Financial Management Guidelines and Procedures


The financial position and future of the Colorado School of Mines is dependent on several variables
including enrollment, research growth, changes in industry demand, and competing institutions at the
national and international levels. In order to capitalize on these variables and respond to the challenges
they may present, the school must maintain a strong financial position, flexible resources, and
accountable financial management. These financial management guidelines were designed to provide
the ability to track, forecast, and project current and future resource needs in order to respond to the
changing financial environment and the continuously strengthen the university’s financial position.
Financial Management is performed on all sources and uses of funds; unrestricted, designated, and
restricted. Unrestricted operating budgets (education and general, and undesignated auxiliaries) are
approved by the line item category as described below; designated budgets are subject to the purpose
of the fund sources; and restricted budgets are subject to the policies and instructions of the sponsor or
donor.
Budget Stages
Prior to approval by the Board of Trustees, there are several steps in developing the budget, all of which
are interrelated. While developing the budget, it is critical to review the cumulative impact of current
year activity and decisions on long-term projections. These stages are outlined below:
Annual Budget Development - a detailed Board approved budget incorporating projections,
departmental requests and institutional strategic investments.
Budget Management - Allocation of the annual budget to colleges and individual departments
and the ongoing monitoring of how and when those budgets are utilized.
Forecast Development - quarterly changes to the annual budget must be approved by the Board
of Trustees and are derived from unanticipated changes to projections, subsequent
departmental requests, and unanticipated expenditures or savings.
Projections - a ten year impact projection model, using various assumption scenarios, providing
a long term outlook based on current year decisions.
Budget Components
Budgets are allocated in three major categories: Labor, Operating, and Capital as defined below. The
development and usage of each category is detailed in separate sections of these guidelines. Mid-year
realignments of budget from one category to another must be approved through the forecast process.
 Labor - includes salary and benefits for: academic and research faculty, administrative faculty,
classified staff, hourly staff, adjuncts, graduate support, personal service contracts and student
employees.
o FTE for budgeting purposes includes all academic faculty, administrative faculty,
transitional faculty, and classified staff. It does not include research faculty, adjuncts,
graduate TA's and RA's, temporary, or students.

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Financial Management Guidelines and Procedures


 Operating - expenditures and transfers that are not labor and are used to provide goods and
services to support a specific program. It also includes single item equipment expenditures or
capital projects below $25,000.
 Capital - capital projects and/or equipment where total costs are greater or equal to $25,000
and/or are funded from the capital budget (see Capital Budget Guidelines).

Forecast Adjustments

Three forecasts are developed during the year that provide for an avenue to address unplanned changes
from what was approved in the annual budget process. The President has committed that he will
present to the Board of Trustees, for their approval, any requested changes to the budget as reflected in
each of the three forecasts. Adjustments prior to Board approval are allowed in two situations: 1) when
there is unanticipated enrollment increases that have a direct impact on the classroom and new faculty,
adjunct, TA’s or classroom material are required to mitigate that impact; and 2) in emergency situations
where expenditures are required to prevent business interruptions. Such forecast adjustments will be
reported to the Finance and Audit Committee during their next regularly scheduled meeting.

Each month, the Budget Office will review budget to actual activity. Major variances must be explained
by respective areas. Then, three times during the year, a full funds forecast will be requested from each
major area as determined by the Budget Office. These forecast periods provide an opportunity to
request approval for a modification (increase or decrease) to a current year budget allocation. Forecast
requests shall be approved by each Vice President for their respective area or Dean in the case of
Colleges. To ensure adequate budget exists for the university as a whole, the Executive Vice President
for Finance and Administration (EVPFA) will approve the forecast in its entirety before submitting to the
President for approval and then the Finance and Audit Committee and Board of Trustees for
consideration of approval.

The following forecast adjustments must be approved prior to allocation:

 Revenue modifications
 FTE increases with or without a budget impact
 Operating and Labor budget increases or decreases
 Vacancy savings (see Vacancy Savings below)
 Realignments of budget between categories: Labor, Operating or Capital (See
Attachment A)

Once approved, these adjustments will be allocated in Banner.

Realignments of budget within the same category do not require approval prior to making the
adjustments (e.g. moving operating budget from one department to another, or moving an FTE budget
from one college to another). Also, the Academic Departments have the flexibility to realign between
TA, adjunct, student hourly and operating budgets at their discretion.

