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Texas Tech
University is in partial compliance with Core Requirement #2.11.
Texas Tech
University does have a sound financial base and financial
stability. As an institution whose annual financial information
is audited as part of a statewide audit, Texas Tech University
will obtain a review in accordance with AICPA Statements on
Standards for Accounting and Review Services for its
financial statements for the year ending August 31, 2004. The
Texas State Auditor’s Office will conduct the review and will
issue a Standard Review Report and institutional
management letter. The target date for submission of the review
report and management letter to SACS is January 15, 2005.
A statement of
financial position of unrestricted net assets, exclusive of
plant assets and plant-related debt, which represents the change
in unrestricted net assets attributable to operations for the
year ending August 31, 2004, will be prepared based on the
financial information reviewed by the State Auditor’s Office.
The statement will be accompanied by management discussion and
analysis as necessary to explain the financial position and
results. The target date for submission of the supplemental
statement is January 15, 2005. Presentation of this
documentation will bring the university into compliance with
Core Requirement 2.11.
Annual university budgets for the current
and past four fiscal years are available on line at
http://www.irs.ttu.edu/Reports/StateReports/TTU/OBudget/default.htm.
The Texas Tech University budget planning process is described
in Board of Regents Rules 07.04.1-5 (Chapter 7, pp. 13-17,
available at
http://www.depts.ttu.edu/oppol/Chapter07.pdf).
Operationally, the
budget process begins with discussions between the president and
the administrators who report to him. These administrators are:
provost and senior vice president for academic affairs, the
senior vice president for finance and administration, the vice
president for research, the vice president for operations, the
vice president for student affairs, and the athletic director.
The president notes the strategic areas he wishes to emphasize.
The vice presidents work within their areas of responsibility to
develop a budget plan, using guidance from the president, the
strategic plan, and the assessment reports.
In prior years the
Budget Office produced a paper budget package for each area that
contained all of the current fiscal year data with columns to
make requests for the next FY. Last year (FY 2004) the
university moved to an on-line system that also allows
administrators to compare budget allocations for the current FY
with new budget requests.
At each level of
decision making the information from the level above is used to
evaluate budget requests. Each account manager submits a request
to the next highest administrative level. For the Office of the
Provost and Senior Vice President for Academic Affairs, these
come from the department chairs to the deans and, finally, to
the provost, with recommendations and justifications for
approvals at each level. Ultimately, requests from units
(departments, colleges, and operational units in non-academic
areas) are assembled at the vice presidential level. The
president and senior vice president for finance and
administration then meet individually with each senior
administrator to evaluate the requests and make final decisions
on any funding changes or reallocations from the requests. The
president also meets with the vice presidents as a group (the
President’s Administrative Council). Budget proposals are also
discussed with the President’s Budget Advisory Council (BAC),
which looks at the budget implications and helps to identify
unintended consequences of budget decisions. The BAC membership
is drawn from faculty, staff, deans, and administrators. The BAC
reports its findings to the president. Decisions made by the
president and the other senior administrators are conveyed to
the next lower administrative levels and budget adjustments are
made as necessary. Hard decisions on spending cuts or
reallocations are made as close to the level at which they will
be implemented as possible.
After adjustments
are made to the budget, the president, the senior vice president
for finance and administration, and the provost and senior vice
president for academic affairs approve the institutional budget.
The Budget Office then compiles all budget data into its final
form for presentation to the chancellor and the senior vice
chancellor for fiscal affairs. The budget that is approved by
the chancellor and the board of regents becomes the operating
budget for the next fiscal year.
As would be expected from a large and
complex organization, changes in the budget may be required at
different points during the fiscal year. Such changes are
initiated at the appropriate administrative level and passed
through the administrative hierarchy for approval. Final
approval comes from the board of regents and is noted in the
board minutes (board of regents meeting minutes are available in
pdf form at
http://www.irs.ttu.edu/Reports/StateReports/SYSTEM/Minutes/default.htm).
At all stages of
the budgeting process, the Division of Administration and
Finance is responsible for estimating revenue for the budget
period and informing the university administration of any
changes that may occur in those estimates.
The Texas legislature meets in alternate
years. The board of regents generally approves the annual budget
in a legislative year at its August meeting and in
non-legislative years at its May meeting. The university’s
fiscal year 2004 budget was approved at the August 8, 2003
meeting, p. 14-15 of the minutes (board of regents meeting
minutes are available in pdf form at
http://www.irs.ttu.edu/Reports/StateReports/SYSTEM/Minutes/default.htm).
The FY 2003 budget was approved at the May 9-10, 2002 board
meeting, p. 13.
The FY 2002 budget was approved at the August
10, 2001 board meeting, p. 28. The FY 2001 budget was approved
at the May 11-12, 2000 board meeting, p. 17. Budget adjustments
are approved at most board of regents meetings.
Action Plan:
Texas Tech University will submit the
required financial documentation to SACS as soon as it becomes
available.
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