Budget Management

Policy Type: 
Finances

I. Policy Title: Budget Management

II. Who Does This Policy Affect

All HFC faculty, staff, students, vendors/contractors and visitors to our campus

III. Purpose

The purpose of this policy is to combine all of the College’s budget policies in one policy and to comply with Section 209 in P.A. 108 of 2017, the education omnibus budget bill, which requires community colleges to publish a transparency web page with specific information.

IV. Policy Statement

The budget is the primary instrument of fiscal control and, accordingly, contains all projected revenues and expenditures of the administrative and academic programs of the College.

The budget expresses, in terms of dollars, the funded programs and plans of the College for the fiscal year and the estimated revenue income necessary to finance these programs and plans. Henry Ford College receives support from student tuition and fees, state appropriation revenues, local property revenues, private gifts, grants, and other miscellaneous sources

Budget Administration

By the direction of the Board of Trustees, the President is charged to manage the fiscal affairs of the College. As part of this charge barring unanticipated or exceptional circumstances, the President is expected to complete the fiscal year with a positive operating balance.

At any time, when it appears that revenue will not equal expenditures, the President as soon as possible shall so inform the Board and recommend appropriate steps for their consideration by which a positive operating balance may be maintained.

Budget Preparation

The Board of Trustees shall have prepared annually, through current administrative procedures, an estimate of the amount of revenues deemed necessary for the ensuing fiscal year for the purposes of expenditures authorized by law as within the powers of the Board. The prepared budget shall include a General Fund, a Debt Retirement Fund, expense fund and/or any other funds as are deemed necessary by the Board of Trustees.

Budget Reviews

At the Board of Trustees’ scheduled monthly meetings, the President/Designee will provide the Board with the fiscal year status as compared to budget as well as a comparison for the same period to the prior year.

At mid-year, the President/Designee will present a review of the College’s budget to the Board of Trustees. At that time, if any adjustments need to be made to the budget, those adjustments will be sent to the Board of Trustees for approval.

Budget Hearings

Annual budgets adopted by the Board of Trustees represent the Board's position on the allocation of resources required to operate the College. All reasonable means shall be employed by the Board to present and explain budgets to all interested parties at least on a bi-annual basis. The public budget hearings will be conducted in accordance with all laws and regulations.

Each member of the Board and each College officer shall be sufficiently acquainted with the budgets and their underlying purposes to answer questions from members of the public.

The budgets approved by this Board will be made available on the College’s transparency website in the form and places required by law. A summary form of the budget may also be prepared and may be sent to appropriate parties and distributed to each person attending the annual budget hearing.

A summary budget may include the expenditure in each major category of current expense for the current year and the coming year and a summary of anticipated revenues as well as a brief explanation of significant increases and decreases from the preceding budget.

The final adoption of the proposed annual budgets will be made by the Board after completion of a public hearing. Within 30 days after the Board of Trustee' adoption of the annual operating budget for the following fiscal year, or after the Board adopts a subsequent revision to that budget, the College will then post, on the College’s website homepage, the Board adopted annual operating budget and subsequent budget revisions.

Budget Stabilization

The College's unrestricted reserves for the General Fund will aim to be maintained at a 12-15% level in order to stabilize future budgets should economic conditions dictate the use of reserves. The overall unrestricted reserves (including auxiliary funds, designated funds and property) for the College will aim to be maintained at 20-25% reserve level. Should the College budget require the usage of unrestricted reserves and the usage of those reserves cause the balance to fall below the above noted levels, a formalized plan must be presented to the Board of Trustees that identifies how reserves will be increased to conform with the above defined unrestricted reserve levels.

V. Definitions

N/A

VI. Responsible Party for Administration and Enforcement

Vice President of Financial Services

VII. Related Documents

https://www.hfcc.edu/about-us/transpreport

VIII. Policy History:

a. Current Policy Approved by Board: April 16, 2018
b. Previous Revision Date(s): February 20, 1995;
c. Previous Policy Section(s): Finances; Previous Policy No(s): 2150, 2350, 2370 and 2400

This policy supersedes and replaces any and all policies related to this subject

Adopted Date: 
Monday, April 16, 2018
Private: 
Public
Status: 
Board Approved