University of Maryland, College Park Finance Committee Policies and Procedures

The Finance Committee oversees the management of the annual Campus Operating and Capital Budgets and reviews resource issues of Campus-level significance that arise within the fiscal year. The Finance Committee is advisory to the President.

The specific roles of the Finance Committee are as follows:

1. Define and oversee the administration of the annual operating budget.
   1. Establish policies for administration of appropriated funds.
   2. Following directions by the Cabinet, recommend specific adjustments to be made to the Asking Budget to accommodate changes to legislative language (e.g., Joint Chairman's report) and results of prior year income.
   3. Develop back-up contingency financing and allocation plans to address unexpected shortfalls/surpluses.
   4. Distribute responsibility and resources for resolving specific in-year funding problems.
   5. Establish criteria for receipt of gifts, grants and contracts and for related accounts.
   6. Receive and review reports from the Office of Resource Planning and Budgets (ORPB) and the Campus Comptroller regarding actual income and expense.
   7. Receive and review reports and projections of (a) revenue attainment relative to budgeted expectations and (b) expenditure performance relative to budget authority.
   8. Manage the Campus year-end closing process.
   9. Review Asking Budgets and proposed Working Budgets for all Auxiliary Enterprises and other self- supported activities.
   10. Recommend tuition and fee charges.
   11. Recommend funding levels for Campus commitments in Working Budget.
2. Define and oversee the administration of State, System and Institutional funded capital programs.
   1. Establish policies for administration of appropriated or authorized funds.
   2. Review major capital programs.
   3. Review sites for new buildings.
   4. Review and recommend capital projects for the State Capital Budget, the System Funded Construction Program and the Institutional Funded Construction Program.
   5. Develop back-up contingency financing and allocation plans to address unexpected shortfalls/surpluses.
   6. Distribute responsibility and resources for resolving specific in-year funding problems.
   7. Receive and review project expenditure status reports.
   8. Review, recommend and oversee the management of the budget for the Deferred Maintenance and Facilities Renewal Program.
3. Develop and oversee the administration of programs to assign and control use of non-financial resources.
   1. Space allocation
   2. Land
   3. Facilities
   4. Positions
   5. Computing/communication
4. Assess the manner in which financing can best be arranged to support capital and operating program needs in response to priorities defined by the Cabinet.
   1. Develop Campus position relating to debt, long term lease, alternative financing approaches and investment programs, etc.
   2. Establish cost recovery policies and review and approve specific rates within ground rules approved by the Committee.
   3. Advise the Cabinet, as appropriate, regarding capabilities to internally finance desired programs.
5. Provide policy guidance for Campus level Treasurer-type activities and programs to protect Campus assets.
   1. Maintaining banking arrangements to receive, have custody of and disbursement of the Campus' funds and be responsible for the financial aspects of real estate transactions.
   2. Review practices and procedures with respect to the granting of credit and the collection of accounts due the Campus.
   3. Oversee the risk management program and inventories of Campus assets.
   4. Oversee the cash management program.
   5. Review the effect of tax issues on Campus financial systems.
6. Evaluate overall functioning of Campus financial systems and initiate corrective actions as required.
   1. Sponsor periodic evaluations of Campus financial systems.
   2. Review Campus System of internal control.
   3. Receive audit reports and management letters and recommend appropriate Campus response.

