Resource Planning and Budget

The Office of Resource Planning and Budget endeavors to provide objective, accurate, and timely information and analysis to every level of campus leadership, thereby supporting the effective management of all campus resources. The responsibilities of this office include:

• developing and implementing policies and procedures related to the management of campus financial resources        
• administering the annual campus-wide budget process
• managing the campus budget, the staffing system, and unallocated resources
• allocating campus-level funding 
• administering the annual Auxiliary and Self-Supporting Enterprise budget and rate review process
• monitoring campus debt ratios and reviewing capital budget appropriation requests
• acting as a liaison with the Office of the President and others

( Coming Soon )

It is essential for each operating unit on campus to engage in meaningful resource planning and financial management in order to perform its role in the University’s mission of teaching, research, and public service.

It is the responsibility of each unit head to ensure that resource planning and financial management occurs in an effective manner at all organizational levels.

I. Resource Planning and Budget Development

Resource planning is the process through which the unit’s strategic plan is articulated into resource terms. This process ultimately leads to the development of the budget. All resource planning and budget development should include the following components:

1. A plan with clearly defined goals and objectives

   The plan should be easily understood, with attainable goals and measurable objectives. The goals and objectives should be specific enough to be integrated into the overall planning and budget process.

2. A process for identifying and evaluating key factors required to accomplish the plan

   The evaluation, selection, and ultimate usage of key factors should be based on a clear understanding of the nature of the key factor and the impact it has in the achievement of the goals and objectives. Key factors may vary depending upon each organization’s unique mission. Examples of key factors are:

   • Student Enrollment
   • Teaching workload (including faculty FTE, instructional assistants)
   • Salaries and benefits (including FTE)
   • Equipment and Supplies
   • Technology
   • Support and auxiliary services
   • Space needs and related costs
   • Anticipated revenue
   • External regulations
   • The Market

3. A budget development process that includes a thorough analysis of all relevant data and supports management decision-making

   This process should ensure consistent use of proven methods for gathering and analyzing data, as well as compliance with relevant budget and financial policies. The analysis should include the following, as appropriate:
   
   • A thorough re-evaluation of all assumptions, analyses, plans and budgets used in the previous year's planning process
   • An examination of budget and financial performance from prior years
   • An evaluation of current year's performance against both the budget and the goals and objectives
   • An identification of the modifications required in the new plan to reflect changes in the goals and objectives
   • An evaluation of cost and risk factors

4. A budget that articulates the goals and objectives in resource terms

   The budget should be realistic, reasonable, and attainable and should be accompanied by a descriptive narrative. Components of the budget and narrative should include:
   
   • All funding sources
   • Revenue estimates
   • Major expenditures by category, including identification of indirect expenditures
   • A description clearly supporting the resource requirements
   • Explanation of major assumptions and forecasting methods used
   • Identification of significant changes in current operation
   • Contingency plans

II. Financial Management

Financial management is the process of ensuring that the unit's financial performance is consistent with the utilization of resources as delineated in the budget developed to accomplish the objectives of the plan. It is assumed that data integrity has been assured throughout. Financial management should be supported through the following activities:

Review and Analysis of Financial Performance

At a minimum, financial reports should be prepared by the end of the subsequent period ensuring adequate time to make adjustments or corrections. These reports should:

• Compare budget to actual financial performance
• Include all sources of revenue and expense
• Provide projections of year-end balances
• Identify any other problems or exceptions

Analysis should be conducted to achieve the following objectives:

• Ensure that expenditures are reasonable and necessary to accomplish the unit's goals
• Ensure that resources are being utilized efficiently
• Measure and understand financial performance
• Determine whether sufficient resources exist for continued operation
• Clearly identify trends and special areas of concern
• Detect changes in circumstances or the business environment

Corrective Actions

Corrective action should be taken in a timely manner, as appropriate, in response to the review and analysis of financial performance. Examples of specific corrective actions are:

• Revising plans or budgets to reflect changed circumstances
• Changing or eliminating activities
• Obtaining additional funding
• Modifying goals or objectives
• Altering future budget

Resource Planning and Budget