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Budgeting / Forecasting

Policy Type: Executive Limitations
Policy Title: Budgeting/Forecasting

Budgeting is derived from long-term planning. Budgeting any fiscal year or the remaining part of any fiscal year shall not deviate materially from Board ends priorities, risk fiscal jeopardy, or fail to a generally acceptable level of foresight.

Accordingly, the President may not cause or allow budgeting which:

1. Contains too little information to enable accurate projection of revenues and expenses, separation of capital and operational items, cash flow, and disclosure of planning assumptions.

2. Plans the expenditure in any fiscal year of more funds than are conservatively projected to be received during that period.

3. Proposes a budget that does not provide the annual operating fund for Board prerogatives, such as costs of fiscal audit, Board development and training, and Board professional fees.

4. Proposes a budget that does not have a broad base of input.

5. Proposes a budget that fails to include reasonable needs of the institution, including written rationale for justification of underfunding.

6. Infringes on the Board’s authority to adopt or amend an annual operating budget

7. Includes tuition and fee revenues at rates that differ from those approved by the Board.