1. Membership
   1. The Finance Committee is composed of the Vice Presidents for Academic Affairs, Administrative Affairs, and Institutional Advancement.
   2. The Finance Committee is chaired by the Vice President for Administrative Affairs.
   3. Three vice presidents must be present at each committee meeting so that a quorum may be attained. A vice president's authority may not be delegated.
2. Staffing
   1. The Finance Committee is staffed by the ORPB, which is responsible for preparing agenda materials and ensuring that Finance Committee decisions are communicated and implemented.
   2. The Assistant Vice President for Resource Planning and Budgets serves as the presenter of agenda materials. In the absence of the Vice President for Administrative Affairs, the Assistant Vice President for Resource Planning and Budgets shall serve as acting (non-voting) chair. Other staff may be called upon to represent particular issues.
   3. staff member of ORPB serves as Recorder for Finance Committee Meetings.
3. Auxiliary Committee
   1. The Facilities Planning Working Group (FPWG) has responsibilities and roles as follows:
      1. To review and approve all projects that affect space.
      2. To advise the Finance Committee on the disposition and funding of large projects.
      3. To review all requests for Finance Committee Funds.
      4. To serve as a resource for the Finance Committee and the Cabinet on facilities- related issues.
      5. To serve as a review mechanism for pre- decisional facility planning.
      6. To serve as a means of communication, integration, and coordination among the various units associated with facilities planning and implementation activities.
      7. To review and make recommendations to the Finance Committee on the Deferred Maintenance/Facilities Renewal Construction Program, the State Capital Program, the Systems Funded Construction Program and the Institutional Funded Construction Program.
      8. To review and approve all requests to lease or purchase space (e.g., off-campus lease space, trailers or modular buildings)
      9. To review and approve siting for satellite dishes and antennas.
   2. Membership
      1. The FPWG is composed of an Assistant Vice President for Academic Affairs, the Assistant Vice President for Resource Planning And Budgets, the Assistant Vice President for Facilities Management, an Assistant Vice President for Student Affairs, the Director of the Department of Engineering and Architectural Services and the Director of the Department of Physical Plant.
      2. The FPWG shall be chaired by an Assistant Vice President for Academic Affairs.
   3. Staffing
      1. The FPWG is staffed by the ORPB, which is responsible for preparing agenda materials and ensuring that FPWG decisions are communicated and implemented.
      2. A staff member of the ORPB serves as Recorder for the FPWG.
4. Issues to be Considered by Finance Committee
   1. Funding
      1. Requests for Finance Committee allocations of contingency funds for emergencies that have Campus-wide implications.
      2. Requests for Finance Committee allocations of contingency funds for one-time projects or activities that have Campus-wide implications, but for which the requesting office has insufficient funds.
      3. Funding for dues and subscriptions for activities with Campus-wide implications.
   2. Revenues
      1. Requests to distribute new or non-budgeted revenues.
      2. Plans for anticipated revenue shortfalls.
   3. Operating Budgets
      1. Requests to change fees and rates.
      2. Self-supported unit budgets.
      3. Funding sources for Working Budget Campus-level commitments.
      4. SGA allocations (annual review).
      5. Governor's Budget Amendment.
      6. Budget levels for sponsored programs, indirect cost recovery, private and corporate gifts, endowment income, and interest income.
      7. Revolving account policies.
   4. Capital Budgets
      
