Annual Budget Process and Timeline
In preparation for the ensuing fiscal year and in alignment with UT System Budget Process and Timeline, the Division of Finance and Business Affairs kicks off the annual budget cycle on or about March of every year. In years when appropriations are known (odd numbered fiscal years), the bulk of the work is completed earlier (late May, Early June) vs. a year when the legislature is in session. The cycle ends with the UT System Board of Regents approval of the annual budget in August. The following actions are taken during the annual budget cycle.
PRELIMINARY PREPARATIONS
Planning and Analysis staff in collaboration with budget coordinators housed in divisions and colleges maintain an annual document with all permanent, post budget changes to ensure the baseline operating budget is up to date and ready for review for the upcoming fiscal year.
Preliminary revenue estimates and available balances are compiled by Planning and Analysis in consultation with staff in the Comptroller’s Office and in collaboration with the Enrollment Projections Team.
Based on preliminary revenue projections, the Executive VP for Finance and Business Affairs presents to Executive Leadership an updated 5-year financial plan, a proposed plan for the annual budget based on revenue projections, current baseline budget, and multi-year commitments.
BUDGET CYCLE KICK-OFF
The budget cycle formally commences with a communication from the President, Executive VP for Finance and Business Affairs (SVPFP), or designee to division heads regarding the priorities, goals, revenue projections, and possible limitations that are specific for the ensuing fiscal year. Shortly thereafter, an email announcement to senior staff in each division is sent by Finance and Business Affairs with specific budget instructions, a timeline that is consistent with the UT System budget due dates, and information on templates and access to the budget software (currently Hyperion). Each division head disseminates the instructions and special directives to their respective departments. Planning and Analysis conducts Hyperion trainings, provides assistance, and maintains open communication with assigned colleges and/or departments throughout the process to ensure updates are submitted timely and accurately.
PROJECT (ACCOUNT) MANAGERS MEET WITH DEANS AND DIRECTORS
Although each division sets its own internal budget timelines and activities, it is expected that Account Managers engage in recurring discussions of budget needs with their respective deans or directors as budget recommendations are developed and promoted through the chain of command.
DEANS AND DIRECTORS MEET WITH THEIR RESPECTIVE VICE PRESIDENT
Division heads are given great latitude in their approach to arriving at their budget recommendations. Generally, deans and directors communicate with their respective divisional Vice Presidents with recommendation of reallocation of funds and/or new initiatives that may require additional resources.
Division senior staff work with staff in Planning and Analysis to update operating budget templates with all reallocations of funds. Planning and Analysis uploads all reallocations into budget software (Hyperion). New initiatives are submitted to executives for review.
DRAFT BUDGET EXECUTIVE MEETING
UTRGV executives meet to review budget status including ways in which the budget will be balanced as requests, needs, and commitments routinely exceed available funding. These meetings occur as needed.
BOARD OF REGENTS RELEASE BUDGET POLICIES
The University of Texas - System Board of Regents budget policies include a timeline for budget development and guidance on salary and other increases.
UT-SYSTEM ADMINISTRATION ISSUES BUDGET INSTRUCTIONS
The UT-System administration issues budget instructions and information such as assessments to the UT institutions for shared costs, workers compensation rates, unemployment compensation insurance (UCI) rates. A detailed budget timeline as well as a listing of special reports and schedules to be submitted as part of the budget development process is included in these instructions.
UT-SYSTEM RESOURCE ALLOCATION HEARINGS
UTRGV executives meet with UT-System administrators via videoconference. There are two key elements associated with the hearing, (1) discussion of a summary pro-forma institutional budget and (2) responses to a series of questions distributed by UT-System ahead of the meeting. The meeting allows the institution to alert UT-System administrators of relevant information and/or items of concern. UT-System administrators in turn provide guidance and alert the institution of any statewide and/or system-wide issues.
Depending on the issues raised in any given year, supplemental guidance may be communicated to UTRGV account managers, directors, and others involved in the budget process on campus.
REQUESTED FUNDING LEVELS ARE ASSESSED
If new initiatives are to receive new funding, requests are submitted through the divisional head to Planning and Analysis with final recommendation. Planning and Analysis office reviews for accuracy, positions are assessed for conformity to correct salary level and job classification, and an assessment made on the overall impact of the requests to the institution and projected revenue. Special reports and analysis are generated as requested by the UTRGV executive leadership. In this step coordination between various departments, most commonly Planning and Analysis, Comptroller’s Office, Human Resources, and staff in the respective division is often required. Approved requests are entered in budget software.
FUNDING LEVELS ARE FINALIZED
Planning and Analysis staff provides the EVPFBA with summary information along with the progress on balancing the budget. The EVPFBA presents plans to the president, executive leadership, or others to arrive at a final budget. This communication is iterative with updated information provided until the budget is balanced.
DRAFT BUDGET SUBMISSION TO UT-SYSTEM
The draft budget is submitted to UT-System for review along with various supplemental reports. It is important that the draft budget be close to final as subsequent changes are discouraged by UT-System.
DRAFT DEPARTMENTAL BUDGETS WITH FINAL FUNDING LEVELS ARE DISTRIBUTED
Budget contacts for each division may, at their discretion, run reports from the Hyperion system to share project budgets with department heads in their respective division. Although discouraged at this point, changes can be made for extenuating circumstances or errors found.
The primary purpose of this review is for correctness of technical matters i.e. ensure that titles, names, and salary levels are correct and ensure that employees have not been left off the budget document. It is not an opportunity for unit managers to reiterate their case for approval of their budget requests. Funding level concerns are addressed through the chain of command.
UT-SYSTEM BUDGET ADMINISTRATORS & UTRGV TECHNICAL REVIEW OF DRAFT BUDGET
The UT-System staff and senior Planning and Analysis staff meet to discuss the draft budget via teleconference. Problem areas, corrections, needed adjustments, and clarifications are discussed. At this point the UT-System staff may request additional information on selected areas of interest.
FINAL BUDGETS ARE SUBMITTED TO UT-SYSTEM
The final budget is submitted to UT-System, along with updated supplemental schedules.
BUDGETS DELIVERED TO REGENTS
UT institution budgets along with supplemental reports prepared by the UT-System staff are made available to each regent by the UT-System comptroller’s office.
UT-SYSTEM BOARD OF REGENTS CONSIDER BUDGET APPROVAL
The UT-System Board of Regents, after reviewing the budget documents and associated summary reports, consider approval of the proposed budgets for the UT institutions.
DISTRIBUTION OF FINAL OPERATING BUDGETS
Operating budget documents are distributed to divisional and college budget coordinators for distribution within their areas. Copies may also be provided to select individuals and departments with critical roles in institutional financial management such as the loading of budget information into the ERP system e.g. Comptroller’s Office, Human Resources Office, Procurement, etc.
Fiscal year 2023 Operating Budget
2022 | Description |
---|---|
April 8 | UTRGV budget instructions and templates issued to divisions and colleges |
TBD | Budget template due to Division office (due date determined by Division) |
May 6 | Budget template due to Planning and Analysis |
May 13 | Cutoff for position changes in FY23 budget |
June 15 | Final executive decisions for budget |
June 27 | Draft budget submitted to UT System |
July 11 | Final budget submitted to UT System |
August 25 | Regents consider approval of UT institutions' budgets |