1. Budget Adjustment Training University Budget Office Megan Bergstedt mbergstedt@montana.edu Mackenzie Seeley mackenzie.seeley@montana.edu

2. Agenda Overview of budget adjustments The importance of properly budgeted positions How to determine a proper position budget How to request a budget adjustment if current budgets are not correct

3. What is a budget adjustment? A budget adjustment is used to move budget from one index/account to another Budget adjustments can only be done within the same fund type (i.e. state fund to state fund) Budget adjustments always must balance within the same fund type

4. Types of Budget Adjustments Base Budget Adjustments –This type of adjustment is “permanent” –All positions use base budgets –Show up as a BD02 in reports One-Time Only Budget Adjustments –This type of adjustment only increases budget for the current fiscal year –Show up as a BD04 in reports

5. Reasons for a Budget Adjustment A one-time adjustment would be made for a commitment in a year Reallocating budget authority from one index to another Position adjustments happen when any permanent change to a position occurs (new hire, FTE change, rate change) Moving budget from positions to ops and vice versa

6. Properly Budgeted Positions Especially important for state funded positions If not properly budgeted, you may not be allocated enough budget to cover pay plan increases Position budgets assume that the current employee has been in the position for the whole fiscal year

7. Position Budget Changes A position budget will change if a new hire is made a lower or higher rate than the previous employee If an employee has a change in FTE If a change to the employee’s base rate occurs If there is a labor distribution change We do not budget grant funded positions

8. Determining Position Budgets To determine the proper position budgets, we use Salary Projections A different Salary Projection worksheet is used for each type of employee (classified, professional, faculty) These projections account a % increase as determined by a pay plan These do not account for out-of-cycle increases

9. Salary Projections We will use the step-by-step instructions found here forhere –Faculty Salary ProjectionsFaculty Salary Projections –Professional Salary ProjectionsProfessional Salary Projections –Classified Salary ProjectionsClassified Salary Projections

10. Budget Adjustment Request After completing salary projections, if the projected budget is different from the current budget, an adjustment is needed If you need to adjust budgets for any other reason, send a request to the budget office This can be done via your own spreadsheet, an email, or the forms provided herehere

11. Questions?