See Related Policy

THE UNIVERSITY OF TENNESSEE AT MARTIN

CAMPUS FISCAL PROCEDURE STATEMENT

080 Budgets and Budgetary Control

1. The University Budget
2. General University Budget Requirements
3. Budgetary and Fiscal Control
4. Budget Revisions
5. Fiscal Year Closing Procedures

Fiscal Policy Statement 05:080:01 relating to the University Budget is self-explanatory. Any questions should be directed to the Director of Budgeting and Payroll.

APPROPRIATIONS REQUEST

The UTM appropriation request is prepared each fall by the Financial Affairs and Academic Affairs Offices.

UT INTERNAL BUDGET PROCESS

The campus budget process may be summarized in five steps:

1. Planning meetings are held October through December for academic departments and January through February for non-academic departments. The planning meetings involve discussion of all aspects of departmental goals and objectives.
2. Budget hearings are scheduled to follow the planning meetings. Departmental budget requests prepared by Department Heads on forms supplied by the Offices of Academic Affairs (academic areas) or Financial Affairs (non-academic areas) (see Appendix D), and in accordance with specific instructions from the Chancellor or appropriate Vice Chancellor.
3. During March, departments are asked to project their probable expenditures for the current year.
4. Normally in April, guidelines are distributed for department heads to make salary increase recommendations for all regular faculty and staff. When salary increments are based on merit, recommended increases must correlate with personnel performance evaluations.
5. The last step in the campus budget process involves the final decisions concerning department funding levels and approval of salary recommendations. These decisions are made by the appropriate administrators in regard to goals and objectives and projected available resources for the coming year.

GENERAL POLICY

Primary responsibility for each budget rests with the Department Head. Approvals for all expenditures from each account must first be authorized by the Department Head's signature on each PAF, invoice transfer voucher, etc., before processing. On those occasions when transfer vouchers and invoices are charged without prior departmental approval (e.g., monthly long distance telephone charge distribution or travel agency invoices), copies are mailed to the department involved.

Although some flexibility may be exercised within object codes of the operating budget, overall operating and salary expenditures may not exceed the budgeted totals unless written authorization from the Chancellor, Vice Chancellor for Academic Affairs, or Vice Chancellor for Business and Finance has been received. Therefore, excess salary savings cannot be applied to cover overspending of the operating budget or vice versa.

DEPARTMENTAL RECORDS

Each department is required to maintain a complete set of records for periodic reconciliation with the monthly Departmental Budget and Expenditure Reports. These records should consist of copies of all PAF's, outstanding purchase orders, approved invoices and transfer vouchers, and other documentation of charges against the departmental account.

For assistance in establishing, maintaining, and reconciling departmental records with the monthly printout, please contact Internal Audit.

MONTHLY DEPARTMENTAL BUDGET AND EXPENDITURE REPORT

Upon receipt of the Departmental Budget and Expenditure Report each month, the departmental secretary or person assigned to maintain departmental records should promptly reconcile both salary and operating charges appearing on the printout against the documentation on hand to ascertain that the correct amounts were actually charged and to account for outstanding in-transit charges not reflected on the printout. The latter is necessary to reconcile the remaining budget balances on the printout with balances per the departmental books.

Because the computer generated Departmental Budget and Expenditure Report does not reach departments until mid-month following the cutoff date of each report, it is recommended that each department maintain a ledger book which records each expenditure by object code category as the paperwork is approved by the Department Head. These records should be reconciled monthly against the computer printouts and should reflect the current unexpended funds available by object category in the departmental budget. Discrepancies should be reported to the Business Affairs Office for aid in follow-up identification.

GENERAL POLICY

Requests for mid-year budget revisions at UTM should be submitted using the UTM Budget Revision Request Form (see Appendix E) ,with indicated approvals, to the Financial Affairs Office. Form T-15, Request for Budget Revision, will be prepared by the Financial Affairs Office.

Fiscal Policy Statement 05:080:05 relating to Fiscal Year Closing Procedures is explained in Fiscal Policy Statement 05:060:04. Any questions should be directed to the Internal Audit Department.

Contact Joe Croom regarding this page.