In developing the annual budget and quarterly forecasts, managers should keep the following in mind:
Budget:
- What is the current budget? How much has been spent year-to-date, and how much will be spent by year-end? (i.e., What is the forecast?)
- Review account history. Run Banner reports "WGPBDSC" or "WGPBVSA" for the prior year (year-to-date and year-end) - how much had been spent by this time last year? Was the annual budget exceeded at year-end? (Or was the actual significantly less than budget?) How did it look the year before?
- Has the department consistently come in over or under budget for several years in a row, and if so, why? Managers should keep in mind that neither situation is ideal. Continually requesting funds that are not needed (i.e., as "cushion" or "padding" - "just in case"), though it may ensure the department comes in under budget, it also takes dollars away from other departments and programs that legitimately need them, and forces university-wide reductions in areas that may be more critical.
- What new initiatives are being planned for the department in the following year? How will they be funded? Do they correlate to or are they offset by revenue?
- Are there ways in which the department might be able to reduce expenses?
- Are there other departments with related work/responsibilities that may be budgeting for the same expense (i.e., has anything been "double-counted")?
- Have clear, thorough supporting justifications and explanations been included with the department's requests? (The BannerWeb budget forms will not accept requests for changes without explanation.)
Forecast:
- What has been spent year to date? How much of the annual budget has been spent so far - is the remainder sufficient to cover expenses for the rest of the year, or might there be some savings?
- Are there going to be necessary expenses that were not anticipated at the time the budget was completed?
- Review account history. Run Banner reports "WGPBDSC" or "WGPBVSA" for the prior year (year-to-date and year-end) - how much had been spent by this time last year? Was the annual budget exceeded at year-end? (Or was the actual significantly less than budget?)