8.6 Budget Amendment
The budget amendment process is critical to ensuring that expenditures made during the course of the fiscal year are supported by budgets. Failure to amend budgets to meet changing circumstances can result in an overexpenditure of funds and lead to audit findings.
8.6.1 Identification of Funding Sources
Funding Sources are designated by a 5 digit numeric code*, which is used to denote the specific source of funding for both revenues and expenditures.
* Note: For institutions using the GeorgiaFIRST model of the PeopleSoft Financials software, the Funding Source is identified by the Classification code.
Note: For budget and budget amendment purposes, institutions should use only those codes identified in Section 2.4, or new codes published by the BOR Fiscal Affairs. New funding source codes are sometimes required due to changes in state appropriations, and these new codes must be utilized in budget development before this manual can be revised.
The following listing illustrates sample high-level funding source codes. Obviously, the XXX portion of these examples must be replaced with valid numbers.
- 11XXX General Operations
- 12XXX Research Consortium
- 13XXX Special Funding Initiative
- 14XXX Lottery Funds
- 15XXX Department of Administrative Services Indirect Funding
- 16XXX Major Repair and Rehabilitation Funding
- 17XXX Governor’s Emergency Fund
- 18XXX Loan Fund Operations
- 41XXX Departmental Sales & Services
- 42XXX Auxiliary Services
- 61XXX Sponsored Operations – Federal
- 62XXX Sponsored Operations – State
- 63XXX Sponsored Operations – Local
- 64XXX Sponsored Operations – Private
Refer to Section 2.4, Funding Source Codes for a complete listing and definition of each individual funding source code.
8.6.2 Revenue Adjustments
Throughout the course of the fiscal year, various factors necessitate the adjustment of revenue estimates within the budget system. For example, if fall semester tuition exceeded the original budget estimate, the institution would amend its budget to reflect the increased revenues. Revenue estimates should be reviewed and amended on a quarterly basis to reflect projections of either increased or decreased revenue collections during the fiscal year.
8.6.3 Appropriation Amendments
Ultimate expenditure authority within the financial system resides at the appropriation level; i.e., expenditure appropriation authority cannot be exceeded. At a minimum, appropriations exist for personal services and operating expenses. If expenditure authority for any of these categories is to be increased or decreased, the appropriation will need to be adjusted by the budget officers. The sum of the appropriation authority must equal the sum of the revenue estimates for general funds.
8.6.4 Organization Amendments
Individual departments are defined in the financial system as organizations and may be created to more effectively manage revenue collections and expenditures. The sum of the organization budgets must equal the appropriation budgets.
8.6.5 Budget Amendment Submission
Institutions are required to submit budget amendments on a quarterly basis to the Board of Regents for review and approval. In preparing the quarterly budget amendment, institutions must reconcile by funding source * the estimated revenues, appropriations, and organization budgets with the Budget Confirmation Report that is distributed by Fiscal Affairs, as noted in Section 8.6.7. Queries and reports within the institutions’ financial systems should be used to balance the revenues, appropriations, and organization budgets.
* Note: For institutions using the GeorgiaFIRST model of the PeopleSoft Financials software, the funding source is identified by the Classification code.
8.6.6 Budget Amendments Greater than $1 Million
Any individual budget amendment that exceeds the threshold of $1,000,000 must be noted during the submission of the budget amendment to Fiscal Affairs and considered separately for approval.
8.6.7 Budget Confirmation Report
Each quarter, Fiscal Affairs will send the Budget Confirmation Report to all institutions. This report details all state funds allocated to the institution for the fiscal year. Institutions should make sure that all funds shown on the Budget Confirmation Report are budgeted in the following budget amendment.
8.6.8 Final Cleanup Amendment
In addition to the quarterly budget amendments, institutions will have one final opportunity to amend their numbers toward the close of the fiscal year, in the last week of June. The objective is to make sure that institutions have sufficient expenditure authority in various line items in the budget, and prevent any over-expenditure in a category. The final amendments are sent to the state Office of Planning and Budgets (OPB), who will then transmit the amendments to the state Department of Audits and Accounts.