1. State Delegation of Authority
1.1 State law (RSA 187-A:16) delegates to the Board of Trustees powers for the management and control of all income received and due from all sources, including the authority to use the same in such manner as the Trustees may determine and to transfer funds among the institutions of the University System, and their divisions and departments when such action shall appear necessary and in the best interests of the state and the institutions of the University System.
2. Trustee Delegation of Authority
2.1 The Board of Trustees shall approve an annual operating budget including associated tuition rates and mandatory student fees. Recommendation of that original budget plan will come from the Financial Affairs Committee. Once the budget is approved, responsibility and authority for all adjustments is delegated as indicated in the following sections.
2.2 The Board of Trustees delegates to its Financial Affairs Committee responsibility and authority for:
2.2.1 Initial review and endorsement to the Board of proposed annual operating budgets including primary components such as expense guidelines, tuition rates, and mandatory student fees; and
2.2.2 Final approval of major current year budget adjustments and/or transfers, including use of reserves (unappropriated fund balances) as defined in the subsequent sections.
2.3 The Board delegates to the Chancellor responsibility and authority for oversight and management of funds and other resources in accordance with policies stated below. Further, the Chancellor is charged with preparing documents in an appropriate and timely manner that require Committee review and/or approval.
2.4 The Chancellor, in turn, delegates to the President of each University System institution responsibility and authority for:
2.4.1 Assuring that units function with proper internal control procedures such that all budgets remain balanced and within authorized limits;
2.4.2 Assuring that any and all transactions requiring higher level review and/or approval are identified and forwarded in an appropriate and timely manner; and
2.4.3 Assuring explanations and documentation of authorized adjustments, transfers, and/or revenue/expense patterns be provided in an appropriate and timely manner to officials for reporting purposes
3. General Policy Concerning Budget Adjustments
3.1 The principle governing the review and approval structure for budget adjustments shall be that the Chancellor and President of each University System institution have authority and responsibility for proper and effective management thereby enabling and enhancing efficient utilization of institutional resources.
3.2 Definitions for all action and reporting categories are in accordance with the nationally accepted classification system (NACUBO's College and University Business Administration) and the prevailing accounting standards applicable to the University System (Government Accounting Standards Board). Policy concerning review and approval of annual operating budget adjustments are applicable to and will vary within each of the three primary groupings of Current Funds: (1) Unrestricted Education and General (2) Other Unrestricted, and (3) Restricted Activity.
3.3 Unrestricted Education and General Budget Adjustments are subject to the following restrictions:
3.3.1 The Financial Affairs Committee shall specifically approve any proposed action for use of:
3.3.1.1 Reserves (unappropriated fund balances) of an amount greater than one percent of the prior year expenditures and transfers for the respective institution;
3.3.1.2 Regular session matriculated student tuition income that exceeds one hundred two (102) percent of the approved annual matriculated student tuition budget for the respective institution; or
3.3.1.3 Miscellaneous income, including recovery of indirect costs and continuing education, that exceeds one hundred five (105) percent of the approved annual miscellaneous income budget for the respective institution.
3.3.1.4 Proposed budget adjustments for the above situations must receive the endorsement of the Chancellor prior to consideration by the Committee. In urgent cases that require action during the interim between meetings, the Chancellor, in consultation and with the approval of the Chair of the Financial Affairs Committee or, in the absence of the Chair, the Vice Chair, shall have the power to act on behalf of the Committee.
3.3.2 The Chancellor is delegated the authority to approve all other budget adjustments, including any additions to the permanent salary base and realignments that alter either the dollars available by "function" (Instruction, Academic Support, etc. . .) or by object of revenue or expense (personnel, equipment, etc. . . .), except for any restrictions recommended by the Financial Affairs Committee and approved by the Board as a portion of the annual approval of operating budgets. The Chancellor shall establish internal policies for delegation of his/her authority to the presidents for specified adjustments under certain conditions.
3.3.3 It is the intent of this policy to aggregate like transactions when determining the applicable review procedure. Restrictions do not apply to mechanically generated or technically required budget adjustments where funds are being used for the planned purpose (for example, distribution of salary increase funds and fringe benefit costs or capitalization of departmental renovation expenses).
3.4 Other Unrestricted Fund Budget Adjustments are delegated by the Chancellor to Presidents. This activity includes all changes in revenue or expenses and budgeted positions for self-supporting (auxiliary) operations.
3.5 Restricted Fund Budget Adjustments are delegated by the Chancellor to Presidents. This authority includes capability for the establishment and revision of budgets for sponsored research, training, and educational projects.
4. Reporting
4.1 State law (RSA 187-A:22) requires that the Board of Trustees "provide to the governor, within 30 days after the close of each quarter of the fiscal year, a report, with a copy to the legislative fiscal committee, detailing budgeted and actual expenditures in major functional categories for each PAU of the University System, comparing the budgeted and actual expenditures in the current year to those at the end of the same quarter in the previous fiscal year and explaining any significant variance from the budget or the prior year."
4.2 At last twice a year, and at such other times as the Financial Affairs Committee may direct, the Chancellor shall provide written reports to the Committee describing the budgetary and fiscal condition of the University System.