Policy 1 - Planning and Budgeting Cycle
(BDPL 1)
DATE ISSUED: July 1, 1994
DATE REVISED: October 1, 2004
The Creighton University annual planning and budget cycle consists of the following distinct processes:
- Strategic Plan Review and Update
- Annual Operating Plan Preparation
- Operating Budget Preparation
- Capital Budget Preparation
- Variance Analysis
- Current Estimate Preparation
Strategic Plan Review and Update
On an annual basis, the University will determine if strategic plan goals and objectives are being met, and will update strategic goals and objectives of the University as deemed necessary. The Vice Presidents will develop and maintain multi-year implementation plans to achieve strategic objectives.
Annual Operating Plan Preparation
On an annual basis, the senior management of the University will identify "budget year" objectives and priorities linked to the updated strategic goals of the University. This must be based on the budget year portion of the strategic goal implementation plan. Each Vice President's area and School must have specific, quantified objectives for the new budget year.
Operating Budget Preparation
An operating budget will be prepared each year. It will be based on University objectives and priorities for the new budget year which are stated in the Operating Plan. This Operating Plan is linked to the updated strategic plan.
Capital Budget Preparation
A separate capital budget will be prepared annually. It will identify the major capital assets that have been assigned a high priority for acquisition along with the expected source of funds. The capital budget will contain all capital expenditures as defined by University accounting policy and contained in the Controller's Manual.
Variance Analysis
A summary of material variances from budget will be prepared and analyzed on a regular basis. Results of this analysis will be distributed to the President, Vice Presidents, Deans and other appropriate managers.
This is meant to help these individuals operate within their approved budgets. It will keep them and the University informed of budgetary problems so that corrective action can be taken in a timely manner.
Current Estimate Preparation
On a quarterly basis, all budget areas will provide a projection of year-end results using a combination of year-to-date actual data plus realistic and achievable estimates of revenues and expenses for the remainder of the year. The current estimate of year-end results will be compared to the original budget approved by the Board of Directors. This information will be provided to the Budget Office for summarization and presentation to the President and the Board of Directors. (See procedure BDPR 1.)