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University Decentralized Budget Mission Statement

To modify Kutztown University’s budgetary process in a manner that will provide defined university units the greatest flexibility, authority, and reciprocal accountability in order to plan and make decisions that best suit each unit’s goals and objectives as they relate to the University mission and goals.

University Decentralized Budget Principles

The guiding principles below are intended to shape the Kutztown University model for a decentralized budget system. These principles are designed to assure that the budget structure serves the University and its constituent members in their efforts to fulfill the mission, goals, and objectives of the institution.
  1. A decentralized budget process will be aligned with the mission of the university and the Kutztown University Strategic Plan so that the annual budgeting process is part of the multi-year planning process.

  2. A decentralized budget process will facilitate decision-making and implementation on the basis of relevant information at an appropriate level of responsibility.

  3. While a decentralized budget process provides autonomy and flexibility for managing both personnel and operating resources at the appropriate level, e.g. at the vice president, dean, director, and department chair levels, these additional decision-making powers are accompanied by increased accountability. As such, the decentralization of responsibility and authority requires clearly defined rewards and sanctions.

  4. A decentralized budget process will be easily accessible, streamlined, and understandable for all users. It requires all users to know the rules of the budget process and common information systems that provide timely and accurate operating information and performance reports.

  5. A decentralized budget process will have predictable revenue streams based on formulas to allow budgetary units to plan effectively. In this way, budgetary units will be able to match revenue streams to programs in order to encourage cost effectiveness and allow for revenue generation in a manner consistent with the mission of the university.

  6. A decentralized budget process will allow budgetary units to retain resources from year to year. In addition, a unit’s regular revenue streams will not be affected by revenue generated outside of normal funding sources or by resources accumulated from other years. This rollover capability will encourage fiscal responsibility and allow for effective long range planning.

  7. A decentralized budget process will allow for budgetary units to be agile, flexible, and adaptive to meet changing circumstances and to take advantage of opportunities.

  8. A decentralized budget process will allow the central administration to retain sufficient funds to ensure the achievement of overarching institutional goals.
Approved by Strategic Planning and ResourcesCommittee on April 21, 2006
 

updated: September 24, 2006