Budget and Planning
TMCC's Budget Policies' Procedures
See Also: TMCC Policy Manual
Procedures For:
Procedure for Indirect Costs Contributions
As approved by the TMCC President's Advisory Council on October 15, 2012
Overview
This procedure applies to grants and contracts, and other self-supporting accounts.
Objectives
The objectives of this procedure are as follows:
- Ensure that adequate indirect costs are allocated to appropriate college programs.
- Provide for process that records and reports indirect cost contributions.
Process
Impacted self-supporting accounts will be charged an indirect rate, administered by the Budget Office and Controller's Office. The rate for grants and contracts will be the federally approved indirect cost allocation, unless the specific grant/contract agreement specifies a different rate. The current federally approved rate is 33.5%, consisting of institutional support, student services, and facilities support. Other self-supporting accounts will be charged an indirect rate determined by the college. The college will use the federally approved rate as the base, and may decrease the rate based on the use for college resources by the self-supporting account. When preparing self-supporting budget, the Budget Office will notify account manager if their self-supporting account is subject to an indirect rate, and the amount of the rate. The rate for FY 2013 is 11.79% of expense for institutional support.
The financial office will encumber funds for the estimated indirect expense during the fiscal year. At fiscal year-end, the financial office will adjust the encumbrance as necessary to reflect the actual expenses incurred. Accounts subject to the indirect cost rate will be listed on the budget web site, and will be updated for each annual budget cycle.
Procedure for Replacements of Budgeted Positions
As approved by the TMCC President's Advisory Council on October 15, 2012
Overview
This procedure applies to any new or vacant Classified or Professional position of 0.50 or more FTE. Excludes part-time faculty positions.
Objectives
The objectives of this procedure are as follows:
- Ensure that strong budgetary controls are in place for budgeted positions.
- Provide for process that records and reports new or replacement positions and use of attrition or salary savings.
Process
- Personnel Executive Committee: Approval to recruit vacant/new positions.
- Committee membership: TMCC President and Vice Presidents. The Human Resources and Budget Office will also attend.
- Purpose: To review and approve for recruiting any new or vacant Classified or Professional position. For positions 0.50 or more FTE. Excludes part-time faculty positions.
- All positions must be approved by the President & Vice Presidents before beginning the recruiting process. Meetings will be twice per month, or as needed.
- Classified Positions: The department or division will prepare and process the NSHE-BCN Employment Requisition (VPAF 202) form . All necessary information will be completed.
- Professional Positions: The department or division will prepare and process the TMCC Professional Position Opening form.
- Please contact the TMCC Human Resources or Budget Office for assistance with these forms.
- Both forms are available on the Human Resources website. The requesting department is responsible for completing the form and obtaining necessary approvals, including the appropriate Vice President. After Vice President approval, send the form to the Budget Office. The Budget Office will verify budget information and bring copies of the completed form to the Personnel Executive Committee meeting. At the meeting, the appropriate Vice President will describe the position and the reasons for recommending the position for approval.
- Request for Salary Savings: When a position becomes vacant, a department may request funds for interim or short-term. Please contact the Budget Office.
Procedure for Fund Balance and Reserves Policy
As approved by the TMCC President's Advisory Council on October 15, 2012
Overview
This procedure applies to self-supporting funds, capital improvement fee fund, contingency fund, and operating reserves.
Objectives
The objectives of this procedure are as follows:
- Ensure that adequate reserves are maintained for college financial activities.
- Provide for process that records and reports fund balance and reserves activity.
Process
- The Budget Office will monitor all reserve funds and make appropriate entries to maintain reserves in accordance with this policy. Use of any of the following reserves and contingency funds must be approved by the TMCC President.
- Self-supporting accounts. The Budget Office will review accounts for appropriate reserves. At least 15% of each account's estimated budget will be held in reserve, object 79. Additionally, 50% of any excess reserves will be transferred to a college reserve account, which will be used for institution wide initiatives (invest in the future fund).
- Capital Reserves will be monitored and expenditures may be limited to maintain adequate reserves. These funds will can only be used for capital expenditures.
- Contingency Fund. The college will maintain at least 3% of operating budget revenues in contingency accounts. This fund can be utilized for unexpected expenses and college initiatives. Any unused funds will be transferred at year-end to institutional initiatives (invest in the future fund).
- Operating Reserves. The college will maintain operating reserves of at least 15% of the operating budgeted revenues. This fund can be utilized for unexpected expenses and college initiatives.
- The Budget Office will prepare a report (at least annually) listing the reserve amounts in each of the reserve funds.
- Use of Invest in the Future funds will be approved through the annual college resource allocation process.