Budget

Office of University Budgets and Financial Planning
Western Michigan University
Kalamazoo MI 49001-5221 USA
(269) 387-4275

Fiscal Responsibility

training manual section 4

4.1 Salary savings

  • Responsibility units - The dean may choose to utilize salary savings for purposes other than compensation or may choose to not backfill a position.
  • Service units - The responsible vice president may choose to utilize salary savings for purposes other than compensation or may choose to not backfill a position.

4.2 Surplus and deficit carryforward

Overseeing the financial operations of the University is primarily the responsibility of central administration. Resolving operating deficits is a University priority and needs to be addressed within the fiscal year the deficit occurred.

Responsibility units

  • Surpluses and deficits will carry forward to the RU.
  • RUs are responsible for using standard reports provided by central support units to determine the financial standing of their unit as well as in development of a mitigation plan.
  • College RUs – The dean is responsible for developing and updating a comprehensive mitigation plan for departments in financial difficulty. The mitigation plan should describe what actions the department will take to enhance revenues and decrease expenses, when those actions will occur and who is responsible for those actions.
  • Auxiliary Units – The unit director is responsible for developing and updating a comprehensive mitigation plan for departments in financial difficulty. The mitigation plan should describe what actions the department will take to enhance revenues and decrease expenses, when those actions will occur and who is responsible for those actions.
  • Meetings will be periodically scheduled with the responsible vice president to review financial projections and monitor progress on the department’s mitigation plan.

Service units

  • Surpluses will carry forward according to the responsible vice president’s guidelines.
  • Deficits will carry forward as a reduction to the following fiscal year’s budget.
  • Departments are responsible for using standard reports provided by central support units to determine the financial standing of their unit as well as in development of a mitigation plan.  
  • The unit director is responsible for developing and updating a comprehensive mitigation plan for departments in financial difficulty. The mitigation plan should describe what actions the department will take to enhance revenues and decrease expenses, when those actions will occur and who is responsible for those actions.
  • Meetings will be periodically scheduled with the responsible vice president to review financial projections and monitor progress on the department’s mitigation plan.

4.3 Total financial status

RUs and SUs are responsible for determining the financial standing of their unit using standard reports provided by central support units. This analysis should include an "all-funds" approach in which all funds and cost centers attributable to the RU or SU are evaluated. In addition, cost centers should be evaluated individually to determine the financial sustainability of their operations.

4.4 Future planning

  •  Booking process - Throughout the fiscal year, RUs and SUs have the ability to adjust their permanent base budget for the upcoming fiscal year. Enrollment data gathered from the SRM dashboard folder 01.00 University Dashboards > 01.00.90 Strategic Resource Management Metrics should be used to determine adjustments needed for the upcoming fiscal year. The Office of University Budgets will book the budget annually as soon as possible given the timing of the adoption of the state budget as well as any contract negotiations occurring in that year.
  • Revenue estimates - Enrollment data gathered from the SRM dashboard should be used to determine revenue estimates for the upcoming fiscal year.  The Office of University Budgets will communicate possible tuition rate scenarios.