Budget Development for Non-Sponsored Funds

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ADDITIONAL DETAILS
Effective: June 1994
Last Updated: June 2008

Responsible University Officer:
  • Vice President and Chief Financial Officer

Policy Owner:
  • Chief Financial Officer

Policy Contact:

POLICY STATEMENT

The University's operating and capital budgets for current, non-sponsored funds and plant funds will:

  • enhance the University's overall mission
  • be approved by the Board of Regents for all Resource Responsibility Centers (RRCs)
  • identify annual RRC financial plans for all funds
  • include all anticipated resources and planned uses for the resources
  • ensure that planned uses are supported by identifiable resources
  • be entered into the University financial system before the fiscal year begins

REASON FOR POLICY

Budgeting is not an end, in and of itself; it is a way to help the University achieve its strategic goals by managing its financial resources more effectively.

Regents' approval will enhance accountability, provide proper financial oversight and help align the University's financial resources with its strategic goals.

By requiring that all funds be included for planning and budgeting, the University can better manage its resources and hold itself to a consistent standard of accountability regardless of the source of funding or category of expenditure.

For budget planning to be comprehensive and effective, managers need to include all potential resources (including carry-forward, expected revenue for the fiscal year and transfers in) and all planned uses (including expenditures and transfers out).

To prevent deficit spending, Resource Responsibility Centers will identify available resources, develop plans for managing within budget, and establish direct links between planned expenditures and available resources.

For budgeting to be an effective financial planning tool, budgets must be finalized and entered into the University financial system before the fiscal year begins.

PROCEDURES

See budget prep entry into the financial system.

FORMS/INSTRUCTIONS

There are no forms related to this policy.

ADDITIONAL CONTACTS

Direct any general questions about this policy to your department Resource Responsibility Center Manager. If you have specific questions, contact University Budget & Finance office.

Subject Contact Phone Fax/Email
Primary Contact Julie Tonneson 612-626-9278 tonne001@umn.edu
Budget Development Budget and Finance 612-625-4517 ubudget@umn.edu

DEFINITIONS

There are no definitions related to this policy.

RESPONSIBILITIES

RRC Manager
Ensure that budgets entered are complete for the RRC and represent actual planned activity.
University Budget & Finance Office
Coordinate the budget process, coordinate the allocation decision process, and monitor entered budgets to ensure budgeting is complete and is consistent with university policies/procedures.

APPENDICES

Fringe Benefit Rate Matrices

The University Budget & Finance Office and the Controller's Office develop a Fringe Rate Matrix that breaks down the fringe benefit rates for all payroll classifications. The matrix is distributed to RRC managers and posted to the umn.edu website in several places. The matrix is updated annually and approved by the Board of Regents.

FREQUENTLY ASKED QUESTIONS

There are no Frequently Asked Questions for this policy.

RELATED INFORMATION

HISTORY

Amended:
July 2008 - Changes made to address rollout of Enterprise Financial System (EFS).
Amended:
March 2007 - Added 2007-2008 Fringe Benefit Matrix; Updated Contact Information
Amended:
April 2006 - Added 2006-2007 Fringe Benefit Rate Matrix
Amended:
April 2004 - Added 2004-2005 Fringe Benefit Rate Matrix
Amended:
June 2003 - Added 2003-2004 Fringe Benefit Rate Matrix
Amended:
May 2002 - Added 2002-2003 Fringe Benefit Rate Matrix
Amended:
July 2001 - Added 2001-2002 Fringe Benefit Rate Matrix
Amended:
July 2000 - Added 2000-2001 Fringe Benefit Rate Matrix; Updated Related information
Amended:
July 1999 - Added Final 1999-2000 Fringe Benefit Rate Matrix
Amended:
March 1999 - Added Provisional 1999-2000 Fringe Benefit Rate Matrix.
Amended:
July 1998 - Added 1998-1999 Fringe Benefit Rate Matrix.
Amended:
October 1997 - Added 1997-1998 Fringe Benefit Rate Matrix.
Amended:
March 1997 - Added 1996-97 Fringe Benefit Rate Matrix.
Amended:
June 1995 - Added Fringe Benefit Rate Matrix.

Effective:
June 1994

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.

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