A-to-Z Index

3025 - Budget and Budget Revisions

Effective Date: May 24, 2012


Table of Contents:

  .100 General
  .200 Definitions
  .300 Operating Budget Process
     .310 Central Planning
     .320 Organizational Unit Preparation
     .330 Central Review
     .340 Execution and Evaluation
  .400 Budget Controls
  .500 Revisions to Operating Budgets
     .510 Control Responsibilities
        .511 Organization
        .512 Office of Budget Management
  .600 Form Preparation and Submission
     .610 Request for Budget Revision
        .611 Required
        .612 Where to Obtain Blank Forms
        .613 Number of Copies
        .614 Where to Send Completed Forms
        .615 Processing Procedures
        .616 Forms Preparation Instructions

.100 General

This subsection provides an overview of the internal budget process of the university. The Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources. These needs are usually defined by the university's master plan and/or by state mandated program objectives.

.200 Definitions

This subsection provides definitions of terms used in the budget, budget revision process.

Administrative Unit - A group of Organizations which function as an administrative unit. (For Example, Facilities Management, Finance, Office of Budget Management, Dining Services, College of Arts and Letters).

Control Account - The expenditure levels within each Organization used by the Financial Information System to verify the availability of funding before transactions are processed into the system.

Detail Account - Budgets assigned by the Organization to specific accounts such as student wages, office supplies, equipment leases, ADP equipment, etc. These specific accounts were previously called Expenditure Object Codes.

Division Head - Currently Senior Vice Presidents and the Director of Intercollegiate Athletics.

Organization Signature Authority - The individual on record with the Office of Accounting Services as having signature authority for the organization number indicated on the form.

.300 Operating Budget Process

There are four phases of the internal budget cycle which must be coordinated with the state's biennium budget cycle. Any participants' degree of involvement will vary through the phases as major policies are established and staff and implementation requirements shift.

.310 Central Planning

The central planning phase involves the Office of Budget Management and the Office of the Senior Vice President for Administration and Finance. During this phase, which typically occurs November through March, the Office of Budget Management follows legislative actions which may cause changes to the university's appropriations. The budget staff interprets these legislative actions and determines internal resource requirements. At the same time the staff is reviewing other programmatic resource requirements such as utility and insurance increases which may or may not be funded by legislative action. The budget staff keeps the Senior Vice President for Administration and Finance and the Assistant Vice President for the Office of Budget Management apprised of internal funding requirements compared to legislated funding. The objectives of this phase are as follows:

1.  Establish base budgets for each organizational unit.

2.  Identify and allocate resources to reflect the impact on organizational budgets of legislated mandates, legislated funding and any internal funding requirements such as central issues.

3.  Issue guidelines and detailed forms to individual organizational units for budget preparation.

.320 Organizational Unit Preparation

This phase of the operating budget involves the Office of Budget Management and all appropriate offices in each organizational unit. During this phase of the operating budget process, which usually occurs November through January, the individual organizational units prepare budget requests. The objectives of this phase are as follows:

1.  Provide organizational units the opportunity to review base budgets and any centrally funded issues, which have been indicated by the Office of Budget Management, for accuracy.

2.  Provide organizational units the opportunity to address the need for additional resources required to achieve objectives of the university if such resources are available.

3.  Provide organizational units the opportunity to reallocate the limited available resources in order to achieve objectives.

.330 Central Review

This phase of the operating budget process involves the university's Division Heads, President, Board of Visitors, and the Office of Budget Management. During this phase of the process, which usually occurs January through March, the requests of the individual organizational units are reviewed. Reviews are conducted by appropriate Senior Vice Presidents who make recommendations to the President. Budget meetings may be held with individual units, especially those Auxiliary Enterprise units which are responsible for generating revenue. Also, during this phase, tuition and fee recommendations are made to the Board of Visitors for their approval. The objectives of this phase are as follows:

1.  Provide Division Heads the opportunity to review allocations or reallocations of resources within their divisions to meet requirements related to divisional objectives.

2.  Provide Division Heads the opportunity to make divisional recommendations to the President relative to resource allocations.

3.  Provide Division Heads the opportunity to review tuition, fee, and other revenue implications of resource allocations especially for Auxiliary Enterprise units.

4.  Provide the President the opportunity to review Division Heads recommendations for resource allocations.

5.  Provide the Board of Visitors the opportunity to review tuition and fee implications of the recommended resource allocations.

.340 Execution and Evaluation

This phase of the budget process involves the Office of Budget Management, the Controller's Office and all appropriate organizational units. At the beginning of this phase, which occurs during July, an official budget for the new fiscal year is distributed to organizational units. During the rest of the fiscal year, expenditures are made against this budget. Revisions to the budget are made as plans change during the year. The objectives of this phase are as follows:

1.  Provide organizational units with a beginning budget to expend against during the fiscal year.

2.  Provide the total university operating budget to the Controller's Office for inclusion in the University's Financial Accounting System for financial control, analysis, and reporting.

3.  Provide organizational units with the opportunity to reflect changes in their financial plans through budget revisions.

