LARAMIE COUNTY COMMUNITY COLLEGE PROCEDURE

 

 

SUBJECT - Budget Preparation and Management

REFERENCE - 8200

DATE - 11/14/89

NUMBER 8200

 

1.  Introduction

 

The following information describes the procedures followed by the Financial Planning Office when preparing the budget documents required by the Wyoming State Statutes and when implementing the policies of the Board of Trustees.

 

The Wyoming Community College Commission is responsible for determining the college's biennial budget authority based on the State General Fund appropriation, as approved by the Wyoming State Legislature. The commission also establishes budget authority for institutional local tax revenues based on estimates provided by the college.

 

Budget procedures include the preparation of the annual budget, the biennial budget and the supplemental budget; the preparation of budget amendments; the establishment and allocation of the cost center budgets and expenditures; and the steps followed in closing the budget cycle.

 

2.  Definitions

 

In order to facilitate understanding of these procedures, the following definitions are provided:

 

A. Annual Budget - The college operating budget which includes the Current Fund, Auxiliary Fund, Plant Fund, Federal Fund and any resolutions for Bonded Indebtedness of the college district. The annual budget is approved by the college Board of Trustees on the third Wednesday in July for the fiscal period July 1 to June 30.

 

B. Biennial Budget - A budget document which represents the expected budget requirements for a fiscal period which begins on July 1 of even numbered years and ends two years later on June 30. The document is prepared by the college and presented to the Board of Trustees, Wyoming Community College Commission, the Governor, and the Legislature for their review and approval.

 

C. Biennial Budget Authority - The State General Fund appropriation which is approved by the Wyoming Legislature and the budget amount authorized by the Wyoming Community College Commission for all other revenues collected by a community college during a two year period.

 

D. Budget/Expenditure Report - A financial document which includes information on the annual budget, expenditure, encumbrance, budget balance, and percent of the budget expended for each budget line item for the college. The report is prepared by accounting services and distributed monthly to college administrators.

 

E. Cost Center Budget - A set of accounts which identify the costs of specific college academic program activities. For example, English is a cost center of the Arts and Humanities instructional division and Student Financial Aid is a cost center of Student Services.

 

F. Budget Categories

 

1. Current Fund - The primary operating budget for the college. The Current Fund is used to account for the revenues and expenditures that result from performing the primary and supporting missions of the college. The principal revenue sources for the Current Fund include the State General Fund, local tax collections, tuition and fees, investment income and a cash reserve.

 

2. Auxiliary Fund - The primary function of the auxiliary fund is to account for college enterprise operations generally expected to be self‑sustaining from the revenues collected. This account is also used to account for the cost of enterprise operations that may require a current fund subsidy. Each year the Wyoming Community College Commission approves all college enterprise operations.

 

3. Agency Fund - The Agency Fund is used to account for money which a college administers as a trustee pursuant to law, trust agreement, or community college commission policy which restricts the use of the money to a specified purpose and which is held and distributed as an agent.

 

4. Plant Fund - The Plant Fund is used to record revenue received for the acquisition, construction, or improvement of property, and to record expenditures for capital assets.

 

5. Federal Fund - The federal fund is used to account for money received from the Federal government.

 

3. Budget Document Recipients

 

Copies of the annual budget are provided to the Board of Trustees, the Wyoming Community College Commission, the Laramie County Clerk, and the President's Staff.

 

Copies of the biennial budget are provided to the Board of Trustees, the Wyoming Community College Commission, the Wyoming Department of Administration and Fiscal Control, Budget Division, and the President's Staff.

 

Copies of the cost center budgets are provided to each administrator, the President's Staff, and any other individual who may want a copy of it. Budget/expenditure reports are prepared monthly and distributed to all administrators.

 

On request, the Director of Financial Planning will provide a copy of any budget to any interested person.

 

 

4. Budget Time Table, Annual Operating Budget

 

A. March/April

 

The Wyoming Community College Commission establishes the college budget authority. The Faculty/Staff Welfare Committee submits salary and benefit recommendations to the President's Staff for consideration. The President's Staff establishes the recommendation for salary and benefit levels for consideration and approval by the Board of Trustees. Supportive costs (current expense) and equipment levels (capital expense) are also proposed by program for the next academic year.

