Budget Development Principles
Budget decisions shall focus on the best interest of the college and its students rather than separate units or divisions.
The annual budget will be developed to allow flexibility should the college be required to respond to a negative impact to the budget such as a sharp decrease in FTSE or a large, unplanned expense.
The college reserves the right, on an annual basis, to reallocate/realign existing base or current budget allocations to best meet the needs of the overall college.
The annual budget development will begin by recognizing and incorporating mandatory price and volume increases for all commitments & obligations.
Vacancy savings strategies will be included as part of the budget development cycle.
Increased expenditure requirements for reserve funds will be reviewed and realigned as appropriate.
Anticipated base budget includes estimated adjustments for FTSE changes.
Funding increases for new construction will first meet commitments and obligations of the new construction, any remaining funds allocation will be determined by PLT.
Program Review will incorporate a zero based budget practice and financial performance measures for the unit.
The college budget will be developed holistically, incorporating all funds (grants, course fees, and auxiliary/enterprise) and consideration of desired use or maintenance of fund balances.
Enrollment growth funding will be allocated:
- First, to the direct instructional costs of new enrollment;
- Second, a portion to the support functions for whom demand increases with enrollment;
- Third, remediation of current program funding levels.
- Fourth, new or expanded college initiatives in accordance with the college strategic plan. Investments in quality improvement initiatives will also be considered.
Operational expenses existing in other funds will be identified to determine Fund 1 impact.
Capital budget development and decisions will consider consequences to Fund 1.
The college will maintain a minimum reserve of $500,000 for unanticipated needs.
Revenue programs will be self-sufficient, direct program expense must be offset by revenues generated from the program. Each program will develop action and financial plans to meet this expectation.
The college will live within base budget allocations in funding recurring expenses.
The college budget development cycle will include a focused effort to reduce its impact on the environment and thereby decrease budget requirements for utilities, paper, etc.
The college will include a funding plan to maintain or grow the college as outlined in the strategic goals.
Funding allocations will be communicated to the divisions/department in sufficient time for adequate planning purposes; this information will be transparent to the full college.
At the end of each fiscal year, all divisions receiving additional funding will report on the use of those funds as part of the future budget planning cycle,
Financial Reports & Documentation
Financial data and related analysis are used to support the prioritization process. To establish a comprehensive understanding of college financials sufficient to prioritize budget requests, FBC members are provided the following reports.
Financial report identifying the current base and one-time allocations.
Financial Summary reports for all Funds.
Burn Report
Vacancy Position Control Report
President approved FPAC recommendations.
List of prior year commitments and obligations.
President’s budget message identifying college priorities and objectives.
Projection of future year carry-forward.
Other information as requested and applicable.