Budget Administration includes the development, implementation, review, control and maintenance of the University's operating budget. It represents those activities necessary to ensure the efficient and effective use of VCU's financial resources. Budget administration relates to the projection and allocation of revenues as well as expenditures. While emphasis is placed on the annual operating budget, recognition also is given to the potential impact on revenues and expenditures of future budgets.
These procedures are a function of the budget process wherein the Board of Visitors approves a Budget Plan and budget allocations are made to schools, departments, and divisions based on that plan. Exceptions to these procedures may be authorized in writing by the President and Vice Presidents.
The University operates on a fiscal year beginning July 1 and ending June 30. The University, as well as all of its schools, departments, and units, is required to maintain a balanced budget.
Individual Vice Presidents have oversight responsibility for monitoring and controlling operating budgets for units under their purview. The Senior Vice President for Finance and Administration has overall responsibility for ensuring that the University as a whole remains within authorized budget levels.
Annually the President of the University certifies to the Board and the Governor that he recognizes he can be held "personally liable for the full amount of [any] such unauthorized deficit and, at the discretion of the Governor, shall be deemed guilty of neglect of official duty and be subject to removal therefore."
Budget and Resource Analysis is responsible for central University monitoring of deficits in Educational & General Programs, Facilities and Administrative Cost Recovery Programs, Auxiliary Enterprise Programs, Local Funds Programs, and Hospital Service Funds Programs. Grants and Contracts Accounting is responsible for central monitoring of deficits for Sponsored Programs.
The President is the chief executive budget officer and has delegated the primary responsibility for budget administration to the senior executive officers. Senior executive officers are defined by the following titles: Vice President, Provost, Vice/Associate Provost, Associate/Assistant Vice President, Associate/Assistant Vice Provost and Executive Director. All deans, directors, and department heads share the responsibility for budget administration. While central administrative staff in Finance & Administration provide technical assistance, management of the University's resources is primarily the responsibility of the senior executive officers.
Senior Officers may issue supplemental budget administration policies for areas within their management control. The policies set forth here do not alter those policies but establish the framework by which the University's central administration will administer all budget allocations. When a senior executive officer issues a supplemental budget administration policy statement, a copy of this policy should be approved by the appropriate Vice President and filed with Budget and Resource Analysis.
Budget & Resource Analysis and the University Controller's Office provide staff support for budget activities and prepare budget and financial reports for use throughout the University and for distribution to appropriate State agencies.
These Finance & Administration staff consult with the Office of the Associate Vice President for Finance and Administration, the Senior Vice President for Finance and Administration, the President and the senior executive officers throughout the budget administration process. Budget & Resource Analysis is responsible for assuring timely and accurate development, implementation, and administration of University budget policies, plans and objectives. The office maintains the University position control function and evaluates and reports on financial and staffing performance relative to approved budget allocations. Staff serve as liaison to state agencies on issues regarding the execution and administration of the operating budget appropriations. The staff serve as support to salary adjustment process, year-end close out procedures, and State sponsored programs such as the Eminent Scholars Program.
University Controller's Office is responsible for recording all receipts and disbursements, ensuring compliance with fiscal and accounting polices and procedures and the maintenance of the chart of accounts within the Banner accounting system.
Department heads and fiscal administrators are responsible for reviewing the budget information in the Banner accounting system for accuracy and ensuring that sufficient permanent and current (adjusted) budget is available to support the activities of the fiscal year. Budget reallocations should be processed as necessary in accordance with budget administration policies. Please see the following programs for more specific information on budget administration:
Educational & General Programs
Facilities & Administrative Cost Recoveries (FACR) Programs
Auxiliary Enterprises Programs
Local (University Funds) Programs
Sponsored Programs (Post Award)
As a state supported institution, the University is required to comply with the laws, policies, regulations, and procedures of the State, many of which impact the budget administration process. The majority of the University's resources are subject to the budget process resulting from Legislative Appropriations. The Legislative Appropriations include Education and General Programs, Auxiliary Enterprise Programs, Student Financial Aid, Sponsored Programs (which includes Facilities & Administrative Cost Recoveries) and Hospital Programs. State regulations impact most areas of budget administration, including but not limited to: setting the level of spending in a fiscal year, the disposition of cash balances at the end of the fiscal year, and the number of positions which can be filled during the fiscal year.
Various central State agencies administer these regulations. Among those affecting the budget administration process are: Department of Planning and Budget (DPB), the Department of General Services (DGS), the State Council of Higher Education for Virginia (SCHEV), the Department of Accounts (DOA), Department of Treasury, and the Department of Personnel and Training (DPT).
The University's budget planning process is synchronized with that of the Commonwealth of Virginia. Educational and General Programs, Auxiliary Enterprise Programs, Student Financial Aid Programs, and Sponsored Programs (including Facilities & Administrative Cost Recoveries) are appropriated by the General Assembly. The General Assembly exercises significant control with respect to Educational and General Programs. For more information, including the budget policies for these programs, see the handbook section for Financial Topics.
The University's budget planning process is conducted annually and is submitted by the President to the Board of Visitors for final approval in the Spring.