BUDGET WORKSHOP

February 24, 2011

AGENDA

• 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:• 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:

• 13XX (except 1351)• 14XX• 23XX• 24XX• 4XXX• 5XXX• 6XXX

Chart of Accounts

• 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