Budget and Planning Process

Budget and Planning Process

The Budget Planning Process links institutional priorities and the strategies of faculties/colleges/institutes and administrative units to the correct distribution (allocation) of the university’s operation and money (capital) resources. It also guides resource planning for each fiscal year for the University’s operations and capital budgets.

The Budget Planning Process will provide a more holistic understanding of our University-wide budget, align resources with the institutional priorities of Istanbul Arel University, and at the same time enable more comprehensive and long-term planning. In addition, it aims to bring openness and transparency to the processes underlying the investment decisions of the Rectorate and the distribution of the University budget.

Overview of the Process

The Budget Planning Process is shown in the “Arel Budget and Planning Calendar“. The priorities of the University guide the Budget Planning Process.

Faculty/college/institute and unit strategies are determined in line with these priorities. Thus, it shapes the financial plans and budget demands of the University.

Faculty/college/institute and unit strategies, financial plans and budget requests are discussed with senior management in budget meetings and strategy meetings.

Budget and Strategy Meetings

A Budget and Strategy Meeting is held with each faculty/college/institute and units in the fall semester (November, December and January) each year to discuss budget requests.

Purpose of the Budget and Strategy Meeting:

The increased budget for the Faculty/School/Institute and Units will enable faculty/college/unit managers and
Budget Manager and Strategic Planning Manager representatives to come together to discuss new material resource demands and discuss how these demands can be aligned with the University’s broader
strategic objectives; to review whether the budget requests are in line with the financial data of the previous year. Budget and Strategy meetings will enable faculty/college/institute and administrative unit priorities and a comprehensive picture of the current budget. Interview topics include investment projects, faculty recruitment, program initiatives, strategic financial planning and budget reallocation. The
Budget Manager and Strategic Planning Manager evaluate the demands they collect as a result of their meetings with all units comprehensively during January and February, taking into account the strategic priorities of the University, the financial structure of the unit, together with the Planning Team consisting of the Chairman of the Board of Trustees, the Rector, the Vice-Rector Responsible for Strategic Planning, the Budget Manager and the Strategic  Planning Manager of our University.

Budget requests are handled in budget meetings with faculty/college/institute and unit managers in the spring semester (May, June) every year. All these meetings reveal the budget allocation decisions of the Rectorate and how the general university budget will be shaped. The target Budgets agreed by the Faculty/School/Institute and Unit managers and the Senior Management in May and June will be submitted for approval at the annual Board of Trustees Meeting held in August each year and the members of the Board of Trustees will evaluate the budget submitted to them by the end of August at the latest and complete the approval process.

University Priorities

Decisions on budget investments will be guided in line with the University priorities set out in the 2017- 2023 Strategic Plan, which the Rectorate has prepared based on the strategic plan of the University and based on the strong foundation of the University administration and faculty/college/institute and administrative unit cooperation. These priorities reflect our commitment to:

Improving the Intellectual Reputation and Impact of the University – Identifying and strengthening important intellectual areas and enriching the experiences of faculty

Continuing to Build Research Reputation – Increasing research funding and activities in key disciplines and interdisciplinary areas

Supporting the Student Experience – Ensuring that all students achieve success at Arel

Improving National Academic Reputation and Presence – Improving Arel’s global academic presence through increased participation and scholarship

Strengthening Support Enabling Our Goals – Ensuring the compatibility of people, processes, policies and systems that support the core work of faculty, students and administrative staff

Approvals and Decisions

The Budget and Strategic Planning Process provides an efficient and transparent review and decision-making process to optimize Istanbul Arel University budget management. All budget requests go through several review and approval stages. In this case, faculty/college/institute and unit needs are systematically evaluated in the context of institutional priorities, needs and financial situation.

Final discussions on the budgets to be allocated for each Unit will take place in the spring period (May, June) and final approval from the Board of Trustees will be expected in August.

The faculty/college/institute and unit shall be notified immediately after this date by the Rectorate of the final budget to be allocated to it for the following year.

Operating Budget Resources

The Budget Planning Process receives annual activity budget requests from faculty/colleges/units to support their strategy. The current page provides additional guidelines and tools for requesting activity resources.

Resource Requests

For the faculty/college/institute and administrative units to which resources are allocated: the budget meeting is an opportunity to discuss any increased budget and new budget demands and how these demands align from the broader strategic perspective of the faculty/college/units.

Activity requests should be submitted to the Budget Directorate and Strategic Planning Directorate of the faculty/college/institute and administrative unit at the end of the Spring semester using the data in the Activity Report.

Activity requests must necessarily include increased funding status for:

• New faculty and/or administrative staff positions
• Supporting obligations for new positions (hiring/benefits packages)
• Programmatic funding
• New venture support
• New construction, extension, renovation or demolition project for an existing and/or proposed facility
• Need and/or purchase of a new area, land, building or rental space
• Space demands/needs, feasibility studies, conceptual studies and master plans

The estimated faculty member requirement should also be included in the request. All estimated costs for expected faculty recruitment  requirements should be presented. This will include any central support requested in faculty/college/institute recruitment plans, including items eligible for cost sharing. The faculty or college should also include all resource requests to support the expected promotion and tenure outside the faculty salary planning parameter.

Inter-unit initiatives/programs should also be specified in the request. When multiple faculties/colleges/units make a joint effort for increased budget needs or new allocations, they should coordinate their activity requests before budget meetings.

The Planning Team  will consider all activity requests. The Group synthesizes faculty/college/institute and unit strategies, financial plans and budget requests and proposes a provisional University operating budget.