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1.1 University Budget
Tennessee Technological University prepares a budget each year under guidelines promulgated by the Tennessee Board of Regents, the Tennessee Higher Education Commission and the Tennessee Department of Finance and Administration. After the budget is prepared and approved or amended by these agencies, it becomes an operating document and source of authority for University expenditures for the ensuing fiscal year.
1.2 Notification to Departments
1.2.1 Each department is notified of available funds by a copy of the printed budget document. This establishes the extent of authority of a department to incur obligations and make expenditures. No administrative unit is to exceed the available balance.
1.2.2 Funds are budgeted and allotted to the following objects, as required, in administering a particular program:
1100 Salaries - Administrative/Professional
1200 Salaries - Academic/Professional
1300 Salaries - Supporting
1400 Salaries - Student
2000 Employee Benefits
3000 Travel
4000 Operating Expenses
8000 Equipment1.2.3 Requisition balances must be maintained by the various departments for (1) student salaries, (2) travel, (3) operating expenses, and (4) equipment.
1.3 Object Classifications and Definitions Items not provided for in the definitions listed below must be approved by the Director of Purchasing prior to purchase or requisitioning.
1.3.1 Personal Services Includes all compensation to which an individual is entitled for personal services rendered while an employee of the institution. An employee is an "individual who performs services subject to the will and control of an employer both as to what shall be done and how it shall be done. It does not matter that the employer permits the employee considerable discretion and freedom of action, so long as the employer has the legal right to control both the method and the result of the services." (IRS Circular E). Included as personal services are salaries, wages, and other payments for which personal services were or will be required.
A. Salaries-Administrative/Professional Personal services of employees who are listed as object 1100 in the Personnel Section of each budget and who would be exempt employees under overtime provisions of the Fair Labor Standards Act.
B. Salaries-Academic/Professional Personal services of employees who are listed as object 1200 in the Personnel Section of each budget and who would be exempt under overtime provisions of the Fair Labor Standards Act.
C. Salaries-Supporting Personal services of employees who are listed as object 1300 in the Personnel Section of each budget and who would be subject to overtime provisions of the Fair Labor Standards Act.
D. Salaries-Student Personal services of employees who are listed as object 1400 in the Personnel Section of each budget and who are employed under a "student employment" program.
1.3.2 Employee Benefits Expenses paid on behalf of a person in employment status and which provide some personal benefit to the employee as follows:
A. Retirement - TCRS - State
B. Retirement - TCRS - Faculty
C. Retirement - ORP - (Administrative Staff & Faculty Only)
D. FICA - TCRS - State
E. FICA - TCRS - Faculty
F. FICA - ORP - (Administrative Staff & Faculty Only)
G. Group Insurance
H. Unemployment Compensation
I. Employee Scholarships
J. Other Employee Benefits
1.3.3 Travel Includes transportation, meals, lodging and related expenses reimbursed or paid by the institution for personnel in travel status as indicated below:
A. Travel - Individual - In-State.
B. Travel - Individual - Out-of-State
Includes travel by regular employees, individual students or participants in institutional activities. Included are meal allowances, automobile mileage allowances, tickets on commercial carriers, taxi fares, motel and hotel accommodations, registration fees at conventions and other meetings and rental charges for vehicles used in travel.
C. Travel - Teams and Groups - In-State.
D. Travel - Teams and Groups - Out-of-State.
Includes travel expenses for athletic teams, bands, debate teams and similar groups when traveling together.
E. Travel - Visitors - In-State.
F. Travel - Visitors - Out-of-State.
Travel expenses for visitors or guests of the institution who are not traveling as a result of being an employee, student or participant under a grant or contract for the institution. Includes prospective employees.
1.3.4 Printing, Duplicating and Film Processing
Cost of printing various materials and publications, duplicating materials and processing film.
A. Printing of Supplies - (Internal)
Printing of tags, envelopes, letterheads and other forms which are printed by an institutional printing department for use in offices and instructional activities.
B. Printing of Supplies - (External)
Printing of tags, envelopes, letterheads and other forms which are printed outside the institution for use in offices and instructional activities.
C. Duplicating and Copying - (Internal)
Cost of having materials duplicated or copied within the institution at a transfer rate.
D. Duplicating and Copying - (External)
Cost of having materials duplicated or copied which is paid to parties outside the institution, including equipment rental and maintenance and duplicating supplies.
E. Film Processing
Cost of having film developed or processed including photographs, microfilm, microfiche and similar services.
F. Printing of Publications - (Internal)
Cost of printing pamphlets, booklets, bulletins, handbills, newspapers, books and similar items by an institution-owned printing or service department.
