27.5.5 Annual budget allocation of subsidies for operation (OPEX and CAPEX)
27.5.5.1 Annual budget allocation of subsidies for operation
At the beginning of the budget compilation process, the President shall, based on advice from the Strategic Resource Allocation Committee (SRAC), make a first allocation of subsidies for operations (OPEX and CAPEX) and headcounts to each Budget Supervisor on the basis of preliminary assumptions (“top down allocation”).
The SRAC is responsible for making suggestions on the budget allocations at the times of initial budget allocation, Mid-term review and Year-end review. The Vice President for Financial Management shall make proposals on revisions of budget allocation and arbitration, after receiving suggestions from the SRAC. The members of the SRAC are the CEO/President, Vice-CEO/Senior Vice President, Provost, Secretary General and the chair of Faculty Assembly.
The Budget Supervisors are responsible for allocation of subsidies for operation between OPEX and CAPEX within their Divisions down to the Budget Breakdown Unit level. They are also required to confirm their personnel plan (headcounts and qualifications). After consolidation, necessary adjustment shall be reviewed and subjected to approval by the Secretary General.
27.5.5.2 Budget pre-allocation
For activities starting at the beginning of the new Fiscal Year such as annual contracts which must be tendered several weeks before actual start, events with fixed dates etc. it may be necessary to allocate a budget even before the start of the fiscal year (budget pre-allocation). Such pre-allocations are exceptional and must be requested to the Vice President for Financial Management.
It must be noted that the pre-allocation is for budget management convenience but is not a firm allocation. It cannot be contracted or encumbered before the actual budget has been confirmed on April 1st of the new fiscal year. It is the Budget Supervisor’s responsibility to not encumber the amount pre-allocated before it is legally permitted.
27.5.5.3 Contingency budget
The President may request the Vice President for Financial Management to set aside contingency funds in order to respond in a timely manner to unexpected events, including emergency actions for natural disasters. Contingency budgets cannot be set aside by the Budget Supervisors, but they may request that the Vice President for Financial Management set aside a specific contingency budget only if an appropriate justification exists.
27.5.5.4 Unallocated Budget
The Vice President for Financial Management may, upon consultation with the President and the Secretary General, decide to not allocate a fraction of funds available at the time of the annual budget allocation when further studies are required before these funds can be budgeted with sufficient accuracy and reliability.