Budget Processes

Carryforward Process

The Office of Financial Planning will follow these guidelines in administering year-end carryforward balances.

Background At the end of each fiscal year, departmental accounts may have positive budget balances, or negative budget balances within certain limits. These balances are the net of revenue, salary, travel, operating, and equipment object codes. Under a policy approved by the Budget Advisory Committee effective for the fiscal year ended June 30, 1997, departments may carry forward 100 percent of these available balances except salary & benefit balances, and up to five percent of negative year-end balances. Positive account balances within a budget unit must be used to offset any negative account balance exceeding five percent or $5,000.

Calculation of Position Balances (1) Add 100% of the available balances (budget less actual) in travel, operating, revenue, and equipment; (2) minus any overexpended salary objects.

Calculation of Negative Balances The calculation is the same as for positive. However, the carryforward is limited to a maximum deficit of 5% of the account’s budget or ($5,000). Each budget unit will be required to offset excess negatives with positive balances in other accounts or departments within the budget unit. The budget unit should identify the positive balances that will be used for offset any excess deficits and coordinate with the Office of Financial Planning to process the necessary budget adjustment.

Self-Supporting Activities Conferences and Institutes and other self-supporting activities that have a designated fund balance (GL account with a unique mapcode 0-1xxxx) will not automatically carry forward. The respective budget unit must initiate a budget revision to re-budget the prior year balance.

Designated & Special Funds These include Student Activity Fees, Technology Access Fees, Desegregation, and Physical Plant Projects in Progress. The Office of Financial Planning will coordinate with the respective budget units on processing the appropriate budget entries.

Responsibility The Office of Financial Planning is responsible for the calculation, reporting, and transfer of carryforward funds between fiscal years. It is the responsibility of each budget unit to direct funds to cover negative account balances that exceed the aforementioned limit. Self-supporting activities are responsible for initiating budget revisions to re-budget prior year balances.

Budget Entries & Reports The carryforward transactions will be automatically posted in the departmental accounts under object code 4500 with reference to BR9999. Processing will normally occur in August, after year-end processing is completed. The Office of Financial Planning will distribute a summary report of the carryforward amounts by department to the Provost and Vice Presidents.

FRS Screen Prior Year screen 019 is available for viewing the individual accounts along with the balances by object code.

Policy Changes The University Budget Advisory Committee retains the right to change the carryforward policy as needed in response to changes in the University’s financial environment. Changes can include, but are not limited to, carryforward impoundment and reductions.

Principles & Processes

Mission By its very nature, a major university is involved in a profusion of activities, projects, and areas of study. No central manager can watch or even understand all of the activities involved in our instruction, research, and outreach endeavors. But, we are guided by a common purpose, which is expressed by this summary statement of our mission:

The University of Memphis is a comprehensive urban university committed to scholarly accomplishments of our students and faculty and to the enhancement of our community, state, and nation through principles of academic integrity, sound management, and equal opportunity. (Adopted for use October 1993)

The following Mission Statement was approved by The University of Memphis Faculty Senate, the Tennessee Board of Regents, and the Tennessee Higher Education Commission:

The University of Memphis is a member of the State University and Community College System of Tennessee and is governed by the Tennessee Board of Regents.As an urban university, the University of Memphis provides a stimulating academic environment for its students, including an innovative undergraduate education and excellence in selected research areas and graduate programs. The academic environment extends beyond the campus boundaries to encompass the entire community.

Education is enhanced through exposure to diversity in the composition of the student body, faculty, staff, and administrators including women, minorities, individuals with disabilities, and various age groups and religions. The University has responded to the challenging responsibility of being located in a culturally diverse region by developing a unique blend of teaching, research, and service that contributes to the growth of the Mid-South region.

Teaching brings the benefits of scholarship and research to students and through them to the people of the area. The University of Memphis asserts that excellence in teaching traditional and non-traditional students is its central responsibility. A comprehensive undergraduate education, grounded in the arts and sciences, develops intellectual, cultural, and ethical qualities in its students. The innovative General Education Program challenges students to develop the analytical and critical skills necessary for life-long learning. The University of Memphis offers master's and doctoral degrees in selected graduate programs as well as degrees in the major professional areas. Through learning begun at The University of Memphis, graduates compete in a global intellectual community.

