FinPlanApprovalProcess

Targets for Net Fee Income and Net Direct Expenditure are set for each unit in the university in advance of the formal commencement of the planning cycle, typically in early to mid February.

The current year's approved budget acts as the base, with adjustments relating to Net Fee Income and to pay rate increases per UCD's Financial Model. The topic How Are Targets Calculated ? in the FAQs provides further details.

Draft Targets are circulated to Finance Managers to verify that no errors have been made in calculating the Targets.

The Targets are formally published at the start of the planning cycle in report BP-FP-010 Targets in the Budget Pack.

Schools, administrative and support units typically engage in financial planning from mid-February to the end of March. Finance Managers play a critical role in facilitating financial planning by unit Heads, and enter and amend information on the Planning and Budgeting system (PBCS).

The precise process followed will vary but typically involves an initial meeting between the Head and Finance Manager, together with a member of the central planning team. Further meeting(s) will be held between the Head and Finance Manager ahead of the completion of the first draft of the financial plan, typically due by 31 March. The draft plan is then reviewed within the college and considered in the light of advice received from UCD Global (amongst others) and assessed for realism and sustainability. There may be formal or informal discussions on plans with the Bursar or other members of the central planning team.

The Finance Manager provides feedback to the Head and may request amendments to the plan prior to formal submission.

The plan prepared by the Head is submitted to the Principal/V-P for final review prior to submission alongside the plans of the other units. Submission takes place electronically on the PBCS system, when the Finance Manager receives confirmation from the Head that the plan is complete. The Finance Manager provides a Budget Submission report pack to the Head as a record of the submission.

Where submitted plans vary from Targets, Financial Model Adjustments are applied so that Budgets comply with UCD's Financial Model. Where applicable these are:

• Fee Income Adjustment: The Fee Income plan is adjusted such that the Budget is set equal to the Target;
• Transfer To/(From) from Reserves: where the Net Direct Expenditure plan is higher than Target, the difference must be funded from the unit's own Reserves. If the submitted plan is less than Target, then the difference will be a transfer to Reserves. The Net Direct Expenditure Budget will be as submitted in the plan, supplemented by the Transfer To/(From) Reserves.

The first year of the financial plans of schools, administrative and support units, adjusted as required under the UCD Financial Model, is proposed as a University Budget.

The Proposed Budget is reviewed in turn by the University Management Team (UMT), the Finance, Remuneration and Asset Management Committee (FRAMC) of the Governing Authority and the Governing Authority (GA) itself. The UMT and FRAMC recommend the Proposed Budget for approval, and it is the Governing Authority itself that formally approves the Budget.

The GA normally considers the Budget at a meeting in late June.

Budget Notifications to Heads are issued after the formal approval.

The approved Budget will act as the starting point for Target setting in the next financial planning cycle.