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Title: University Budget Process
Subject:  Budget
Policy No: Fin: 2015:03
Applies: University-Wide
Issuing Authority: Senior Vice President of Finance and CFO
Responsible Officers:  University Budget Director
Adopted: 01/30/2015
Last Revision: 11/19/2019
Last Reviewed: 11/1910/2019 2020

I.    PURPOSE

The purpose of this policy is to outline the preparation, approval, and implementation of operating and financial budgets at Rowan University.   

II. ACCOUNTABILITY   ACCOUNTABILITY

Under direction of the Senior Vice President of Finance/Chief Financial Officer, the University Assistant Vice President, Budget & Financial Planning along with the Budget Director will implement the budget process and ensure compliance with the policy.

III.  APPLICABILITY

These policies and procedures apply to all University divisions, departments and activities.

IV.  POLICY

1. The Rowan University budget expresses, in terms of dollars, the funded programs and plans of the University for the budget year and the estimated income (by source) necessary to finance these programs and plans. The budget is the primary instrument of fiscal control and, accordingly, contains all unrestricted income and expenditures of the University.
2. The Budget Office is responsible for the development and monitoring of the University's annual operating budgets. The Budget Office prepares the annual budget submission to the State of New Jersey; fulfills internal and external budgeting reporting requirements; processes budget transfers and funding requests for new programs and new initiatives; and provides financial analyses for departments and the University administration.
3. Preparation and Approval of University Budgets
   1. Rowan University receives a major portion of its total unrestricted operating support from student tuition and fees. Other sources of funds include state appropriations, auxiliary services, University foundation allocation, faculty practice plan revenues, house staff billings, and other miscellaneous sources. In accordance with New Jersey statute, the Board of Trustees, the governing body of Rowan University, has general supervision over the University and its budget. The Board's responsibilities include establishing tuition and fee rates, and disbursing "all monies appropriated to the University and all monies received from tuition, fees, auxiliary services and other sources."
   2. The budget development process, driven by the budget development calendar, begins shortly after the start of the fiscal year (July 1st). The Budget Office, which is responsible for developing projections of expenditures and revenues, prepares a request for appropriations to the State of New Jersey for submission in November. The State will often set the parameters for anticipated expenditure growth as well as other budgetary assumptions. Enrollment projections and goals are important factors in the development of projections.
   3. In preparation for the University's Annual Operating Budget, the President's Cabinet initiates a request for budgets in the second quarter of each fiscal year. At this time, departments begin to develop their fiscal year budget proposals. Following a review of the submissions by the appropriate Vice President, the requests are forwarded to the Budget Office, compiled into various budget scenarios, and submitted to the Cabinet where any requests for new funding are approved. Final budget adjustments are based on the appropriations approved by the State, and the operating budget is then presented to the University's Board of Trustees for approval.
   4. The budget is structured and controlled through the automated Banner System. Departments are responsible for monitoring their budgeted allocations. Periodic reviews by the Budget Office ensure close adherence to the University's resource plan.
   5. At the close of the fiscal year (June 30^th), the University is subject to an accounting and financial audit by an external certified public accounting firm. The results of the annual audit are presented to the Board of Trustees.  
4. State Budget Submission
   1. The Budget Office has primary responsibility for preparing the annual budget request and submitting it to the State of New Jersey. The State budget submission is an opportunity for the University to not only provide details of the appropriation request for the next fiscal year, but to list the major accomplishments of the University in the current fiscal year and anticipated changes in the coming years.
   2. Preparation for the budget request begins in September and the budget is submitted to the State in November. Following a review by the State Office of Management and Budget, the Governor presents the proposed State budget to the State Legislature in February. The State Legislature approves the State budget, including the appropriation for higher education, prior to the beginning of the fiscal year. 
   3. The budget request includes actual results from the prior year, revised budgets for the current fiscal year, and projections for the next fiscal year. The submission also includes the following requirements:
      1. President's Overview, which highlights important details of the request and indicates how the request furthers the Institution's mission including key accomplishments and major changes
      2. Budget Initiative forms, which detail requests for additional funding from the State
      3. Organization charts
      4. Tuition and Fee Projections
      5. Programmatic Evaluation Data, such as enrollment and expenditure data
      6. Salary detail and summary information
5. Tuition and Fees
   The Board of Trustees is authorized to set annual tuition and fee rates. The proposed rates are based on an analysis of various factors, including the comparative rates of similar institutions, projected student enrollments, state appropriations, anticipated University expense increases, economic indicators, and goals set by the University. In addition, the State of New Jersey may set guidelines regarding the amount of tuition increase permitted. Prior to adopting such rates, the Board shall conduct public hearings to provide members of the University community with an opportunity to share their perspectives. 

V.    ATTACHMENTS

1. Attachment 1 - New Account Request
2. Attachment 2 - Budget Transfer Request
3. Attachment 3 - Annual Budget Development Calendar
4. Attachment 4 - Budget Procedures

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