Budgeting
Overview
Budgeting is the process of planning and maintaining a budget. A budget is an itemized summary of estimated or intended expenditures for a given period along with proposals for financing them. It is also the systematic plan for the expenditure of a usually fixed resource, such as money, positions, or time, during a given period.
In the university environment, there are multiple fund sources that are for specific programmatic purposes. At VT, an E&G or overhead budget is an allocation of university support. The university’s decentralized structure provides resources to units for ongoing activities. If additional departmental resources are needed, resources can be requested through each area’s leadership structure. Senior Managers request additional resources through the university budget process as may be appropriate.
- Before initiating a recruitment of a salaried position, a position allocation should be available or funding available for program sources for which position allocation are not required (e.g. sponsored program). Position allocations reflect the university’s authorized staffing plan and are made as a part of the university's normal budget process and published by the Budget Office. The university's total position allocation may be increased only by the Budget Office with authorization from the Vice President and Chief Financial Officer.
- All new revenue streams are university funds unless designated as a resource to support a specific activity (e.g. sponsored program).
- The university policy states that managers (including but not limited to department heads and center directors) are responsible for conducting their business activities in a manner consistent with good internal controls. Adequate discharge of this responsibility requires that managers monitor and review revenues and expenditures recorded in the funds assigned to them.
- A procedure must be in place to ensure that monthly reports reflect all items authorized for payment, that no inappropriate expenditures exist, and that revenues have been deposited as applicable.
- Managers can delegate all or a portion of monthly review to others, but the manager is still responsible for the adequate performance of the monthly review.
- Managers should ensure resource availability before committing to expenditures or activities.
- Planning for the effective use of departmental financial resources (including people, space, and time)
- Working though the appropriate channels for budget requests and proposals
- Authorizing financial transactions and ensuring that sufficient resources are available in the fund or funds
- Ensuring an effective Departmental financial record keeping system is developed and maintained
- Ensuring staff are adequately trained to process transactions accurately, timely, and in accordance with applicable federal and state regulations and university policies
- Overseeing departmental funds to prevent over expenditure of a fund. If an overdraft occurs, you must take immediate steps to correct the deficit
- Departments are responsible for ensuring that all charges to their funds, in the university accounting system (Banner Finance), are accurate and have been authorized.