Approved by Board of Trustees
Effective Date: June 5, 2017
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer:  Associate Vice President, Business and Finance

I.  Purpose

It is widely recognized that budget control is essential for effective financial management of any organization. In view of this, this policy provides clear and specific responsibility for proper management and control of the operating budget for Middle Tennessee State University (MTSU or University).

MTSU operates under the authority of a Board of Trustees (Board) and follows the fiscal policies and procedures set by that Board. Although the University receives its state appropriation as a direct item from the State Legislature, the Tennessee Board of Regents (TBR) has authority over, and shall give final approval to, the operating budget for MTSU pursuant to T.C.A. § 49-8-203 (a)(1)(C). The University develops budgets for three (3) types of funds: Current Unrestricted Funds, Current Restricted Funds, and Capital Funds.

The University shall develop budgets for each major fund groups to:

A.  Ensure that authorized spending levels and anticipated financial commitments are within available resources;

B.  Implement Board directives related to budget; and

C.  Comply with legal, regulatory, and contractual requirements governing the proper use, budgetary control, and financial reporting of University funds.

II.  University Budget

The University budget covers a fiscal year from July 1 through June 30 of the following year.  Preparation of the budget involves three (3) submissions:

A.  July Proposed Budget. Detailed operating budgets are submitted to the Board in the spring of each year for approval at the second (2^nd) quarterly Board Meeting. These operating budgets request funds for each departmental budgetary unit. The operating budget, when approved by the Board, TBR, Tennessee Higher Education Commission, and Department of Finance and Administration, goes into effect on July 1 of that year. Upon final approval, notification of the approved total allocation for the fiscal year is given to administrative heads along with approved salaries for all budgeted positions.

B.  October Revised Budget. Mid-year adjustments to the July budget are submitted for Board and TBR approval in October of each year for approval at the fourth (4^th) quarterly Board Meetings. It is prepared after actual fall enrollments and other estimated costs and closing balances from the prior year are known. The October budget goes into effect on January 1 of the fiscal year. Administrative heads are notified of approval in their monthly budget reports.

C.  Spring Estimated Budget.This budget is the final budget submission for the fiscal year. It is submitted each spring at the same time as the July proposed budget to the Board of Trustees and TBR. This is the final approved budget for the fiscal year and contains the control totals against which final year end amounts are compared.

D.  It should be noted that the approval of a budget does not waive statutory, policy, or other restrictions fo