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Longwood's Budget Process
Longwood is required to develop and submit to the Department of
Planning and Budget a biennial budget plan. This plan consists of:
1) an operating budget to include requests for continuing and
special funding, as well as funding for new program initiatives which reflect
the goals of the University's strategic planning process, and
2) a six-year capital outlay request for new buildings, building improvements,
building additions and property acquisition.
The annual internal budgeting process involves planning how
resources appropriated by the State and earned revenues will be allocated within
the University. The process culminates with the projection of revenues
from state appropriations, tuition, E&G and Auxiliary fees. Tuition
and fee revenues are forecast based on current student enrollment.
Additionally, both E&G and Auxiliary expenditures are
projected. This process begins with an examination of the current base
budget. Operating budgets are adjusted to eliminate one-time additions of
the previous fiscal year. Salaries and fringe benefit rates are
updated. In forecasting expenditures, Longwood utilizes three budgeting
models:
1) Incremental Budgeting - The previous year's budget is used
as a base. Fixed costs (such as fuels, maintenance and food service
contracts) are then examined to determine whether increases are necessary
using historical trend analysis, the CPI index, and information received from
vendors with contractual obligations.
2) Zero-Based Budgeting - This methodology is used for budgeting equipment,
debt service, and work-study requirements.
3) Programmatic Budgeting - One-time and permanent budget additions are made
for a specific program purpose.
Projected revenues are then compared to projected
expenditures. Revenues in excess of expenditures are available for
allocation based on budget requests. Typically, resources are allocated
85% to base budget additions and 15% for one-time additions. University
budget requests are presented to a Budget Committee for consideration. The
Committee is comprised of vice presidents, deans of each College, faculty
representatives, the Budget Director, and the Director of Athletics. Vice
Presidents and the Provost formulate budget requests after receiving input from
areas under their supervision. The opportunity exists at all levels of the
academic and administrative community for input on resource allocation through
each representative on the Committee.
The first consideration in prioritizing budget requests is the
availability of funds. Funds are distributed in accordance with the
institution's Strategic Plan and 6-Year Plan initiatives. All budget requests and justifications must
indicate to which Strategic Plan item the funding corresponds.
The Vice President for Administration and Finance and the Budget
Director consolidate budget requests from the Vice Presidents and Provost into a
single plan to be presented to the Budget Committee for consideration.
After presentations are completed, the Budget Committee discusses and
prioritizes all requests in accordance with Strategic Plan objectives and
submits its recommendations to the President. The President then amends or
approves the budget requests and fiscal year operating budget. The Vice
President for Administration and Finance presents, on behalf of the President,
the annual operating budget to the Board of Visitors at the June quarterly
meeting for its approval.
Upon approval by the Board, the budget is implemented for the
next fiscal year beginning July 1. Operating budgets are uploaded into
BANNER and are available for department viewing on
July 1. Personal Service lines are budgeted on a line-item basis, whereas
operating funds are budgeted on a pool basis. Each department has online
access to BANNER Self-Service for the purpose of monitoring transactions and budget balances at
any time.