Policies

9.22 Budget (Internal Financial Management)

For the University of Northern Iowa to remain a fiscally-solid university, it is necessary that all parts of the university adhere to budget allotments. Responsible individuals must take a strong stance to prevent overdrafts or over-expenditures. Everyone in the university is expected to exercise financial diligence within established budgets.

Should emergencies arise, the Budget Director may be authorized to make budgetary adjustments, but only in exceptional cases.

In order to insure financial integrity and stability, several financial principles will be followed, including:

  1. Checks will not be written for expenditures (e.g., purchases, travel) unless funds are available.

  2. Computer-generated account balances will be distributed to internal vendors (e.g., campus stores). A listing of overdrawn accounts will be distributed weekly.

  3. Purchasing will operate under the following calendar restraints:

    1. Equipment orders should be processed before May 15.

    2. Supply and services orders should be processed before May 31.

    These steps are necessary to protect university funds from reversion to the State Treasury, given the action of the General Assembly requiring delivery of orders for supplies and services by June 30.

  4. Building repair and special capital allocations, assuming the availability of funds at the end of the fiscal year, will be communicated to the Business Director and must be committed in the General Ledger System. Greater attention will be given to making these expenditures in January/February/March, rather than in April/May/June.

  5. Physical Plant jobs (renovation, building repairs) will be periodically reviewed to update "estimates."

  6. The responsibility for periodic budgetary projections during each fiscal year is officially assigned to the Budget Director, who will convey these recommendations to the President, the Cabinet, and the Controller's Office.

    It is important for all of us in the university to know that the statutorily-mandated reversions actually work against good planning. However, there are few options. These financial principles should provide the university community more pertinent budgetary information, earlier in the fiscal year. Everyone needs to modify their expenditure patterns, especially for equipment and building repairs, so to avoid any last-minute spending sprees. Every effort must be made to insure effective budget control, wise planning for expenditures, and open communication. Your help and support will be appreciated by all.

2/3/92
President's Bulletin, No. 148, 1/17/93