Budgets
Policy
FIACCT 03-02_00 Budgets – detail revenue/expense budgets – overview
Effective: July 1, 1994
Revised: February 19, 2021
Reviewed: March 27, 2021
Purpose
To provide an overview of detail revenue/expense budget policies.
Background
Detail revenue/expense budgets are a control tool used to establish a spending plan for each state organization at the revenue source and object of expenditure level, against which actual revenues and
expenditures can be monitored.
Definitions
Appropriation Budget
The budget established for each Appropriation Code within a line item code. The total of all expense budgets established for an Appropriation Code must equal the appropriation budget. The total of all revenue budgets for dedicated credits, federal revenue, expendable receipts, and revenue transfers established for an Appropriation Code must equal the total estimated revenues amount on the appropriation budget.
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. All revenue and expense budgets related to an appropriation budget must use the same Appropriation Code that is used for the appropriation budget.
Revenue/Expense
A detail budget that must be established for each revenue source/object code against which revenues or expenditures will be posted. The revenue/expense budget can be established at either the group or the unit level as determined by each department. Revenue budgets are established using the BGR45 document and expense budgets are established using the BGE44 document in the FINET system.
Budget Line
The annual budget amount established for each revenue source code and expenditure object code against which expenditures will be monitored during the fiscal year.
BGE44 Transaction
The expenditure budget transaction to establish or modify an expenditure detail budget line is entered using the Expenditure Budget (BGE44) entry screen in the FINET system.
BGR45 Transaction
The revenue budget transaction to establish or modify a revenue detail budget line is entered using the Revenue Budget (BGR45) entry screen in the FINET system.
BQ44 Table
The Expense Budget table in the FINET system provides a user view of an individual expense budget detail line. This table shows the original budget, the modified budget, encumbered amounts, expenditures, and uncommitted and unexpended balances.
BQ45 Table
The Revenue Budget table in the FINET system provides a user view of an individual revenue budget detail line. This table shows the original revenue estimate, the modified revenue estimate, recognized revenue, and the unrecognized amount.
Policy
A. Appropriation budgets must be established in accordance with appropriation budget policies.
B. Revenue and expense budgets must be established for each appropriation budget. Revenue and expense budgets break the appropriation budget down to revenue source code and expenditure object code detail. They may also be spread across multiple groups or units.
C. Revenue and expense budgets must be coded with the same fund, department, and Appropriation Code as their related appropriation budget.
D. The total of all expense budgets within an Appropriation Code must equal the budget authority of the related appropriation budget. The total of all revenue budgets for dedicated credits, expendable receipts, federal revenue, and revenue transfers within an Appropriation Code must equal the current expected revenue amount on the appropriation budget.
E. The Division of Finance may monitor detail budgets to verify they are in balance with the related
appropriation act. It is the responsibility of each department to ensure they are in balance.
F. Expenditure budget amounts may be established using special object codes that represent expenditure object categories. The special object codes include categories for personnel services, in-state travel, out-of-state travel, current expenses, etc.
G. A budget line is required for every expenditure object code to which an expenditure may be coded. When using the procedure above (F), budget lines may be consolidated to include the total budget within a category and all other budget lines within the Appropriation Code may be established with zero-dollar amounts. Departments may use any combination of detail or category object codes when establishing budget lines, as long as the sum of all expense budget lines for an appropriation code equals the appropriation budget amount.
H. The Division of Finance maintains a Required Budget table. Appropriation budgets, expense budgets,
and revenue budgets can be, independently, either required or not required by fund. Contact the Division of Finance with concerns regarding the budget requirements of any specific fund.