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Financial Management Guidelines and Procedures


Unused Budget
Colleges and Academic Departments may carry forward year end unused budget into a subsequent year
that is derived from operating, TA, adjunct or student hourly budgets, excluding any new budget
allocated and/or forecast adjustments. These funds may accumulate up to the annual amount of the
respective operating budget only and can be used at the discretion of the Dean or Department head. In
no circumstances will any other excess funds whether derived from excess revenue or savings in
expenses will be carried forward into subsequent years to pre-fund future year projects, expenses or
any other purpose.
Collaboration
Below is an example of the areas that will be required to provide information to the Budget Office for
monthly variance analysis as well as the forecast process. Note that the list below may not be all
inclusive and at times more or less frequent meetings may be required.

Financial Management




When

Area
Monthly
Forecast
Colleges/Academic Departments
Positions
Operating
CCIT
Positions and Operating
All other Academic Affairs

Positions and Operating
Facilities Management
Positions
Operating
All other Finance and Administration
Positions and Operating
Student Life
Positions
Operating
Athletics
Positions and Operating
Financial Aid

Operating
All other Student Life

Positions and Operating
VPRTT

Positions and Operating
SPACE

Positions and Operating
All other VPSE

Positions and Operating
President's Office

Positions and Operating
All other President's Office

Positions and Operating



Labor Budget and Vacancy Savings
Position budgeting is in place for all academic faculty, administrative faculty, transitional faculty, and
classified staff. We do not use position budgets for research faculty, adjuncts, graduate TA's and RA's,
temporary, or students. Position budgets are allocated in the Banner system by labor type account code.
These codes are detailed in Attachment B.

Labor budgets are aligned with existing positions to properly track available FTE. If a vacant FTE does not
have budget, then it is not available to fill unless the respective area requests a permanent reduction in
operating funds to create a labor budget via an approved forecast adjustment. Therefore, a position
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Financial Management Guidelines and Procedures


may not exist without a budget. If budget is realigned from a position, that position must be abolished
or a plan for backfilling that budget must be submitted to the Budget Office and approved by the EVPFA
within the same fiscal year that the position budget was removed. New FTE or reductions in FTE must be
requested/reported with the budget or forecast development process except for those situations where
new adjunct or faculty positions are needed due to unexpected enrollment increases that have a direct
impact on the classroom. Realignments of salary from one position to another do not require additional
approvals.

Vacancy savings from positions with budgets are created from a variety of situations and should be
budgeted in anticipation of vacant positions. Vacancy savings incurred during the year will first be used
to fulfill the budget for current year operations before any other forecast adjustments will be
considered. Each type of savings must be tracked via position control feature in Banner to determine the
appropriate budget adjustment. Any positions that become vacant during the year must be reported to
the Budget Office within the first month of the vacancy. The following list outlines the general treatment
for each type of vacancy savings after the budget commitment has been fulfilled:

New approved FTE, not filled - the position will be held in a Budget Office central account and the
budget will be reduced by the estimated savings (based on hire date) in the first quarter forecast
adjustment. New faculty positions in the search process will be held in a separate Budget Office
account in order to track those positions already committed to a department.

Existing FTE vacancies for classified, academic faculty and administrative staff - typically due to
normal turnover. All vacancy savings (except for those generated from sabbaticals, charge out and
custodial staff) above the budged amount will be held in central budged accounts designated for
each Vice President. The Vice Presidents may use these savings in two ways: 1) to backfill the vacated
position that generated the savings with temporary staff or adjunct and 2) for one-time expenditures
to be expended within the current fiscal year pursuant to the annual cumulative thresholds below:

 Provost - $50,000
 Deans - $50,000 each (total of $150,000)
 Executive Vice President of Finance and Administration - $40,000
 Vice President for Student Life - $40,000
 Vice President for Research and Technology Transfer - $10,000
 Senior Vice President for Strategic Enterprises - $10,000

If there are not enough savings to fund the budget commitment, the above thresholds will be
reduced proportionately until the vacancy savings budget is fulfilled. Any use beyond the above
thresholds will require a forecast adjustment approved through the forecast process prior to use of
the savings for one-time capital and operating items. All other savings will be included in the forecast
to reduce the overall labor budget.

Custodial FTE - due to the high turnover in this position class, all vacant positions are kept within the
Facilities Management department. An annual estimate of total savings is calculated and a "lump
sum" labor budget reduction is included in the first quarter forecast adjustment and reviewed
monthly to determine if additional modifications are required.

