FIACCT 03-03_00 Budgets – revenues and revenue transfers

Effective: July 1, 1994
Revised: October 1, 2009
Reviewed: October 1, 2009

Purpose

This policy explains the responsibilities of agencies and of the Division of Finance in establishing and verifying revenue budget information in FINET. Policies governing detail budgets are discussed in the FIACCT 03-02.00 – Detail Revenue/Expense Budgets – Overview policy.

Because dedicated credit original revenue budgets are directly associated with lapsing excess revenues, dedicated credit budgeting is covered as part of the FIACCT 07-03 – Revenues – Dedicated Credits Budgeting, Monitoring, and Lapsing policy.

Definitions

The following definitions and source code ranges pertain to revenues recorded in governmental funds. In FINET, Governmental funds are identified with a Fund Group of “AAAA” on the FINET Fund Table (FUND).

Free Revenue

UCA 63J-1-102(4) identifies free revenue as:
Revenues required by statute to be recorded in the General Fund, the Uniform School Fund, the Education Fund, or the Transportation Fund.
Revenues not otherwise designated in statute.
Revenues not externally restricted.
Revenues not included as part of a department’s approved work program appropriated revenues.
These are revenues recorded in the FINET revenue source codes from 0001– 0999.

Restricted Revenue

Revenues required by statute to be recorded into a separate fund that are designated for a specific program or purpose. These are revenues recorded in the FINET revenue source codes from 1000–1999.

Dedicated Credits Revenue

Revenues recorded into an account for expenditure on a separate line item and program. These are revenues recorded in the FINET revenue source codes from 2000-2999.

Federal Revenue

Revenues received from the Federal government for grants, commodities, and loan programs where the State reports their use back to the Federal government. These are revenues recorded in the FINET revenue source codes from 3000– 3999. Services provided to the Federal Government as a customer are not Federal revenues.

Revenue Transfer

Revenues generally earned by providing goods or services to other state agencies that are appropriated as part of a department’s funding source in the appropriation acts. These are revenues recorded in the FINET revenue source codes from 4600–4743.

Dedicated Credits Revenue

Revenues recorded into an account for expenditure on a separate line item and program. These are revenues recorded in the FINET revenue source codes from 2000–2999.

Line Item or Line Item Appropriation

A separate funding line in the annual appropriation act or any supplemental appropriation acts, or a separate funding line within specific legislation.

Net Estimated Receipts

The total revenue appropriated to each line item from dedicated credits, federal revenues, and revenue transfers. This revenue total is the amount entered on the FINET appropriation budget in the “net estimated receipts amount” field.

Revenue Budge Line

The level where detailed revenue budgets are established in FINET.

Policy

A. In preparing its annual budget request for the Governor’s Office of Planning and Budget (GOPB), each department will include revenue estimates for each revenue source along with other revenue information requested by GOPB.

B. Only the Division of Finance will develop and enter detailed free revenue budgets in FINET using

C. Following each legislative session, departments will enter original revenue budget lines by revenue source code for:
1. Restricted Revenue
Budgets should be the best estimate of anticipated revenue for each restricted revenue source. In the
absence of better budget information, amounts appropriated out of a restricted fund may be used in lieu of a best estimate but should be adjusted to exclude appropriations from existing fund balances.
2. Dedicated Credit Revenue
See policy FIACCT 07-03 – Revenues–Dedicated Credits Budgeting, Monitoring, and Lapsing for instructions on entering original revenue budget lines.
3. Federal Revenue
Budgets must agree, in total by line item, to the amount appropriated in the appropriation acts.
4. Revenue Transfers
Budgets must agree, in total by line item, to the amount appropriated in the appropriation acts.

D. By L INE I TEM CODE the total of original revenue budget lines from dedicated credit, federal, and revenue transfers must total to the net estimated receipt amount entered on the FINET appropriation budget.

E. During Budget Stage one, departments should not change revenue budgets amounts posted to FINET unless coordinated with the Division of Finance.

F. All appropriation budget modifications must be approved by and coordinated through the Division of Finance as detailed in policy FIACCT 03-01.1 – Budgets – Appropriation Budgets – Modifying.

Procedures

Responsibility

Action

Governor’s Office of
Planning and Budget

Distribute budget request instructions and forms used in the budget request process. Coordinate instructions and forms with the Division of Finance requirements.

Department

Complete forms and submit to the Governor’s Office. Ensure that an estimate of all restricted revenues, Federal revenues, and Revenue Transfers are included in the budget request.

Following the annual legislative session, enter original revenue budget lines for restricted, Federal, and revenue transfer budgets as per instruction of the Division of Finance.

Initially, process revenue budget detail through the Division of Finance’s Budget Builder process. After Budget Builder data is loaded into FINET, process only corrections or changes in FINET using Revenue Budget (BGR45) documents, as directed by the Division of
Finance.

Division of Finance

Enter detailed free revenue budgets in FINET.

After departments have entered their revenue budget lines, analyze for completeness and reasonableness. Resolve differences with each department.

Document that all FINET revenue budget lines are input and amounts agree to appropriated amounts or are reasonable, as applicable.