On an annual basis, the University is required to present a Five
Year Financial Plan to the Board of Trustees. The development of
this Plan and the ensuing annual allocation budgets for the KSAS
departments starts in December and is completed in May. The initial
part of the process involves development of Central Administration
guidelines. With this information in hand, the Division works with
projected revenues to develop appropriations for projected expenditures.
After Central Administration's approval of this plan, the budget
appropriations for the departments begin. Below are three stages
of budget development.
Central Administration
The TUITION RATES are recommended by the Dean's and are presented
to the Board of Trustees for approval. The Board of Trustees determines
the ENDOWMENT PAYOUT. General Accounting in the Controller's Office
produces a detailed listing of the anticipated income for each of
the division's endowments.
The KSAS Business Office presents Cost Analysis in the Controller's
Office with a Five Year Projection of the Divisions Base (Modified
Total Direct Cost) as well as a projection of the Indirect Costs
by function. Cost Analysis, using this information, calculates the
divisions F&A (IDC) RETURNS.
Human Resources determines the annual STAFF SALARY GUIDELINES.
Central Administration also presents the division with the FRINGE
BENEFIT RATE, MARYLAND STATE AID, and the UNIVERSITY TAX.
KSAS - Divisions
The Budget Process in the Dean's Office begins with a detailed
projection of the current year's budget as of the calendar year
end. Using this projection, as well as allocations of revenue or
expense from other divisions, (i.e. Homewood Student Affairs), guidelines
from Central Administration and assumptions and guidelines from
the KSAS Dean's Office, a budget is developed for the next year.
Again using these sources of information, the four following years
are projected. The largest components of the Revenue are Tuition,
Indirect Cost from research and Gifts and Endowments. The largest
components of Expense are Instruction & Research (i.e. Faculty
salaries, Operating budgets), Graduate Student Aid, Operation and
Maintenance of Plant and Interdivisional Expense from Homewood Student
Affairs (i.e. Undergraduate Student Aid).
The Budget, relevant assumptions and academic priorities are presented
and discussed with the Provost, Sr. Vice President and the KSAS
Deans. Any necessary changes are made before final approval.
KSAS - Departments and Centers
The Deans in conjunction with the Business Office determine the
Operating Budget allocations. The budgets are sent to the Department
Chair and the Chair is given an opportunity to set up a meeting
to discuss any further requests with the Deans and the Director
of Business Management. The Deans make a final decision.
Guidelines on faculty salaries are sent to the department Chairs
from the Dean. The Chairs are asked to recommend salaries for each
of their faculty members using the guidelines. They are also asked
to include explanations and methodology. The department Chair meets
with the Dean to discuss the recommendations. The Dean then makes
the final decision on faculty and Chairs salaries. The Dean's office
forwards May appointment letters detailing the new academic base
salary, FTE, and any adjustments (i.e. Leave of Absence) in time
for the July 15 payroll cut-off.
Each of the Centers and large Special Programs directors meet with
the Associate Dean of Academic Affairs to discuss their current
year's activities and their plans for the following year. A projected
budget is presented with necessary explanations. The Associate Dean
sets the final budget for the year.
Once the budgets are determined, the department administrators
are asked to give the Business Office a detailed breakdown of the
Budgets into source codes. More than one operating account can be
set up for better management in the department. The budgets are
electronically sent to the Budget Office for final approval.
If additions are requested and approved during the Fiscal Year,
the Budget is appropriated for the new amount.
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