Policies & Procedures Manual - Elizabeth City State University

400.4.17Adopted: 06/14/05ELIZABETH CITY STATE UNIVERSITYDepartmental Planning and Administration1. Department heads are expected to administer the accounts under their supervision in such amanner as to keep expenditures within the budgets established, for their operation.2. To discharge this administrative responsibility, it is necessary for department heads to plandepartmental programs and control the accounts in such a manner - as to be sure that currentbudgets, at all times, represent the financial plans for the various programs. Expendituresshould be anticipated and curtailed where appropriate. Program goals in most cases can be metby realignment of budgets provided adequate planning has been done and adequate controlsmaintained.3. A primary aid in planning and administering each program is provided by the issuance of amonthly FBM090 Account Statement for each account. These reports provide an updatedfinancial status report on each account and are distributed to the Vice Chancellors anddepartment heads through campus mail, generally by the eighth workday of the followingmonth.4. Although FBM090 Account Statements will be as up-to-date as possible, they willundoubtedly not reflect all expenditures or outstanding obligations as of the report closingdate. There will always be some processing lag. Encumbrances are not made for open orderpurchases from commercial vendors, student stores, intra-state travel, or requests forreimbursements (such as departmental invoices covering coping charges, postage, telephone,and the like). Therefore, it is necessary to consider such outstanding obligations indetermining the actual financial status of any particular account. The department head mustassure that unencumbered commitments of this type are adequately controlled so as not tooverdraw an account.5. Reports should be promptly reviewed and actively used in the financial management processfor each account. "Balance Available" should be continuously evaluated in regard to suchthings as expenditure trends, new or continuing requirements, as well as operatingrequirements for the remainder of the fiscal period. Prompt action should be taken wherenecessary to request budget revisions or to curtail program costs.6. Budget revisions should be based upon the financial plan and cost trends for the current fiscalperiod. To the extent possible, budget revisions should reflect all necessary reallocations ofresources that are foreseen through the end of the current budget period. Revisions solely forthe purpose of temporarily coping with the near-term problems, such as a $25 accountoverdraft in the supply line, when more funds will probably be needed for other anticipatedexpenditures, should be avoided whenever possible.7. It is also imperative that accounts not be overdrawn with a view towards straightening mattersout later. This imposes an unnecessary administrative burden on all concerned, involvingretroactive adjustments and/or budget revisions after the fact, rather than before the fact asshould be the case where adequate planning and control is exercised.8. By planning ahead, the number of budget revisions can be minimized and the administrativetask reduced.