Accounting and Budget

Budget Development, Management and Oversight

Budget Development:

The President's Cabinet and the Budget Planning Committee develop the College budget with approval by the Board of Regents

Concordia College operates on a fiscal year that runs from May 1 to April 30. In general, the budget development process is as follows.

During the fall, the main budget factors are reviewed for the following fiscal year including enrollment and revenue projections, comprehensive fee comparisons, financial aid, compensation, utilities and other costs. President's Cabinet and the Budget Planning Committee review budget factors and cost increases to determine recommendations to the Board of Regents for the following year's budget priorities and comprehensive fee increase.

The Board of Regents reviews budget recommendations and approves a comprehensive fee for the following academic year in December or January.

During January or February, department budget managers are provided with instructions to prepare and submit budget requests (non salary components) for their department. In preparation of their budget requests, departments are asked to carefully review and analyze all planned and proposed departmental expenditures, focusing on what is essential and what is strategic. Departmental Budget Requests are submitted on-line through Self-Service Banner (SSB). Any questions regarding the process to input requests should be directed to the Controller (Business Office) or Director of Budgets and Planning (Office of the Provost).

The Board of Regents approves the budget for the new fiscal year at their May Board meeting.

Budget Revisions:

Departments should contact the Controller for instructions and proper forms to make a budget revision. Budget revisions are used for transferring budgeted dollars from one approved budget number (FOAP-- Fund Organization Account Program) to another.

Budget revisions must be approved by the appropriate vice president who will forward them to the Controller for processing.

Department Budget Manager Responsibilities:

Department Budget Managers (appointed department heads or managers) are responsible for monitoring and approving all expenditures charged to their department's budget. Responsibilities are as follows:

  • Review budget reports monthly. Budget information is maintained under Banner Self-Service and Department Budget Managers have access to budget reports via C-port. Instructions for performing budget queries are available on the Business Office website.
  • Ensure that department staff members turn in deposits, invoices, reimbursement and payment requests in a timely manner (adhering to all deadlines set by college policy) so that the department budget accurately reflects revenue and expenses to date. Please note that invoices and reimbursement requests must be submitted to the Business Office for payment within 30 days.
  • Verify that transactions are valid and in compliance with Concordia's policies* and that amounts are accurate and posted to the appropriate FOAP. In order to make a correction and transfer funds from one FOAP to another, a journal entry form must be completed and submitted to the Business Office within 90 days of the original transaction date and contain sufficient documentation and justification to support the transfer.
  • Ensure that expenses incurred do not exceed the department budget for the fiscal year by reviewing the budget and expense detail. The Department Budget Manager must be aware of expenses that have been incurred but have not yet been recorded. For example, a purchase made with a P-card may not be reflected yet in the budget depending on the date of the transaction.

*Note: If travel or business expenses are to be charged to a grant or contract sponsored by an outside agency (e.g., National Science Foundation, Dept. of Education, etc.), the requirements of the outside agency prevail if they are more restrictive than Concordia's policies.

Cost Transfers and Justification (Journal Vouchers)

The "Journal Entry Form" is used when transferring funds from one budget number (FOAP) to another. A journal entry should be initiated promptly (College policy requires that all transfers be completed within 90 days of the original transaction date) and contain sufficient documentation and justification to support the transfer. Journal entry forms must be approved by the Department Budget Managers for both the department being charged and the department receiving the funds.

Primary reasons for transferring funds using the "Journal Entry Form" are as follows:

  • Departmental Charges: To charge other departments for services or supplies (e.g., Communications, Post Office, Transportation, Dining Service, Bookstore). Be sure to obtain the correct budget number (FOAP) when accepting requests for services/supplies to allow better tracking of the expense and eliminate the need for additional journal transfers.
  • Accounts Payable Corrections: To correct a check that was issued and charged to the wrong budget number (FOAP).
  • Use of Incorrect Budget Number (FOAP): To correct charges that were initially charged to the wrong FOAP. Note: Employees should be careful to obtain and use the correct budget number (FOAP) when initiating transactions to minimize the need for transfers.
The journal entry form should not be used to make budget revisions (contact the Controller for specific instructions for budget revisions).

