Policy
FIACCT 03-00_00 Budgets- overview
Effective: July 1, 1994
Revised: February 19, 2021
Reviewed: March 27, 2021
Purpose
This provides definitions of terms and background information on the budgeting and control process in the FINET system.
Definitions
Line Item Code (Appropriation Class)
A code assigned by the Division of Finance which generally represents an item of appropriation defined within the main Appropriations Act passed by the Legislature. Funding for a line item code may include supplemental appropriations. A line item code may be set up for a supplemental appropriation which establishes new programs. The Division of Finance will work with agencies to determine when it is appropriate to establish a Line Item Code. Line item codes are established in the Appropriation Class (APCLS) table in the FINET system.
Appropriation Code
A code assigned by the Division of Finance generally used to represent a program funded within an item of an Appropriations Act. It may also be used to represent programs funded through non-appropriated sources. Appropriation Codes are established in the Appropriation (APPR) table in the FINET system and are maintained by the Division of Finance.
Appropriation Budget
The budget established for each Appropriation Code within a Line Item Code. The appropriation budget consists of state appropriated funds; estimated revenues including: federal revenue, dedicated credits, and expendable receipts; beginning balances; transfers in; and transfers out. This budget is used by the Division of Finance to monitor spending and to comply with other legislation. A BGAA document (Appropriation and Allotment Budget) in FINET is used to track appropriation budgets.
Revenue/Expense
Budgets
A detail budget that must be established for each revenue source/object code against which revenues (BGR45 document in FINET) or expenditures (BGE44 document in FINET) will be posted. The revenue/expense budget can be established at either the group or the unit level as determined by each department.
Background
As defined above, there are two types of budgets in the FINET system:
1. Summary level appropriation budgets
2. Detail revenue and expense budgets
Appropriation budgets, which are established for each Appropriation Code, identify available funding by
the following:
Appropriated state funds;
Estimated revenues:
o Federal Funding,
o Dedicated Credits,
o Expendable Receipts;
Beginning balances;
Transfers in; and
Transfers out.
Spending is monitored at the appropriation budget level. The Appropriation Class table links each appropriation budget to its respective line item code to enable line item reporting. The Budgetary Procedures Act prohibits exceeding the budget authority established for each line item code.
Original and supplemental appropriation budgets must be submitted to the Division of Finance for review, approval, and entry into FINET. Departmental adjustments to appropriation budgets must be entered into FINET via a BGAA document by the requesting department, and they are required to be processed by the Division of Finance prior to posting.
Revenue and expense budgets are detail budgets, which must be established for each revenue source code or expenditure object code against which revenue or expenditure transactions might post. They may be established at either the group or unit organization levels. The total of all expense and revenue budgets linked to a given appropriation budget must equal the total of that appropriation budget at the beginning of the fiscal year. By the end of the fiscal year, the total of all expense and revenue budgets should equal the total of the associated appropriation budgets.
The following describe accounting policies and procedures on creating, modifying, and deactivating/reactivating appropriation budgets:
FIACCT 03-01.10 Creating
FIACCT 03-01.11 Modifying
FIACCT 03-01.12 Deactivating/Reactivating