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Financial Management Guidelines and Procedures


Sabbatical Savings - Academic Affairs retains these savings to backfill the position and to realign the
savings for other purposes. The allocation of Sabbatical Savings is provided below:

 93% of salary will be allocated to the College
 7% of salary will be allocated to the Provost
 100% of the fringe will be allocated to the provost

Research Charge Out - some faculty may "buy out" of teaching a course to pursue a research project.
In those situations the department retains the salary savings to backfill that position and to realign
the savings for other departmental purposes. Charge out must relieve the general fund of the salary
and benefit expense. The current distribution of these savings is as follows:

 90% of salary will remain with the departments with $6,800 (plus fringe) to fund
adjuncts
 10% of salary will be allocated to the Dean
 50% of the fringe will be allocated to the Dean
 50% of the fringe will be allocated to the Provost

Other – adjunct, workstudy, undergraduate research match and graduate support and other
miscellaneous labor will be reviewed and updated during the departmental review. Estimated savings
will result in a budget reduction for the quarterly forecast.

Permanent savings may also exist when a position is filled at a lower salary than budgeted. In these
situations, each Vice President is allowed to retain that savings to reallocate to other positions as
necessary. These savings are tracked in unique position codes for each Vice President. These codes are
also outlined in Attachment B.

Vacancy savings may not be used for permanent budget adjustments and may not be rolled to a future
fiscal year.

Operating Budgets

Approved operating budgets are allocated to each department once the budget is approved. In general,
operating budgets are allocated to a budget “pool” and not by account type unless specifically
requested by a department. There are some transfer budget codes that are used for tracking specific
activity. All operating budget codes are detailed in Attachment C.

Operating budget may only be used for the general operations of the program in the year in which it is
allocated. Transfers that are not budgeted are not allowed unless approved by the Budget Office.
Operating budgets may not be used for capital projects, renovations or equipment where the cost
exceeds $25,000. Such projects must be submitted and approved through the capital request process.
Realignment of operating budget to labor must be included in a forecast adjustment request and
approved by the President and the Board of Trustees. Realignment of operating budgets between
programs (operating budget moved between two academic departments) does not require additional
approvals.

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Financial Management Guidelines and Procedures


Budget Development and Projections
The projections and annual budget development are a year-long process and requires input from several
departmental representatives throughout campus. In addition, this process is vetted with the
institution's Budget Committee during monthly meetings typically from September through April. A high
level schedule is provided below and a more detailed calendar may be found in Attachment D.
Budget Development Calendar (dates are approximate)
 August-December - Budget Office updates the projection models and develops budget for
mandated costs and strategic investments
 January 1 - Budget Office Calls for Requests
 March 1 - Vice Presidents submit prioritized requests for their respective areas to the Budget
Office
 March 1-31 - Vice Presidents prioritize all budget requests with strategic investments
 March Board of Trustees Meeting - Executive Vice President for Finance and Administration
(EVPFA) updates the Board of Trustees regarding tuition, student fees and charges, and the
expenditure budget
 April 1 - Executive Committee review prioritized requests
 April 15 - Budget Committee votes to submit formal recommendation for the following:
o Salary and Benefit Actions
o Tuition Increases
o New Fees and Charges
o Current Fees and Charges
o Prioritization of budget requests (includes new FTE)
 April 20 - Executive Committee and President reviews Budget Committee Recommendation
 May 1 - Budget recommendation from the President submitted to the Finance and Audit
Committee for review and recommendation to the Board of Trustees
 May 20 - Budget recommendation submitted to the Board or Trustees for review and approval
Budget Committee
The Budget Committee is defined in the Faculty Handbook, section 12.3 which states:

The Budget Committee shall be responsible for gathering and analyzing appropriate data regarding the
budgetary requirements of CSM, preparing proposed annual budgets for CSM, preparing proposed
budgetary revisions from time to time, and advising the President and the CSM administration on
budgetary matters and long-range fiscal planning.

The appointed membership of the Budget Committee shall consist of two academic department heads,
three full-time academic faculty members, and one full-time administrative faculty member. One of the
academic faculty members must be a Faculty Senator and shall serve as a representative of the Faculty
Senate. Additionally, the Provost, the Senior Vice President for Finance and Administration, the Vice
President for Student Life and Dean of Students, the Vice President for Research and Technology
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Financial Management Guidelines and Procedures


Transfer, and the Senior Vice President for Strategic Enterprises shall serve as voting, ex officio
committee members. The Executive Director of the CSM Foundation shall serve as a non-voting, ex
officio committee member.

