Budget Oversight for Current Non-Sponsored Funds
The Available Balance Deficit Report is available in the enterprise financial system to assist in determining if deficits exist at the fund – "Z" DeptID. The "Z" DeptID is identified on the UM_DeptID_BUDGET tree.
- RRC Managers and other fiscal monitors are responsible for reviewing financial reports on a regular basis to ensure that continuing deficits do not exist.
- University Budget and Finance budget officers will periodically review current fund deficits at the Fund - RRC level and Fund - "Z" DeptID level.
- The RRC Manager and University Budget and Finance should meet at least annually to review the overall finances of the RRC. Effective communication between budget officers and RRC managers and Deans can address potential serious problems.
Determining Available Deficits
The Available Balance Deficit Report provides a list of deficits, prior to encumbrances, at the University “Z” DeptID level, as of the date specified when it is run. The available balance calculation excludes accrual-based accounting entries except for Vouchers Payable; thus the balance approximates a cash balance for the "Z" DeptID.
The report can be obtained in the Financial Reporting instance in the enterprise financial system and accessed as follows:
- Financial Reporting Log-On
- UM Budgeting
- UM RRC Manager
- UM Reports
- UM Available Deficit Report
- UM Reports
Adjustments to approved budget should not be made due to changes in forecasted financial activity and should only occur on an exception basis. Reasonable budget variances are expected and are not an indication that budget adjustments should be made. Budget adjustments that simply match budgets to actual activity will NOT be allowed.
Evaluating Proposed Budget Adjustments
- Departments will determine whether or not to request a budget adjustment. Adjustments should be material and represent a real variance from the original budget (e.g., there is new revenue or a new unplanned expense). Materiality is influenced by the actual activity to date and the anticipated activity through the end of the fiscal year. After midyear, budget adjustment should not be needed except in rare circumstances.
- Departments who wish to move forward with a budget adjustment should then discuss the adjustment with their RRC manager and a University Budget and Finance officer to determine if the adjustment is warranted, prior to entry in the general ledger.
- Once approval is given for the budget adjustment(s), a budget journal is entered in the enterprise financial system.
RRC managers will be required to reverse budget journals that do not meet the above criteria.