Revision Responsibility: President/CEO

Responsible Executive Office: President/CEO

Purpose: To establish guidelines for developing College operating budgets.

Policy:

Platt College budgets are developed as a logical extension of the institution's planning process to support the mission of the College. These policies are to be applied in conjunction with the Board of Directors for Platt College budget policies to provide a budgetary framework for operation of the College.

The budgeting process is predicated on a high level of consultation throughout the institution. The Director of Financial Services and the College President are responsible for identifying specific expense categories that will provide a budget that encompasses necessary categories for the daily operations of the College programs.  The Dean, School of Nursing in collaboration with the faculty will be directly involved in the development of individual program budgets. The Dean, School of Nursing will establish and use appropriate processes to assure reasonable consultation in preparation of all budget recommendations.  The Vice President of Academic Affairs oversees the budgetary process of liberal arts.

The Dean, School of Nursing will develop budgetary line item amounts with justification for each line item and present them for approval by the College President and Board of Directors.  The Dean, School of Nursing and Vice President of Academic Affairs are responsible for the management of expenditures. 

A. Development of Education and General Fund Budget

1. Revenue Budget

a) Tuition income is based on estimated enrollment and tuition.

b) Other revenue is based on estimated interest income.

The revenue projections are prepared by the Director of Financial Services and are reviewed and approved by the President and the Board of Directors.

2. Expenditure Budget - The expenditure budget consists of the major categories as listed below:

• Personnel Costs
• Institutional Budgets:

Debt Service
Utilities
Telecommunications
Auxiliary Support
Reserves
Facility Projects
Auxiliary Allocation of Indirect Costs
Other Institutional Programs

• Program Budget:

General Allocation for Program Operating Expenses

a) Personnel Costs

1. Personnel costs include salary, benefits and related insurance/taxes for all permanent employees and full and part-time faculty.
2. Salaries for faculty and exempt employees are approved by the President in consultation with the President's Administrative Team. Individual salaries are determined by the President or Vice President of Academic Affairs.
3. Filling position vacancies and adding an employee is done at the discretion of the President or the Vice President of Academic Affairs.
4. The Director of Financial Services shall monitor the total budget allocations each year for Personnel costs. The percentage of Personnel costs related to the total budget shall not be so high as to restrict necessary flexibility in developing budgets in future years.

b) Institutional Budgets

1. Institutional budgets shall be developed by the President in conjunction with the Vice President of Academic Affairs and Director of Financial Services and approved by the Board of Directors. The Director of Financial Services shall maintain adequate documentation to support institutional budget estimates.
2. Use of the Institutional General Reserve is determined by the President.
3. The general reserve may be used for:

• appropriation rescission
• actual tuition revenue less than estimated tuition revenue
• other unanticipated needs

c) Departmental Budget

1. The Dean, School of Nursing, in consultation with the Vice President of Academic Affairs and President and guided through Board of Directors leadership, have the authority to prepare and defend program operating budgets. This provides a high degree of flexibility in matching the funding to the areas of greatest need.  The Dean, School of Nursing will be provided with monthly budgetary reports including budget verses actual comparisons to use as management tools in controlling the program budget. 

B. Budget Revisions

1. Operating budgets will normally be reviewed for revision at the end of each calendar year.
2. Revised funding will be determined by the President in consultation with the Executive Administrative Team.

C. Budget Calendar

1. Initial Budget Assumptions (September 1)

• Develop revenue projections of all funding sources.
• Determine initial planned uses, or allocation, of additional funds

2. Operating Budget (October 1)

• Refine revenue projections of all funding sources.
• Determine allocation of funds for Personnel costs, Institutional budgets and Program budgets.
• Present to Board of Directors for approval.

3. Supplemental Allocation (November 30) (Capital Improvements)

• Analyze finances to determine if additional revenues exist for supplemental allocation.
• Determine allocation of supplemental funds in consultation with the President's Administrative Team.

D. Budget Format

1. Zero based by line item

2. Description of goals and objectives to accomplish by line item.

Accountability:

• Salaries and rates of pay based on unit credit hour production
• Student retention goals
• Program goals (ex: nursing-NCLEX 1st attempt success rates)
• Professional development of faculty and staff
• Graduate employment rates
• Full and part-time faculty retention rates
• Achieving programmatic and institutional accreditation and reaccreditation

Revised: August 3, 2009, Revised: January 17, 2011 to reflect revised organizational chart