| 1. |
Introduction |
| 1.1 |
The University Budget comprises two main sections as follows:
- the Recurrent Budget
- the Total Budget
In addition, the Budget includes the Capital Infrastructure
Plan, which receives revenue
from both recurrent and non-recurrent sources. |
| 1.2 |
The Recurrent Budget aggregates the main revenue streams of
the University and allocates
these funds to Capital Infrastructure, the Major Cost Centres,
Research and Reserves. The
Recurrent Budget excludes certain revenue streams such as commercial/self
funding
revenue, non Department of Education, Science and Technology
(DEST) research funding,
consulting funds and special purpose funds such as bequests. |
| 1.3 |
The Total Budget is the estimate of all revenue and expenses
for the University and is
prepared on a full accruals basis. |
| 2. |
Principles |
| 2.1 |
The budget strategy will be informed by the strategic objectives
of the University. |
| 2.2 |
The Budget will present a three year perspective, with the
first year being the firm Budget
for the following year, and the next two years being forward
estimates. |
| 2.3 |
The Recurrent Budget will be presented on a funds basis. It
will include allocation of
funds earned in prior periods, but not spent, as well as funds
that will be earned in the
relevant budget year. |
| 2.4 |
The Recurrent budget will be determined such that allocations
will not exceed expected
revenue. |
| 2.5 |
Reserves will be used as a risk mitigation measure and to
store funds for future use. |
| 2.6 |
Where revenue varies from budget, the Vice-Chancellor is authorised
to vary budgeted
allocations in accordance with guidelines approved by the Resources
Committee (see
Appendix A). Variations will be reported to the Resources
Committee and Council as part
of quarterly financial reporting. |
| 3. |
Budget Development |
| 3.1 |
The budget will be developed under the direction of the
Vice-Chancellor, in consultation
with senior management, by the Director, Financial Services.
|
| 3.2 |
Revenue estimates will be developed with reference to
DEST funding advice, student fee
estimates provided by the Major Cost Centres, and other relevant
inputs.
|
| 3.3 |
Allocation principles and models will be developed for
each revenue stream. Where
appropriate, these models will be developed so as to provide
incentives for the achievement
of the University’s strategic objectives. |
| 3.4 |
The Recurrent budget will indicate the allocation of funds
to Capital Infrastructure, the
Major Cost Centres, Research and Reserves. These allocations
may not be equal to
expenditure during the budget year as the University allows
carry forward of unspent
allocations from one year to the next. |
| 3.5 |
Faculty allocations will be primarily driven by student load
and research performance.
Allocations to support areas will be based on agreed priorities
and the costing of required
support services. |
| 4. |
Budget Approval |
| 4.1 |
The Budget is subject to the approval of the University Council,
on the recommendation of
the Resources Committee. |
| 4.2 |
The Budget will be developed so that it can be considered
by Council no later than the last
Council meeting of the year preceding the budget year. Prior
to presentation to Council,
the Budget will be considered by Resources Committee, normally
in November of the year
preceding the budget year. |
| |
APPENDIX A
Guidelines for the Management of Variations to Recurrent
Budget Revenue |
| 1. |
Variations in revenue will normally be managed as follows:
(a) Commonwealth Supported Load
• Where actual overall revenue is below the budget estimate,
in the first instance the shortfall will be met from the sums
identified as flexible allocations made to the Faculties and
on specific Reserves set aside to cover this risk.
• Where the above adjustments are insufficient to meet
a shortfall in actual revenue the Vice-Chancellor will determine
how the residual shortfall will be met.
• Where actual revenue exceeds the budget estimate,
Faculties will receive additional funding directly based on
performance. In general, support allocations remain fixed,
but may be varied by authorisation of the Vice-Chancellor
where appropriate.
(b) Student Fees
Budget allocations to Faculties will be adjusted to match
actual revenue received, less overheads. Allocations to Support
areas remain fixed unless otherwise approved by the Vice-Chancellor.
(c) Specific Grant Funding
Allocations will be varied to exactly meet actual revenue,
in accordance with grant conditions
(d) Other
In general, other allocations will be varied to match actual
revenue achieved.
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