Preparing budget accurately according to the company policy and procedure?

Answer 1

ORIGINAL BUDGET

An original budget is the initial base amount allocated to an account. In general, the source of this entry for state, institutional, self-supporting and Medical Service Plan (MSP) accounts is the annual Budget Planning Statement (BPS). For personal services categories, this amount should be equal to or greater than the sum of all annual salaries paid from the account.

PERMANENT (RECURRING) BUDGET CHANGES

A permanent budget change or transfer is recurring in nature. This type of budget adjustment impacts an account's budget base not only for the current fiscal year but also for succeeding fiscal years. Permanent budget changes are generally processed to adjust personal services lines on an annual basis.

TEMPORARY (NONRECURRING) BUDGET CHANGES

A temporary budget change or transfer is nonrecurring in nature. This type of budget adjustment impacts an account's budget base only for the current fiscal year. Temporary changes are generally processed to revise object categories or to adjust account balances during the current year.

REVISED BUDGET

An account's revised budget field is the sum of the original budget plus or minus any changes (both permanent and temporary) for each object category. The revised budget represents the budgeted amount of recurring and nonrecurring funds available for the current fiscal year.

BUDGET BALANCE AVAILABLE

An account's Budget Balance Available (BBA) for each object category is equal to the revised budget minus actual fiscal year-to-date expenditures, minus fiscal year-to-date obligations and commitments. The account total budget balance available represents the amount of the budget remaining as free and unencumbered.