General Budget Information

Annual Budget Overview:

• The North Dakota State Board of Higher Education (SBHE) has constitutional authority for the annual budget; they create policies and provide direction on an ongoing basis.
• North Dakota University System (NDUS) Staff prepare draft annual budget guidelines based on results of the biennial budget process and corresponding SBHE action.
• Higher education institutions across North Dakota review and comment on the budget guidelines draft.
• SBHE approves the guidelines.
• UND begins the annual budget process.
• Within the context of existing SBHE guidelines, institutional decisions are made by the President in consultation with the Cabinet. The University Planning and Budget Committee provides recommendations on spending priorities consistent with UND's Strategic Plan.

  • Allocation of available appropriated and local funds is approved by the President, based upon Cabinet recommendations.
  • University Fee allocation and Student Technology Fee allocation is approved by the President based on Committee recommendations.
  • Other spending plans are developed, depending on available revenue.
  • Departments prepare spending plans according to guidelines set above; these plans include all sources of funds.
  • Annual budget documents with narrative are compiled by the UND Budget Office and submitted to NDUS for approval.
• NDUS Chancellor approves annual budgets. Any exceptions to SBHE guidelines must go back to the full board for approval. Line item transfers also require SBHE approval.
• UND rolls the approved annual budget into the general ledger to facilitate tracking and reporting.

UND, including the School of Medicine and Health Sciences, prepares an annual budget consistent with guidance from the State Board of Higher Education (SBHE). The annual budget is approved by the Chancellor on behalf of the SBHE. To the greatest extent practical, all funds are budgeted (good faith effort) based on information available at the time the budget is prepared. Budgets are adjusted throughout the year, as needed. Deficits are not an acceptable practice.

A variety of inquiries, reports and queries are available for use in reviewing actual fund activity as compared to budget and/or available cash. Examples include budgets overview and budget status reports (both in commitment control) as well as general ledger summary report and trial balance (found in the general ledger). In addition, system edits are available to facilitate budget checking. This provides an automated comparison to established budgets.

Departments are responsible for the accuracy of transactions recorded against their funds and conducting operations within the limit of funds allocated. The on-line access referenced above provides departments the necessary monitoring tools and ongoing training is offered to familiarize new users with the system.

Failure to link the budget to the strategic plan leads to the budget becoming the plan. The University of North Dakota Strategic Plan explicitly identifies how budgeting will be linked to planning including the role of the University Planning and Budget Committee.

The following documents were submitted for the Fiscal Year 2009 Annual Budget to the SBHE and were approved by the Chancellor on June 30, 2008:

Biennial Budget

The biennial budgeting process begins in the spring of even numbered years and takes roughly 12 months to complete.

The process involves:

1. The SBHE has constitutional auuthority; they set policies and provide direction. (Ongoing)
2. The Governor, through the OMB, establishes a budget request framework for all state agencies. (March)
3. Using this framework, SBHE sets guidelines for budget requests for institutions within higher education. Historically, these have been formula driven and/or needs based, resulting in an incremental approach. (April)
4. The University of North Dakota prepares a biennial budget within the guidelines established by the Governor and SBHE. (April-June)
   Note: For the 2003-05 biennium, the due date was extended to August 15, 2002. The budget was prepared implementing the NDUS Long Term Financing Plan. Campuses are also working through the impact of the 1.05% general fund reduction, with final approval of campus plans to be considered by the SBHE in September 2002.
5. OMB conducts hearings with each state agency to discuss budget requests and gather additional information. UND, NDUS staff, and SBHE defend and justify their budget requests. A revised budget format will refocus conversations to the Long Term Financing Plan/Strategic Priorities as opposed to line items. (September/October)
6. The Governor and OMB translate the Governor's priorities into a recommended budget which becomes the Executive Recommendation. This is the starting point for the legislative process. (December)
7. The Legislature conducts hearings and acts on the Executive Recommendation. UND, NDUS Staff, and SBHE defend and justify their budget requests. (January-April)
8. Budget legislation is passed by the State Legislature. The Governor then signs or vetoes the passed legislation. (April)
9. SBHE takes action as needed based on results of the appropriation/biennial budget process. (April)
10. UND prepares annual budgets based on the results of the biennial process. (April-June)