TO: All Members of the University Community 2000:01
DATE: January 2000

1. POLICY
   The Budget Management Policy delegates authority and responsibility for budgeted resources to the president, vice president or dean/director level as specified in the following policy guidelines.

2. POLICY GUIDELINES
   1. Budget control points included in this policy, including authority level:
      1. Regular Positions (vice president) Note: Authority may not be delegated
         1. Full-time continuing positions
         2. Full-time temporary positions
      2. Part-time and supplemental (dean/director)
         1. a. Supplemental faculty wage
         2. Part-time
         3. Student wage
         4. Overtime
      3. General operations (dean/director)
         1. Supply and expense
         2. Department equipment
   2. Budget control points not included in this policy:
      1. Employee benefits
         1. Individual benefits (health, life, etc.)
         2. Pooled compensation (early retirement, sick leave payoffs, longevity, shift differential, etc.)
      2. Summer faculty salaries
      3. Centrally funded supplemental faculty salaries
      4. University-wide costs
         1. Insurance
         2. Utilities
         3. University equipment items (CPU, Voc. Ed., etc.)
         4. Student assistance (financial aid)
      5. Others as may be identified annually (debt service, deferred maintenance, minor capital improvements, etc.)

3. AUTHORITY
   1. The president has the authority to amend this policy.
   2. Vice presidents have the authority and responsibility for maintaining divisional resources within budget and may further restrict this authority as circumstances dictate.
   3. Deans/directors have authority and responsibility for maintaining college/unit resources within budget.

4. GENERAL GUIDELINES
   1. Allocations The allocation process is outlined in the planning and budgeting flowchart.
   2. Budget adjustments
      1. Permanent Budget Transfers
         1. Resources may be moved within a college/unit with dean/director or designee approval following established University procedures.
         2. Resources may be moved between a college/unit with vice presidential approval and communication to the Budget Office following established University procedures.
      2. Temporary Budget Transfer
         1. Resources may be moved between college/unit or within college/unit up to $10,000 with dean/director approval following established University procedures.
         2. Resources over $10,000 beging moved within college/unit or between college/unit must have vice president approval.
   3. Over expenditures
      1. Absolutely no over expenditure of institutional resources will be allowed. The finance office will alert budget managers to areas of concern when budget balances are in question. Budget managers will then have the responsibility to provide additional resources or to stop expenditures from such accounts.
      2. Each person in the institution will contribute to the conservation and effective use of institutional resources. Decentralized authority is intended to give unit managers needed flexibility to effectively manage unit operations. At the same time, managers are responsible for ensuring that resources are not over-expended.
   4. Base Budget Adjustments Divisional operating budgets will be provided with annually approved base budget adjustments. Generally, these adjustments relate to inflationary increases to supply/expense budgets.

The president and the respective vice presidents may further restrict authority, allocations, and budget carryover as needed.