 

B. April/May

 

The Director of Financial Planning will gather all information needed to prepare the preliminary budgets for all funds (Current Fund, Auxiliary Fund, Agency Fund, Plant Fund, and Federal Fund).

 

On or before May 15, the college administration shall submit a tentative budget for each fund to the Board of Trustees for their preliminary approval as required by W.S. 16-4104(a).

 

Upon preliminary approval by the Board of Trustees, the Director of Financial Planning will develop the detailed cost center budget allocations with each dean and division director for the coming fiscal year.

 

C. June

 

The Director of Financial Planning will finalize the annual cost center budget. At this time, the Director will also prepare the budget documents for any outstanding bonded indebtedness requiring an expenditure authority resolution by the Board of Trustees. These documents will be included in the annual operating budget.

 

D. July

 

No later than one week prior to the annual budget hearing, the Director of Financial Planning will have published the notification of the proposed budget and the hearing date and time in the local newspapers within the college district.

 

On the third Wednesday in July, at 5:00 p.m., the Board of Trustees will hold a public hearing on the proposed budget. Following the public hearing the Board of Trustees will meet and adopt the annual budget. The adoption can occur on the day of or on the day following the public hearing. Certified copies of the approved budgets will be furnished to the county commissioners and the Wyoming Community College Commission. A public copy will also be kept on file in the office of the Director of Financial Planning (W.S.~ 164-109).

 

5. Budget Amendments

 

A. Cost Center Budget Amendments within Program Budgets

Amendments within budgeted cost centers are allowable if (a) there is no change in total budget authority to a Program Budget; and (b) the budget change is not between Program Budgets, as defined in the College Accounting Manual and identified in the Budget Development Manual. Program Budgets are identified as follows:

 

General Administration

Student Services

Institutional and Instructional

Instruction

Plant Maintenance and Operation

Outreach

Community Service

Continuing Education

Cash Reserve

 

B. Cost Center Budget Amendments between Program Budgets

 

Any budget amendment between Program Budgets, as provided in a March 26, 1987 Wyoming Attorney General's opinion, requires a public hearing and approval by the Board of Trustees. The amendment process requires a public notice to be carried in local newspapers in the district not less than one week prior to the public budget hearing.

 

The Director of Financial Planning prepares the notification necessary for the public hearing and will process the budget amendment required to complete the budget transaction once it has been approved by the Trustees.

 

C. Budget Changes

 

Budget amendment forms are available from the Director of Financial Planning and accounting services if a budget change is required.

 

If a budgetary change involves an increase in total college budget authority, the change requires (a) approval by the Board of Trustees and (b) approval by the Wyoming Community College Commission to establish the increased budget authority. It is important to recognize that the time required to process this budgetary adjustment is dependent on the times that the Board of Trustees meet for their regular business meeting (once a month) and the times of the Wyoming Community College Commission (quarterly). It may take as long as three months to complete this transaction. The Director of Financial Planning will process the budget amendment required to complete the budget transaction once it is approved.

 

6. Annual Cost Center Budget Process

 

A. Introduction

 

The cost center budget identifies cost information for individual activities within program budgets. The development of cost centers is based on input from each administrator. Budget allocations to cost centers are determined by the President's Staff, by each Dean, and by each administrator.

 

The purpose of the cost center budget is to aggregate budget and cost information for management purposes. The cost of individual program activities can then be evaluated in conjunction with other program data. This information is also needed for reports required by the Wyoming Community College Commission. Each year, twenty percent of the college's instructional programs are reviewed by the commission. The information in the cost center budgets fulfills the financial requirement of this review.

 

The Current Fund Budget Report is the document containing the budget and cost information for college activities. The report is prepared monthly and distributed to all administrators.

 

The Director of Financial Planning is responsible for the preparation and coordination of the information processed in the Current Fund Budget Report.

