Division: Administrative Services Budget Office Reviewed: 1/02, 2/2010, 1/2016

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Hester Hamilton
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Policy Source: Combination of TCSG and Gwinnett Tech Owner: VP of Administrative Services Effective: 1996 Division: Administrative Services Budget Office Reviewed: 1/02, 2/2010,

1 Policy Source: Combination of TCSG and Gwinnett Tech Owner: VP of Administrative Services Effective: 1996 Division: Administrative Services Budget Office Reviewed: 1/02, 2/2010, 1/ Budget Process - Policy Fiscal Year As a unit of the Technical College System of Georgia (TCSG), an agency of the State of Georgia, Gwinnett Tech operates under a fiscal year that begins July 1 and ends June 30 of the subsequent year. Funding Sources The operating budget for Gwinnett Tech is made up of funds from three major sources: 1. Federal funds 2. State funds 3. Internally generated local funds Gwinnett Tech receives Federal funds representing various Federal grants which are administered through agencies of higher education. These include Carl Perkins, Adult Literacy and the Workforce Initiative Act (WIA). Grant funding parameters are communicated to Gwinnett Tech through TCSG except for WIA, which is communicated through the Atlanta Regional Commission. Budget awards are distributed to the grantees in June for the upcoming fiscal year beginning on July 1. State funds primarily represent the State allocation from the State budget administered through TCSG. Notification of the State allocation is given to Gwinnett Tech by TCSG in May for the upcoming fiscal year beginning on July 1. Gwinnett Tech also receives one State grant: Adult Literacy. Budget awards are distributed to the grantees through TCSG. Local funds consist of student tuition, registration fees, supply fees, corporate training/continuing education, live work charges, supply fees, specialty fees, and other locally generated revenues. Page 1 of 5

2 Budget Structure All Federal, State, and local funds are budgeted and accounted for by Gwinnett Tech s staff and processes. Gwinnett Tech budgetary areas are divided into appropriate divisions by educational programs and administrative departments. Each budget is developed by the program director or budget manager based on the strategic direction and plans for the upcoming fiscal year. All educational program budgets are reviewed and approved by the appropriate Division Director and Vice President for the area. All administrative budgets are reviewed and approved by the appropriate Vice President. Final approval is given by the President. Page 2 of 5

3 Budget Process Procedures Budget Process and Calendar While the specific dates are subject to change each year, the budget process generally begins in March for the ensuing fiscal year that begins July 1. The final budget is uploaded into the PeopleSoft accounting system by June. Certain Federal and State grants may follow a different budget calendar depending on their requirements. These requirements are communicated to Gwinnett Tech by TCSG. Gwinnett Tech follows all such requirements and submits budgets accordingly. To assist in the budget preparation, the budget director updates the Excel budget template for the upcoming year and distributes to all program directors and budget managers. Training is conducted by the director of budget and director of accounting. These training sessions explain all budget changes and provide guidelines to the directors and managers regarding budget parameters for the upcoming year. The Excel budget template serves as a tool to aide in the development and submission of the budget information. The template consists of a section for each budget category. The program directors and budget managers populate the appropriate sections with the anticipated expenses for their program or budget area. This file becomes their budget request for the upcoming budget year. Division directors review the budget file for their area prior to submission to the budget office. *Any addition to budgets must be approved by division director (if applicable), appropriate Vice President, and Executive Vice President of Administrative Services. The completed budgets are submitted to the budget office in mid-april. The director of budget compiles the budgets and presents the results to the President s Leadership Team for final approval. Division directors are alerted as to any questions or adjustments that are needed to complete the budget process. Page 3 of 5

4 Prior to the beginning of the fiscal year, detailed operational budgets for the use of all Federal, State and local funds are reviewed and approval is established for the upcoming budget year. Improvement Requests Annually, in association with the budget process, all program directors and budget managers have the opportunity to submit improvement requests for the upcoming fiscal year. These improvement requests can include new programs, new or improved services, additional staffing or salary upgrades and all major new or replacement equipment. The improvement requests are submitted via an Excel spreadsheet to the budget office and the President s Leadership Team. The President s Leadership Team reviews, decides on approvals and prioritizes the requests and then submits them to the budget office. All approved requests are added to the appropriate department s operating budget by the budget director. Budget Amendment Process At the beginning of the year, all internal budgets are loaded into the PeopleSoft accounting system as approved. These budgets serve as a control on the amount and types of expenditures that are to be approved throughout the fiscal year. If there is a need to change the budgets by realigning the funds by category of expenditure, these changes may be e- mailed to the Budget Director. Once indication for the changes is received from the supervisor, the Budget Office enters the change into the PeopleSoft accounting system via budget amendment. Effect on Purchasing Whenever a purchase order requisition, request for payment, or journal entry is entered into the PeopleSoft accounting system, the budget is validated for its ability to withstand the charge. This is an automated process built into the PeopleSoft system. If the budget funds are not available for the charge, the transaction (purchase order requisition, request for payment or journal entry) is rejected and placed into a suspense file. The budget error must be resolved before the transaction will be posted. See the Purchasing Policy section for additional details related to the budget s effect on purchasing. Page 4 of 5

5 Budget Status Reporting Budget Comparison reports, which show the annual operating budget (reflecting all approved budget amendments) and the current month and the year-to-date expenditures, budget reservations, and balance available, are loaded on SharePoint monthly by the Business Office. Details of each transaction for the month are included in the Combined Detail report. Summary reports of budget vs. actual revenues and expenditures are submitted monthly to the President s Leadership Team. Details are available to the President s Leadership Team at any time, as requested. Questions regarding the Budget Process should be directed to the director of budget or the director of accounting. Page 5 of 5

Technical College System of Georgia Office of Adult Education

Technical College System of Georgia Office of Adult Education Financial Audit Process This 1-day process is designed to assess a grantee s fiscal accountability procedures and processes as related to the