Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

MSC 0000 00
1 University of New Mexico
Albuquerque, NM 87131

Budget Tips

Indices must stay balanced
1) In any BD4 or BDT entry that you prepare, you need to make sure that the indices "stay balanced" on all indices whose budgets will be changed by your JV. To "stay balanced", the sum of the budget adjustments to the revenue account codes (including 1901) must equal the sum of the budget adjustments to the expenditure account codes for each index. (As is required when entering original budgets, Revenues must equal Expenditures on every index.) 

If you are wanting to increase the overall amount you are allowed to spend on an index, the amounts of both revenue and expenditure budget adjustments to that index will be entered as positive (+) amounts; and the resulting sum of your revenue budget adjustments must equal the sum of your expenditure budget adjustments. (Much of the confusion that I have encountered when reviewing JV's has to do with journalers wanting to offset positive revenue adjustments on an index with negative expenditure adjustments on the same index, or vice versa, which does not keep the index in balance.) Conversely, if you are wanting to decrease the overall amount you will be able to spend on an index, the amounts of both revenue and expenditure budget adjustments to the index will be entered as negative (-) amounts; and the resulting sum of the revenue budget adjustments must equal the sum of the expenditure budget adjustments.

Here are a couple of examples:

To increase the overall amount you can spend from an index by using carried forward balance,the JV would be structured like this:

BD4 043XXX 1901 $2,000 (+)
BD4 043XXX 3100 $1,000 (+)
BD4 043XXX 3820 $500 (+)
BD4 043XXX 8060 $500 (+)

To decrease the overall amount you can spend from an index if, for instance, anticipated revenue has decreased, the JV would look like this:

BD4 043XXX 07Z0 $100,000 (-)
BD4 043XXX 2000 $75,000 (-)
BD4 043XXX 21J0 $25,000 (-)

To move budget from one index to another, here is an example of how the JV might look:

BD4 043XXX 0381 $100,000 (-) (Giving Index)
BD4 043XXX 69Z0 $100,000 (-) (Giving Index)
BD4 043XX1 0381 $100,000 (+) (Receiving Index)
BD4 043XX1 3100 $50,000 (+) (Receiving Index)
BD4 043XX1 3820 $50,000 (+) (Receiving Index)

In each of these three examples, all indices have "stayed balanced" - the sum of the adjustments made to revenue account budgets equals the sum of the adjustments made to expenditure account budgets on each index.

You also can have a budget revision entry that has only revenue account adjustments or only expenditure account adjustments. However, in this case, the entries must net to zero when summed. For example, if you are wanting to reclassify $1,000 of revenue to account 0380 that was originally budgeted to account 0310, the JV would look like this:

BD4 043XXX 0390 $100,000 (-)
BD4 043XXX 0380 $100,000 (+)

Similarly, if you are wanting to increase the amount you can spend from account 3820 by reducing the amount you had originally budgeted to 3100, the JV would look like this:

BD4 043XXX 3100 $100,000 (-)
BD4 043XXX 3820 $100,000 (+)

In each of these two cases, the indices "stays balanced". The sum of the revenue adjustments in the first example is zero, and since there are no adjustments to expenditure account codes, the index stays in balance. Similarly in the second example, there are no revenue adjustments, and the sum of the expenditure adjustments is zero, keeping the index in balance.

Use Whole Dollars
2) All budget entries (BD4 or BDT rule class codes) have to be entered using whole dollars and no cents. (This rule is also applicable when entering original budgets - no pennies, please!)

Adequate Budget Must be available to move
3) If you want to move budget from one index to another index, you must first determine if there is adequate budget available that can be reduced on the "giving" index. The formula for calculating "available budget" on an index is: Total Accumulated Expenditure Budgets Less Fiscal YTD Actual Expenditures Less Fiscal YTD Expenditure Encumbrances Less Pending Expenditure Transactions. If you find that there is not sufficient "available budget" to allow reduction of the budget on your "giving" index, you may need to first move charges from your "giving" index to a different index to free up "available budget".

A quick way to ascertain the amount that is available to be given from an index to is to go to Banner Form FGIBDST. Enter your "giving" index number, and then uncheck the "Include Revenue Accounts" box. After doing this, then push the "Next Block" button. The amount at the bottom of the screen under "Available Balance" is your "available budget" before any Pending Expenditure Transactions. Deduct any pending expenditure transactions from the "Available Balance" amount to get to your "available budget" that can be moved to another index. (There is also a report in Hyperion called: FOH0003&4 Budget Availability Detail & Summary Reports that can assist you in determining if an index has adequate available budget that can be moved to another index. An explanation of the features of that report is attached at the back of these tips.)

