Budgets
Policy
FIACCT 03-01_11 Budgets- modifying an appropriation budget
Effective: July 1, 1994
Revised: February 19, 2021
Reviewed: March 27, 2021
Purpose
To provide step-by-step procedures on modifying an existing appropriation budget.
To provide step-by-step procedures on modifying an existing appropriation budget.
Background
There are two basic types of appropriation budget modifications:
1. Department-initiated modifications
2. Legally mandated modifications
Department-initiated modifications can be made to increase or decrease estimated revenues, which include: federal revenues, dedicated credits, and expendable receipts, or to transfer appropriated state funds between appropriation codes within a line item code. Modifications must be made in the FINET system by the department and then approved by the Division of Finance. Every department-initiated modification is required to include a justification for the modification(s), which describes the purpose and necessity for the revision. This justification must be entered in the Description field on the BGAA entry screen. Departments are to notify the Division of Finance of transactions that have been entered in FINET, providing the document number to initiate document processing by the Division of Finance. This
documentation is filed for audit purposes.
Legally mandated adjustments are the modifications made to set up beginning balances and supplemental appropriations. Mandated adjustments will be made in accordance with instructions provided by the Division of Finance.
Procedures
I. Department-Initiated Modifications
Responsibility
Action
Department
1. To increase or decrease federal revenues, dedicated credits, expendable receipts, and/or revenue transfers enter a BGAA transaction in FINET in accordance with established policies for the BGAA entry screen.
When entering a modification for estimated receipts using the BGAA entry screen, the following selections must be made:
FOR FEDERAL REVENUES:
ACTION = “Modify”
EVENT TYPE = “BG95”
FOR DEDICATED CREDITS:
ACTION = “Modify”
EVENT TYPE = “BG89”
FOR EXPENDABLE RECEIPTS:
ACTION = “Modify”
EVENT TYPE = “BG92”
FOR REVENUE TRANSFERS:
ACTION = “Modify”
EVENT TYPE = “BG98”
For all modifications, the department must enter a justification in the
Description field on the BGAA entry screen that describes the purpose and necessity for the revision.
2. To transfer appropriated funds between two appropriation codes within the same line item code, enter BGAA transaction in FINET in accordance with established policies for the BGAA entry screen.
When entering a modification to transfer funding between programs using the BGAA entry screen, the selections depend on the major revenue type. Please reference above actions and event types. For all modifications, the department must enter a justification in the Description field on the BGAA entry screen that describes the purpose and necessity for the revision.
Division of Finance
1. Review and process BGAA transactions entered by agencies.
2. Work with agencies to correct errors.
II. Legally Mandated Adjustments / Supplemental Appropriations
Responsibility
Action
Division of Finance
Prepare and distribute to agencies instructions, supplemental appropriation schedules, and support materials that will be used in verifying and/or modifying appropriation budgets to meet legal mandates.
Department
- Review the appropriation budget schedule provided by the Division of Finance for each line item of appropriation in accordance with established procedures and annual instructions provided by the Division of Finance.
- Return forms with necessary appropriation budget changes to the Division of Finance no later than the date specified in the annual instructions. If there are no changes, no action is required.
Division of Finance
- Review the supplemental appropriation budget schedules to ensure that all appropriated funds have been included and that all appropriation code amounts tie back to appropriations bills.
- Work with departments to ensure necessary corrections are made.
- Enter and post all appropriation budget transactions into the FINET system.
- Verify that all transactions have posted correctly.
- Make correcting entries for any errors that may have occurred.