4.3 Budget Policy

East Central College will operate on an annual budget from July 1 to June 30. The budget will be prepared by administrative officials and submitted annually to the Board of Trustees for approval by June 15.

Procedures: (Revised 8-25-2008)

4.3.1 Budgeting procedures will be carried out in accordance with the laws of the state and instructions from the Missouri Department of Higher Education.

4.3.2 The Board of Trustees will review the status of the budget at each regular meeting. The Board will be presented a treasurer’s report, a balance sheet, a schedule of investments, a summary of budgeted expenditures versus actual expenditures and a summary of budgeted revenues versus actual revenues.

4.3.3 Amendments to the budget will require approval by the Board of Trustees.

4.3.4 The following guidelines will govern budget development, expenditure control and cash flow:

a. Budgeted expenditures will not exceed budgeted revenues.

b. A restricted reserve shall be maintained in order to provide for timely payment of the College’s financial obligations. The total of funds to be held in the reserve shall be established by the Board of Trustees and shall be consistent with prudent fiscal policy regarding cash flow requirements and the timing of revenue receipts. Transfers to or from the restricted reserve fund will require approval by the Board of Trustees.

(Reaffirmed 12-2-1991; Revised 8-25-2008)