      Review of capital budget documents for the State Capital Program, the System Funded Construction Program and the Institutional Funded Construction Program as required by the campus-UMSO planning and budget process. Generally, scope and status will be conveyed through management reports.
   5. Project Priorities
      1. Priorities for Deferred Maintenance and Facilities Renewal projects and other appropriated accounts such as Handicapped Access, OSHA, etc., and oversight of project implementation.
      2. Approval and priorities for all non-capital budget maintenance and construction projects that exceed $50,000, regardless of the source of funds.
   6. Year-end Closing
      1. Review guidelines for the year-end closing process.
      2. Priorities for Campus Commitments addressed during the closing process.
   7. Fiscal Policy
      1. Definitions of Management Responsibility Area (MRA) financial responsibility.
      2. Insurance related issues.
      3. Inter-campus reimbursement and fund transfers.
      4. Fiscal impact of personnel policies.
      5. Organizational nomenclature and overall account structure.
   8. Facilities Policy
      1. Space assignments and redistributions of space among divisions (as reviewed by the FPWG).
      2. Deferred Maintenance and Facilities Renewal project definitions.
      3. Inventory control and reporting.
   9. Management Reports
      1. Fuel and utilities status and projections.
      2. Revenue status and projections.
      3. Sponsored programs status and projections.
      4. Fringe benefit status and projections.
      5. Capital funded projects status (including State, System and institutionally funded projects as well as Facilities Renewal projects under the purview of Department of Engineering and Architectural Services).
      6. Campus funded project status.
      7. Major maintenance accounts.
         1. Deferred Maintenance/ Facilities Renewal
         2. OSHA
         3. Handicapped
5. Operating Procedures
   1. Finance Committee schedule of meetings.
      1. The Finance Committee meets monthly during the academic year and as necessary during the summer.
      2. The Finance Committee calendar is set one year in advance by the ORPB and distributed to all Vice Presidents, Deans, Directors and Department Chairs.
   2. Facilities Planning Working Group
      1. The FPWG meets on a weekly basis, as required.
      2. The FPWG serves as an advisory committee to the Vice President for Administrative Affairs.
         1. The Vice President for Administrative Affairs will review and approve the agenda for FPWG meetings.
         2. Requests for small projects will flow from the different divisions through ORPB to the Vice President for Administrative affairs.
         3. Requests for new facilities or modifications of campus administrative space will flow from the Vice Presidents to the Vice President for Administrative Affairs.
         4. The Vice President for Administrative Affairs will meet with the Chair of the FPWG prior to each meeting and periodically with the entire FPWG to assure adequate information exchange.
      3. ORPB will serve as staff for the FPWG, its Chair and the Vice President for Administrative Affairs on agenda matters.
   3. Submission of Items for Finance Committee Consideration
      1. Items proposed for Finance Committee consideration must be submitted by the originating unit to the appropriate Vice President, who in turn reviews the appropriateness of the submission.
      2. Potential agenda items endorsed by a Vice President must be submitted to the Vice President for Administrative Affairs at least two weeks prior to the scheduled Finance Committee meeting unless special permission is granted by the Chair. The Vice Presidents will be notified of items not placed on the agenda. A schedule of submission cut-off dates is published in connection with the Finance Committee meeting schedule.
   4. Staffing of Items for Finance Committee Consideration
      1. The ORPB is responsible for analyzing agenda items and preparing supporting materials for the agenda book. The ORPB will work with other Campus staffs as necessary to complete its analyses and to document agenda items.
      2. Management reports for the Finance Committee are staffed by the ORPB staff based on reports provided by the department most closely associated with the activity (i.e., the Department of Engineering and Architectural Services prepares the construction project status reports, the Department of Physical Plant prepares the fuel and utilities reports, and the Comptroller's Office prepares the MRA status reports).
      3. The FPWG will review all projects which request Central campus funds; cost more than $50,000 regardless of fund source; involve a change in space use, assignment or configuration that crosses divisional lines, i.e., between one Vice President and another or space assigned to University (e.g., classrooms, mechanical rooms, hallways, etc.); or that involve major policy issues.
         
         The FPWG will make recommendations to the Finance Committee for all projects that are estimated to cost more than $50,000 or that involve major policy issues.
         
         The FPWG is delegated authority to act on project priority issues estimated to cost $50,000 or less when Central campus funds are requested or when a change in space use, assignment or configuration that crosses divisional lines is proposed. The FPWG will receive an annual allocation to be spent on projects under its authority. Actions taken by the FPWG will be reported to the Finance Committee.
   5. Approval and Notification of Action on Finance Committee Agenda Items
      1. Finance Committee recommendations are reviewed by the President and endorsed only when the President approves the minutes of the Finance Committee meeting. The minutes are prepared by the recorder. Copies of approved minutes are provided to each Vice President for distribution within respective programs. The approved Finance Committee minutes become a matter of public record.
      2. The unit submitting the original item for Finance Committee consideration is notified in writing by the Finance Committee chairperson of the action recommended to and approved by the President.
      3. All projects involving a change in space assignment, change in use or configuration of space, or construction are proposed on a Request for Service form. Request for Service forms for approved projects are forwarded by the ORPB to the Department of Engineering and Architectural Services for implementation.
   6. Fund Management
      1. The ORPB is responsible for monitoring Finance Committee contingency funds. (The Vice Presidents are responsible for notifying the Recorder of charges made against their individual contingency funds.)
      2. The ORPB is responsible for transferring Finance Committee funds as appropriate and for collecting and transferring unit funds for projects or activities approved under the condition of cost sharing.
      3. The ORPB is responsible for monitoring year-end "carry-forwards" for projects and activities not completed by June 30.