balanced position will be required to submit a Corrective Action Year End Summary.

IV. Corrective Action for Self-Supports Experiencing Financial Instability

If a Self-Support Unit submits a Multi-Year Budget Plan that includes one or more years with a budgeted deficit, the unit will be required to complete a Corrective Action Strategic Plan documenting strategies for balancing the budget over the multi-year planning period. This plan will be signed by the Division Vice-President and the CFO.