Cannot create negative expense account balances with Budget entries
4) Adjustments to Expenditure account budgets cannot result in negative amounts. (This is also true when preparing original budgets in the spring - Expenditure budgets cannot be entered as negative amounts.) If you are wanting to reduce an expenditure budget amount on an index, you need to look first at how much is currently budgeted to that expenditure account code (refer to Banner form FGIBDST). For example, if you have only $1,000 budgeted to account 3100 on one of your indices, you cannot enter a BD4 JV that reduces the account 3100 budget on that index by $1,500. Doing so would cause the budget for account 3100 to reflect a negative amount ($-500.00), which would cause your JV to be disapproved. If you have nothing currently budgeted to an expenditure account code in an index, you should not submit a JV that reflects a reduction to that account code on that index.

Additionally, actual expenditures, encumbrances, and pending transactions reduce available budget at the account code level for each index. If on account code 2000 of one of your indices, you have $100,000 budgeted, and you have $15,000 in Fiscal YTD Actual charges and $85,000 in Encumbrances, the budget to account code 2000 cannot be reduced because available budget for this account code on this index is already zero ($100,000 less $15,000 less $85,000 = $0).

New Clinical Revenue Accounts
5) Clinical revenues should be distributed using accounts 0381 (formerly 0311), 0391 (formerly 0321), 0341 or 0351. If distributing FOM dollars that were originally generated in account 0380 (formerly 0310) or 0390 (formerly 0320) from one FOM index to another FOM index (where the funds associated with each index both roll up to Level 2 Fund 3U41 - HU UPA), the appropriate account code to use for this distribution would be either 0381 (formerly 0311) or 0391 (formerly 0321).

If distributing UH dollars that were originally generated in account 0340 from one UH index to another UH index (where the funds associated with each index both roll up to Level 2 Fund 3U42 - HU UNMH), the appropriate account code to use for this distribution would be 0341.

The rationale behind using 0381, 0391, and 0341 as directed above is that this follows the initial guiding principle of redistributing these types of funding from Department to Division (or Division to Division), and keeps the funding source true to its origin for reporting purposes. These clinical revenue distribution entries may cross funds when applicable.

Here is an example that demonstrates the above requirements:

BD4 043XXX 0381 $25,000 (-) (Giving Index)
BD4 043XXX 69Z0 $25,000 (-) (Giving Index)
BD4 043XX1 0381 $25,000 (+) (Receiving Index)
BD4 043XX1 3100 $25,000 (+) (Receiving Index)

In this example the sum of the amounts increased and reduced in 0381 is zero, the amounts increased and reduced in the expense accounts is zero, and the total amounts increased and reduced in the JV equals zero ($-50,000 + $+50,000 = $0).

Amounts must net to zero
6) When budgeting allocations from one index to another, the amounts "given" from one index, using account codes beginning with "16" (1600, 1610, 1620, 1660, etc.) should be offset dollar for dollar with amounts "received" into another index using the same "16XX" account codes, so that all entries to these respective account codes within your JV will net to zero.

Here is an example that demonstrates the above paragraph's requirements:

BD4 043XXX 1660 $10,000 (-) (Giving Index)
BD4 043XXX 3100 $10,000 (-) (Giving Index)
BD4 043XX1 1660 $10,000 (+) (Receiving Index)
BD4 043XX1 3820 $10,000 (+) (Receiving Index)

In this example, if you add the $-10,000 reduced on index 043XXX account 1660 to the $+10,000 increased on index 043XX1 account 1660, the sum of these 1660 adjustments within the JV equals zero.

Request prior approval to budget additional use of carry forward
7) This year (FY09), the School of Medicine has required departments to request prior approval before budgeting additional use of carry forward. We are asking departments to

justify their requests for budgeting use of carry forward that wasn't budgeted (or allowed to be budgeted) during budget season in April. The request should be in a memo or e-mail and should identify: the specific indices involved, the amount of carry forward by index that you think your department definitely will spend in FY09 if the request is approved, the reason you need to spend the carry forward (in other words what the carried forward monies will be used for), and why the spending that you are requesting can't be spent from current year revenues. We are not going to be able to allow all carried forward balances to be budgeted, and therefore are asking that you look carefully at all of your indices to see if there are other options for acquiring what you need in FY09 without additional budgeting of carry forward.

Get familiar with LEARN Guidelines & unm main campus budget web page
8) Financial Services has recently produced a document discussing allocations, transfers, and the movement of reserves using account 1903. (LEARN Journal Voucher Guidelines for Reserves, Allocation, and Transfer Entries.

9) Found at: Choose the Word option.) It discusses in detail the procedures you need to follow when preparing any of these types of JV's.

It is very important for you to become familiar with the rules and procedures contained in this document because the rules contained therein will need to be 250 followed when doing your mid-year projections in January and your FY10 budgets later in the spring.

10) On the UNM Main Campus Office of Planning, Budget, & Analysis web site, located at, select the SOP area in gray. This will show you many current budgeting standard operating procedures. To obtain more detailed instructions on the use of BD4 and BDT entries, see the LEARN Journal Voucher Guidelines for Reserves, Allocations & Transfer Entries posted on the Unrestricted Accounting and Reporting Website at This Manual goes into considerable detail explaining the guidelines for making these entries.