Faculty Handbook 2020-2021

I.5. Budget Issues

The Fiscal Year

The Hendrix fiscal year begins on June 1 and ends the following May 31.  Remember that all expenses must be reimbursed from the budget year in which the expense occurs.  In the case of travel expenses, the budget year is considered to be the year in which the travel occurs rather than the year in which each particular expense occurs.  For example, an airline ticket purchased in March for a trip in July would be posted as an expense in the July fiscal year not the previous year when the ticket was purchased.   Each spring the Business Office communicates a date in May beyond which no additional purchases should be made in that fiscal year. All faculty should consult the Business Office Guidelines for detailed information about accepted practices of using funds from the college.

Submitting Budgets

Department budget requests (including capital budget requests) will be due in either January or early February for the following fiscal year budget. The due dates are provided in the Faculty and Chair Calendar.  Department chairs should work with their department members and consult with the Provost, as needed, in order to have clear and reasonable requests.  Department chairs will be notified of the outcome of the requests after these are approved and finalized by the Business Office.

Managing Budgets

Department chairs are responsible for monitoring their budgets.  This includes communicating with their department members about budget issues or consulting with the Provost about any needs or changes that occur over the fiscal year. Department chairs should also review closing budgets each year to make sure that they are spending funds appropriately and staying within the allocated funds.

Department chairs are encouraged to keep track of capital budget needs and to notify the Provost of needs that arise that are outside of the regular budget cycle.  There are times when it is may be possible for the college to provide funds at other times, so it is helpful if the Provost has a list of these needs available that can be shared with the Business Office.  Departments with large capital and maintenance needs, such as those in the Natural Sciences, are strongly encouraged to keep records that provide the college with information about maintenance schedules that will provide information to help with long term planning in this area.

For departmental budgets, it is useful if department chairs carefully consider what the basic needs of the department are as well as a “wish-list” of what would be helpful for their program in the future.  This information can be included as part of the budget request process.

Department Use of Indirect Cost Return Funds

Funds provided to departments from indirect cost returns from grants are limited in their use to the following purposes:

  • To support student-faculty research, including conference travel, contract services, required institutional match, etc.;
  • To purchase, repair, or replace relatively low-cost equipment, whether for research or teaching purposes, especially if the need is too urgent to await funding from capital funds.

All or part of the department’s share of the indirect cost return may be reserved for the grant’s principal investigator, but the same restrictions apply.