As a research university, the University of Memphis develops, integrates, disseminates, and applies knowledge. Faculty maintain ongoing programs of basic and applied research or creative activities appropriate to their disciplines. The University's urban environment provides a rich opportunity for research and creative scholarship, and for the use of that scholarship in the intellectual and cultural development of the region. The University's commitment to fostering a research and creative environment harmonizes with the other aspects of its mission.

The University of Memphis fulfills its outreach mission through its contributions to professional organizations and to the needs of the community. The University promotes intellectual, cultural, and community development of the region through, for example, its artistic programs, lecture series, technical assistance, continuing education, and intercollegiate athletic programs.

The University of Memphis, through its research, teaching, and outreach roles, responds to individual needs, such as the support of health care and preventive health services. The University addresses broader issues as well, for instance, K-12 education, economic development, environmental initiatives, international programs, computing, and telecommunications.

Statement of Values

The University of Memphis seeks excellence in every activity and applies the highest standards to the endeavors of faculty, staff, and students.
We protect academic freedom and insist on tolerance of diverse views. This requires the rigorous pursuit of truth in an open forum.
We are committed to honesty, openness, and integrity in all of our processes and practices.
As a public institution, we serve the public interest and recognize responsibility for seeking ways to use our resources to meet public needs.
All qualified individuals, without regard to race, ethnicity, gender, age or sexual orientation will have equal opportunity at the University. We also recognize an obligation to provide the appropriate environment to accommodate diversity.
We are committed to the principle of shared governance, meaning that those who are responsible for and affected by the various functions of the University should have a voice in the policies that govern those actions. Shared responsibility goes along with shared governance.
The University is committed to the well-being of those in our University community, including students, staff, faculty, alumni, and supporters.

Focus Areas

The University must concentrate its resources in the most critical areas if we are to fulfill the mission. The planning process should direct our resources to deliberate choices of emphasis. The established framework for operations should promote efficiency, quality, and direction that will distinguish The University of Memphis in years to come.

Five areas have been selected as "Destination Areas" or general fields where the University plans to be recognized among the nation's best. These are:

Undergraduate programs emphasizing both academic excellence and character development;
Information technologies use and development;
International perspective in programs and commitment to providing a world view to students;
Emphasis on music and performing arts;
Promotion of health and wellness, especially in the Mid-South region.

These areas are key to our plans for the future but should not preclude excellence in all fields and the ability to grasp new opportunities as they arise. In each planning cycle, we will seek the most important things that we can do well. In addition to consideration of focus areas, all plans will be developed within the context of University values including emphasis on quality, diversity, efficiency, and commitment to the community.

Planning Principles

Planning activities will be open and understandable to allow all segments of the University and legitimate constituencies to grasp the essentials of the planning process. The process itself is neutral, not affecting the outcome, and participants must have confidence that it is fair. To reach these ends it must be simple and direct.
A plan is not a fixed blueprint and must be flexible enough to accommodate changing circumstances. Therefore, it will focus on strategies and directions rather than specific acts. Even so, plans will be clear enough to determine with some precision if progress is being made toward their fulfillment.
Planning should be done within the administrative and governance structure of the University. This includes central administrators, deans and department chairs, existing departmental committees, Faculty Senate, student organizations, Alumni Association, and other organized constituencies. Not all organizations will participate in all phases or areas of planning for the University. Reliance on the existing management and governance structure, rather than on special planning offices or ad hoc groups, will foster credibility, consistency, and continuity.
Planning will be directly linked to the allocation of resources in an effective and understandable way. The University budget will be seen as a one-year plan and should emerge from the planning process. Likewise, requests for state appropriations, fundraising efforts by The University of Memphis Foundation, disbursements from existing Foundation accounts, and other such decisions will be guided by University priorities deriving from a planning process.
The plan and the budget will bear close relationship to the mission and goals of the University. All decisions will be justifiable within that context.
Planning and review are inseparable, and the review and evaluation of existing programs and practices is part of both management and planning for the University. Academic and non-academic programs will be considered on a regularly scheduled basis and opportunities for experimentation and growth will be encouraged. Program review will be guided by four questions:
- Is it central to the mission of the University?
- Is it a high-quality program and a credit to the University?
- Is it needed to serve our constituencies?
- Is it cost effective?