1. SALARY AND WAGE
   1. The salary and wage category includes the following budget items which are assigned to unit/account levels:
      1. Full-time continuing positions
      2. Full-time temporary positions
      3. Supplemental faculty wage
      4. Part-time wage
      5. Student wage
      6. Overtime
   2. Allocations
      At the beginning of the fiscal year, each college/unit will receive a schedule of all regular and pooled (except student) positions assigned to it. Reports will be provided to update unit managers as to the ongoing status of each of these positions throughout the year. Any supplemental faculty, part-time wage, student wage, and overtime budget allocations will be provided as lump sum amounts at the beginning of the fiscal year.
      1. The salary and wage budget will be established annually based upon approved assumptions (enrollment, cost-of-living adjustment, contractual agreements, etc.)
      2. All reclassifications or status changes will identify the funding source, if applicable, on the Employee Assignment Action (EAA) form.
         1. Non-contractual positions receiving a salary increase due to a position audit, reorganization, or other change - increase will be funded through divisional funds.
         2. Contractual positions -- (CT, AFSCME, etc.) increase will be funded centrally.
      3. No additional continuing positions may be created without Presidential and Board of Trustees approval. Positions which are restructured and which require the creation of a new position number, but do not add incrementally to the total FTE number of budgeted positions, do not require Board approval.
      4. Temporary positions may be created with the president's approval.
   3. Budget Adjustments
      1. All budget items, except student wages and the centrally funded supplemental faculty allocations, within the salary and wage control category may be moved to other budget items within this category with dean/director approval as indicated in the policy guidelines.
      2. Requests to move resources from a budget item within the salary and wage control category require dean/director approval.
   4. Authority
      1. Within this control category, vice presidents have the authority to:
         1. Refill positions (per approved hiring procedures).
         2. Reclassify positions (per approved personnel procedures).
         3. Transfer positions between college/units.
      2. Within this control category, deans/directors or designee has the authority to:
         1. Move unencumbered resources, except student wages and the centrally funded supplemental faculty allocations, between budget items (e.g., from a faculty position to supplemental faculty wages, etc.)
         2. Move resources, except student wages and the centrally funded supplemental faculty allocations, from the salary and wage category to supply and expense or equipment categories.
   5. Employee benefits
      Employee benefits are subject to change during the fiscal year due to rate increases, etc. Department managers may not have the flexibility to respond to such mid-year increases within their annual budget allocations, therefore, benefits will be administered centrally.
      Newly created positions, or any reallocations from non-wage to wage categories, must provide a funding transfer to the respective salary account to cover the benefits for that position. (Example: If a General Fund position is upgraded using non-salary monies, a transfer must be made to the benefit category to provide for the required increase in benefits.)
   6. Salary and Wage Savings
      Salary savings, which occur during the fiscal year, remain within the operating unit and may be moved, for one-time use only, with dean/director or designee approval.
      Savings within the salary and wage category which remain at year end will be rolled into the revised budget for the following fiscal year in the supply/expense category. Salary savings will remain within the same operating unit account unless reclassified by either the vice president or dean.
      Position savings generated through position action will be available to the unit/area for one year only following the year the savings were generated. At the end of the fiscal year, filled positions will roll into the new fiscal year at the assigned salary amount.
      Any position which has been vacant for more than one year will be reviewed at the cabinet level for possible elimination as part of the annual budget development cycle.
   7. Position Vacancy Procedures
      1. When a position becomes vacant, the approved general fund budget for that position will be reduced by ten percent if it has not been so reduced within the past five years; or in the case of clerical and AFSCME employees, to the starting pay rate. The remaining ninety percent is available for use in filling the position. Positions, other than hourly positions controlled by a collective bargaining agreement, may be filled at a salary higher than the ninety percent by transferring dollars from another ongoing unit budget category or through presidentially approved budget augmentation. Non-union vacant positions with budgets under $20,000 will be automatically augmented back to the pre-10% reduction amount.
      2. When a position becomes vacant, the designated administrator (dean/director) will recommend to the vice president:
         1. If the position is to be filled or held vacant for a period of time.
         2. If the position or responsibility will be consolidated.
         3. If the permanent budgeted amounts will be moved to another category.
            Note: Only permanent salary savings (i.e. filling a position at less than approved budget) may be used to upgrade salaries for other positions. One-time savings generated by holding a position open for a period of time may not be used to fund a permanent upgrade.
            Example: Position A is budgeted at $30,000 and becomes vacant [and is the only position assigned to Unit X]. The position remains vacant for six months before it is filled, generating $15,000 in salary savings. The position may not be refilled at more than $30,000 with an indication that salary savings will provide the increase, since the one-time savings will not be available in the ensuing year and will create a shortfall in the ensuing year's budget.
            Example: Position B is budgeted at $40,000, becomes vacant during the year and is refilled at $30,000. The $10,000 difference between the position budget and the current assigned amount is an available resource to the unit.
            The difference between the $40,000 and the current salary assigned to the position is available for use in the current year as a source of funding for upgrading other position budgets, supporting general operational needs, or supporting other labor needs.
            If the difference between the continuing position budget and full year assignment is not used, it will carry forward to the subsequent fiscal year as a one-time supply/expense adjustment.
      3. A recommendation to fill a position will be taken to Cabinet for discussion and approval by the President.
      4. With presidential approval, the action is transmitted to the Human Resource Development Office for processing per approved hiring procedures.
      5. Regardless of the approved salary range, if a position is filled at a salary higher than the current budget for that position, the unit will be responsible for identifying additional funding.
      6. The Finance Office will update the position control system to reflect funding decisions on each position. Note: Budget managers rely on information from the Human Resource System (HRS) as the basis upon which they make budget decisions. Therefore, it is imperative that all position transactions be processed quickly and accurately

2. STUDENT WAGE CATEGORY
   1. Definition:
      Student wage is made up of need-based student and regular student wage. Need based student wage is awarded as a form of financial aid.
   2. Allocations
      1. The recommended ratio of funding for need based and regular student employment will be based on financial aid funding needs.
      2. At the beginning of the fiscal year, each college/unit will receive a student wage allocation from the vice president based on the approved ratio of funding and will make every effort to remain within the guidelines of that ratio.
      3. Each vice president is responsible for monitoring these guidelines.
   3. Budget Adjustments
      1. Funds may be moved out of the student wage category with Presidential approval.
      2. Additional funding may be moved into this category per approved procedure.
      3. The Finance Office will monitor student labor expenditures against the combined need based and regular student wage budgeted amounts.
   4. Carryover:
      Year-end balances which remain within the student wage category will be reallocated to the President and used to support student wage needs in the current year or carried forward for reallocation by the President in the next fiscal year.

3. GENERAL OPERATIONS
   1. Definition:
      Supply and expense and equipment budgets provide funding for non-employee expenditures such as supplies and expenses, travel and recruiting, contractual services, operating maintenance and repair, and department equipment.
   2. Allocations
      1. Each college/unit will be provided an annual general operations allocation by the division vice president.
      2. The dean/director will make specific allocations to each department/account within their responsibility.
      3. Department head/account managers will allocate approved totals to specific accounts and transmit to the Budget Office per approved procedure. The Budget Office will provide the Finance Office a copy of the approved allocations for entry into the Financial Records System (FRS).
   3. Budget Adjustments
      Adjustments to Supply & Expense and Equipment budgets require dean/director or designee approval.
   4. Carryover
      Year-end balances, which remain within the general operations category, will be carried forward within the unit/account budget total into the next fiscal year, unless reallocated by the president, vice president, or dean.

BPL2000:01