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G/4.1 Budget |
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4.1.1 Budget overview 4.1.1 Budget overviewDetailed accrual budgets are prepared for the University's five programs (Teaching, Asset Management, Research and External Services, Business Operations and Central Financing) in conjunction with the annual strategic planning process (see section A/2.2 ). The budget is based on estimates provided by each responsibility centre, and its purpose is to deliver the approved action plans of faculties and divisions. The University currently prepares and manages its budget as five distinct programs:
A detailed definition of each of the budgeted 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 (DEEWR), from international and domestic fee-paying students, external service activities and commercial-like operations. 4.1.2 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. 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 (see A/2.2 ), and is achieved through the steps described below. Step 1 - Development of Finance and Infrastructure Plan (Apr Yr0) (see A/2.2.3 ) Step 2 - Development of Budget Package (Jul/Aug Yr0) Step 3 – Development of draft Programs and Faculty/Division budgets (Aug/Sep Yr0) Step 4 - Budget signed off with Vice-Chancellor (Oct Yr0) Step 5 - Budget approved by PRC and Council (Nov/Dec Yr0) **** Subsequent steps apply to the first year of the triennial budget **** Step 6 - Quarterly Management Report (Mar Yr1) Step 7 - Budget Reforecast (Jun Yr1) Step 8 - Final Budget Reforecast (Sep Yr1) Step 9 - End of Year Financial Reporting (Mar Yr2) The University's budget for the following year is completed by November each year and approved by QUT Council at its December meeting in line with Section 54 of the QUT Act 1998 and s60 of the Financial Management Standard (1997) . 4.1.3 Integration of strategic planning and budget managementIn June/July of each year the University's Strategic Planning Package is released. Meetings are then held with the Vice-Chancellor and each organisational area to discuss plans for the future three years. In July/August of each year the Budget Package is released. Organisational areas will develop their triennial budgets based on the plans approved in the strategic planning meetings. 4.1.4 Corporate budget developmentIn preparing corporate budget projections for inclusion within the University's Budget Package, the Division of Finance and Resource Planning is required to:
4.1.5 Triennial planning and budgetingThe steps involved in triennial planning and budgeting processes are detailed in A/2.2 . 4.1.6 Load managment and funding implicationsStudent load EFTSL projections are a direct input into the University's funding model for the purpose of calculating the internal distribution of Commonwealth grant funding. These projections may change subject to the Educational Profiles review conducted by DEEWR in August/September of each year. Existing and new courses, and relevant quotas, form the foundation for projections of student load by discipline group for each of the following three years, which are included in the proforma educational profile documentation submitted to DEEWR. Following approval by Planning and Resources Committee and Council, this profile is forwarded to DEEWR and a bid for further growth in the third year of the submission is negotiated with the Federal authorities in August/September. The final agreed profile becomes the basis of the funding contract between the institution and its principal source of funding for mainstream teaching and research activities. After agreement on the profile, student load (EFTSL) is calculated for all academic organisational units. This is combined with load projections from other funding sources (ie. international students, domestic fee-paying students etc) and a total load picture for the academic organisational unit and faculty emerges. These load projections underpin the internal distribution of Commonwealth grant funds, for both teaching and research load, along with the projections of income from fee-paying students for the purpose of developing the University's budget at the corporate level. 4.1.7 Internal financial resource managementThe major components of QUT's budget process are in the sections that follow. Detailed information is provided in the University's Financial Management Practice and Procedures Manual . 4.1.8 Budget development and approvalBudget development As part of the strategic planning and budgeting process, faculties and divisions will 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 will liaise with the sponsors of the other budget programs to support budget development within the specified timeframes. Upon completion, all budget programs will be consolidated as the University's 'Consolidated Budget'. The University's consolidated budget for the triennium will be 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. Budget approval From a management perspective budget approval authority lies with:
4.1.9 Budget reforecastingIn June and September 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. Faculties and divisions will undertake a formal review of their Teaching Program and Faculty Funded Research budget forecasts in June and September of each year. The reforecasting process will involve negotiations between faculties and divisions and the Division of Finance and Resource Planning regarding budget increases/decreases in revenue estimates, along with material movements in anticipated expenditure performance. These negotiations and budget adjustments will occur prior to the end of June and September. 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. 4.1.10 Budget reportingThe 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. Under Section 62 of the Financial Management Standard 1997 , QUT has a legislative reporting requirement that states: ' The systems mentioned in sections 60 & 61 must provide for the information to be given to the accountable officer or statutory body at least once every 3 months '. On this basis budget reporting undertaken by the University includes:
The Division of Finance and Resource Planning is responsible for preparing management reports for the quarterly periods ending March, June, September and December, for submission to Vice-Chancellor's Advisory Committee and Planning and Resources Committee. The formal budget reforecast process in June and September will form the basis of the Reforecast Budget Report, and will outline material movements in budget performance. 4.1.11 Budget adjustmentsThe Financial Management Practice and Procedures Manual outlines the nature of allowable budget adjustments. These adjustments fall within the following three categories:
4.1.12 Specific budget policiesThe Financial Management Practice and Procedures Manual details specific budget policies for application within QUT. Specific budget policies include:
Related DocumentsMOPP A/2.2 University Planning Framework MOPP B/3.1 Staff planning Modification History
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