The Planning Process

Each planning unit will develop a mission statement consistent with the University mission and these statements should:
- state the purpose, direction, and goals of the organization
- reflect the values and principles guiding the unit
- identify the principal means for realizing objectives
The mission statement should be a serious exercise with participation of all stakeholders. All mission statements in the University will be in harmony, but different approaches and individual development are encouraged. A good mission statement clearly identifies the purpose of the organization and sets the directions for future development.
Assuming no increase in funding, every two years, five-year vision statements will be prepared for each operating unit. All will address diversity, use of technology, growth, stature, and recognition to be attained as well as how the vision fits into the mission and Focus Areas of the University. The five-year statement will also include a list of major obstacles and steps that the unit hopes to take to overcome those obstacles. An addendum may address possibilities assuming modest funding increases of five or ten percent. The Provost, Vice Presidents, Deans, and Directors may apply whatever planning techniques they deem appropriate in developing the five-year plans in the areas they direct.
Annually, each budget unit will prepare a budget and program plan following the budget guidelines which have been adopted by the University. It is expected that these plans will constitute the best possible effort to move toward the goals and objectives outlined in the five-year plans.

Budget Allocation Process

A Budget Advisory Council will review all budget decisions and The Council will include the President, Provost, Vice President for Business and Finance, Director of Budgeting, Vice Presidents for Information Systems, Marketing and Advancement, Student Affairs, and other members as deemed necessary.
It is the responsibility of this committee to conduct budget hearings on an annual basis. The purpose of the budget hearings is to allow each budgetary unit director the opportunity to indicate how the budget was handled in the past year, the most pressing needs for next year, how these needs translate into budget priorities, and how these priorities relate to the mission of the University. Under normal circumstances, the unit will be asked to present a budget plan that begins at 97 percent of the existing allocation and to indicate how incremental increases would be managed up to 110 percent. Salary increases are not considered in the hearings, although it is appropriate for a unit director to consider salary needs and include that in the presentation. The entire budget will be considered with special emphasis on the elimination or addition of positions. When a budget request is conditional upon space, equipment, or other matters not directly controlled by the unit director, he/she must determine and identify them in the hearing.
The intent of this process is two-fold. First, it allows for reallocation and new initiatives even when budget increases are small. Second, it allows a review of competing priorities without threatening the base of a unit budget.
Budgetary units have been established and now include colleges and major divisions of the University. The Provost and Vice Presidents can realign the budget units under their jurisdiction as appropriate. The deans and directors of these units may also conduct hearings in reviewing departmental priorities to determine the budget unit plan. If hearings are not held, other methods to determine departmental needs should be developed.
Central priorities compete for resources in this process rather than simply being taken "off the top." These priorities may include matters of importance to all units that are best handled in centralized processes such as telecommunications, library, graduate assistantship enhancement, student recruitment, or the honors program.
One representative from the Faculty and Staff Senate may participate in the budget hearings and ask questions and make comments in the proceedings. These representatives should not be from the areas under consideration. At their request, other constituent groups may be granted the opportunity to attend and to participate in budget hearings.
Once the hearings are concluded, the Budget Advisory Council will prepare a draft allocation which will be available to all budget unit directors and the Faculty Senate for review and comment. After a reasonable period of discussion, the allocation may be revised. It will then be adopted as the budget plan for the coming year and distributed to concerned parties.

FY02 Budget Hearings Process

The Budget Advisory Committee and Interim President Faudree in consultation with incoming President Raines has approved the following guidelines for the upcoming planning and budget hearings.

Format

Ten to fifteen minutes for the budget unit’s presentation of goals, accomplishments, and issues; Ten to fifteen minutes on FY2002 budget priorities under budget plans of 97%, 100%, 105%. Ten to fifteen minutes for questions and discussion.

Discussion Items:

Brief summary of goals in relation to the University's Strategic Plan
Strengths including opportunities for national recognition
Short-term steps to accomplish goals and build upon strengths, with a focus on major initiatives for the upcoming year
Accomplishments and goals expressed in measurable terms, preferably over three or more years
For Academic Units, this would include:
- Student credit hour production
- Scholarly activity such as publications and presentations
- Awards & recognition
- Initiatives such as web-based courses