1. Budget Transfers

2. Session Objectives At the end of this session, you will be able to:
Create different types of BTs using:
Income account lines
Non-salary expense lines
Salary lines
Mixture of the above
Copy an in progress budget transfer
Approve / Disapprove a transfer
Monitor the status of your transfers

3. Review Baseline Budget
A base budget (permanent budget) is established for those functions that require a long-term financial commitment (i.e. Salaries) or have a long term impact on the fiscal operations of the University.
Funds in the base budget are automatically reallocated at the start of each fiscal year.

4. Review Fiscal Budget Money you are going to spend in the current year
Example: Your baseline salary is your total annual salary. The fiscal budget for your salary is what you are actually going to be paid this year-so if you are taking an unpaid leave for a month-your baseline salary does not change, but your fiscal budget will be one month less.

6. Budget Transfers Defined
What is a budget transfer?
Used to establish “spending power” in a FOP (income BT) or transfer the “spending power” from one FOP to another.
Only touches fiscal budget column.
Subject to final approval of Budget Accounting office for operating funds.

7. BT versus JV
How to know when to create a journal voucher or a budget transfer? Ask yourself:
Are you trying to move an actual expense (JV) or move/allocate budget to pay for expenses? (BT)
Is this a lump sum to be used at the receiver’s discretion? (BT)
Are expenses being moved between funds? (JV)

8. BT versus JV Complete a journal voucher when:
Moving a particular expense / revenue within your own Unit or Faculty
Correcting any FOAP elements income or expenses if they are in error (i.e. account to ) – actuals columns

9. BT versus JV Complete a budget transfer when:
You want to move budget within your Unit or Faculty
Correcting any FOAP elements income or expenses if they are in error (i.e. account to ) – budget column

10. BT versus JV Other notes:
Do not complete a JV or BT to transfer actuals/budget between your faculty/unit and another faculty/unit – contact your Budget Accountant to complete
Both BTs & JVs can clear up an over expended Fund. Use your judgment. Does the BT or JV make more sense?

11. Expense Budget Transfer
Have you ever asked yourself why an expense account shows U for unfavorable…when there is money in the fund overall?
No Budget set-up

12. Expense Budget Transfer
Solution: Submit a budget transfer to correct the unfavorable line by moving “budget” from within the same FUND or from somewhere else in the faculty/unit.
Newly Adjusted Budgets

13. Non-Salary Account Lines
For non-salary lines, fiscal budget should be allocated to the Account line with the largest amount of activity under each 3 digit Account level.

14. Non-Salary Account Lines
However, the more detailed the budget, the better decisions the faculty/unit can make.

15. BT Reference Codes Budget Transfers require reference codes
Most common codes are:
BP0007: Transfer to/from Funds or to/from Account lines in the same Organization code
BP0008: Transfers within salary lines
BP0009: Transfer to/from other Organization code
We will see these used during our exercises.

16. Expense Budget Transfer
Exercises 1 & 2
Go to exercises 1 and 2.

17. Income Budget Transfer
If setting up budget for received or anticipated revenue, you need to know the following:
Revenue ONLY allowed on certain types of funds.
Operating Funds – Fund Type 11 only
Special Purpose and Research Funds – Fund Types 28 & 30
Example: You would complete an income BT for a fund (Sales & Service funds) and (Gifts for Operating fund), both Type 11s

18. Income Budget Transfer
Revenue budget for the year must equal the expenditure budget, for all Fund Type 11s
E.g.: When you add $5000 to an income account (5xxxxx), you must ALSO add $5000 to an expense account (7xxxxx) – Exercise 3
Carryover would be allocated to your expenditure budget and not be part of your revenue = expenses equation.

19. Income Budget Transfer
When increasing/decreasing revenue & expense budgets, BT descriptions must include the following three pieces of information:
Who the $ was received from – person, company, government? (no acronyms!)
Why was the $ received – salary expense recovery for John Doe? Ticket/registration sales? Donation for upcoming conference?
What will the $ be used for – to pay which expenses, if known.

20. Income Budget Transfer
Bad Description:
TMFF Donation to the faculty
Good Description:
Donation to “Fun Day” event from the Too Much Fun Foundation (TMFF) to be used to cover office expenses incurred while promoting fun.

21. Income Budget Transfer
Exercises 3, 4 & 5

22. Salary Budget Transfer
Salary Budget Transfers are required every time an employee:
Gets a re-class and changes position number
Changes jobs within your faculty
Receives a job with your faculty (new hire)
Changes “tracks” as in tenure track to tenured
Receives an Academic Promotion (Assistant Prof to Prof)
Receives a step increase (completed by Budget Accounting)
Receives a contract increase (completed by B.A.)
Receives anomaly or merit increases (completed by B.A.)

23. Salary Account Lines
For salary lines, baseline and budget should be placed on each Account line, and specific to each employee using their employee # & position # in the budget transfer.
Budget by Position (FAST report)

24. Salary Budget Transfer
Things to remember with salary budget transfers:
Use FAST’s Budget by Position report along with VIP to ensure you accurately update employee’s base/budgets
Include position # and employee #s when completing salary BTs
Baseline triggers a salary increase. No base, no increase.

25. Income Budget Transfer
Exercise 6
Go to exercises 6 and 7 (they don’t see 7 on their exercise sheets)

26. BT Assistance 480-1001 Ext 3 – Application Assistance
Budget Accounting Office Budget Accountant listing available at umanitoba.ca/admin/financial_services/budgrant/staff_listing.html
Aurora Finance Customer Service
Ext 3 – Application Assistance
Ext 4 – Security Assistance
Please visit the Aurora Finance home page to subscribe to the Aurora Finance mailing list to receive Financial System updates!

27. Thank you!