Finance - Budgeting Policy

 

PURPOSE

The purpose of this Policy on Budgeting is to outline the annual budgeting process. The College’s budget is prepared annually and is designed to allow the College to have financial control over the College’s income, while expenditures are estimated based on previous fiscal year expenses and any anticipated expenses for planned activities.  

POLICY

The College’s annual budget is reviewed and approved by the Board of Trustees. The budget may be based on tuition and fees, state appropriations, county appropriations and other income sources. The Board delegates to the President the responsibility to develop procedures and guidelines for the implementation of this policy. The Finance Office will ensure compliance with this policy in all relevant actions. 

Approved: June 2021
Approved by: Board of Trustees
Category: Finance and Accounting
Subcategory: Budgeting
Scheduled for Review: June 2024
Responsible Office(s): Finance

 

Procedures

Finance Department Procedure on Budgeting

I. Introduction

The Hudson County Community College (“College”) budget is a planning tool that reflects the College’s programs, mission, and strategic plan. The budgeting process begins at least six (6) months before the end of the fiscal year to allow enough time for the proposed budget to be reviewed and approved by the College’s Board of Trustees before the start of the new fiscal year.

II. Budgeting Process

      1. Prior to the start of the fiscal year, the College’s Vice President for Business and Finance/CFO shall develop a timeline for the budgeting process, which will include the start date through the time necessary for review and approval of the proposed budget by the Board of Trustees. 
      2. The budget template shall be sent to the department’s budget officers to input their department’s projected expenses for the fiscal year. The budget officers shall prioritize their department’s expenses based on program delivery goals, organizational financial goals, and annual goals set forth in the College’s strategic plan. 
      3. A budget hearing shall be conducted with the Finance Office to understand the needs of each department. At this hearing, the budget officers shall be afforded the opportunity to explain their respective departments' projected fiscal needs.
      4. Following the budget hearing, the budget officers shall complete the necessary templates for budget needs and return them to the Accounting Department for consolidation. 
      5. The expense budget is drafted by the Accounting Department and sent to the Vice President  for Business and Finance/CFO for review. 
      6. The income budget is drafted by the Vice President for Business and Finance/CFO.
      7. The drafted budget is reviewed by the President, and any changes or department suggestions are recommended.
      8. Once reviewed and approved by the President, the budget shall be presented to the Board of Trustees for approval in accordance with applicable law.
      9. All budget decisions and the assumptions upon which they are made shall be documented.
      10. Upon approval by the Board of Trustees, the approved budget shall be incorporated into the Colleague system and a Budget Export Selection (BUXS) report will be generated, which report shall be compared with the excel spreadsheet to ensure that all amounts are entered and are correct.
      11. The approved budget shall be made available on the College portal and monitored by the department’s budgeting officer.
      12. Questions about the budget shall be submitted to the Accounting Office for review and response as necessary, and changes, if warranted, will be implemented where applicable.

Approved by Cabinet: July 2021
Related Board Policy: Finance

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