50.E - Budget Implementation
Board Policy Code:
Revised/Readopted: 02/08/05, 06/11/14, 6/9/15
The budget, as adopted by the Board of Education, becomes the financial plan of the college for the ensuing budget period. The president and staff are authorized to make expenditures and commitments in accordance with the policies of the Board and the adopted budget.
Sufficient ending fund balances, contingency, and reserves will be maintained to protect the College’s credit as well as its financial stability. When budgeting for reoccurring Community College Support Fund (CCSF) revenues, the initial payment received in the first year of the State of Oregon’s budget biennium, originating from the “Fifth” payment from the preceding biennium, will be reserved for future use in the second year of the biennium when three CCSF payments are received. The College will target a General Fund ending balance equal one quarterly payment from the State of Oregon Community College Support Fund or approximately 10 percent of reoccurring revenues. When the General Fund ending balance falls to 5 percent or less of reoccurring revenues, the college will adopt a plan to replenish the General Fund ending balance to 10 percent within two years. When the General Fund ending balance exceeds 10 percent of reoccurring revenues, balances in excess may be set aside for reserves or investment in one time expenditures.
The annual budget will set aside a minimum of two and one-half percent of the budgeted expenditures each year for Contingency. Use of Contingency will be at the discretion of the Board of Education and will be allocated by formal approval of the board according to its policies. The College will strive to maintain an Operating Reserve equivalent to 10 percent of General Fund reoccurring revenues.
One-time resources such as proceeds from asset sales, debt refinancing, one-time grants, revenue spikes, budget savings, and similar nonrecurring revenue may be used for establishing and rebuilding reserves, early retirement of debt, capital expenditures, and other nonrecurring expenditures which address strategic objectives or create institutional efficiencies. Operating Reserves should be used for current ongoing operating expenses when Student FTE, as a percentage of the population of Wasco and Hood River Counties, falls below the median percentage observed over the previous ten years or in case of emergencies.
The president will make the Board aware of any substantial changes in expected revenues or unusual expenditures of revenue so the Board may adjust the budget, if necessary.The president will take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit is projected at year-end. Corrective actions may include a hiring freeze, staff reductions, other expenditure reductions, fee increases, or use of Contingency. Expenditure deferrals into the following fiscal year, short-term loans, or use of one-time revenue sources will be avoided.