The Controller’s Office within Financial Services oversees the development, forecasting and presentation of the University’s Operating and Ancillary Budgets. The Operating budget represents the resources available to the academic and administrative departments supportive of the core teaching and research and is funded by operating grants, tuition fees and other general revenues. The Operating budget is divided into budgetary units called Resource Planning Committees (RPC’s), and each RPC is ultimately responsible for the financial health of the departments within it.
The Ancillary budgets represent units that are supportive of the academic and research mission of the institution but are not directly related to this primary function. Each ancillary is required, at minimum, to be self-supporting. They would include units such as Athletics, Residence & Food Services, Parking and Bookstore.
As currently mandated by the Board of Governors, the Operating budget must be balanced each year. Financial Services uses a multi-year base budget planning cycle to ensure that this objective is achievable each year over the long term. The base budget refers to the on-going, annualized amount for both revenues and expenditures. The fiscal budget, which represents the current year’s actual budget, is formulated from the base budget but is adjusted for any one-time changes such as partial year salary adjustments, term positions or one-time only grants and other income/expense items.
Financial Services, in conjunction with the Office of Institutional Research & Planning, will develop a budget plan for the coming year in mid to late fall. This plan has it’s foundation in the base budget and will include forecasts of anticipated changes in the main revenue and expenditure items. From this, any available funds for allocation and/or required cuts will be determined, based on the mandated balanced budget. The application of any required cuts, or requests for new allocations is the responsibility of each RPC Chair.
As indicated above, the upcoming year’s detailed fiscal budget has it’s starting point with the current year’s adjusted base budget. The Controller’s Office will roll the current year’s adjusted base budget into the new year’s budget, and make any necessary adjustments, in consultation with each RPC.