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Guideline��

• Units are expected to use a multi-year planning approach which utilizes out-year planning parameters and assumptions provided by campus. Incorporate these parameters along with information unique to your unit to align financial decisions with campus and unit priorities.����

• Thoughtful expense planning should include regular budget-to-actual monitoring, multi-year projections (using a 5-year horizon), and anticipation of key cost drivers such as compensation, inflation, and staffing plans.��

• Reserves are one-time funding and must be used strategically and intentionally, supported by a 5-Year Reserve Utilization Plan and prioritized for one-time needs rather than ongoing commitments.����

• Unit leaders are responsible for sound fiscal management and compliance, including adherence to institutional policies, ensuring staff follow required procedures, and complete required fiscal trainings.��

• Consistent application of this framework supports financial stability, risk mitigation, and long-term sustainability, strengthening overall operational effectiveness across campus.��

Purpose��

This framework guides campus leadership and unit leaders in developing multi-year fiscal plans that support financial stability, align resources with institutional priorities, and proactively manage risk.��

It emphasizes:��

• Thoughtful Expense Planning��

• Strategic and intentional Reserve Planning��

• Adherence to Fiscal Management Responsibilities��

Together, these practices support long-term sustainability and operational effectiveness.��

Planning Considerations:����

1) Expense Planning��

Units should actively plan, monitor, and adjust expenditures to remain aligned with approved budgets and institutional priorities.��

Best practices include:��

• Monthly monitoring actual expenses against budget��

• Projecting salaries and fringe benefits, programmatic costs, operational needs, and technology investments��

• Anticipating cost drivers such as inflation, compensation changes, and hiring plans��

• Annually utilize a 5-year planning horizon to understand future funding needs and tradeoffs��

• Ensuring spending decisions advance institutional and unit strategic priorities��

2) Reserve Planning��

Reserves play a critical role in managing volatility, supporting one-time investments, and enabling thoughtful long-term planning.��

Expectations include:��

• Using reserves strategically and intentionally, not reactively��

• Prioritizing reserve utilization before requesting new one-time funding��

• Maintaining a 5-Year Reserve Utilization Plan to communicate planned reserve use to executive leadership��

3) Fiscal Management Responsibilities��

Unit leaders are responsible for ensuring fiscal compliance and sound financial management within their areas.��

This includes:��

• Adhering to institutional fiscal policies outlined in the Departmental Financial Management Guide (“The Guide”), maintained by the Campus Controller’s Office (CCO)��

• Ensuring employees understand and follow applicable fiscal policies and procedures��

• Supporting completion of required trainings and use of resources provided by CCO and campus partners��