State Budgets

Account Managers can submit requests by email to Kathy Adams (CC: Erin Messer and Meliscia Gilbert) to move budget allocation between the Wages and the Operations lines. Professional and Classified Salaries and related fringes are managed at the Division Level, so any reallocations to or from those lines must be routed through the Provost for the academic departments or the Division Budget Officer for other Cabinet areas. 

Please note the State Board policy states the deadline to move expenses onto State accounts is April 30th of each year. Anything after would require approval by the President with appropriate supporting justification and would need to be reported in an annual summary to the Board of Regents. (Handbook - Title 4, Chapter 9, Section 2. Financial Policies)

Self Supporting Budgets

After the annual budget has been approved, it may be necessary to make changes to the Expense Budget. When this involves an exchange from one expense ledger to another, without increasing the total budget amount, a Budget Amendment can be submitted to reallocate Uncommitted Balances.

Budget Amendment should not be submitted for the Revenue Budget. The Revenue Budget is changed only if the total revenue projections for the account have increased and if the additional revenue will be spent in the current fiscal year. In this situation, the total budget will need to be increased through a Budget Revision.

Account Management and Budget Adjustments

  • Account Managers have a responsibility to monitor their accounts on an ongoing basis during the year to ensure that the account maintains a positive cash balance.
  • Account Managers should also track commitments made against accounts to ensure that the uncommitted balance is sufficient to cover pending transactions, including PCard purchases, and journals, etc.
  • Accounts cannot operate on a negative cash basis. The budget is established based on a projected revenue amount but if the expected revenue is not collected during the year then the planned expenditures must be adjusted in line with the actual revenue available.
  • Budgeted Accounts will allow expenditures to post up to the amount of the budget for each line but cash balances must also be taken into account, because if there is insufficient cash to cover the budget amounts then the account could become cash negative, which would require immediate corrective action.
  • If the revenue projection is significantly reduced, the expense budget lines can be reduced to avoid over commitment by moving allocation to the Reserves line through a budget adjustment.
  • If an override causes a negative budget line, a budget adjustment should be requested to restore a positive balance on the budget line.
  • Before sending a Voluntary Transfer Out to the Controller’s Office, check the account to determine if there are sufficient funds available in the VT Out line to allow the transaction to post.
  • Balance Controlled accounts operate on a Cash Basis, not a Budgeted Basis. If an override occurs, such as for wages or Pcard, allowing expenditures in excess of the available cash to post to the account, this must be corrected immediately, either by transferring additional funds to the account or by reassigning expenses from the account. Transfers In are unallowable on restricted accounts and for certain programs so a reassignment of expenses may be the only option in some cases.
  • Expense ledgers are those under the Uses section when viewing your Manager Balance - Budgeted by Ledger Account - FIN - CR (NSHE) report.
  • Revenue ledgers are those under the Sources section in your Manager Balance - Budgeted by Ledger Account - FIN - CR (NSHE) report. These can not be moved to ledgers under the Uses section.

How to Submit a Budget Adjustment Request

  1. Line out the reallocations by ledger and amount, which must balance to zero.
  2. Include an explanation of why uncommitted balances are available and what they will be used for when reallocated.
  3. When reallocating to a salary line, related fringe must also be reallocated.
  4. If moving funds from reserves, verify that there will be sufficient revenue to cover the expenses.
  5. Email the adjustment request to the Budget Analyst for your Department, and CC the Worktag Owner.
  6. As another option, take the Budget Amendment training provided by Financial Planning, Budget & Analysis and learn how to enter your own Budget Amendments!

Ledger Restrictions and Guidelines for Budget Amendments

  • VT-Out Decrease: When the VT Out budget is established, the transfer out amount is part of the revenue budget for the receiving accounts. Reducing the VT Out budget reduces the revenue for the receiving accounts so the Account Manager for the receiving account must confirm that their account will have sufficient revenue to cover expenses without the transfer.
  • VT-Out Increase Include the account number of the receiving account and details of what activity the transfer will fund.
  • Salary or Hourly Pay Increase or Decrease: Calculate the related fringe using the current rates, available in the New Budget Form, and include Fringe amounts with the salary adjustment.
  • Professional or Classified Salary Decrease: The budget for Professional and Classified budgets are tied to position numbers. Identify why there is funding available to reallocate and whether it is one time, such as due to vacancies, or permanent, such as position elimination or base salary reduction.
  • Professional or Classified Salary Increase: Identify the position number and reason for increase; higher base salary for search, special pay or stipend, etc. If a new position is to be created refer to the New Position Request procedure.

Account, Revenue, or Expense Restrictions and Budget Adjustments