A supplement to a project begun to devise methods of handling budgeting in a more systematic way in the Princeton setting, this final report examines budgeting procedures that have been revised, discusses new procedures that have been implemented, and explains procedures now in use at Princeton. Chapter I provides an overview of the Priorities Committee's work over the past seven years and discusses the process by which the Committee determines its budget recommendations each year. The Tenure Flow Plan, which determines the number of tenure openings permitted in each department over a given period of time, is the subject of Chapter II. Chapter III describes the special review that Princeton made of the administrative expenditures of academic departments. Several changes in policies governing the management of the endowment are the subject of Chapter IV. The way in which direct cost rate is calculated is discussed in Chapter V. Chapter VI reviews the changes that Princeton has made in the annual budgeting process since the first report was written. The appendix contains a reprint of "A Financial Primer" (a special publication explaining the steps taken by Princeton in light of financial pressures) and copies of each Priorities Committee report for fiscal years 1973-74 through 1979-80. The importance of the Priorities Committee reports are noted because they show: (1) the change in the financial state over the seven years; (2) the guiding principles for budgeting decisions; and (3) the form in which Princeton reported its views. (LC)