Transcript 27. Training Budget Workshop 2-24-2011

BUDGET WORKSHOP
February 24, 2011
AGENDA
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Board Policies & Administrative
Procedures
Components of Budgets
Chart of Accounts
Budget Development
Budget Transfers
Board Policies
• Board Policy 6.02 – Budget Preparation
and Development
• Board Policy 6.03 – Accounting
• Board Policy 6.04 – District Reserve
Administrative Procedures
• Administrative Procedure 6.02 – Budget
Management (DRAFT)
• Administrative Procedure 6.03 – Accounting
(DRAFT)
Components of Budget
• Non-Discretionary Budgets
• Developed jointly by the District and
Colleges but controlled centrally.
• Discretionary Budgets
• Developed and controlled by the
Colleges.
Non-Discretionary
Budgets
• Most commonly, these accounts are
established for permanent personnel costs
(salary and benefits of those positions).
• All positions will be identified and
budgeted for based upon an authorized
personnel list maintained by Human
Resources.
Non-Discretionary
Budgets
• Typically identified by the use of object codes:
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11XX
12XX
21XX
22XX
3XXX
• Changes are facilitated by the use of a PA form.
Discretionary Budgets
• Colleges allocate and distribute these
funds based upon local procedures.
Discretionary Budgets
• Typically identified by the use of object
codes:
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13XX (except 1351)
14XX
23XX
24XX
4XXX
5XXX
6XXX
Chart of Accounts
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Location (X)
Fund (XX)
Cost Center (XXX)
Object Code (XXXX)
Program (X)
Activity/Type Code (XXXXXX)
Project (XXXX)
Account Line (XX)
Budget Adjustments
• Budget adjustments are used to increase or decrease
total appropriations for a specific fund, program,
categorical, or grant.
• More common examples of when budget adjustments
are used are when the District is the recipient of new
grants or specifically funded programs or with the
establishment of carryover budgets from previous fiscal
years. Budget adjustments are ultimately reviewed,
approved, and posted by the Budget Director (Vice
Chancellor for Finance and Administration in his/her
absence).
Budget Transfers
• Budget transfers are used to reallocate existing budget to
different combination codes (i.e. between two different
object codes)
• General guidelines:
•Transfers across funds not permissible
•Transfers between different project numbers are not permissible
• Transfers from Non-Discretionary object codes must receive prior approval by
the Chancellor
• All transfers between major object codes are subject to review and approval by
the Board of Trustees monthly. So, be sure to include an appropriately
detailed explanation in the budget transfer header.
Questions
• Future trainings
• Questions