Annual Budget

On the receipt of Budget Guidelines from the Ministry of Finance, the University shall prepare its Recurrent Budget and Development Estimates for submission to Central Government showing clearly the amount of subvention and government grants the University shall require for the ensuing financial year.

Budget Guidelines

The preparation of the University's Budget shall be based on the policy guidelines issued by Minister of Finance for the particular financial year.

Procedures to be followed in the Preparation of Budget

1. All Heads of Department/Section/Unit/Centre shall submit data and requirements for the preparation of the programme-linked budget to the Director of Finance

2. The Director of Finance in consultation with the Budget Committee shall clear with Heads of Department/Section/Unit/Centre any queries arising from the submissions

3. Budget for the Central Administrative Expenses and Non-Departmental Votes known as “Block Votes Earmarked for Specific Purposes” shall be compiled by the Director of Finance in consultation with the Registrar

4. The Draft Master Budget together with recommendations from Planning and Resource Committee shall be submitted to the Finance Committee. The Finance Committee may make such amendments to the figures as it considers appropriate

5. The Finance Committee shall submit the Master Budget with its recommendations to the University Council for approval.

Budget Committees

Every Head of Department shall establish a Budget Committee which shall be made up of

1. The Head of Department, who shall be the chairperson; and

2. Heads of Budget Management Centres or Cost Centres (A Budget Management Centre is a unit responsible for budget formulation, implementation, monitoring and evaluation).

Responsibilities of Budget Committees

A Budget Committee shall;

1. Review and formulate the University financial plan based on University strategic plan and government policies

2. Review department's revenue collecting activities

3. Make proposal for the allocation of resources

4. Coordinate, and consolidate the budget, and

5. Monitor, and evaluate budget performance.

Information to be provided in Recurrent Budget

Draft Budget submitted to the Finance Committee shall include the following:

1. Full justification with explanatory or narrative statements showing how the figures have been arrived at

2. The base of calculation of such figures and the justification for the requirements contained in the Budget

3. Comparative figures of Expenditure and Income made up of actual expenditure and the estimated figure for the previous year as against the estimated amounts required for the current year

4. The staff establishment within each grade at post, staff required, the posts which are vacant, and salaries attached to them within each Department /Section/Unit/Centre of the University.

Procedure for Preparation of Development Budget

1. The Planning and Resource Committee shall meet to consider new development projects submitted by Heads of Department/ Section/ Unit/Centre for inclusion in the Development Budget for the financial year. The Director of Development in consultation with the Director of Finance shall determine the costs of new projects for consideration by the Planning and Resource Committee

2. In addition to new projects, the amount required to complete existing projects shall also be computed. The total costs of new and continuing projects shall represent the funds required during the financial year for development projects in the University

3. After consideration by the Planning and Resource Committee, the estimates shall be submitted to the University Council through the Finance Committee for final approval.

Membership of the Budget Review Committee

Budget Review Committee shall be made up of

1. Director of Finance
2. Director of Internal Audit
3. Provosts
4. College Finance Officers
5. Two representatives from the Directorate of Finance

Budget Hearing

The Budget Review Committee shall be responsible for Budget Hearing.

1. On receipt of estimates from departments, the Director of Finance shall cause to be conducted Budget hearings to review strategic plans and estimates of the departments concerned in order to ensure that these plans and estimates are in accordance with the University Strategic Plan

2. Where necessary, the Director of Finance may require a department to make adjustments to its strategic plans and estimates in order to fulfil the requirements of the University Strategic Plan and budget framework

3. As much as possible, Budget from Colleges shall be forwarded to the Director of Finance after Budget hearing for the preparation of Composite Budget and the Units under them.

Commitment Register

The Director of Finance shall ensure that the Directorate of Finance and its staff keep a Commitment Register in which shall be recorded all requests received from Departments as well as charges for services rendered within the Financial year.

Departmental Vote Book

1. It is the duty of every Head of Department/ Section/ Unit/Centre with reference to the amounts approved for him in the Budget to ensure that a Departmental Vote Book is kept in such form as will clearly show at any time in respect of each vote item under his control:

   1. The Commitments incurred so far, and

   2. Balance of funds available for expenditure

2. The Directorate of Internal Audit shall ensure that Department/Section/Unit/Centre's Registers are duly compiled and maintained.

Monthly Expenditure Returns

The University shall submit Monthly Expenditure Returns to the National Council for Tertiary Education (NCTE).

Monthly Statements of Expenditure

The Director of Finance shall issue monthly statements of expenditure to Heads of Department/ Section/Unit/ Centre controlling votes and also quarterly statements to the Finance Committee. Heads of Department/ Section/Unit/Centre shall reconcile the figures given in such statements with their own records as revealed in their Vote Book. Any discrepancy in these figures shall be brought to the notice of the Director of Finance.

As far as practicable, Heads of Department/ Section/ Unit/Centre shall ensure that expenditure is spread evenly over the year unless there are special reasons for not doing so e.g. expenditure depending on the season of the year.

Virement

Whenever it appears that the amounts provided under the votes shall prove insufficient for the Service of the year, Heads of Department/Section/Unit/Centre shall take immediate steps to curtail expenditure or to obtain supplementary vote from the Finance Committee. In such a case, the source of finance should be identified. If the additional provision required can be covered by savings from other items of expenditure or other sources of revenue, application should be made to the Vice-Chancellor for the virement. As a rule, virement from “Compensation for employees” to “Other Expenses” shall not be allowed.

Expenditure Incurred where no Provision Exists

In any exceptional case where it is manifest, in the interest of the University, that expenditure should be immediately incurred and time does not permit authority to be obtained in the usual way, the Vice-Chancellor may authorise the expenditure. Amemorandumexplainingthereasonsforthe expenditure shall be submitted by the Vice-Chancellor to the appropriate Committee.

Expenditure Settlement within Financial Year

Heads of Department/Section/Unit/Centre are responsible for ensuring that all documents and bills to be settled by the University, reach the Director of Finance without delay. The Director of Finance and the Self- Accounting units shall ensure that payments for services rendered are settled within the financial year in which they were rendered.

Establishment Proposals

1. Staff establishment shall be prepared by the Planning and Resource Committee for consideration by Council and approved by National Council for Tertiary Education (NCTE)

2. Head of Department requesting staff shall send the request to Planning and Resource Committee for consideration.