Administrative Services: Spend Management

High-level Summary

This page introduces the MIT Libraries Spend Management policy, designed to enhance how we manage our financial resources. It outlines the goals, roles involved in budget oversight, and the processes that will support effective spending and financial transparency across all departments. This resource contains information relevant to all Libraries staff who participate in financial activities, from administrative assistants to Directorate ADs. The spend management processes and roles are effective as of July 1, 2025.

Why Effective Spend Management Matters

In today's dynamic budget environment, effective spend management is crucial for the MIT Libraries. This policy is designed to help us use our allocated budget responsibly, ensuring we meet our operational needs and strategic goals without overspending or holding back funds beyond our planned reserves. By improving how we track and manage expenditures, we can make more informed decisions, increase accountability, and create a more adaptable financial environment for everyone.

Policy Goals

When this policy is successful, the MIT Libraries will:

• Spend its allocated budget effectively, avoiding overspending and keeping any savings within the target carryforward amount of 10%.
• Empower MIT Libraries managers with clear accountability, supportive processes, and reliable data to make sound local decisions about their budgets. 

The new policy introduces clear roles to ensure effective oversight and management of financial accounts. An account refers to a cost object within our financial system. Every account will have an Owner. Depending on the account, it may also have a Monitor and/or a Reporting Admin. An individual serving as an account Owner may also take on the roles of Monitor or Reporting Admin for the same account. However, someone in a Reporting Admin role will not be asked to fulfill Monitor or Owner responsibilities.

Here’s a breakdown of these key roles and their responsibilities:

• Account Owner
  • Who they are: Typically a Department Head, Associate Director, or the Director of Administration and Finance (DAF).
  • Responsibilities: Account Owners are responsible for all expenditures within their allocated budget. They confirm that spending is on track, forecast upcoming spending plans, and make decisions on spending requests for their owned accounts.
     
• Account Monitor
  • Who they are:  An active user of the account, such as a Program Head, Project Manager, Facilities Administrator or other role who possesses familiarity with the account's activities and expenditures.
  • Responsibilities: Monitors expenditures monthly to ensure operations remain within budget. They consult with the account Owner on spending needs or concerns and may have spending authorization on the account.
     
• Reporting Admin
  • Who they are:  Operational staff such as an Administrative Assistant, HR Assistant, or Music Library Assistant.
  • Responsibilities: Primarily responsible for pulling financial reports from Cognos for account Owners and Monitors. They may also be asked to provide context or back-up data for transactions in which they were involved.

The Senior Libraries Leadership Team (SRLT) and the Director of Administration and Finance (DAF) will play key roles in setting up financial reporting processes and facilitating regular spend reviews.This RACI specifies timing and those responsible, accountable, consulted, and informed for the spend management program. 

Responsible: Does the work. 

Accountable: Delegates work and is the last one to review the task or deliverable before it’s deemed complete.

Consulted: Provides input based on either how it will impact their future work or their domain of expertise.

Informed: Needs to be kept in the loop, rather than in the details of every action.

Other financial management activities, such as Financial Review & Control (FRC) or purchasing, are complementary to these core spend management practices but fall outside the direct scope of this policy. These tasks may be performed by the same individual acting as a Reporting Admin for spend management, or by different people.

This program will be implemented in phases to facilitate a smooth transition:

• July - August 2025: Training sessions and office hours will be provided to familiarize staff with fiscal reporting processes and how to access relevant financial systems.
• By October 1, 2025: A consistent schedule will be established for account Owners to report that their accounts are on track with spending and/or raise upcoming spending priorities. This will involve regular review of budget vs. actual reports.

[To be updated with links, instructions when Cognos reports are finalized and user access is confirmed.]

• How to Access Reports: Here you will find links and step-by-step instructions for accessing your budget vs. actual expenditure reports in Cognos. Cognos is our primary reporting system for financial data.
• Interpreting Your Reports: This section will include guidance on how to read and understand the reports to effectively monitor your account's spending.
• Training Materials: Links to comprehensive training materials and quick guides for using Cognos will be provided here.
• Getting Support: Information on who to contact for assistance with financial reporting, system access, or questions about your account's spending.