Procedure 1 - Current Estimate Preparation
RELATED POLICY STATEMENTS(S): BDPL 1
DATE ISSUED: July 1, 1994
DATE REVISED: March 8, 2001
The development of a realistic Current Estimate provides the President and the Board of Directors with an updated perspective on the probable financial results for the year. This projection is based upon year-to-date developments and performance, as well as probable future events that could impact the original budget. The Current Estimate also provides an opportunity for Vice Presidents, Deans and others reporting to the Vice Presidents to have input on the financial progress of their areas as they re-assess the ability to achieve their original budget projections.
The accuracy of the Current Estimate is very important since University management and the Board could base current year decisions and actions on the estimated results.
Current Estimate Worksheet (Schedule M)
Forms for completing the Current Estimate (Schedule M) are provided by the Budget Department each quarter on the network. Current Estimates are to be prepared and submitted to the Budget Department in the months preceding the quarterly Board of Directors' meetings which are held in October, December, March and June. The submission dates are tied to the schedule for regular quarterly Board of Directors meetings.
When preparing a Current Estimate, the latest year-to-date actual revenue and expense data should be used in conjunction with the area's best estimate of remaining revenue and expenses for the balance of the year, considering known and potential issues. Material changes from the annual original budget for an area should be explained in writing. This information can be found on the monthly Financial Responsibility Report, and on the Available Balance Report, which is available four times during the year for current estimate preparation. (See the Standard Reports in this section of the web site.)
Completed Current Estimate forms are to be submitted by the Vice President. Deans, and those reporting directly to the Vice Presidents, should also provide detailed Current Estimates for their area of responsibility that could be used by the Vice President in preparing a summary report. (Copies of these detailed Current Estimates should be submitted with the Vice President's summary level report.) After the summary report has been submitted to the Budget Department for review and analysis, additional clarification information relating to changes may be requested. The summary is then reviewed with the President for presentation to the Board of Directors at its quarterly meetings.