1. Welcome! Office of Fiscal Management Overview Barbara Roper Sarah Griffin Tony Norwood Michele Goff

2. Agenda: Budget Overview Budget Division Authorization (BDA) Accounts Payable Procedures Department Contract Templates Purchasing Policies and Procedures

3. Certified vs Authorized What’s the difference?

4. Certified Budget The budget as enacted by the General Assembly.

5. Authorized Budget The certified budget with approved changes by DOA or OSBM.

6. Types of Budget Codes 14100 – General Fund 241XX – Special Fund 34100 – Federal Funds 4XXXX – Capital Improvement Funds 54100 – Enterprise Funds 64100 – Trust Funds 74100 – Internal Service

7. 14100 – General Fund  Commonly referred to as “appropriated funds”  Budget is created with funds that the General Assembly has “appropriated” from tax revenues and other sources for certain programs.

8. 241XX – Special Revenue Funds Account for proceeds of specific revenue sources or finance specific activities required by law or administrative regulation.  Self supporting  Maintain a cash balance which does NOT revert at June 30 th

9. What is a Fund (Center)? Each Division is assigned one or more fund numbers Accounting terminology calls them “centers” but for budget purposes they are called “funds” Budget reports by fund number (BD701)

11. Budget Report (BD701) Budget items are grouped by type of accounts or “line” items “53XXXX” Expenditure Accounts “43XXXX” Revenue Accounts

12. “Line” items in your Budget Report 1XXX – Personal Services 2XXX – Purchased Services 3XXX – Supplies 4XXX – Property, Plant and Equipment 5XXX – Other Expenses and Adjustments 6XXX – Aid and Public Assistance 7XXX – Reserves 8XXX – Intragovernmental Transfers (Line items are preceded by “53” for expenditures or “43” for revenues)

15. What are Encumbrances? Funds that are being “held” for future use towards purchase orders and contracts your Division has placed.

16. Fund Balance Fund balance is created from excess revenues over expenditures and represents a cumulative cash balance over time.  Special Funds  Internal Service Funds

17. Who has fund balance? Fair Housing Indian Talent Search Motor Fleet Management State Surplus Property

20. What is an RCC? Responsibility Cost Center Examples: o Facilities Management (1421) o 0101 Archdale Bldg o 0102 Dobbs Bldg o 0103 Legislative Bldg o 0104 Arch&Hist St Lib

21. Lapsed Salary or Salary Reserve Lapsed Salary  Funds generated while a position is vacant  Lapsed salary can be used to hire temporary during vacancy  Provide vacant position number in temporary request Salary Reserve  Funds available when a position is budgeted higher than the salary  Example:  Position is budgeted at $35,000 and you hire at $30,000. This created $5,000 in salary reserve that can be used for other hires.

22. Budget Revision Realign the authorized budget – At month end to cover negative balances – When large purchase order or contract is created

24. Budget Authorization Form This form is utilized to request use of funds PRIOR to the following: Out of State Travel In State excess Conferences/Workshops Registration Reimbursement for non- employee

25. Questions