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UNIVERSITY POLICY

SUBJECT:

FINANCIAL AFFAIRS

TITLE:

BUDGET: PROCESS

CODING:

00-01-50-05:00

ADOPTED:

07/01/87

AMENDED:

07/01/87

 I.       PURPOSE

To outline the UMDNJ Budget Process.

Under the direction of the Senior Vice President for Administration and Finance, the Associate Vice President for Resource Management is accountable for ensuring compliance with this policy.

1.     Annually, a proposed fiscal year budget is prepared by UMDNJ and submitted to the
        Department of Higher Education for processing through normal channels to the Bureau
        of the Budget, the Governor's Office and to the State Legislature for approval and
        appropriation of funds.

2.     The budget process cycle for the beginning effort for any given year to its final
        approval by the Legislature, covers approximately 14-15 months. Therefore, it is
        apparent that during any calendar year, two or even three budgets can be involved in
        discussion and/or efforts at justification, documentation or preparation.

3.     Key to preparation of each year's budget is knowledge of the contents of the
        approved budget of the previous year. The number of full time equivalent faculty or
        staff members (FTE's) and total dollars for salary, supplies and equipment becomes
        the base starting point for the preparation of the ensuring year's budget. This data is
        provided as early as possible to individuals involved in the initial budget preparation
        process. Normally, the beginning figures are developed from the Governor's budget
        message to the Legislature. They are used to commence preparation of the next year's
        budget after the Legislature has voted and appropriated monies to support the budget.
        Adjustments are made where necessary.

4.     Initial effort for all departments of the School and Units for each budget cycle is
        analysis of programs and requirement for the coming year to determine which
        programs are to be continued into the next year and which programs are desired to be
        added or expanded.

5.     It is required that all new programs and improvements in existing programs be
        submitted fully justifies in narrative form, including but not limited to formulas, with
        further support where appropriate. Successive approvals will be required at each
        echelon within the University and at Executive Budget Committee hearings in order to
        be included in the University Budget.

6.     This policy is intended as an overview and is not expected to provide the complex and
        comprehensive procedures necessary in the budget process. Individuals who are
        involved in the actual compilation of specific data or individuals who desire to either
        continue a previous program or initiate a new program are requested to study and
        apply guidance contained in the UMDNJ Budget Manual, as well as applicable school
        or unit policy and procedure guidance.

__________________________________________
Senior Vice President for Administration and Finance 

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