A sound financial base, with demonstrated financial stability, and adequate physical resources support Nicholls State University's mission to offer "an excellent comprehensive education that meets the needs of the communities it serves. Through quality teaching, research, and service, the University strives to achieve accreditation in all eligible programs, evidence of its commitment to south central Louisiana and beyond." The University provides evidence to substantiate financial stability and adequate physical resources by the information and documentation in the responses to Comprehensive Standard 3.10.1 [1] and Comprehensive Standard 3.10.7 [2], respectively. Adequate support regarding financial resources and adequate facilities is further demonstrated by the University's success in obtaining initial accreditations and/or reaffirmations for a number of its academic programs. The University offers 29 baccalaureate and graduate-level degree academic programs that are eligible for accreditation; 100 percent of these programs are successfully accredited.

Institutional Audit

Because the University is included as part of a System-wide audit, Nicholls State University will provide a Standard Review Report [3] in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA. In addition, an institutional management letter will be issued for the fiscal year ending June 30, 2005 [4]. Nicholls' Standard Review Report and Management Letter will be made available to the Commission on Colleges by October 24, 2005. Immediately after this date, electronic documentation of the University's Standard Review Report and University's Management Letter will be available.

Unrestricted Net Assets

The University prepares annual financial statements [5] consistent with the generally-accepted accounting principles, as prescribed by the Governmental Accounting Standards Board (GASB). A Statement of Financial Positions of Unrestricted Net Assets, exclusive of plant assets and plant-related debt has also been prepared for this reaffirmation process [6]. This worksheet represents the change in unrestricted net assets attributable to operations for the most recent year.

Annual Budgets

The University prepares an annual budget [7], which is preceded by sound planning, is subject to sound financial procedures, and is approved by the governing board, as mandated by the Board of Supervisors [8].

The annual budgetary process is integrated with annual planning and assessment, as reflected in the Assessment, Planning, and Budgeting flowchart [9]. A more detailed summary of the budgeting process follows:

Fiscal Year Budgetary Planning

•	July: University-wide Budget Committee meets to discuss the current year's budget and the major differences between it and that of the preceding fiscal year. This group serves as a communication link between the broader University community and the administration.
•	July-August: Budget spreadsheets for the various expenditure categories for the current year are updated in preparation for the following year's budget.
•	October: Level III (department heads) submits budgetary needs for the following fiscal year to Level II (deans) who in turn submits them to Level I (vice presidents).
•	November: Level I and President's Cabinet review future budgetary requests.
•	March: Future budgetary requests are again reviewed and prioritized.
•	Documentation designating future budgetary changes (including revenues as well as expenditures) are collected during the year and reviewed during the budgetary process in late spring.
•	May: Budget Development System (BDS), a component of FRS, is opened for the new fiscal year by the Budget Officer.
•	Early spring: Maintenance contracts are reviewed, and changes are noted.
•	Late spring: Various accounts (utilities, memberships, various scholarships and fee exemptions, write-offs, etc.) are reviewed, and adjustments are made accordingly for the following fiscal year.

May through June Budgetary Process

•	Accreditation priorities are submitted by the Vice President for Academic Affairs, and changes in budget are made accordingly.
•	Executive Budget Committee meets, reviews, and makes budgetary decisions.
•	Changes in retirement rates and group insurance rates are made to J-1 and J-2.
•	Vice presidents submit departmental priorities.
•	Louisiana's Office of Budget and Planning informs the University of the approved budget.
•	Personnel decisions may be revisited depending on the final budget figure.
•	Non-personnel categories are reviewed, and changes are made accordingly.
•	Together, the Vice President for Finance and Administration, the Assistant Vice President for Finance and Administration, and the Budget Officer prepare final budget amounts for all expenditures other than personnel.
•	The Vice President for Student Affairs works with the Budget Officer on auxiliary budgets.
•	Athletics representatives submit their proposed budget to the Cabinet for approval.
•	The Athletics Business Manager submits Athletics' budget forms to the Budget Officer for inclusion in the Operating Budget.

July Budgetary Process

•	The Budget Officer prepares the Operating Budget document, and the completed document is submitted to the ULS Board for approval.

August Budgetary Process

•	The University's Operating Budget document is reviewed by the ULS Board and approved.

September Budgetary Process

•	The University submits the Operating Budget Form to the Board of Regents.

November Budgetary Process

•	The University submits the Operational or Expanded Need Budget to the Louisiana Office of Planning and Budget as a basis for the following year's Operating Budget.