G-1. College Budget

G-1. College Budget

Value Statement

  • The College will budget limited public funds in an effective manner which is aligned with the mission of the College.

The President shall, no later than the end of May each year, develop and submit to the Board and for public review a proposed comprehensive annual budget, with the intent to have an adopted budget by the first Board meeting in July, such that it:

  1. Demonstrates compliance with all existing budget-related policy provisions and with debt obligations.
  2. Describes all expected fiscal activity of the District in an integrated form consistent with generally accepted accounting practices, showing what values are predicted for the main financial statements for the budget year based on the proposed budget targets and the most recent estimates for current-year performance.
  3. Provides adequate support for the educational programs of the College, based on efficient operation of both direct and support services.
  4. Distributes resources primarily on objective criteria based on student enrollment and program needs, and provides a justification or plan for correction of any substantial disparities in the resources supplied to serve students in similar programs at different campuses.
  5. Budgets revenues and expenses for each category listed in the budget summary based on actual expected performance, with comparisons to both budget and current estimates for the previous year. When there is substantial uncertainty about performance in an area, the associated budget projection should be moderately conservative; in such cases, the administration should describe its targets for the area and the budget effects of the range of plausible outcomes.
  6. Budgets total revenue from recurring sources at least equal to total budgeted expense, including appropriate capital-asset depreciation, except that transient revenue shortfalls due to annexation may be funded from reserves, and the amount funded from reserves restored upon receipt of tax revenues from the annexation. Nonrecurring expenses may be budgeted to be funded from prior-year surpluses to the extent that the ratio of net assets to total expenses exceeds the standard declared in the current master plan (or the prior-five-year average if no standard has been declared).
  7. Budgets appropriate capital-equipment purchases and facilities development for the year, consistent with a multi-year master plan developed in compliance with policy E-1 on Master Planning, in amounts at least equal to projected depreciation.
  8. Provides a recent history and (to the extent feasible) a three-year plan for tuition/fee levels, enrollment, overall revenues and expenses, principal and interest payments, capital-asset expenditures, net-asset levels, and minimum unrestricted-cash levels, with a description of planning assumptions and significant changes.

When deemed appropriate by the administration, capital items in an annual budget may be purchased during the period after budget approval but prior to the start of the fiscal year.

The President shall inform the Board whenever the actual performance of the College differs significantly from the approved budget, and shall propose corrective budget amendments if projected performance differs from the budget target for increase in net assets by more than ½% of total revenues.

The President shall provide the Board a monthly financial report detailing year-to-date expenditures and revenues against the budget and a monthly revised fiscal-year projection of revenues, expenses, capital transactions, and cash levels. The external auditor shall annually review the availability of timely data under the reporting system and make any recommendations to the President and Board of any improvement in the monthly reporting system that may be necessary. The format of monthly statements shall include reports that match that of the annual budget and the audited annual statement to the extent feasible.

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The Austin Community College Board of Trustees adopted this policy on June 3, 1996 and amended it on March 2, 1998,d April 1, 2002, May 3, 2004, April 4, 2005, and July5, 2005.