G. Printing of Publications - (External)
Cost of printing same items as included in "Internal" except that the printing cost is incurred outside the institution.
H. Other Printing, Duplicating and Film Processing
Other printing, duplicating and binding not included in any of the above categories. Included would be the purchase of photographic services from both institutional and non- institutional agencies.
1.3.5 Utilities and Fuels Cost of utilities.
A. Electricity - Cost of electric utility service.
B. Water and Sewage - Cost of water and sewage utility services.
C. Natural Gas - Cost of natural gas utility services.
D. Coal - Cost of coal acquired for use in utility services.
E. Fuel Oil - Cost of fuel oil acquired for use in providing utility services.
F. Other Utilities and Fuels - Cost of other utilities and fuels not included in the above.
1.3.6 Communications and Shipping Costs
Cost of communication services and of having mail and materials transported.
A. Telephone - Local Charges - All basic telephone costs, including basic line charges, installation charges, listings, etc.
B. Telephone - Long Distance - Long distance toll charges, WATS lines and telegraph costs.
C. Postal Charges - Cost of postage and related items such as box rentals.
D. Freight and Express Charges - Freight and express charges not included in cost of merchandise. Freight and shipping charges on supplies and other items generally should be charged to the same object as the item acquired.
E. Other Communications and Shipping Costs - Communications and shipping costs not included in the above object classifications.
1.3.7 Maintenance/Repairs/Services by Others
Includes cost of maintenance services performed or repairs made. Repairs to motorized equipment should be charged to Motor Vehicle Operations. All supplies, materials or equipment purchased by the institution for use in performing maintenance or repairs should be charged to another object code as appropriate.
A. Maintenance/Equipment - Cost of routine repairs and maintenance of office, plant equipment, laboratory, instructional and other equipment.
B. Maintenance/Building - Cost of upkeep in maintenance of buildings and facilities, including linen and towel service, garbage pickup, janitorial service, fire protection and pest control.
C. Maintenance/Grounds - Cost of upkeep of grounds.
D. Pro-Rata Plant Allocations - Costs of maintenance and operation of plant which are allocated or charged to Auxiliary Enterprises.
E. Other Maintenance/Repairs - Maintenance repairs and services not included in any of the above objects.
1.3.8 Professional and Administrative Services
Expenses for professional and administrative services.
A. Professional Services - (Internal) - Services rendered by an institutional department. Includes institutional support allocation to Auxiliaries.
B. Data Processing Services - (Internal) - Cost of data processing services rendered by institution.
C. Data Processing Services - (External) - Cost of data processing services rendered by a non- institutional agency.
D. Consulting Services - Professional services rendered by non-institutional personnel including architects, accountants and engineers.
E. Medical Services - Cost of medical services rendered by non-institutional employees. Includes doctor, hospital and similar costs.
F. Legal Services - Cost of legal services by non- institutional employees.
G. Advertising Services - Cost of advertising including notices to the general public for any purpose.
H. Dues and Subscriptions - Cost of professional dues, periodicals, journals, etc. Periodicals or other subscriptions which are part of organized libraries are not included in this object classification.
I. Other Professional and Administrative Services - Includes court costs, appraisal fees, honorariums, notary costs.
1.3.9 Supplies
Includes a variety of tangible items which, when applied to the use to which they are adapted, are consumed or if not consumed are of small unit value and subject to loss.
A. Office Supplies - The cost of such supplies as bond paper, envelopes, folders, ink, pencils and other items necessary for the proper operation of an office.
B. Instructional Supplies - The cost of supplies ordinarily used for classroom or general education purposes such as examination papers, visual aids, glass tubes, beakers, etc.
C. Operational Supplies - The cost of those items necessary for operations which are not covered in another category. For example, dishes, silverware, paper cups, household articles, clothing, etc.; supplies for the print shop; recreational supplies; janitorial/maintenance supplies; and agricultural supplies.
D. Other Supplies - Supply items not classified in any of the above categories.
1.3.10 Rental and Insurance
Amounts paid for lease or rent and insurance premiums.
A. Rent or Lease of Building Space - Payments for the occupancy of buildings for office space, storage, etc.
B. Rent or Lease of Land - Payments for the use of land; for example, agricultural, recreational and other purposes including easements.
C. Rent/Lease Data Processing Equipment - Payments for the use of data processing equipment.
D. Rent/Lease of Other Equipment - Payments for the use of equipment excluding data processing and duplicating equipment.
E. Insurance - Insurance payments or premiums, including surety bonds.
F. Other Rental/Insurance - Rental and insurance costs not included in any of the above object classifications.
1.3.11 Motor Vehicle Operation
Includes all expenditures for the operation and maintenance of motorized equipment including automobiles, trucks, tractors, heavy road machinery, fire fighting equipment, airplanes, boats, lawn mowers and various other motors used for operating sawmills, generators, etc.
