Policy 1014 - Annual Operating and Capital Budgeting Procedures

Section: Operating/Administrative
Policy Number: 1014
Responsible Office: Business Affairs
Effective Date: 4/1/01

Procedures

The annual budgeting process begins with the President’s budget message for the upcoming fiscal year. The Office of Business Affairs prepares budget packages for each department. The packages include all necessary forms and instructions summarizing the process for preparing both operating and capital budget requests and outline the time frame for completing the packages. The packages are sent to the Senior Vice Presidents (President, Executive Vice President, Executive Vice President for Student Service, and the Provost). These Senior Vice Presidents forward the budget packages to the units in their area along with their individual budget message.

Included with each package is the Budget Lead Sheet. All detail from supporting forms will be summarized on this form. It is the basis for the department budget. It shows actual expenditures for the prior two years and the current year’s budget. Payroll and fringe benefits represent over two-thirds of the total operating budget of the University. Each department is given a Personnel Verification Sheet listing current personnel by account. The departments are asked to verify current personnel and add new personnel for the upcoming fiscal year, if already hired. The salary amounts are updated by the Office of Business Affairs.

All capital requests must be summarized on the Capital Lead Sheet and described in more detail on the Capital Request Form, and then approved by the Senior Vice President to be considered eligible for funding. A capital purchase acquires an asset of property, plant or equipment whose useful life extends beyond one year, and whose unit purchase price exceeds $5,000. An item whose unit cost is less than $5,000 must be budgeted for in the operating budget.

St. John's University, New York
Human Resources Policy Manual