Budgeting Policy

Policy

As a BYU auxiliary, Dining Services is expected to be financially self-sufficient: to not rely on tithing funds or other university appropriations. This means that revenues must be greater than expenses, and that a small increase each year is saved up to fund capital improvement and other investments. The budget creation and accountability processes are critical in helping Dining Services meet these expectations.

The managing director and controller oversee the annual budget creation process. As part of this process, directors and department managers work with the controller to propose annual budgets for areas overseen. The managing director approves the budget and oversees the budget accountability process. Department managers have profit and loss responsibility over their areas and play a critical role in ensuring Dining Services stays within established budgets.

Procedures

1. Budget Creation Process
The annual budget creation process takes place from October through January each year.

a. Department/support group managers and their direct supervisors create a proposed budget for areas supervised, utilizing Dining Accounting for support as needed. In doing this they review forecasted sales, variable expenses, and equipment needs to propose budgets considering: (1) BYU enrollment forecasts; (2) calendared special events; (3) summer conferences; (4) market forecasts; and (5) area financial performance over the last ten years.

b. The Dining Executive Team reviews proposed budgets using the same criteria as the managers, but also considering the needs of Dining Services as a whole and focusing on BYU management’s expectations for unit financial performance. Adjustments are made as needed.

c. The proposed Dining Services budget is reviewed by the Auxiliaries & Programs Executive Team. Final approval is given by the assistant administrative vice president before budgets are uploaded to the university financial system.

2. Budget Accountability Process

a. The managing director and controller meet with each director once per month for division budget reviews, where they review the director’s areas’ financial performance (budgeted vs. actual figures). This review starts with financial system reports, but also looks at additional reports built by Dining Services to review key performance indicators (KPIs). They use reporting to identify (or update) areas of focus. In addition to the monthly meetings, the managing director and controller have a quarterly budget review with each department manager and their supervisor to touch base on financial performance.

b. Directors meet with their direct reports each week to review progress, set goals, and follow up on areas of focus identified, following the pattern of their monthly meetings with the managing director and controller.

c. Department managers monitor KPI reporting daily throughout the month, with specific attention given to “areas of focus” identified by management for improvement.

3. Key Performance Indicators
Management regularly reviews how areas are doing financially against budgets and standards. University financial reports are the primary measure, but the managing director also establishes KPIs by area type.

a. KPIs help management further drill into financial categories to evaluate performance and determine what adjustments are needed. Establishing unit-wide KPIs also helps focus Dining’s effort to create meaningful reporting to assist managers in making data-driven business decisions.

b. This table outlines the current established KPIs by area type:

c. Directors are encouraged to identify additional KPIs that apply specifically to the areas they supervise.

Additional Information

Revision History

• 7/8/2024 - New policy approved by the Dining Executive Team.