University Budget Oversight

Recommended By
University Budget and Planning Office
Approved
Judy K. Sakaki, President
Issue Date
Friday, March 8, 2019
Current Issue Date
Friday, March 8, 2019
Effective Date
Friday, March 8, 2019
Contact Office
Senior Director for University Budget and Planning
Policy number
2019-01
  1. Purpose
    Effective October 12, 2017, the Integrated CSU Administrative Manual (ICSUAM Section 2002.00) formalized and established a system-wide policy on budget oversight and specified that each campus must establish policies and procedures to monitor campus budget performance.

    The University is committed to effective resource management and accountability. Budgeting is not an end, in and of itself; it is a way to help the University achieve its strategic goals by managing its financial resources more effectively. Ongoing budget oversight ensures that resources and expenditures are occurring in general conformity with the budget plan.
     
  2. Definitions
    Budget Manager: The member of the University Budget and Planning Office (UBPO) assigned to work with the designated Major Budget Unit.
    Budgeted University Funds: Revenues or allocations which are not administered by the Office of Research and Sponsored Programs (ORSP), but either can 1) be used by the University at its own discretion within campus and CSU guidelines, or 2) may be used only in accordance with the purpose established by the external funding source.
    Campus Budget Partner: Individuals who are responsible for policy interpretation and implementation for a Major Budget Unit. They manage the fiscal operations of a Major Budget Unit in compliance with University policies and procedures, and applicable external regulations.
    Lead Administrator: Individuals who provide overall leadership for the unit and the University in general. They participate in policy formation and ensure policy implementation for their unit. They are also responsible for their unit’s overall financial management.
    Major Budget Unit (MBU): Organizational/management groups within the divisions. They are generally management units, colleges, or administrative organizations.
     
  3. Scope
    This policy applies to all budgeted University funds.
     
  4. Overview of Budget Oversights
    MBU Lead Administrators, campus budget partners, and Budget Managers are responsible for overseeing budgeted university funds, and ensuring that:
    • year-to-date resources and expenditures are occurring in a manner consistent with budget plans
    • resource shortfalls and/or expenditure overruns are identified and addressed as soon as possible
    • emerging or incurred deficits are identified, corrective action plans are established, and incurred deficits are actively resolved
       
    Throughout the fiscal year, budget managers and campus budget partners must monitor resources and expenditures to determine whether the financial status is on target or is changing. If significant changes are detected, the underlying reasons for the changes must be identified and, if needed, appropriate corrective action must be taken.
     
  5. Frequency of Reviews
    Reviews will occur quarterly.
     
  6. Corrective Action to Address Significant Variance
    If there is a significant variance between the total MBU Budget and Actuals, the campus budget partner must submit to UBPO a formalized resolution plan in the form of the Certification of Corrective Action. The resolution plan must propose both a solution and a timeline with anticipated completion dates, and must be signed by the MBU Lead Administrator. If the significant variance cannot be resolved within the division, the Senior Director for University Budget and Planning will refer the issue to the Vice President of Administration and Finance and the relevant division Vice President to achieve a resolution. If no resolution can be found, a formalized request will be submitted by the division Vice President to the President and Cabinet for consideration and resolution. Detailed documentation, including the financial reviews and any additional actions taken to address significant variances will be retained electronically within UBPO in accordance with the campus retention policy.
     
  7. References
    ICSUAM Section 2002.00 – Budget Oversight Policy