University-wide Projections

Some increases impact the entire institution and are projected by administrative groups across campus.
Examples included mandated salary increases for classified staff, fringe benefit increases, utilities etc.
Below is a list (not all inclusive) of information that is required of several groups across campus:


Institutional Research and Admissions - Undergraduate Enrollment projections

Graduate Office - Graduate Enrollment Projections

Financial Aid - Institutional financial aid expenditure projections

Registrar's Office - Graduation projections

Academic Affairs - Undergraduate summer enrollment projections; faculty startup

Student Life - Auxiliary revenue and expense projections

ORA and VPRTT - Research activity and Indirect Cost Return Projections
Human Resources - Salary increases for classified staff and benefit increases applicable to all
faculty and staff.
Facilities Maintenance - Utility adjustments
Center for Computing and Informational Technologies – Campus wide licensing increases

Deadlines for submitting projections are different for each area and a detailed schedule in provided in
Attachment E. In addition to projections, each area is required to submit current year updates to the
Budget Office each quarter to provide changes to the Forecast (the 15th day of September, December
and March).

Departmental Requests

Each Vice President (and other direct reports of the President) are responsible for prioritizing
departmental requests for their respective areas and submitting their prioritized requests to the Budget
Office. Once the Budget Office has compiled one list for the entire university, led by the EVPFA, the Vice
Presidents will coordinate and prioritize the requests along with university-wide increases and strategic
investments.

These requests may include labor, capital or operating increases or realignments. Each request must
indicate how it aligns with the institution's strategic plan or meets a critical need in order to be
considered.

Budget Office and Executive Committee

The Budget Office will coordinate and develop the projection models, the university-wide increases and
departmental requests. As projections and various scenario models are developed they will be provided
to the Executive Committee and Budget Committee for review. Based on this and other external
information, the Executive Committee will develop recommendations for policy increases, including (but
not limited to):

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Financial Management Guidelines and Procedures


 Tuition
 Student Fees
 Financial Aid Allocations

The Budget Office will present the annual budget model to the Budget Committee for final review and
approval of their recommendation. Once approved by the Budget Committee, their recommendation
will be submitted to the President who, upon approval, will submit to the Board of Trustees Finance and
Audit Committee for their consideration before submitting to the Board of Trustees for final approval at
the May Board of Trustees Meeting.



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Financial Management Guidelines and Procedures




9


Financial Management Guidelines and Procedures


Labor Budget Account Codes
Attachment B
Position Budget Account Codes
Description
Account
Academic Faculty
5210
Acad Faculty Fringe Benefits
5130
Administrative Faculty
5212
Admin Faculty Fringe Benefits
5137
Classified Full Time
5201
Classified Permanent Part Time
5202
Classified Temporary Full Time
5203
Classified Temporary Part Time
5204
Classified Fringe Benefits
5100
Classified Temp Fringe Benefits
5139
Research Faculty
5211
Research Faculty Fringe Benefits
5138
Other Labor Account Codes
Description
Account
Adjunct Faculty
5220
Temporary Faculty Fringe Benefits (Adjunct)
5135
Classified Overtime
5206
Grad Salary Budget Pool
5215P/5213/5214
Grad Tuition Budget Pool
5118P/5119
Hourly Student Help
5218
Research Faculty Wages Budget Pool
5211P
Research Fac Benefits Budget Pool
5112P
Tuition Waiver-Classified
5141
Tuition Waiver-Faculty/Admin
5142
Academic Fac-Sabbatical Savings
5210S
Academic Faculty-Chargeout Savings
5210C
AF Benefits Budget Pool-Chargeout
5130C
AF Benefits Budget Pool-Sabbatical
5130S
Contracted Professional Services
5129
Independent Contractors
5125
Part Time Research Support
5231
Personal Service Contracts
5124
Temporary Admin Fac, PT
5225
Permanent Vacancy Savings
Pooled Position Number
Description
Employee Type
Academic Affairs
SVADAA
Savings-Admin Fac-Acad Affairs Administrative Faculty
SVAFFA
Savings-Acad Fac-Fin & Admin
Academic Faculty
SVCLAA
Savings-Classified-Acad Affair
Classified Staff
Finance & Administration
SVADFA
Savings-Admin Fac-Fin & Admin Administrative Faculty
SVAFFA
Savings-Acad Fac-Fin & Admin
AF
SVCLFA
Savings-Classified-Fin & Admin
Classified Staff
President
SVADPR
Savings-Admin Fac-President
Administrative Faculty
SVAFPR
Savings-Acad Fac-President
Academic Faculty
SVCLPR
Savings-Classified-President
Classified Staff
Research and Tech Transfer
SVADRT
Savings-Admin Fac-Res&Tech
Administrative Faculty
SVAFRT
Savings-Acad Fac-Res&Tech
Academic Faculty
SVCLRT
Savings-Classified-Res&Tech
Classified Staff
Student Life
SVADSL
Savings-Admin Fac-Stdnt Life
Administrative Faculty
10
SVAFSL
Savings-Acad Fac-Stdnt Life
Academic Faculty
SVCLSL
Savings-Classified-Stdnt Life
Classified Staff
Institution
SVNWAF
Savings-New Academic Faculty
Academic Faculty

