312.2 Expenditure Budget Control

Created by: Stephanie Ferguson on 02/06/1999
Category: 3 - Finance and Administration; 10 - Accounting/Auditing/Budgeting
 
Originator: President
Current File: 312.2
Adoption Date: 12/15/1998
Reviewed for Currency: 01/24/2006
 
Replaces File: 312.2
Date of Origin: 10/22/1979
 
Classification:
 
In Archive? 0


312.2 Expenditure Budget Control

 

A. Background

Furman's operating and construction budgets are developed by the administration based on requests from the departments of the University and submitted to the University's Board of Trustees for adoption. After adoption, the board authorizes the President to make the necessary adjustments during the year to maintain a balanced budget. Significant revisions to adopted budgets prompted by changes in enrollment, financial aid, or other revenues and expenditure projections will be approved by the Board of Trustees. The budget is divided into budget units and individuals are assigned responsibility for these units in order that the overall budget is administered in an orderly manner. The individual responsible for a budget unit is termed a budget unit head.

 

B. Policy

One of the responsibilities of budget unit heads is the proper expenditure of funds within the approved budget.

 

C. Guidelines

1. Budget unit heads may not expend more than the budgeted amounts. Should an over- expenditure occur, the budget unit head must immediately reimburse the budget unit from other sources or demonstrate available restricted funds to cover.

2. Transfer of funds within a budget unit involving salaries and wages or student wages requires the prior written approval of the President.

3. Transfer of funds between line items of a budget unit, except those stated in guideline 2, may be approved by the budget unit head.

4. Transfer of funds between budget units requires the prior written approval of the appropriate vice president or individual who reports directly to the President.

5. Should the budget unit head need more funds than provided in the approved budget due to higher than anticipated price levels or as a request for items not included in the budget, an approved request for budget adjustment must be in hand prior to incurring the additional expenditure.

6. An administrative budget control group will meet throughout the fiscal year to review revenues and budget unit expenditures. Those budget units operating on a dangerous trend line will be asked to advise what actions are being taken in response to the trends.

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