Budgets
Policy
FIACCT 03-01_13 Budgets- Appropriation budgets – control
Effective: July 1, 1994
Revised: February 19, 2021
Reviewed: March 27, 2021
Purpose
To outline procedures on how the Division of Finance and departments monitor collections and spending against budgets at the line item code level.
Background
Each department is responsible to ensure that collections and spending does not exceed authorized line item code budget authority. Policies governing budgets and related controls are discussed in FIACCT 03-
00.00 Budgets – Overview.
Procedures
Responsibility
Action
Division of Finance
Maintain online State Datawarehouse reports, which can be used to
monitor revenues and expenditures against budget authority and available funds.
Department
Review State Datawarehouse online reports and/or department-generated reports as needed to ensure that 1) revenues collected comply with statutory limitations; and 2) expenditures by line item code are within available funds.
Division of Finance
- Run the following reports:
a. The Line Item Appropriation Control Report (Control Report) at the beginning of the month for the last two months of the fiscal year.
b. The Revenue Monitoring Reports for Dedicated Credits,
Expendable Receipts, Federal Revenues, and Revenue Transfers
at the end of each month beginning in January until the end of the fiscal year. - Send exception reports related to the above reports:
a. For each line item code that appears to be overspent, send the Control Report to the department, requiring a response back to the Division of Finance regarding each line item code listed in the report.
b. For each line item code that appears to have collected in excess of statutory limitations, send the Monitoring Report to the department, requiring a response back to the Division of Finance regarding each line item code listed in the report. For Expendable Receipts, Federal Revenue, and Revenue Transfer Monitoring Reports, departmental communication of excess revenues is required to the Office of the Legislative Fiscal Analyst (LFA) and the Governor’s Office of Planning and Budget (GOPB).
Department
- a. When a Control Report is received from the Division of Finance, provide an explanation as to why it appears the available funds for each line item code listed are being exceeded and the steps being taken to remedy the situation.
b. When a Revenue Monitoring Report is received from the
Division of Finance, provide an explanation as to why it appears
the collections for each line item code have exceeded the
statutory limitations by revenue type and the steps being taken to remedy the situation. For Expendable Receipts, Federal Revenue, and Revenue Transfer Monitoring Reports, communication of excess revenues within a line item code is required to the LFA and the GOPB. - Take appropriate action to correct the situation.
Division of Finance
- Review department response, meet with the department and, as needed, the GOPB to deal with overspending problems.
- Send all Revenue Monitoring Reports to the LFA and GOPB twice per fiscal year: before Legislative Session begins (early January) and after Fiscal Yearend closeout (August).