Financial Management Guidelines and Procedures



Attachment C




Operating Budget Account Codes


Description
Account
Operating Budget Pool
5300P
Capital Outlay Budget Pool
5905P
Non-Mandatory Transfer In
8870
Transfer Budget Pool
8970P
Debt Transfer Budget Pool
8971P
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Financial Management Guidelines and Procedures


Budget Development Calendar (dates are approximate)
Attachment D


Important dates for the State


Major Colorado School of Mines due dates
January 1
Budget Office Calls for Requests

s
January 26
CSM census day
ht a
i
re
w
a
February 10
Revenue estimates due to JBC/Legislative Council
rko veit
w
c
s
e
P
p
V
sre
February 15*
Budget Committee meeting - Budget Office
presents projections with mandated costs
March 1
Prioritized departmental requests due to the
Budget Office from the Vice Presidents
lla
March 5
Joint Budget Committee figure setting
ezi s
t
ts
ri
e
o
u
March 20
March state revenue forecast
ri
q
p s re
PV
March 15*
Budget committee meeting-Discuss tuition rates,
mandated costs and salary actions
March 31
Vice Presidents' prioritized budget requests with
strategic investments due to the Budget Office
no
March/April
Board of Trustees meeting- tuition update, budget

k
ve
c
it ab
update, review of student fees and charges
uc d
e
e
x
e
E
f



d
e
s
n
di
t
v
se
April 1
Prioritized budget requests discussed by Executive
a tn ro u
e
p
q
Committee
di d
re
s
n
t
e
a
eg
Pr
we d
April 5
Budget committee meeting to begin review of
h i u
ti v
b
re
ll
prioritized budget requests and review of FY15
w
o
a
rk
t
o
e
budget scenarios. Discuss tuition rates, mandated
w
et
s
ti
costs and salary actions.
VP
mmCo
April 15*
Budget Committee meeting to submit formal
recommendation of budget:
- Salary and benefit actions
- Tuition increases
- New fees and charges
- Current fees and charges
- Prioritization of budget requests (includes
l
new FTE)
a
April 20
Executive Committee meeting to review Budget
i
l t
a
n
w
e
e
Committee recommendations
ni d
F
i
vi
s
eR
Pre
May
Long bill signed
May 1
President submits budget recommendation to the
Finance and Audit Committee
May 20
Board of Trustees meeting - approve budget and
tuition rates
12

*Budget Committee meets the third Thursday of each month. Additional meetings
may be scheduled in March and April to finalize the budget recommendation.

Financial Management Guidelines and Procedures



Attachment E

University Wide Projection Time Line
Responsible Department
Required Estimates
Dates
March for projected admissions in following
Institutional Research and Admissions
Undergraduate Enrollment projections
year; Spring and Fall Census forecast update
March for projected admissions in following
Graduate Office
Graduate Enrollment Projections
year; Spring and Fall Census forecast update
March for projected expenditure in following
Institutional financial aid expenditure
Financial Aid
year; Spring and Fall Census for forecast
projections
update
Registrar's Office
Graduation projections
September and March
Undergraduate summer enrollment projections;
Academic Affairs
March
faculty startup
October for budget; Spring and Fall Census for
Student Life
Auxiliary revenue and expense projections
forecast update
Research activity and Indirect Cost Return
October for budget; September, December
ORA and VPRTT
Projections
and March for forecast update
November for benefit budget; April for salary
Human Resources
Salary and Benefit Increases
budget
October for budget; September, December
Facilities Maintenance
Utility adjustments
and March for forecast update
Center for Computing and Informational Technologies Campus wide licensing increases
January for Budget
13