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Annual Operating Budget Policy

Effective Date: January, 2007

Policy Statement

The Board of Trustees of the University require that senior management [1] submit the proposed operating budget for the coming academic year for approval at the Trustees' annual meeting in June, and [2] report updates on the actual operating results against budget at regularly scheduled meetings during the year. The Consolidated Operating Budget (COB) is presented to the Trustees for their approval. The University's chart of accounts is divided into Budget Units, which BUs parallel the span of control of various vice-presidents, deans and department chairs. Per a schedule, determined by the Office of Management and Budget, every vice-president, dean and department chair with responsibility over one or more BUs is required to submit both an Original Budget and a Current Estimate (regular updates during the year).

Reasons for the Policy

Prudent fiscal management of any complex business entity requires the use of budgets to efficiently allocate resources and manage ongoing operations.

Primary Guidance to Which This Policy Responds

The policy provides one element of the information Trustees utilize in their deliberations and provides tangible proof of sound management practices to the University's outside auditors.

Responsible University Office & Officer

The Vice-President for University Budget and Financial Planning is charged with responsibility for the development work on this policy and the accompanying procedure, as well as maintenance and inquiries that may arise regarding the policy. Under the direction of the Vice-President for University Budget and Financial Planning, the Office of Management and Budget develops and administers this policy and procedure and is accountable for the accuracy of its subject matter, issuance, and timely updating.

Revision History

First issuance.

Who Is Governed By This Policy

Every vice-president, dean and department chair with responsibility over one or more BUs.

Who Should Know This Policy

Every vice-president, dean and department chair with responsibility over one or more BUs, departmental administrators and finance staff, senior administration officials and the entire staffs of the Office of Management and Budget (OMB) and the Medical Center's Office of Budget and Finance (CUMC OBF).

Exclusions & Special Situations

None