 

B.  Annual Cost Center Preparation/Allocation Time Table

 

1) May 15

 

After the Board of Trustees approves the preliminary annual budget proposal, the Director of Financial Planning meets with the deans and the directors of the college to prepare the cost center budgets. It is each administrator's responsibility to establish the desired cost centers for the ensuing academic year. The Director of Financial Planning will complete the annual cast center budget document after receiving input from the administrators.

 

2) June 15

 

The cost center budget information is finalized and is put into the Network Integrated Accounting System (NIAS), the college's computerized budget and accounting system, by Accounting Services under the direction of the Director of Financial Planning.

 

3) July (Third Wednesday)

 

The college Board of Trustees approves the college budget. The cost centered budget becomes the working document for budget/expenditure activity.

 

4) June

 

The Director of Financial Planning will allocate faculty salaries from the year then concluding to their correct cost center in order to ensure the accuracy of each academic program's costs.

 

This process involves determining the class schedule of each faculty member during the previous fall and spring semesters. Salary and fringe benefit data are gathered from the payroll for each faculty member and allocated to each cost center based on class schedules. Any problems with the allocations are discussed with the appropriate division administrator prior to posting them to the cost centers.

 

By June 30 the expenditure corrections are submitted to Accounting Services to correct the fiscal year end records.

 

7. Closing the Budget Cycle

 

A. Introduction

 

Budgets are reviewed prior to closing them in order to:

 

1) determine the availability of unspent budget authority to use in other areas of the college as authorized by the President's Staff; and

 

2) allow the financial planning office, purchasing, and the accounting office adequate time to process expenditures before the end of the fiscal year.

 

B. Closing Time Table

 

1) April 15

 

The Director of Financial Planning will send a memorandum to all administrators requesting encumbrance of any expenditures contemplated before the end of the fiscal year. Encumbrances must be completed by April 30.

 

2) May

 

The Director of Financial Planning will determine budget balances available after the encumbrances have been processed.

 

The President's Staff will determine the expenditures to be made from available movies after encumbrances have been processed. Generally, expenditures from these movies will be limited to one‑time purchases such as equipment or repair items.

 

The purchasing office will prepare the necessary bid documents to purchase the approved items approved by the President's Staff.

 

3) June

 

If necessary, the Director of Financial Planning will have published notification of any proposed budget amendments. Notice must be at least one week prior to a public hearing. The hearing will allow Trustee approval for the expenditure of funds remaining at the end of the fiscal year if reallocation between program budgets is required. All items will be encumbered by June 30.

 

8. Biennial Budget Request Process

(to be prepared in odd-numbered years)

 

A. Introduction

 

The biennial budget is prepared by the college in accordance with the rules established by the Wyoming Community College Commission and the Budget Division of the Wyoming Department of Administration and Fiscal Control (DAFC). This document is used to communicate the college's biennial budget request to the Wyoming Community College Commission, the DAFC-Budget Division, the Governor, and the Legislature.

 

Wyoming Statute 21-18-203(a) directs the DAFC-Budget Division to define the format of budget requests from the Wyoming Community College Commission to achieve uniformity in accordance with standard principles and procedures of budgeting for State agencies. The Wyoming Community College Commission establishes the format for all Wyoming community college biennial budget requests.

 

Beginning with the 1990-1992 biennial budget request, the Wyoming Community College Commission has adopted a system wide formula-based plan to develop the requests for all community colleges in Wyoming. The formula is driven by enrollment (cost per annualized student F.T.E.), student head count and college floor space (cost per square foot).

 

B. Biennial Budget Time Table

 

1) March 15

 

The Faculty/Staff Welfare Committee begins to evaluate their request for salary and fringe benefits for the biennial budget request.

 

In conjunction with the college planning process, each Dean begins to develop enrollment projections and equipment requirements for the next biennium.

 

2) April 15

 

The Faculty/Staff Welfare Committee reports their recommendations to the President's Staff.

 

Each Dean submits a budget recommendation to the President's Staff.