.400 Budget Controls

The JMU Office of Budget Management is responsible for producing an annual operating budget which matches an organizational unit's needs with available resources.   These needs are usually defined by the University's master plan and/or by state mandated program objectives.   After a lengthy review process which includes all division heads, the President, Board of Visitors, and the Office of Budget Management, the budget is adopted.  The office of Budget Management enters and uploads into PeopleSoft the original budgets for each organization of both a detail and sum account level.  This information is also provided to all departments on the Monthly Budget/Expenditure reports.  For a transaction to be processed in PeopleSoft, the transaction must pass an organization control check.  In the Organization Control Check, PeopleSoft verifies for an available row for each organization at the levels:

Account Code Description Detail Account Range
PS Personal Services 110000 to 118900
NPS Non-Personal Services 120000 to 510000
PSREC Personal Services Recoveries 119000 to 119990
NPSREC Non-personal Services Recoveries XX9000 to XX99990
ALLREV All Revenue 010000 to 099999

If there is no row available or no funding available at the NPS control level within an organization, PeopleSoft will not process transactions for that organization until a budget revision transaction has been entered into the system.  The account detail information is only used by PeopleSoft to create the monthly Budget/Expenditure Report.  The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.500 Revisions to Operating Budgets

This subsection describes the use and preparation of the Request for Budget Revision form. The budget revision form allows the user to request budget changes at both the detail account and the control account levels.

.510 Control Responsibilities

Listed below are the control responsibilities of the organization and the Budget Office.

.511 Organization

1.  Maintains departmental records to substantiate the entries made on the Request for Budget Revision form.

2.  Prepares the Request for Budget Revision forms in accordance with the instructions printed in this procedure and on the form.

3.  Forwards Request for Budget Revision forms to the appropriate department to secure signatures for all parties affected by the transaction.

4.  Verifies that transactions are correctly entered on FIS Budget Summary Transaction report in accordance with internal control requirements.

.512 Office of Budget Management

1.  Reviews Request for Budget Revision forms for accuracy and completeness.
2.  Restricts movement of funds from one fund group to another. Fund groups included are Educational and General; Student Financial Assistance; Financial Assistance for Educational and General Services (Grants); Auxiliary Enterprises; and Local/Agency Funds.
3.  Restricts movement of personal services funding to non-personal services expenditure areas.
4.  Personal services funding is typically not available for use in non-personal expenditure areas.
5.  Equipment funding in E&G instructional accounts is typically not available for use in other expenditure areas.
6.  Confirms funding availability and verifies signatures.
7.  Determines whether the transaction is permanent or temporary in nature.
8.  Authorizes the request.
9.  Processes request into the Financial Information System.
10.  Maintains original copies of processed Request for Budget Revision forms for reference, audit and internal control purposes.
11.  Maintains supply of blank forms.
12.  Maintains form on Office of Budget Management Web Site.
13.  Responds to organization inquiries.
14.  Prepares monthly reconciliations.

.600 Form Preparation and Submission

This section provides detailed instructions for obtaining, completing, and routing the Request for Budget Revision forms.

.610 Request for Budget Revision

.611 Required

The Request for Budget Revision form is required to record all revisions to the original budget.

.612 Where to Obtain Blank Forms

Electronic forms are available online on the Budget Management website

.613 Number of Copies

Complete one copy for the Office of Budget Management and retain a copy of the completed form for departmental file.

.614 Where to Send Completed Forms

Upon obtaining all the appropriate signatures, the completed forms should be forwarded to the Office of Budget Management for processing.

.615 Processing Procedures

The Office of Budget Management approves the request upon compliance with this procedure.

.616 Forms Preparation Instructions

Following are detailed instructions for the preparation of the Request for Budget Revision form. Use the continuation sheet for revisions which require more than four lines of increase/decrease information.

Page:
Enter the page number on each form, 1 of 1, 1 of 2, 2 of 2, etc.

Department:
Enter the name of the Department issuing the request.

Prepared by:
Signature of individual preparing the form.

Extension:
Enter the telephone number of the person preparing the form.

Date Prepared:
Enter the department's preparation date.

Description/Justification of requested action:
Enter a clear, concise description of the action requested.

Request for Changes to Detail Account Balances:

Organization Unit:
Enter the department's organization number.

Account:
Enter the account number.

Amount:
Enter the transaction amount for the account number shown.

Request for Changes to Control Account Budgets:

PS:
Enter the personal services amount for the account number shown.

NPS:
Enter the non-personal services amount for the account number shown.

PSREC:
Enter the personal service recovery amount for the account number shown.

NPSREC:
Enter the non-personal service recovery amount for the account number shown.

All Revenue:
Enter the revenue amount for the account number shown.

Sum Control Account Changes for Each Org Unit Shown on this Request:
Enter transaction totals for amounts shown for each organization.

Approvals:

Level One Approval - Signature and Date: Signature(s) of the individual(s) on record with the Office of Finance as having signature authority for the organization number(s) shown in number 7. Include the date of the signature.

Level Two Approval - Signature and Date: Signature(s) of the individuals(s) responsible for the fiscal activities of a group of organizations which function as an administrative unit. For example, Facilities Management, Finance, Dining Services, College of Business. Include the date of the signature.

Level Three Approval - Signature and Date: Signature(s) of the Division Head(s) responsible for the fiscal activities of the administrative units reporting to them. See definition of Division Head in subsection .200 Definitions.

Required Approvals:

Level One - Required for all revisions.

Level Two - Required when requests cross organization numbers within the same administrative unit.

Level Three - Required for transfers between administrative units within the same division, transfers with other divisions, or requests for new funding. In all cases the unit head giving up money should approve the form.