27.3.3 Budget Breakdown Units

Budget Breakdown units are the lowest budgetary breakdown of the University for budget allocation and reporting. Budget supervisors are responsible for defining the Budget Breakdown Units structure and denomination under the Section level of the organization.

Budget Breakdown Units have two functions: a) to provide a level of precision in the budget planning and budget execution that allows accurate monitoring and informed decisions and b) to facilitate adjustment of budget structure in case of organizational changes by allowing redistribution of coherent Budget Breakdown Units that preserve tracking continuity and possibility of year to year comparison despite changes of perimeters.  

27.3.3.1 Budget Breakdown Units attached to Sources of funding
The funding of the University comes from various sources with specific requirements and restrictions on how these funds may be used and reported. In order to facilitate recording and reporting of these funds utilization, it is necessary to create separate Budget Breakdown Units for each funding source. It is the responsibility of budget supervisor and of the relevant sections leaders under his/her supervision to inform the Budget Section when they receive external funding and to communicate corresponding recording and reporting requirements.

27.3.3.2 Combining different source of funding
Combining different source of funding is allowed unless it is prohibited by laws and/or the rules of particular subsidies, and other source of funding.

Budget Supervisors are responsible for confirming those constraints and informing the Budget Section.

27.3.3.3 Budget Breakdown Units attached to deposit in favor of Researchers, Students
Many subsidies, grants, scholarship etc. are granted to individual researchers but may be under the custody of their host institution which is required to manage the funds on their behalf.  In such cases, funds are treated as deposits and their use is reported on behalf of the recipient. The Budget supervisor of these external funding treated as deposits is responsible for informing the Budget Section of specific constraints before funds consumption actually occurs. Specific Budget Breakdown Units are created to enable the monitoring of these individual funds.

27.3.3.4 Budget Breakdown Units and coordinated projects
Specific activities or projects are carried out under the responsibility of a project manager/budget holder but require coordinated actions and spending from different part of the organization. In such case a specific Budget Breakdown Unit is created within the section of the budget holder of the project, with a budget to which other sections involved in the project may access. This allows the project manager to monitor the project budget execution despite the diversity of spending sections.

The budget supervisor of the section holding “project Budget Breakdown Units” is responsible for communicating its specific requirements, use restrictions or other information to the “Budget Section”.