Policy 5.05

Part 1. Purpose

This policy outlines Minneapolis College's commitment to maintaining a balanced budget and assigns responsibility for its completion and oversight.

Part 2. Definitions

Annual Operating Budget: allocation of college resources that are available on a recurring basis.

Responsibility Manager OR Cost Center Manager: Defined in Minneapolis College Policy 5.03 Chart of Accounts and Cost Center Management.

Budget Office: a subset of the College’s Business Office that includes the Vice Chancellor of Finance and Operations and members of the Business Office tasked with budgetary duties

Part 3. Responsibilities

• The Vice President of Finance and Operations shall provide guidelines for the preparation of an annual operating budget using an updated financial outlook.
• The Vice President of Finance and Operations shall ensure the annual operating budget is prepared consistently with Board policies and system procedures.
• The College’s President’s Council will make all final budgetary decisions.
• The President will approve the College’s final budget.
• Upon approval, the Budget Officer ensures the proper entry of the College’s budget into the institution’s ERP.

The College President shall have final approval of the annual budget.

Part 4. Operating Budget Guidelines

The College shall annually approve revenue and expenditure operating budget plans for all revenue sources. The annual operating budget shall:

• Enhance the College's overall mission
• Be participative, inclusive and consultative
• Be approved by the President
• Include all anticipated resources and their planned uses
• Ensure planned expenditures are supported by identifiable resources
• Be entered into the College financial system before the fiscal year begins

Part 5. Monitoring

• The President is responsible for maintaining an accurate and balanced budget. The President may delegate the monitoring of the budget to the Vice President of Finance and Operations or other designees.
• Cost Center managers are responsible for properly using funds assigned according to state guidelines.
• To close the fiscal year College funds cannot be committed after a specific date as determined by the Business Manager.
• The College must provide accurate, timely, and consistent financial information necessary for the creation and monitoring of its annual operating budget to affected stakeholders. Financial reporting shall be the responsibility of the Vice President of Finance and Operations.
• The Budget Office is the only area of the College authorized to make budget transfers.

Owner(s) Title: Vice President of Finance and Operations

Date of Adoption: 12/27/2005

Date of Implementation (if different from adoption date): Changes approved on 5/20/2021 will be implemented with the approval of the full revisions of the College’s finance policies section in May 2025.

Date Last Amended: 5/1/2025 (Limited)

History and Subject of Revisions: 5/1/2025 (Limited), 5/20/2021 (Comprehensive review as part of restructuring finance policies. Major revisions to content including policy incorporating some content from other finance policies. Added definitions section.), 12/27/2005 (Adopted)

Regulatory Authority (e.g. Minnesota State policy, federal or state law): Minnesota State Board Policy 7.4 Financial Reporting;