The budgetary process at Lehigh University is based upon the principle that the operating plans for the educational program and support organization can be translated into an itemized, authorized, and systematic plan of operation. The budget, stated in dollars, and for a given period of time, provides a guide to understand the plan, to observe the orderly execution of the plan, and to compare actual experience to the plan. For a meaningful composite of the total institution, each program and organization (reflected by individual accounts) must be represented by a budget plan. The sum of all these component parts represents the total plan of operation for the university. The expenditure budget is approved by the Board of Trustees as to the detail of personnel and expense components at the department or major activity level. It is expected that all units will adhere to these major budgetary allocations. The budget is further detailed to the level of line item expenditure subcodes which more closely identify types of expenditures. It is expected that all units will adhere to these subcode allocations as faithfully as possible since the allocations to subcodes is an integral part of the budget process. However, it is recognized that it may become necessary to make revisions between expenditure subcodes within an account or between accounts.

Account executives should notify the Budget Office in writing of their request(s) to revise budgets. In general, for unrestricted accounts, requests will be honored up to a per request limit of $500 or 5% of the supplies/expense component, whichever is larger, and a fiscal year cumulative total of $1,000 or 10% of the supplies/expense component of the budget, whichever is larger. Any request(s) exceeding this limit must be submitted through the appropriate administrative officer - dean (or equivalent officer) or vice president - responsible for the organizational budget. The request will be reviewed by the Vice President for Finance and Administration with respect to maintaining the integrity of the approved budget. Because of the special nature of restricted accounts, it is recognized that it may become necessary to make major revisions between expenditure subcodes and/or increase or decrease the total budget without regard to the restrictions listed above. Certain accounts may be designated for specific program purposes and budget revisions may not be appropriate.

All unrestricted, restricted, and plant fund accounts must be budgeted. This will normally be on the fiscal year basis of July 1 to June 30. Restricted research accounts and plant fund accounts will be on a project life basis. Account executives are to monitor actual activity (revenue and/or expenditure) and encumbrances against budget and take action as appropriate. It is the responsibility of the account executive to insure that expenditures do not exceed the approved budget. Restricted accounts pose a special problem because the account executive must monitor the budget and the fund balance simultaneously. The availability of a positive fund balance is the key determinant as to whether expenditures are permitted on a restricted account. The budget developed prior to the fiscal year is based on estimated information concerning expenditures throughout the remaining portion of the then current fiscal year and anticipated revenue sources in the next fiscal year. These added factors require that account executives devote special attention to restricted accounts. Good budget planning, with careful revisions throughout the year, can help to insure appropriate uses of gifts and avoidance of a deficit.

A. Sept / Oct - Establish budget process, initial modeling, vice presidents submit investment requests

B. Nov / Dec - President and provost review priorities, develop overall parameters

C. Feb - Trustees approve tuition, room, and board increase

D. Feb/Mar/Apr - Departments, deans, vice presidents develop specific budgets for salaries and expenses

E. Jun - Trustees approve budget