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I.      PURPOSE

To establish Budgetary controls for State appropriated funds.

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.     UMDNJ is mandated by statute to remain within its budget appropriation, therefore, it
        is necessary for all UMDNJ faculty and staff members who have budget responsibility
        to exercise firm control over their areas. The UMDNJ Budget Manual contains the
        current list of the UMDNJ Budget Organization Units and identifications of responsible
        individuals. Proper control responsibility starts at the cost center supervision level, and
        passes up through the organization. In this way the President and the Senior Vice
        Presidents, working with their staff and the Board of Trustees, in liaison with the State,
        assures judicious use of appropriated funds.

2.     Once the Governor's Budget is approved by the Legislature, and departmental
        working budgets have been approved by the Executive Budget Committee and the
        President, the working budgets become the official UMDNJ documents against which
        results are measured. The Governor's Budget is broken down into program elements
        for each (organizational) unit. Adherence is required by current state policy only to
        each unit's total expense on appropriation dollars, revenues, and positions budgeted,
        and to the agreed-upon goals and objectives of each unit. Within this framework each
        unit is free to prudently budget its dollars as it sees fit among its cost centers and
        object code expense within its costs center, subject to the President's approval (or his
        designee: Senior Vice President for Administration and Finance).

3.     Each Unit is expected to live within its annual working budget in total for both dollars
        and Full Time Equivalents (FTE's) as mandated by the State. The University expects
        each department of each Unit to live within its annual dollar working budget. Prior
        approval by the Department of Higher Education and the Office of Management
        Studies and Budget is required for:

        a.    transfers between units (schools, hospitals, etc.);

        b.    increasing a unit's FTE's beyond the number in the approved budget;

        c.    increasing a unit's expense appropriation beyond budget utilizing any excess (over
               budget) general service income or hospital service income.

        In all cases, approval requests to the cognizant cabinet officer, etc. will be made in
        writing by the President or (his designee: Senior Vice President for Administration and
        Finance) after determination of desired action.

4.    When there are changes to the existing working budget involving:

        a.    transfers between organizational units;

        b.    transfers between departments of the same unit;

        c.    decreases or increases in departments resulting from decreasing or increasing a
               unit's total working budget as mandated.

The following level of approvals are required:
 

Type	Approval
Transfer between units	Dean or Administrator of each unit; Associate Vice President for Resource Management; President (or designee - Senior Vice President for Administration and Finance); and DHE/OMB
Transfer between departments for the same unit involving:  10% of more of the initially approved working budget of the transferring department  Less than 10% of the initially approved working budget of the transferring department	Dean or Administrator; Associate Vice President for Resource Management; and President (or designee - Senior Vice President for Administration and Finance)    Dean or Administrator with a complete set to Director of Budget
Transfers within a Department of a unit involving:  20% or more of the major object code of that department's initially  Less than 20% of the major object code of that department's initially approved working budget	Dean or Administrator; Associate Vice President for Resource Management; President (or designee - approved working budget - Senior Vice President for Administration and Finance)  Dean or Administrator with a complete set to Associate Vice President for Resource Management
Decreases or increases in departments resulting from decreasing or increasing a unit's total working budget as mandated	Dean or Administrator; Associate Vice President for Resource Management; and President (or designee - Senior Vice President for Administration and Finance); and where appropriate DHE/OMB

5.    Mechanics of Changes to the Working Budget

       a.    The role of the Associate Vice President for Resource Management in the
              preceding process is twofold:

              i.    to record for information purposes all transfers not requiring the Senior Vice
                    President for Administration and Finance approval and to then route them into
                    the accounting systems.

              ii.   to forward to the President (or Senior Vice President for Administration and
                    Finance and Cognizant Cabinet Officer if necessary) all transfers requiring his
                    approval, and into the accounting system, if approved.

       b.    Transfers between units

              All requests for transfers between units require initial approval by the Dean or
              Administrator of each unit. The Associate Vice President for Resource
              Management will prepare Request for Budget Transfer Form, and will forward to
              the units for signature. Upon their return, the Associate Vice President for
              Resource Management will send them to the Senior Vice President for
              Administration and Finance for his signature before forwarding to DHE/OMB.
              When DHE/OMB notifies the Associate Vice President for Resource
              Management of approval, he will in turn notify the unit's Business Office which will
              implement the transfer.

