Welcome!Office of Fiscal Management

Overview

Barbara RoperSarah Griffin

Tony NorwoodMichele Goff

Agenda:

• Budget Overview• Budget Division

Authorization (BDA)• Accounts Payable

Procedures• Department Contract

Templates• Purchasing Policies and

Procedures

Certified vs Authorized

What’s the difference?

Certified Budget

The budget as enacted by the General Assembly.

Authorized Budget

The certified budget with approved changes by DOA or OSBM.

Types of Budget Codes• 14100 – General Fund• 241XX – Special Fund• 34100 – Federal Funds• 4XXXX – Capital Improvement Funds• 54100 – Enterprise Funds• 64100 – Trust Funds• 74100 – Internal Service

14100 – General Fund

Commonly referred to as “appropriated funds”

Budget is created with funds that the General Assembly has “appropriated” from tax revenues and other sources for certain programs.

241XX – Special Revenue Funds

Account for proceeds of specific revenue sources or finance specific activities required by law or administrative regulation.

Self supporting Maintain a cash balance which does NOT revert at

June 30th

What is a Fund (Center)?

• Each Division is assigned one or more fund numbers

• Accounting terminology calls them “centers” but for budget purposes they are called “funds”

• Budget reports by fund number (BD701)

Budget Report (BD701)Budget items are grouped by type of accounts or “line” items

•“53XXXX” Expenditure Accounts

•“43XXXX” Revenue Accounts

“Line” items in your Budget Report• 1XXX – Personal Services• 2XXX – Purchased Services• 3XXX – Supplies• 4XXX – Property, Plant and Equipment• 5XXX – Other Expenses and Adjustments• 6XXX – Aid and Public Assistance• 7XXX – Reserves• 8XXX – Intragovernmental Transfers

(Line items are preceded by “53” for expenditures or “43” for revenues)

What are Encumbrances?

Funds that are being “held” for future use towards purchase orders and contracts your Division has placed.

Fund Balance

Fund balance is created from excess revenues over expenditures and represents a cumulative cash balance over time.

Special Funds Internal Service Funds

Who has fund balance?

• Fair Housing• Indian Talent Search• Motor Fleet Management• State Surplus Property

What is an RCC?

• Responsibility Cost Center• Examples:

o Facilities Management (1421)o 0101 Archdale Bldgo 0102 Dobbs Bldgo 0103 Legislative Bldgo 0104 Arch&Hist St Lib

Lapsed Salary or Salary Reserve

Lapsed Salary Funds generated while a

position is vacant Lapsed salary can be used

to hire temporary during vacancy

Provide vacant position number in temporary request

Salary Reserve Funds available when a

position is budgeted higher than the salary

Example: Position is budgeted at

$35,000 and you hire at $30,000. This created $5,000 in salary reserve that can be used for other hires.

Budget Revision

• Realign the authorized budget – At month end to cover negative balances– When large purchase order or contract is created

Budget Authorization Form

• This form is utilized to request use of funds PRIOR to the following:

• Out of State Travel• In State excess• Conferences/Workshops• Registration • Reimbursement for non-

employee

Questions