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BUDGET INFORMATION Restructuring Act and Strategic Plan Goals
HELPFUL LINKS Department of Planning and Budget
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Longwood University Budget Office Assessment Plan
The Budget Office exists to (1) manage the University’s budget development function (to include the submission of annual and biennial operating and capital proposals), (2) allocate financial resources, (3) coordinate budget management by providing adequate training to assist staff in the prudent oversight of their budgets, (4) monitor and report on the University’s fiscal performance by reviewing revenue and expenditure activity, (5) meet the necessary reporting requirements of various state agencies, (6) provide financial analysis to University leadership in fiscal and budgetary policy development, and (7) support the University’s fiscal planning. The following are Budget Office objectives and the methods for assessing their success: Objective 1 To prepare an appropriately detailed annual operating budget that allocates resources to promote attainment of the University’s mission and strategic plan. The budget is a statement of estimated income and expenditures for a fixed period of time, usually the fiscal year of the institution. Method for Assessing Success The annual operating budget and plan is completed and approved by the University’s Board of Visitors at their June quarterly meeting. Performance Analysis The University’s internal budget was presented to and approved by the Board of Visitors at their June 15-16, 2005, meeting. The Operating Plan is revised annually to provide relevant and meaningful data to Board members. Objective 2 To prepare an informative tuition and fee proposal that possesses sufficient financial resources to support all of the educational programs and operations of the University. Method for Assessing Success An annual tuition and fee proposal is prepared and presented to the University’s Board of Visitors to ensure sufficient revenues are available to support the operating expenditures of the fiscal year. Performance Analysis The tuition and fee proposal was presented to and approved by the Board of Visitors on April 2, 2005. Objective 3 To request additional resources/funding for new initiatives and programs through the Commonwealth of Virginia biennial budget process. Method for Assessing Success Budget requests are prepared for submission to the Department of Planning and Budget, the Governor, and the General Assembly which describe new and/or continuing initiatives as outlined in the University’s strategic plan and other institutional priorities determined by the President. Performance Analysis Budget requests were developed and submitted in accordance with published instructions by established deadlines. Budget amendment forms for the 2004-2006 biennium were prepared in January 2005. The University’s Activity Based Budget and technical adjustment submissions for the 2006-2008 biennium were prepared and submitted to DPB during July and August 2005. Decision Packages for 2006-2008 were prepared and submitted to DPB in September 2005. Six-year capital budget request documentation for 2006-2012 was submitted May-August 2005. Objective 4 To establish a system of control to ensure the budgetary plans of the Board of Visitors and the President are being implemented. Method for Assessing Success Budget reviews are conducted monthly, and budget managers are notified as problems are identified. Assistance will be provided to ensure budget managers have adequate training and sufficient access to manage their budgets. Performance Analysis Budget reviews were conducted in conjunction with the preparation of monthly internal financial statements. Budget managers were notified if problems were identified. A budget workshop was conducted on December 5, 2005. Copies of participant evaluation forms are attached – participants rated the session very positively, a 3 or 4 on a 4-point scale. Training topics were modified based on feedback received and issues addressed by participants. In addition, budget managers were afforded one-on-one training when requested. New budget managers were offered training at the time their FRS access was established. Objective 5 To serve as the University’s Equipment Trust Fund (ETF) liaison with State Council of Higher Education (SCHEV). Method for Assessing Success Success is measured by ensuring that ETF request lists are submitted by the required deadline, changes to the list are coordinated and approved by SCHEV, reimbursement requests are prepared as required, and proper documentation is maintained. Performance Analysis The Equipment Trust Fund (ETF) request list was submitted to SCHEV on September 9, 2006, the required due date. The first reimbursement request was submitted on June 29, 2005, for $430,780.10, and the final reimbursement for $116,321.90 was submitted on December 14, 2005. The first reimbursement was recorded in FRS on September 29, 2005. The final reimbursement has not been received as of January 23, 2006. Documentation of all ETF purchases is maintained in the Budget Office. Objective 6 To process necessary budget revisions when actual conditions require such a change and communicate the changes to those affected within the institution; to post required encumbrance entries to the financial reporting system to assist in budget management. Method for Assessing Success Budget adjustments are posted at least weekly in accordance with Commonwealth and University financial guidelines; revisions are communicated to departmental budget managers. Encumbrances are posted at least weekly to operating budgets. Performance Analysis Revisions to budgets and account encumbrances were posted at least weekly. The budget revision process was modified to enable electronic submission of requests from departments. Objective 7 To assist Vice President for Administration and Finance in her responsibilities for oversight of the University’s financial resources. Method for Assessing Success The Budget Office provides reports and fiscal analysis to the Vice President to assist in monitoring and forecasting the University’s financial status. The main objective is to ensure that the budget is balanced and adequate resources are available to meet the financial and strategic needs of the University. Monthly management financial statements are prepared as a means of monitoring the institution’s fiscal performance, and the Budget Office participates in year-end close cash management meetings. Performance Analysis Monthly internal financial statements were prepared and provided to the Vice President for Administration and Finance for management review. Statements compared budgeted revenues and expenses to actual revenues and expenses. Budget office personnel participated in fiscal year-end meetings, assisting in analysis and making recommendations regarding year-end spending decisions. Expenditures, cash, appropriations and allotments were monitored in order to avoid incurring a deficit at the close of the fiscal year. In addition, capital projects were reviewed to identify unobligated appropriation balances that could be reverted and completed projects that could be closed out – a Capital Project Review Summary (Form A) was completed for each project and submitted to DPB. Objective 8 To serve as a resource to the University community to address issues related to financial resources, budget practices and budgetary policies and procedures; and to meet the necessary reporting requirements of various state agencies. Method for Assessing Success Success is measured by ensuring that research, analysis, reporting, and answers to questions are provided in an accurate, timely and helpful manner. All state reporting is accomplished in adherence to strict due dates mandated by the appropriate entity. Performance Analysis Reporting requirements of state agencies, such as SCHEV and the Department of Planning and Budget, were completed in accordance with established guidelines. Reports included: SCHEV Nongeneral Fund Revenue Survey (April 2005), DPB Nongeneral Fund Revenue Estimates (September 2005), SCHEV Actual Auxiliary Recoveries (October 2005) and SCHEV Auxiliary Reserve Plan (October 2005). Analysis requested by University departments was completed as needed in a timely manner. Objective 9 To monitor the University’s personnel resources, which comprise approximately 80% of the institution’s budget. Method for Assessing Success The Budget Office authorizes new hires based on budget and position availability and collaborates with Human Resources in the requirements of position control. A position control database is maintained and updated as position changes become effective. Performance Analysis Recruitment requisition forms were completed timely and routed to the appropriate Vice President. Position funding was monitored. The position control database was maintained and updated as documentation was received from Human Resources regarding position changes. Objective 10 To assist the Vice President for Administration and Finance in long-range financial planning based on the University’s strategic operating and capital budget initiatives. Method for Assessing Success A six-year financial plan for the University will be prepared and maintained, as required by the Appropriation Act. The plan will include financial analyses related to the development of the University’s operating budget, enrollment growth and revenue projections. The Budget Office will also work with the Vice President to develop the University’s restructuring plan for charter institution status. Performance Analysis The University’s six-year plan was submitted to SCHEV by the established deadline, October 1, 2005.
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