Expenditure Approval

Verbal approval should be received from the Department Budget Manager before incurring any expense. The Department Budget Manager's written signature is also required on the appropriate form for payment of expenses.

In addition, certain items need additional approval or must be requested through a different process. Following is a list of such items:

Travel Expenses or Reimbursements: Expenses must be approved by the employee's supervisor as follows:

Employee Approver
Faculty and Staff Department Chair or Administrative Director
Department Chair Division Chair
Division Chair Dean's Office
Administrative Director Vice President
Vice President President
President

Vice President for Finance/Treasurer (with review by Audit Committee Chair of the Concordia College Board of Regents)

Project and Equipment Funding: The following are approved through a separate budget process. Information is typically sent out to Department Budget Managers in the fall.

  • Building repairs and facility alterations (academic and administrative buildings only):  Requests in this category include potential health and safety issues, ADA compliance, operating deficiencies, energy conservation improvements, repair or replacement of facility related equipment, improvements to meet the needs of a program change or expansion, and/or improvements in space utilization and aesthetics.
  • Equipment (non IT) purchases over $1,000:  All requests for equipment purchases over $1,000 must be submitted through this process and should not be purchased with departmental budget funds.
  • Furnishings, classroom upgrading, information technology needs:  Requests in this category include office furnishings, classroom furnishings and/or technology to enhance classroom interactions or technology related hardware or software outside of the normal refresh cycle. (The normal refresh cycle includes individual faculty, staff and computer lab computers and related software.)

Contracts and Agreements: Contracts that legally bind the College (including lease agreements, etc.) must be approved and signed by the Vice President for Finance/Treasurer and, if necessary, one other corporate officer as specified in Concordia's corporate resolution.

File Retention Schedule for Financial Records

In order to comply with various regulatory requirements, the following documents should be retained according to the schedule below. After such time, the documents should be shredded or put in document destruction receptacles on campus for disposal.

Accident Reports and Claims (settled cases) 7 years
Accounts Payable (invoices direct payment vouchers, travel expenses) 7 years
Accounts Receivables – property, student loans, 3rd party billing 7 years after paid in full
Accounts Receivable – collection, write-offs Permanent
Accounts Receivable – loans assigned to Dept. of Education Permanent
Audit Reports Permanent
Bank Statements and Reconciliations 7 years
Capitalization Records Permanent
Cashier Records (receipt listing, deposits, etc.) 7 years
Contracts and Agreements – still in effect Permanent
Contracts and Agreements – expired 7 years
Correspondence (legal and important matters only) Permanent
Depreciation Schedules Permanent
Employee Personnel Records (after termination) 7 years
Financial Statements (end of year) Permanent
General Ledgers (and end-of-year trial balances) Permanent
Gift Agreements/Planned Gifts Permanent
Grants – Received 7 years after final report date
Grants – Not Received 3 years
Insurance Records – current accident reports, claims, policies, etc. Permanent
Investments 7 years after sale
Journal Entries (expense and revenue transfers) 7 years
Payroll and Retirement Plan Records 7 years
Purchase Card Records 7 years
Purchase Orders 7 years
Real Estate Records (Deeds, mortgages and bill of sale) Permanent
Stocks and Bond Certificates – canceled 7 years
Tax Returns and Worksheets Permanent
Tax Reporting Forms (IRS Forms 1099, 1042-S, etc.) 7 years
Trade Mark Registrations Permanent

If an official copy is on file in the Business Office, Risk Management or Human Resources, other departments should retain their copies on file for one year or through completion of the annual audit (July) for the previous fiscal year. If not, departments should retain their copies as per the schedule above.

This is not a comprehensive list—employees should follow all regulatory guidelines when determining if a record needs to be maintained or destroyed. More information is available through the College's Document Retention and Destruction Committee (contact the Archives department at 218-299-3180).

Other Documentation Sources

Documentation of procedures for bank statement reconciliation, cashier functions, and processing of journal vouchers and unclaimed property is on file in the Business Office (contact the Bookkeeper or Assistant Bookkeeper for reference). For information on fixed asset inventory functions, please contact the Controller.

Information For:

current students
faculty and staff		 parents
alumni		 high school students
admitted students