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G/4.1 Budget |
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4.1.1 Budget overview 4.1.1 Budget overviewQUT, as a statutory authority established under the Queensland University of Technology Act 1998, is required to undertake planning, budgeting and reporting in accordance with the following legislation:
The University prepares and manages its budget in conjunction with the annual strategic planning process (A/2.2). The budget is based on estimates provided by each responsibility centre and its purpose is to deliver the approved plans of faculties, divisions and institutes. Detailed accrual budgets are prepared as five distinct programs:
A detailed definition of each of the above programs is provided in the University's Financial Management Practice and Procedures Manual. Program budgeting enables the University to monitor the source and application of funds provided from Australian and Queensland Government Departments (eg Department of Education, Employment and Workplace Relations), international and domestic fee-paying students, external service activities and commercial-like operations. 4.1.2 Integration of strategic planning and budget managementThe University's Strategic Planning Package and the Budget Package are released in the second half of each year. The Vice-Chancellor and Executive Director, Finance and Resource Planning meet with each organisational area to discuss plans for the future three years. Organisational areas then develop their triennial budgets based on their plans and discussions from these strategic planning meetings. 4.1.3 Roles and responsibilitiesThe Division of Finance and Resource Planning is responsible for collating budgets received from faculties and divisions and for preparing the final University-wide budget in November each year. Planning and Resources Committee is responsible for considering strategic budget issues, approving the budget framework, and endorsing the University’s budget. Council is responsible for approving the University’s budget. 4.1.4 Budget cycleQUT's financial year is based on a calendar year, and the budget for the University is set within this time frame. The annual budget is developed on a triennial basis incorporating anticipated revenue and expenditure for all activities of the organisation that have financial implications. The University's budget for the following year is completed by November each year and approved by Council at its December meeting. Triennial budgeting allows strategic analysis and decision making to be undertaken as part of the University's budget process. The first year of the triennial budget is a detailed operational financial plan with the two out-years developed at a strategic level. The budget is an integral part of the University's planning process (A/2.2) and is achieved through the steps described below. Step 1 - Development of Finance and Infrastructure Plan (First half Yr0) Step 2 - Development of budget package (Second half Yr0) Step 3 - Development of draft programs and faculty / division / institute budgets (Second half Yr0) Step 4 - Budget signed off with Vice-Chancellor (Second half Yr0) Step 5 - Budget endorsed by Planning and Resources Committee and approved by Council (End Yr0) **** Subsequent steps apply to the first year of the triennial budget **** Step 6 - First half year reforecast (First half Yr1) Step 7 - Second half year reforecast (Second half Yr1) Step 8 - End of Year Financial Reporting (First half Yr2) 4.1.5 Corporate level budget developmentIn preparing corporate budget projections for inclusion within the University's Budget Package, the Division of Finance and Resource Planning is required to:
The development of the budget at the corporate level is detailed in the Financial Management Practice and Procedures Manual. 4.1.6 Load managment and funding implicationsStudent load (EFTSL) projections underpin the internal distribution of Commonwealth grant funding for both teaching and research, along with the projections of income from fee-paying students, for the purpose of developing the University's budget at the corporate level. QUT and the Australian Government enter into a three-year Funding Agreement, which outlines EFTSL by funding cluster and other arrangements for funding under the Commonwealth Grants Scheme. EFTSL is calculated for all academic organisational units. This is combined with load projections from other funding sources (international students, domestic fee-paying students etc) to gain a total load picture for the academic organisational unit and faculty. 4.1.7 Budget development and approvalBudget development As part of the strategic planning and budgeting process (A/2.2) faculties, divisions and institutes prepare and submit, for detailed review, their proposed annual teaching program budget, along with research-related budget submissions, for the coming financial year and two out-years. The Division of Finance and Resource Planning liaises with the sponsors of the other budget programs to support budget development within the specified timeframes. Upon completion, all budget programs are consolidated into the University's 'consolidated budget' for the triennium. Budget approval From a management perspective budget approval authority lies with:
Written approval from the Vice-Chancellor is required for budget transfers from the central contingencies to the Division of Finance and Resource Planning. The University's consolidated budget is submitted through Vice-Chancellor's Advisory Committee to Planning and Resources Committee for review and endorsement, prior to formal submission to QUT Council for approval. 4.1.8 Budget reforecastingIn the first half and second half of each budget cycle the University will undertake a complete review of its financial performance against the first year of the approved budget. This review is of all budget programs, with the budget to be reforecast to reflect the anticipated outcome for the year. The purpose of this review of annual revenue and expenditure estimates is to make appropriate adjustments for material movements in performance, which result in a major increase or decrease to the overall estimated financial position of the program or activity. In addition, faculties, divisions and institutes will undertake a formal review of their Operating Program and Faculty Funded Research budget forecasts in the first half and second half of each year. The reforecasting process will involve negotiations between faculties / divisions / institutes and the Division of Finance and Resource Planning regarding budget increases / decreases in revenue estimates, along with material movements in anticipated expenditure performance. Any budget adjustments will occur prior to the end of the first half and end of the second half of the year respectively. The Division of Finance and Resource Planning will liaise with the sponsors of the other budget programs to incorporate changes in revenue and expenditure performance. 4.1.9 Budget reportingUnder the Financial and Performance Management Standard 2009, QUT is required to report on its budget at least once every three months. The University's budget reporting includes:
Monthly management reports are also prepared by the Division of Finance and Resource Planning for submission to Vice-Chancellor's Advisory Committee and Planning and Resources Committee. 4.1.10 Budget adjustmentsAllowable budget adjustments fall within the following three categories: a) Material Budget Adjustments b) Non-material Adjustments Further details are provided in the Financial Management Practice and Procedures Manual. 4.1.11 Specific budget policiesThe Financial Management Practice and Procedures Manual details specific budget policies for application within QUT, including:
Related DocumentsMOPP A/2.2 University Planning Framework MOPP B/3.1 Staff planning Modification History
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