24.2 Budgeting of Fees
(Last Modified on December 28, 2016)
Institutional budgeting is covered in Section 8 of the Business Procedures Manual (BPM). Budgeting for mandatory and elective student fees is specifically addressed in BPM Section 8.3. For mandatory fees (excluding the special institutional fee), an advisory committee as described in BOR Policy 7.3.2.1, and the previous section of this BPM, must review the annual budget and should make recommendations to the institution president regarding the adoption of the budget. Accordingly, the fee committee must also weigh in on mandatory fees that are being requested without change. It is recommended that any significant mid-year amendments or changes to the budget that are associated with activities not included in the original purpose of the fee be shared with the advisory committee as well.
The financial information presented to the advisory committee (for both the original budget and any amendments) should include the beginning fund balance amount (less committed reserves) and projected current year revenue and disbursements. Any planned use of the beginning fund balance (accumulated reserve) should be clearly disclosed and documented as a part of the original budget and any budget amendments presented to the advisory committee. When reviewing budgets, it is not the advisory committee鈥檚 responsibility to determine the salary amount for any position, however, total salaries and the positions funded should be disclosed on the budget reports presented to the advisory committee. It is acceptable to present these amounts combined on one line for salary and benefits with a disclosure indicating the positions.
The President of an institution is not bound by the advice of the fee advisory committee, including the result of a 鈥測es鈥 or 鈥渘o鈥 vote. However, the results of such conversations and votes are a very important factor in the Board鈥檚 decision of whether to approve or deny an institution鈥檚 mandatory fee request.
In general, the Board will approve the total budget at an overall summary level in accordance with state budgetary laws and regulations. Student fees are generally included in one of three revenue categories: other general, auxiliary, or student activities, depending on the nature of the fee. The specific expenditures, (e.g. travel, salaries, training) included in the approved budget are recommendations to the President who has discretion in spending the funds as long as the expenditures are used for the intended purpose of the fees.
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