Overview of Budget Methods
Analysis, Planning and Budget administers Operating Fund budgets and follows up on any resulting over-expenditures.
Spendable funds at the University are administered by one of the following budgeting methods:
- Pre-determined budget whereby the fund is subject to an annual budget process. The availability of funds is determined in advance (via application exercise or from formal notice from a contributor) and a budget is established at the onset. The pre-determined budget must be approved by the Chair/Dean or Director of the Unit. It can be revised anytime during the year. Spending power within a given year is not dependent on having cash in-hand.
- Cash basis budget whereby the fund’s activity is difficult to quantify at the onset of each year and therefore an annual budget exercise is not appropriate. The availability of funds is determined as the year progresses. Spending power is contingent on receipt of revenue.
An automated process to increase revenue and expenditure budgets as revenue is realized has been implemented for funds falling into the second category. This process, entitled “Auto Budget for Revenue,” allows fund holders and administrators to view at a glance the current status and spending power of funds that function on a cash basis.
- On an exceptional basis, some funds have no budget based on their specialized nature.