A. Motor Fuel, Oil, Lubricants - Cost of gasolines, diesel fuel, kerosene, oil and lubricants.
B. Tires and Tubes - Cost of tires and tubes for all purposes.
C. Accessories and Parts - Cost of accessories and parts not included in cost of repairs.
D. Repairs - (External) - Cost of parts installed and labor charges by a non-institutional agency.
E. Other Motor Vehicle Operation - Includes cost of titles, license plates, etc.
1.3.12 Awards and Indemnities
Payments made to individuals as a result of awards or indemnity for claims which are not based on or related to services rendered or to be rendered.
A. Scholarships - Amounts provided to students as scholarships.
B. Fellowships - Amounts identified as fellowships and awarded to students.
C. Athletic Scholarships - Costs of student athletes who are engaged in intercollegiate athletics. Included are fees and other student charges, meals, lodging, books, laundry, allowances, etc.
D. Fee Remissions - Sponsored Projects - Enrollment or registration fees paid or remitted under sponsored grants and contracts.
E. Fee Remissions - Statutory - Fee remissions for senior citizens, handicapped or others under provisions of state law. Does not apply to employees.
F. Awards to Employees - Includes cost of all awards recognizing meritorious service by employees.
G. Other Awards and Indemnities - Awards and indemnities not included in any of the above object classifications.
1.3.13 Grants and Subsidies
Amounts provided to agencies, institutions or individuals in the form of a grant or subsidy which may not be identifiable with a particular cost but are made to offset all or a portion of costs which the recipient may be expected to incur in carrying out some activity or function.
A. Grant/Subsidies - Organizations - Grants and subsidies to counties, cities, state agencies, associations, commissions, clinics, hospitals, institutions, school districts and other organizations.
B. Grants/Subsidies - Individuals - Grants or subsidies made to individual persons, including housing allowances.
C. Training Costs for Employees - Includes tuition, enrollment fees, books, training fees, etc., for employer-directed training.
D. Other Grants and Subsidies - Grants/subsidies not included in any of the above object classifications.
1.3.14 Other Services and Expenses
Specific services and expenses not charged in any other object group, and services and expenses not identifiable with any other object classification.
A. Cash Short and Over - The amount of cash over and short from any reconciliation of receipts to actual funds deposited.
B. Bad Debts - The amount of accounts receivable written off as uncollectible or the provision for doubtful accounts charged to current operations.
C. Renewal and Replacement Charges - Current year depreciation for Service Centers.
D. Other - Unclassified - Any other expense which cannot appropriately be included in any other object classification.
1.3.15 Stores for Resale, Re-Issue or Manufacture
Various items acquired for resale, re-issue or manufacture such as textbooks, bookstore supplies for resale, foods acquired by cafeterias and similar items.
1.3.16 Equipment
Any physical resource (other than land, buildings or permanent attachments thereto) that benefits a program for more than one year and costs in excess of $500.00, except computer hardware which is equipment regardless of cost. This definition does not apply to library books.
A. Office Equipment - Cost of all articles of furniture and equipment necessary to an office.
B. Operational Equipment - Includes the cost of equipment necessary for the operation of a department which is not covered elsewhere. For example, data processing equipment, printing presses, dressers, stoves, motor vehicles and other furniture and equipment.
C. Instructional Equipment - This item includes all equipment used in the educational plant such as desks, chairs and tables; gymnasium apparatus and other equipment used in schools, parks, playgrounds or other recreational centers; laboratory specimens and collections purchased for educational and research purposes; and similar items.
D. Livestock - Farm animals, including horses, cattle, poultry, swine and other domestic animals except those used for experimental purposes in a laboratory.
E. Other Equipment - This code is to be used for the cost of all equipment not otherwise classified.
1.3.17 Land
This object includes all purchases of land made by the institution for the erection of buildings, storage, rights-of-way, game preserves, forests, parks and other uses.
A. Purchase of Land - Land acquired by purchase.
B. Site Development/Improvement - This object should include all costs for landscaping, grading, clearing and demolition of old buildings not specifically performed for other improvements.
C. Other Land - Other land costs.
1.3.18 Building
This object includes all building costs including purchases, construction, improvements and renovations.
A. Purchase of Buildings - Cost of buildings for occupancy purposes.
B. Construction of Buildings - Includes cost of new construction, additions and renovations.
1.3.19 Improvements Other Than Buildings
Capital outlay costs that are not classified as equipment, land, buildings or library holdings.
