Budget FAQs -- Frequently Asked Questions
If your question relates to the Board of Directors financial, major procurement ($50K+) and budgeting cycles -- what action/reporting items are presented and when -- this presentation may provide you with answers. Additional budget-related processes are addressed below.
1. What is the Beginning Budget Development process?
2. What is the purpose of the Midyear Budget Review process?
3. How do I view the budget status or determine the budget balance of my accounts?
4. How do I monitor the expense or revenue transactions posted against my budgeted accounts?
5. How do I get more detail about an expense or revenue transaction posted to my account?
6. How do I correct a transaction posted in error against my account?
7. What is the Fiscal Information Reporting System?
8. Where can I find the User Manual for the Fiscal Information Reporting System?
9. How do I get access to the Fiscal Information Reporting System?
10. How do I move budgeted funds from one account to another?
11. How do I add a new object code to my account?
12. What can I do if there are not enough funds available in my budgeted account?
13. Where can I find budget forms?
14. When is the College’s annual budget developed?
15. What are the procedures for Faculty Professional Development Accounts?
16. How is the College’s annual budget developed?
17. How does Hastings get funding from the State? How is the State budget passed?
1. What is the Beginning Budget Development process? This process determines the internal allocation of the College’s resources for expenditure for the new fiscal year that begins July 1. The Beginning Budget Development schedule and guidelines are published on the Budget Processes and Forms page. The process generally begins in April with distribution of Budget Worksheets to department heads in which pertinent financial data relating to their department’s prior to current year status is summarized. The Worksheets and related forms are completed by department heads/budget managers to request funding. Budget hearings are held – usually in June – to discuss the income projections and expenditure requests in the context of the current operations and goals of the department. These meetings are between the Chief Financial Officer and the budget manager and also include the Senior Accountant—Budget and Planning Analyst and the budget manager’s supervisor or division manager; the Chancellor and Dean, the Academic Dean and/or a faculty representative, and the Controller may also attend.
With the exception of restricted funds whose use is determined by external funding sources (i.e., scholarships, professorships), the College’s level of funding for programs is determined by the total of the State appropriation plus collected tuition, fees, and miscellaneous unrestricted revenues. The College views the revenues as owned by the College as a whole, and not owned by any one specific department.
It has been the policy of the College to attempt to fund every department at the current years’ expenditure level, adjusted for one-time expenditures. Funding priority is then given to salary increases (General Salary Adjustments and Merit Salary Adjustments). New projects, equipment requests and staffing changes suggested by the department heads are first approved by the respective division manager, reviewed by the CFO and may be approved by the Chancellor and Dean in the context of the benefits that would be derived for the College from funding them. Policy also directs a small reserve be maintained.
The final beginning budget is brought to the Board of Directors for approval, generally at their September meeting. Until the budget is adopted, only the usual and customary operating expenses of a department are authorized for July-September in the new fiscal year. The Chief Financial Officer may request pre-authorization from the Board at their June meeting for new projects or expenses that are expected to occur before the beginning budget is presented in September.
2. What is the purpose of the Midyear Budget Review process? The purpose of this process and the related meetings is to review each department’s budget status and efforts to implement budgeted activities/projects, and to determine if additional resources are available to fund cost changes and items not included in the initial budget. The Midyear Budget Review schedule and guidelines are published on the Budget Processes and Forms page.
Budget Worksheets are distributed and provide budget managers with current budget status and financial data; budget managers indicate requested changes to their budget allocations. Meetings are usually held in January between the Chief Financial Officer and the budget manager and also include the Senior Accountant—Budget and Planning Analyst and the budget manager’s supervisor or division manager; the Chancellor and Dean, the Academic Dean and/or a faculty representative, and the Controller may also attend.
Similar to the beginning budget development process, funding requests for new projects, equipment and staffing changes suggested by the department heads are first approved by the respective division manager, reviewed by the CFO and may be approved by the Chancellor and Dean in the context of the benefits that would be derived for the College from funding them and in relation to the level of new funding that may exist (usually from changes in student enrollment levels).
The College’s midyear revised budget is brought to the Board of Directors for approval, generally at their March meeting.
3. How do I view the budget status or determine the budget balance of my accounts? Access the Fiscal Information Reporting System. The current budgeted amount is displayed in the “budget” column and clicking on the figure will display budget transaction detail. The “balance” column on the far right represents the current budget balance. This is calculated by taking the current “budget” amount less the “YTD” amount (year-to-date actual) less the “Enc.” amount (encumbrances, or commitments represented by open purchase orders) and represents budgetary funds available for use.
4. How do I monitor the expense or revenue transactions posted against my budgeted accounts? Access the Fiscal Information Reporting System. Click on the object code displayed in the “Acct” column on the far left for year-to-date actual transactions or on any of the monthly columns for actual postings made during that period.
5. How do I get more detail about an expense or revenue transaction posted to my account? Access the Fiscal Information Reporting System. Click on the object code displayed in the “Acct” column on the far left for year-to-date actual transactions or on any of the monthly columns for actual postings made during that period. The transaction detail report generally displays the payee name as the description for expenses and the depositor’s name as the description for revenues. Additional detail can be obtained as follows:
For accounts payable vouchers, represented by a source code of “PJ” (Posting Journal), access additional information by clicking on the reference number that begins with a “V”. You will be able to view the voucher date, payee or vendor name, a transaction description, voucher or payment amount, check number, check date, purchase order number (if applicable), invoice number and invoice date. If that still doesn’t answer your question, contact the Accounts Payable unit at 415.565.4748.
