Budget Request

Fiscal Procedure Updated June 4, 2020

The purpose of the Budget Request document is to 1) transfer budget between budget pools within the same fund and organization, or 2) transfer budget between organizations but within the same fund, or 3) transfer budget from one fund to another fund, or 4) to request an additional allocation to the approved operating budget.  Such a transfer may become necessary when anticipated expenditures exceed the existing unencumbered balance reflected within the Fund / Organization / Program budget. 

The approval of the budget for expenditures (and encumbrances) is not authorized until the necessary approvals are obtained and the budget is entered into the accounting system.  In the case of additional allocations, this may require Board of Regents approval as specified.

The requested transfer should not exceed the category’s unencumbered balance.  The originating department must verify the availability of funds online, adjusted for any transactions or transfers not yet processed.

Funds cannot be transferred from a State account to a Local account.

• Budget Request - Change in Budget Pools within the same Fund and Organization
  1. This type of budget transfer can be completed online within the established security approval system or a Budget Request form can be completed and submitted to the Budget Office.  A written email request is acceptable and the Budget Office will execute the request. Upon completion, the document will be reviewed by the Director or Assistant Director of Budget and Management and will then be scanned into the accounting system by the Business Office. 

• Budget Request - Transfer from Organization to Organization within the same Fund
  1. This type of budget transfer can be completed online within the established security approval system or a Budget Request form can be completed and submitted to the Budget Office. The Budget Request form should be completed and approved by the budgetary unit head.  The total increase and decrease must be equal on this budget request. 
  2. The Budget Office will then execute the Budget Request by assigning the batch reference number, verifying availability, and noting the date.  It is then transferred to the first account (increase) on the Budget Request.  Upon completion, the document will be reviewed by the Director or Assistant Director of Budget and Management and will then be scanned into the accounting system by the Business Office. The approved budget changes are incorporated into the university’s operating budget through this process.

• Budget Request – Transfer from Fund to Fund
  1. The budget request should be completed and approved by the budgetary unit head of the decreasing account. The total increase and decrease must be equal. 
  2. Approval must be obtained from the Senior Administrator of the decreasing account.
  3. The Budget Director, Assistant Budget Director, or the Vice President for Administration and Finance will approve the transfer after reviewing.
  4. The President or the President’s assigned designee will grant the final approval.
  5. The Budget Office will then execute the Budget Request by assigning the batch reference number, verifying availability, noting the date and then processing.  Upon completion, the document will be reviewed by the Director or Assistant Director of Budget and Management and will then be scanned into the accounting system by the Business Office. The approved budget changes are incorporated into the university’s operating budget through this process.
  6. Routine salary and fringe benefit budget sweeps are excluded from this approval process as well as end of year processes including fiscal year clean up to roll forward balances, and any additional clean up deemed necessary by the Budget Office or Controller’s Office. For these entries, only one approval signature beyond the preparer’s signature is required by either the Controller, Director of Budget and Management, Assistant Director of Budget and Management, or the Vice President for Administration and Finance.

• Budget Request – Additional Appropriations
  1. The budget request should be completed and approved by the budgetary unit head. The justification should be completed with plans as to why the expenditure budget increase is needed.
  2. The budget request must then be approved by the Senior Administrator.
  3. If the additional appropriation request is less than $50,000:
     1. Either the Vice President for Administration and Finance or Budget Director and then the President must each review and approve the budget request.
     2. The Budget Office will complete the budget request by assigning the batch reference number, verifying fund availability, and noting the date.  Funds are transferred to the account (increase) on the budget request.  Through this process the approved budget request is incorporated into the university’s operating budget.

• The budget request will be placed on the next Board Agenda for ratification at its next meeting.

1. If the additional appropriation request is greater than $50,000:
   1. Either the Vice President for Administration and Finance or Budget Director and the President must each review and approve the budget request.
   2. The Board of Regents will then be asked for approval of the budget request.  The Board of Regents agenda item and its date of approval will be entered on the budget request.

• The Budget Office will complete the budget request by assigning the batch reference number, verifying fund availability, and noting the date.  Funds are transferred to the account (increase) on the budget request.  Upon completion, the document will be reviewed by the Director or Assistant Director of Budget and Management and will then be scanned into the accounting system by the Business Office. Through this process, the approved budget request is incorporated into the university’s operating budget.

Definitions:

Fund – The fund element of the FOAPAL is used to specify the funding source.

Examples:

Organization – The organization code is used to identify the organizational unit that is responsible for financial activity within that unit. This code greatly enhances financial reporting due to the ability to establish a multi-level hierarchy that follows the University’s organizational chart Example: 23241 (Designated Tuition fund code) – 22231 (Accounting/MIS/Legal Studies organization code) or 26000 (Student Service Fee fund code) – 22512 (MSU Cycling Team organization code).

Budget Pool – A budget pool is where a revenue or expense account rolls up.  For example all staff salaries are budgeted to the budget pool 6100, but there are multiple expense codes that pay against that budget pool.  Example: 7010 – Professional Admin Salaries and 7015 – Classified Salaries.

Any questions regarding budget requests should be directed to the Budget Office.         

Responsible for Implementation:  Vice President for Administration and Finance