 

3) May 15

 

The President's Staff completes their preliminary review and recommendations on the biennial budget request.

 

4) June 15

 

The Wyoming Community College Commission submits the budget preparation instructions to the college.

 

5) July 1 to August 15

 

The Director of Financial Planning will work with the DAFC Budget Analyst in preparing the College Standard Budget. The Director of Financial Planning will also provide historical expenditure information as needed to the DAFC-Budget Division and the Wyoming Community College Commission in the preliminary preparation of the biennial budget request.

 

The President's Staff finalizes the biennial budget request and reviews the request with committees which need the information (i.e. Faculty/Staff Welfare Committee, Instructional Advisory Council, Business Services Staff, Student Services Staff, Faculty Senate, etc.)

 

6) Third Wednesday in July

 

The biennial budget request is finalized by the Director of Financial Planning and the President's Staff and submitted to the Board of Trustees for their approval. Following approval by the Board of Trustees, the biennial budget request is submitted to the Wyoming Community College Commission.

 

7) August 15

 

The Wyoming Community College Commission makes their recommendations to the Governor on the biennial budget and combines the college budget into a system wide request for submission to the DAFC-Budget Division.

 

8) August - November

 

The DAFC-Budget Division prepares preliminary budget recommendations to the Legislative Joint Appropriations Committee on behalf of the Governor. After reviewing the recommendations, the Governor may request a budget hearing with the commission.

 

9) December 1

 

The Biennial Budget document is finalized, including the Governor's recommendations, and is submitted by the DAFC-Budget Division to the Legislative Service Office.

 

10) January

 

The Legislative Joint Appropriations Committee conducts budget hearings on the system budget.

 

11) February

 

The Joint Appropriations Committee makes their recommendations on the system budget to each house of the Legislature.

 

12) March

 

The system budget is enacted by the Legislature and the Governor signs the appropriation bill, which will become effective July 1 of that year.

 

9. Supplemental Biennial Budget Request

(to be prepared in even-numbered years)

 

A. Introduction

 

The supplemental budget process allows the college an opportunity to review program needs to determine which programs require corrective legislative action. Requests involve budgetary needs for programs which cannot absorb additional costs within the current biennial budget.

 

The Wyoming Community College Commission establishes the format for the college supplemental budget request. The request is combined with the requests from the other colleges and submitted by the commission to the Governor as a system wide budget request. Like the biennial budget request, the supplemental budget document is used to communicate the college's budget request to the Board of Trustees, the commission, the DAFC-Budget Division, the Governor and the Legislature.

 

B. Supplemental Budget Time Table

 

1) July/August

 

The Wyoming Community College Commission will establish the priorities for the supplemental budget request. The priorities arc generally limited to salary increases for the second half of the biennium, funding shortfalls, enrollment impact and any other item the commission deems appropriate for inclusion in the supplemental budget request.

 

2) September 1

 

The commission notifies the college to prepare a supplemental budget request.

 

3) September 14

 

The Board of Trustees acts upon the supplemental budget request.

 

4) September is

 

The college supplemental budget request is submitted to the Wyoming Community College Commission for their consideration.

 

5) September 30

 

The college supplemental budget is acted upon by the Wyoming Community College Commission, then combined with requests from the other colleges into a system wide request and submitted to the DAFC-Budget Division.

 

6) November

 

Preliminary recommendations by the Governor are prepared by the DAFC-Budget Division and given to the commission Staff. Budget hearings between the commission and the Governor are held as needed.

 

7) December 1

 

The Community College Supplemental Budget request is finalized, including the Governor's recommendations, and is submitted by the Governor to the Legislature.

 

8) January

 

The Legislative Joint Appropriations Committee conducts budget hearings on the Wyoming Community College Commission supplemental budget request.

 

9) February

 

The Joint Appropriations Committee makes recommendations on the Wyoming Community College Commission supplemental budget request to each house of the Legislature.

 

10) March

 

The Wyoming Community College Commission budget request is enacted by the Legislature, the Governor signs the appropriations bill, and it becomes effective as directed by the appropriations act, usually July 1.