Inquires regarding payroll transactions, those with a source code of “PR”, should be directed to the Payroll Coordinator at 415.565.4811.
Journal entries, transactions with a source code of “JE”, are generally recharges (i.e., mail, phone, printing) provided by other departments for which Fiscal Services has limited information; the Accounts Payable unit may be contacted at 565-4748 to confirm the entry was posted correctly and who provided the source information.
Procurement Card (P-Card) payments, transactions with a source code of "PC", reflect charges by cardholders authorized by their supervisor. Detail can also be obtained from the Accounts Payable unit.
Questions about encumbrance postings or purchase orders, transactions with a source code of “EP”, should be made to the Purchasing Department at 415.565.4604.
Inquiries for revenue transactions, cash receipts with a source code of “CR”, can be directed to the Fiscal Services Accountant at 415.565.4747.
College receivable transactions with a source code of “IV” should be directed to the Senior Accountant—Student Receivables at 415.565.4709.
You may also contact the Senior Accountant—Budget and Planning Analyst for assistance at 415.565.4824.
6. How do I correct a transaction posted in error against my account? For budget entries, transactions with a source code of “AB” or “BU”, identify the reference number, describe the error, and request a correction through the Senior Accountant—Budget and Planning Analyst. For expense and revenue transactions, address your correction request to the appropriate contact person cited in FAQ #5, identify the transaction reference number and describe the error and correction.
7. What is the Fiscal Information Reporting System? The Fiscal Information Reporting System is a web-based system through the Hastings College of the Law site that can be accessed from any Internet connection. The Fiscal Information Reporting system provides budget and transaction detail activity for the current fiscal year and at least seven additional years of data. An advanced feature of this system is the ability to download information into Excel with a simple click of a button. Another added feature is calculation and reporting of monthly variances from one year to the next. You may also hear the program referred to as WebWizard (the reporting software) and login rights are controlled through another program called WebAdvisor.
8. Where can I find the User Manual for the Fiscal Information Reporting System? Use the link at the bottom of the Fiscal Information Reporting System page or by clicking here.
9. How do I get access to the Fiscal Information Reporting System? Access to the Fiscal Information Reporting System is granted to department heads (authorized signers) and may be delegated to additional staff upon request. Access is controlled by a unique user name or login ID and reporting is restricted to authorized accounts. Request access through Senior Accountant--Budget and Planning Analyst in the Fiscal Services Office at 415.565.4824. The Information Technology department creates the login ID and e-mails the user with information upon completion.
10. How do I move budgeted funds from one account to another? Follow these Budget Transfer Instructions.
11. How do I add a new object code to my account? Only object codes that have an associated budget can be added to your account. If you have identified the need to use an expense or revenue object that is not currently budgeted, submit a budget transfer request to establish a budget in the new object code.
12. What can I do if there are not enough funds available in my budgeted account? Once a department/program budget has been established, budget managers have authority to transfer budgets between most object codes (i.e., line items) within a single department/program. For example, a reallocation of budgeted funds can be made from supplies (object code 5370) to printing (object code 5290) within the Fiscal Services department. Some exceptions to this allowance are salary and equipment line items; these requests require the Chief Financial Officer's review and approval.
With the approval of the appropriate division manager, budgets may also be transferred from one state-funded department to another (state-funded department account numbers all begin with fund 00). In no instance may budgets be transferred from a state-funded account to a non-state account or between different non-state programs.
If an overall department/program budget shortfall is projected, the division manager should first be consulted to determine if funds can be transferred from an account within the division. If the overall division budget is insufficient, a request for additional funds–a budget augmentation—should be forwarded to the Chief Financial Officer by the appropriate division manager with sufficient justification to support the need for additional expenditure; the Budget Transfer Form should not be used to request additional funding. Any questions should be directed to the Senior Accountant--Budget and Planning Analyst at 415.565.4824.
13. Where can I find budget forms? Budget development and midyear review forms can also be found on the Budget Processes and Forms page. Click here for the Budget Transfer form.
14. When is the College’s annual budget developed? The College’s beginning budget – or internal allocation of funds – is generally developed after meetings with budget managers in June. The process usually begins in April, with distribution of Budget Worksheets. More information can be found on the Budget Processes and Forms page. The College’s fiscal year is from July 1 through June 30.
15. What are the procedures for Faculty Professional Development Accounts? Procedures can be found on the Fiscal Manuals page.
16. How is the College’s annual budget developed? Information about how both the State Governor’s Budget and Hastings internal budget are developed can be found in the Financial Operations Policy and Procedure Manual, Section 7.0—Budget. More specific information about the College’s internal allocation processes can be found on the Budget Processes and Forms page. See FAQ #17 below for more about the State's budget process.
17. How does Hastings get funding from the State? How is the State budget passed? Hastings works with the State Department of Finance, following their guidelines, to continue receiving funding appropriations from the State. This information is included in the Governor's proposed budget sent to the Legislature in January (which includes input from all state departments) and a revised budget in May with updated information on state revenues and expenditures (the "May Revise"). The Legislature reviews the proposed budget and the Senate and Assembly both prepare a budget reflecting their priorities. Differences between the two versions of the budget are resolved by a special two-house conference committee, with input from the Governor and the top leadership of the Legislature (the "Big 5") who often meet to work out an agreement that is voted on by the Legislature. In California, the budget needs a 2/3 vote from the Legislature to pass (while most other states need just a majority vote). This is one of the reasons why California's budget is often passed well after the official June 15 deadline. Click here for the state's Budget Process Overview document.
Updated: March 30, 2011