General
Fund
Contingency
Board Contingency: The
annual budget shall set aside approximately one-half percent (0.5%) of
the budgeted revenues each year for Board Contingency. Use of
Board Contingency shall be at the discretion of the Board of Education
and shall be allocated by formal approval of the Board according to its
policies.
Administrative Contingency:
- Administrative Contingency shall be approximately one
percent (1%) of the budgeted revenues each year. Administrative
Contingency shall be allocated by approval of the president.
Note: This policy
was approved by the Board, on advice from the auditors, during the FY02
Budget Development process. This policy was reviewed by BAG and College
Council and is included here for information. Following are the
administrative guidelines also reviewed by BAG and by College Council
on November 21, 2003.
Principles for use of Administrative
Contingency:
- Department funds, including carryover, should be used for new needs
whenever possible rather than depleting institutional reserves.
- Group funds, including carryover and Special Projects, should be used
for new needs whenever possible rather than depleting institutional
reserves.
- New and important needs will arise after the budget is approved.
Strategic reserves should be set aside and used for the purpose of
funding unanticipated critical needs.
- Administrative Contingency should not be viewed as a “slush fund” or a
secondary (“back up”) funding source for rejected budget requests.
- All needs anticipated or known at the time requests are made during the
regular budgeting cycle should go through the budget decision process.
Requests should not be postponed anticipating funding by Administrative
Contingency.
- Since Administrative Contingency is meant to be an institutional
reserve, the president is the person who should control any expenditure
of the funds. A budget transfer signed by the president is necessary
documentation of her approval. The president and the Executive Team
should be informed as to the ongoing status of the fund during the year.
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