Budget Control Policy
Effective Date: July 1, 2009
Board Approval: June 9, 2009
1. Purpose
1.1. Budgets are a management tool used to allocate resources efficiently and to monitor and control the spending of funds and safeguard the assets of the organization.
1.2. Budgets are generally established at the program level. Responsibility for monitoring and spending will be delegated to the program management level within guidelines established by Administration and Board policy.
2. Definitions
2.1. General Budgets: These are all budgets for funds that are State appropriated general fund budgets and not part of the restricted accounting fund (i.e. contracts and grants). General budgets include those for the general operating fund, designated funds (i.e. local custom fit and assessment), and auxiliary funds (i.e. bookstore).
2.2. Restricted Budgets: These are budgets for contracts and grants that are restricted by the entity providing the funds.
2.3. Account: This is the level of expenditure that we are required to report on our financial statements and is also the level at which the Board will approve budgets for the general fund. Accounts include: Operating Revenue, Operating Expenses, Non Operation Revenue, Salaries, Other Revenue, Benefits.
2.4. Program or Class: Is a group of closely related activities that work towards a common goal.
Examples: Welding Technician, Practical Nursing, Industrial Maintenance (in Instruction); Placement, Registration, Testing (in Student Services); Administration, Fiscal Services (in Institutional Support).
2.5. Program Director: The manager designated by the Administrator as having fiscal management responsibilities over a program.
2.6. Personnel Costs: These are the costs for salary/wages and benefits for employees of the College.
2.7. Current Expense: Are for non-personnel resources required on an ongoing basis to operate programs. Current expense includes supplies, maintenance agreements, utilities, travel, training, etc.
2.8. Capital Expenditures: This includes the purchase of one-time items costing over $5,000 such as equipment, improvements, computers, etc. Equipment costing less than $5,000 is typically charged to a current expense account.
3. Policy
3.1. Prior to the beginning of each fiscal year the Tooele Technical College Board shall approve all general fund budgets at the functional level. Revisions may be made throughout the year as deemed appropriate by Administration.
3.2. The budget shall be developed at the program level under the direction of the Vice President of Finance and Operations, consistent with the strategic and tactical plans. It shall be developed by Budget Managers and prioritized by the Administrative Team.
3.3. Personnel budget requests shall be developed by Fiscal Services based upon FTE (full time equivalent) positions. Once a position is established, it may be filled by the Administration contingent on fund availability.
3.4. Current expense and capital expenditure requests shall be prepared by the Budget Manager. Capital requests must include an itemized list of items. Only those capital items approved on the prioritized list by the Administrative Team may be authorized.
3.5. Budget Managers shall have the authority to spend approved budgets consistent with their program objectives and are responsible to monitor and control their budgets to ensure expenditures do not exceed approved levels and are appropriate.
3.6. Budget Managers shall have the authority to transfer budget amounts within a program budget so long as the transfer does not cross over personnel, current expense, and capital budgets.
3.7. Directors are authorized to transfer budget amounts across programs so long as the transfer does not cross over personnel, current expense, and capital budgets.
3.8. Approval from the Director of Finance and Operations and the College President is required to transfer budget amounts across personnel costs, current expense and equipment costs (either within a program or across programs within the same function).
3.9. Fiscal Services is responsible to monitor expenditures against budgets on a monthly basis and to notify the proper Administrator as problems arise.
3.10. If an individual program exceeds its approved budget for a fiscal year, the overage shall be covered from that function during the current year.