Y L F M A E T Team-Fly® THE JOSSEY-BASS Academic Administrator’s Guide to Budgets and Financial Management The Jossey-Bass Academic Administrator’s Guides are designed to help new and experienced campus professionals when a promotion or move brings on new responsibilities, new tasks, and new situations. Each book focuses on a single topic, exploring its application to the higher education setting. These real world guides provide advice about day-to-day respon- sibilities as well as an orientation to the organizational environment of cam- pusadministration. From department chairs to office staff supervisors, these concise resources will help college and university administrators understand and overcome obstacles to success. We hope you will find this volume useful in your work. To that end, we welcome your reaction to this volume and to the series in general, in- cluding suggestions for future topics. THE JOSSEY-BASS Academic Administrator’s Guide TO Budgets and Financial Management Margaret J. Barr Copyright © 2002 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741 www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail: [email protected]. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986 or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Barr, Margaret J. Jossey-Bass academic administrator’s guide to budgets and financial management/ Margaret J. Barr.—1st ed. p. cm. Includes bibliographical references and index. ISBN 0-7879-5957-X (alk. paper) 1. Education, Higher—United States—Finance—Handbooks, manuals, etc. 2. Universities and colleges—United States—Business management—Handbooks, manuals, etc. I. Title: Academic administrator’s guide to budgets and financial management. II. Jossey-Bass, Inc. III. Title. LB2342 .B325 2002 378.1'06—dc21 2002010334 Printed in the United States of America FIRSTEDITION PB Printing 10 9 8 7 6 5 4 3 2 1 Contents Preface ix About the Author xiii 1 Money, Money, Money 1 2 Unraveling the Budget 29 3 The Budget Cycle(s) 49 4 Problems and Pitfalls in Fiscal Management 77 5 Dealing with Budget Cuts 95 Glossary of Terms 107 Suggestions for Further Reading 111 Index 113 vii