Operating Budget

1. The Operating Budget of the Association shall be used for the basic operating expenses of the Association, including but not limited to the Senate, Council of Presidents, Financial Office, Association Office, Students' Organizations Fund, Nominations and Elections Commissions, and such other activities and expenses as are so classified by the Senate. The Operating Budget shall be divided into two parts, representing those expenses funded by the Operating Budget Allowance provided by the University, and those expenses not so funded.

2. Sources of funds for the Operating Budget shall include but not be limited to the Operating Budget Allowance provided by the University, income earned from the investment of funds owned by or in the custody of the Association, the net operating profit of the profit-making agencies of the Association, indirect cost recovery charges, and gifts. The Senate shall adopt policies governing the rates of reinvestment, if any, out of income from different sources. Solicitation of gifts from sources outside the University shall be undertaken in accordance with University policies regarding gift solicitation and acceptance, and in consultation with the appropriate University officers.

3. The Association shall annually negotiate with the University an Operating Budget Allowance. The funds in this allowance are to be used for the basic operating expenses of the Association, including but not limited to all or part of the expenses of the Senate, Council of Presidents, Financial Office, Association Office, Students' Organizations Fund, and the Nominations and Elections Commissions. The procedures by which the Association formulates and approves its annual request for this allowance, negotiates this request with the University, and accepts the results of these negotiations, shall be specified in the By-Laws of the Association.

4. By a date specified in the By-Laws of the Association, but in any case no later than the beginning of the new fiscal year, the Senate shall approve the operating budget for that fiscal year. If no budget is approved by the Senate by this deadline, the budget for the new fiscal year shall be identical to that of the previous fiscal year. All modifications to the operating budget shall be approved by the Senate before becoming effective.

5. Upon approval by the Senate, but in any case no later than the beginning of the new fiscal year, the Financial Manager shall submit the operating budget approved by the Senate, or the previous year's budget if no new budget has been approved, to the President of the University or designee. Within 14 days after the receipt of this budget, the President or designee shall either approve the Operating Budget, or shall return it to the Senate with a statement of the modifications necessary for it to be approved. Any adjustments to that part of the operating budget funded by the Operating Budget Allowance shall require the approval of the President or designee.