Handbook of Business Procedures

3.3. OPERATING BUDGET ADJUSTMENTS AND CHANGES

A. Introduction

Adjustments to the operating budget are made either during the annual budget preparation process, which affects future budgets, or within the fiscal year by use of an electronic transfer of funds document.

Budget changes that are needed for operational purposes may be made on a temporary basis in budgeted accounts throughout the year with approval from the administrative delegate for a department’s dean or vice president. Budget increases resulting from increased revenue in Auxiliary Enterprise and other non-Educational & General (E&G) fund groups are subject to review by the Budget Office and Accounting and Financial Management, Financial Accounting and Reporting for reasonableness of income estimates and funding capacity. Furthermore, increases in budgeted amounts of $100,000 or more require approval of The University of Texas System Administration. If the amount is $500,000 or more, the budget increase must also be approved by The University of Texas System Board of Regents through the UT System Docket.

B. Budget Changes that Impact Future Budgets

• Commitments
  
  A commitment is institutional funding approved by the University Budget Council, President, or Provost for specific purposes (other than institutional allocations), such as "Counteroffers" or "New Equipment." A recurring commitment is a permanent change to a budget and can be either an increase (funding for a specific purpose) or a decrease (budget reduction). Commitment details are entered into a Web-based application that is maintained by the Budget Office and the Provost’s Office. Authorized viewers in the offices of deans and vice presidents may view, but not update, commitment details entered by the Budget Office or Provost Office in this system so that information can be tracked against data in their Budget Update Documents (BUDs).
• Allocations
  
  An allocation is institutional funding based on policies set by the president of the university, and dean/vp funding reallocation is based on departmental decisions made by deans and vice presidents. Allocations apply only to 14- and 20-account budget groups. Allocations are maintained in *DEFINE BF1 and BF2 commands, which allow authorized users to view and enter allocation details so that the information can be tracked against data in their BUDs.
• Budget Adjustments to Non-E&G accounts
  
  Funding changes are made to non-E&G budget groups during annual budget preparation by adding, deleting, or changing the amount of a transfer from another budgeted non-E&G account within the BUD.

C. Budget Adjustments within a Fiscal Year

• Transfers for E&G Funds (14- and 20-accounts) using the FRMS Transfer System
  
  The FRMS Transfer System is used to initiate a request for transfer of funds which allows users to make changes to 14- and 20-accounts throughout the fiscal year. Transfers can be made within 14-accounts, within 20-accounts, and between 20- and 36-accounts. Certain transfers will approve at the dean/vp level, while others will route to the Budget Office or Accounting and Financial Management for final approval. It is possible to transfer between 14- and 20-accounts and between 14- and 36-accounts; these transfers will occur via control accounts and will require further review. For more information, see the Transfer System Guide.
• Budget Adjustments for Non-E&G Funds (18-, 19-, 29-, and 30-accounts)
  • Fund Transfers
    
    The FRMS Transfer System is used to initiate a request for transfer of non-E&G funds. Certain transfers will approve at the dean/vp level, while others will route to Accounting and Financial Management for final approval. For more information, see the Transfer System Guide. Transfers of amounts greater than $100,000 are also reviewed by the Budget Office and may be sent to The University of Texas System’s Administration for post-approval review.
  • Transactions (including Transfers) Greater than $100,000
    • Increases in budgeted amounts between $100,000 and $499,999 require approval of UT System only and are not reported on the Docket. For a complete set of budget rules and procedures, see UT System’s Policies & Rules Web page.
    • Increases in budgeted amounts of $500,000 or more from income E&G (14- and 20-accounts), Auxiliary Enterprises (29-accounts), Designated Funds (19-accounts), Service Departments and Revolving Funds (18-accounts), and Plant Funds (36-accounts) require approval of UT System’s administration and subsequent ratification by UT System’s Board of Regents through the Docket.

Part 3. Budget - Table of Contents