A. Parking Lots/Streets/Walks, etc. - Cost of installing and paving parking lots, streets, sidewalks and similar paved areas.
B. Utility System/Maintenance/Operation of Plant Improvement - Cost of constructing and installing underground utility distribution systems and other non-building permanent improvements for the operation of Maintenance and Physical Plant. Included are telephone distribution lines owned by the institution, central utility monitoring systems, central clock, etc.
1.3.20 Library Holdings and Binding
Items added to the permanent collection of organized libraries for use of patrons. Items classified in this group of objects should be catalogued or indexed and available for use by patrons of the institution's libraries.
A. Books - Books required for addition to the library.
B. Periodicals - Includes subscriptions to magazines and collections.
C. Binding - Cost of rebinding books or having magazines placed in permanent binders.
D. Films - Film strips and similar materials.
E. Microform - Microfilm, microfiche and similar materials.
F. Other Library Holdings and Binding - Other library holdings not included in the above object classifications.
1.3.21 Transfers and Debt Service
Amounts transferred to other funds and treated as an expense or transfer item and amounts paid from operating funds for interest.
A. Transfers/Debt Retirement-Mandatory - Amounts transferred to Funds for Retirement of Indebtedness as a mandatory transfer.
B. Transfers/Debt Retirement-Non-Mandatory - Non- mandatory transfers to Funds for Retirement of Indebtedness.
C. Transfers/Renewal-Replacement-Mandatory - Mandatory transfers to Funds for Renewal and Replacement.
D. Transfers/Renewals-Replacement-Non-Mandatory - Non-mandatory transfers to Funds for Renewal and Replacement.
E. Other Debt Service - Debt service costs not included in any of the above object classifications.
F. Other Mandatory Transfers - Mandatory transfers not classified above.
G. Other Non-Mandatory Transfers - Non-mandatory transfers not classified above.
1.3.22 Department Revenues, Service Charges and Allocations
Credit posted to expenditure accounts for sales and/or service charges by service departments, student activities, various minor sales or other activities.
A. Revenues - Cash sales and charges.
B. Service Charges - Charges to other institutional accounts.
C. Student Activities Revenue - Admissions, fees, advertising sales, etc.
D. Pro-Rata Plant Allocations - The credit for cost allocated to Auxiliary Enterprises which would have been charged under the classification of Pro-Rata Plant Allocation under "Maintenance/Repairs/Service by Others."
E. Institutional Support Allocations - The credit for institutional support allocations made to Auxiliary Enterprises which would have been charged to the auxiliaries under the classification "Professional/Administrative Services by Institutional Department."
F. Data Processing Allocations - The credits for institutional allocation of data processing costs which would have been charged under the object classification "Data Processing Services by Institutional Department."
1.4 Request for Revision in Budget
1.4.1 When it is necessary to transfer funds between accounts or between objects within an account, a "Request for Revision in Budget" form (See Exhibit A-1) should be completed giving particular emphasis to justification. Copies 1, 2, and 3 should be forwarded to the appropriate Dean or Administrative Officer for approval. Copy 4 should be retained for departmental records. A copy should be made by the department, if needed, of requests initiated by project directors. If approval is given by the Dean or Administrative Officer, copies 1, 2, and 3 should be forwarded to the Business Office to the attention of the individual assigned as the Budget Analyst for the department involved. If approval is not granted by the Dean or Administrative Officer, all copies should be returned to the requesting department.
Upon receipt from the Dean or Administrative Officer, appropriate personnel in the Business Office will review the request, seek additional information or documentation, if needed, and present it to the President or his designee for approval. If approved, updates will be made and copy 2 of the request form (stamped with "Processed" and the date) will be returned to the appropriate Dean or Administrative Officer. If the request is not approved, copy 2 will be returned via reverse channels with explanatory comments. Additional approval may be required of the Tennessee Board of Regents, the Tennessee Higher Education Commission, and the Department of Finance and Administration.
1.4.2 Impoundments and/or unallotted funds, if any, can be released only with the approval of the President or his designee. Requests for the release of an impoundment and/or unallotted funds should be submitted on a Request for Revision in Budget form. The account name, account number, object number and amount of funds requested to be released should be listed on the "Increase" side of the form. Section II (Justification) should include a notification that a request for release of impoundment is requested. Full documentation and complete justification should be provided. The same routing procedure as noted above applies. The requisition balance should not be adjusted for the amount of the requested transfer until copy 2 of the processed request is received.
1.4.3 The procedures for revising the budget as a part of the annual "October Revision" are issued annually by the President. These procedures vary from year to year as necessary to comply with directives of the Tennessee Board of Regents applicable to the year involved and budget to be revised.