       c.    Transfer between departments of same unit - 10% or more of budget

             All requests for transfer between departments of the same unit involving 10% or
             more of the transferring department's budget should be prepared by that unit's
             Business Office on Request for Budget Transfer Form with Dean or Administrator
             approval and sent to the Associate Vice President for Resource Management. The
             Associate Vice President for Resource Management will forward to the Senior
             Vice President for Administration and Finance and notify the Business Office to
              implement the transfer when approval has been granted.

      d.    Transfers between departments of same unit - under 10% of budget

             All requests for transfers between departments of the same unit involving less than
            10% of the transferring departments budget should be prepared by that unit's
             Business Office on a "Request for Budget Transfer Form" with Dean or
             Administrator approval and sent through the Associate Vice President for
             Resource Management who will record the transfer and route it to the accounting
             system.

      e.    Transfers within a department - 20% or more of major object code

            All requests for transfers within a department involving 20% or more of its
            transferring major object code should be prepared by the Business Office on the
            "Request for Budget Transfer Form" with Dean or Administrator approval and sent
            to the Associate Vice President for Resource Management. The Director will
            forward to the Senior Vice President for Administration and Finance and will notify
            the Business Office to implement the transfer when approval has been granted.

      f.    Transfers within a department - 20% of major object code

            All requests for transfers within a department involving less than 20% of its
            transferring major object code should be prepared by the Business Office on a
            "Request for Budget Transfer Form" with Dean or Administrator approval and sent
            through the Associate Vice President for Resource Management who record the
            transfer and route it to the accounting system.

     g.    Changes in Unit's total working budget

            All requests for decrease or increase in unit's total working budget will be in
            response to mandated changes as directed by the Senior Vice President for
            Administration and Finance to the affected unit. The unit's Business Office should
            prepare the changes on the "Request for Budget Transfer Form" with Dean or
            Administrator approval and send it to the Associate Vice President for Resource
            Management. The Associate Vice President for Resource Management will forward
            to the Senior Vice President for Administration and Finance. Upon approval, the
            Associate Vice President for Resource Management will notify the Business
            Office.

     h.    It is recognized that occasions may arise where the President's and DHE/OMB's
            approval is required but the delay in obtaining it could cause missing a deadline in
            entering transfers into the accounting system. In such instances, the Associate Vice
            President for Resource Management , will use this discretion and may authorize
            implementation of the change subject to the President's and possibly DHE/OMB's
            approval. Should there be subsequent disapproval, the Associate Vice President for
            Resource Management will request the Business Office to make the appropriate
            reversal.

                a.    Department

                       No department may add personnel or make other commitments without the written
                       approval of the Dean or Administrator where such action would result in exceeding
                       the year's FTE, salary or non-salary budget for that department. Before granting
                       such approval, the Dean or Administrator must obtain funds through the transfer
                       mechanisms described in the preceding paragraph 5, "Mechanics of Changes to the
                       Working Budget".

                 b.   Unit

                       No unit may add personnel or make other commitments without the written
                       approval of the Senior Vice President for Administration and Finance where such
                       action would result in exceeding the year's FTE, salary or non-salary budget for
                       that unit. This will precipitate a request for transfer as described in the preceding
                       paragraph 5, "Mechanics of Changes to the Working Budget".

           7.   Controls by the State

                  a.    Prior approval by the DHE and the Budget Bureau is required for:

                         i.    transfer between units;

                         ii.    increasing a unit's FTE's or expense appropriations beyond the Budget;

                         iii.   utilizing any excess over budgeted general service income; and

                         iv.   hospital service income.

                  b.   Approval requests to DHE/OMB are to be made in writing by the President or
                        Senior Vice President for Administration and Finance.

 8.    Each month Financial Statements, Budget Comparison Reports, and detailed
        Department Transaction Reports are issued for comparison of actual expenditures to
        that which was budgeted.

        a.     Budget Comparison Reports compare "actual" vs. "budget" by Department for
                each unit. Distribution is internal. These reports, plus accompanying narratives to
                respective managers highlighting items requiring corrective action, are a prime
                device for monitoring expenses. Managers are expected to reply in writing citing
                reasons for exceeding budget and remedial action planned.

        b.    Department Transaction Reports are internal only and distributed to department
                heads showing their detailed expenditures by object code vs. budget.

By Direction of the President:

__________________________________________
Senior Vice President for Administration and Finance
   

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