Unit-Level Fiscal Planning Framework

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