How long is the Budget Year at BYU?

The budget year for Brigham Young University spans from January 1 through December 31. However, tuition and salaries are on an academic year that goes from September 1 through August 31.

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How long is the budget cycle?

The budget cycle begins approximately twelve months prior to the year being budgeted. For example, the 2005 budget materials were distributed to the Deans and Directors in January of 2004.

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What do I need to know to submit a budget request?

Since our funding comes primarily from the Church, a guideline is given for what we might expect as a percentage increase to our base expenditure budget. We multiply the percent increase by your current continuation budget to give you the guideline with which to plan. With this information you are in a position to formulate a budget request for the upcoming year. No funds are provided for program improvements in your guidelines. However, if there are critical needs that cannot be funded from your continuation budget, they should be summarized in a memo and included with your budget request.

You have complete flexibility during this time to put your budget in the account categories where it will be spent. For example, travel funds can be moved to wages or supplies and vice versa. Major changes between categories must be accompanied by written justification submitted with your budget request. These changes you make in the budget request, if approved, are permanent changes. After these budget requests are signed and returned to the Budget Office, they are compiled into a formal university budget presentation to the Church.

The planning and budget request summarization takes place in the summer, with the final draft being submitted to the Church Budget Office in the Fall. In December we receive notification of our approved expenditure budget. The budget is not always approved as submitted. We have experienced some budget cuts in the past.

Once budget approval is received from the Church we are committed to spend it in the way we have requested it. Because of this, it is necessary to follow the budget transferability restrictions explained on the multi-color handout. The approved budget, as allocated to you at the first of the year, includes faculty contracts, salary changes, and any benefits adjustments.

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How do I report budget values?

Budget is placed in major categories such as -5100, -5600, -6100, etc. Expenses are incurred at the detail level, (-5510, -5610, -6140, etc.). Expenses in each category are summarized and compared to the budget. For example, an expense in -5610 (student employee on a time card) would be summarized with other -56xx expenses and compared to the -5600 budget.

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How do I make adjustments to my budget?

Due to unforeseen circumstances, it is sometimes necessary to move budget from one expense category to another or from one speedtype to another during the year. Budget adjustments are made using the Electronic Budget Adjustment form. The form and instructions are located on the Financial Services web page on the Forms link. Budget funds being moved should be rounded to the nearest whole dollar and transferred only between major budget categories (see above). Unless noted, these adjustments are considered temporary in that they only affect the current year's budget. The budget adjustment form is submitted to the Budget Office for processing (budgetoffice@byu.edu).

Occasionally, Budget Adjustments that do not meet the transferability restrictions are needed and a trade must occur. The Budget Office will act as a clearinghouse to facilitate these trades among accounts. A trade should first be attempted within the college or division, and then petitioned to the Budget Office. Trades may be requested on a regular budget adjustment form detailing how much budget is to be traded and what accounts are involved. The Budget Office will make every effort to facilitate the trade but cannot guarantee success.

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Can I move budget between accounts and/or expense categories?

You have complete flexibility during the annual budget preparation process to put your budget where it will be spent. For example, travel funds can be moved to wages or supplies and vice versa. Major changes between categories must be accompanied by written justification submitted with your budget request. These changes you make in the budget request, if approved, are permanent changes until the next planning session.

Once budget approval is received from the Church we are committed to spend it the way we have requested it. Because of this, it is necessary to follow budget transferability restrictions established by the Church. We have a one-page, multi-colored handout that explains these transferability restrictions in detail that is available from the Budget Office D-208 ASB, extension 422-4097.

Due to unforeseen circumstances, it is sometimes necessary to move budget from one expense category to another or from one speedtype to another during the year. Budget adjustments are made using the Electronic Budget Adjustment form. The form and instructions are located on the Financial Services web page on the Forms link. Budget funds being moved should be rounded to the nearest whole dollar and transferred only between major budget categories (see above). Unless noted, these adjustments are considered temporary in that they only affect the current year's budget. The budget adjustment form is submitted to the Budget Office for processing (budgetoffice@byu.edu).

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What if I need an adjustment that does not meet the transferability restrictions?

Budget adjustments that do not meet the transferability restrictions are needed on occasion and a "trade" must occur. The Budget Office will act as a clearinghouse to facilitate these trades among the University accounts. A trade should first be attempted within the college or division and then petitioned to the Budget Office. This is accomplished by filling out a budget adjustment form detailing how much budget is to be traded and what accounts are involved. An explanation should be put on the adjustment form requesting that a trade be made and the reason for the request. The Budget Office will make every effort to facilitate the trade. The trade is not guaranteed, however.

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What about Equipment and Software?

All unused Equipment and Software funds will be carried over to the New Year. This carryover applies only to original Equipment and software funds. Budget transferred to Equipment or software from supplies (6100), 1% carryover (0020), or research (0030 and 0035) will be excluded when calculating the amount carried forward.

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How do I budget for Research Funding in the General Fund?

First, this response is only applicable to research funding in the General Fund, or Fund 11. It is not applicable to externally funded research activity that is accounted for in "Rxxxxxxx" operating units.

Fund 11 research allocations, coming from the central administration are generally put into 0030 accounts. It is possible that other funding sources (for example, from colleges or departments) could be put into the fund 11 research accounts. These other funds will go into specific accounts, such as travel, wage or supplies.

Unused balance in a 0030 account may be carried forward to the New Year (one year only) and will be put in a 0035 account to identify them as funds that will not carry over. All unused budgets in other accounts will end with the fiscal year. Only original 0030 funding has carryover capacity. Money may not be moved into the 0030 account from other categories for carry over purposes. Please inform the recipients of this University Research or Alcuin funding as to when it will expire. Many faculty members erroneously assume that this funding continues indefinitely and therefore, do not use their funding in a timely manner. This funding will only carry forward over one fiscal year-end regardless of when it was awarded. For example, funding given out in the eleventh month of the year will expire 13 months later, or in the final month of the next fiscal year.

Each month there is an automatic analysis done by the system. If there are more expenditures than budget in specific budget categories, then an automatic entry will be made to move budget into the specific category from 0035 (until used up) and then 0030 (until used up).

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How much can I carryover?

Up to 1% of your departmental base budget, as of December 31, 20XX may be carried forward to the new budget year. The amount carried forward cannot exceed the amount of funds you have available at year-end. In calculating the funds available for the 1% carryover, base budget and balance available in the Equipment and Software categories are excluded because they are carried over in total. Funds carried forward from the prior year are also excluded.

No expenditures are allowed in the -0020 (1% carryover) account code. The 1% carryover must be moved to a budget category to be used. It must be moved on a budget adjustment form prior to the end of the fiscal year. Balances remaining in the 1% carryover category are excluded from the carryover calculation for the following year.

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What budget can be carried over from one year to the next?
Equipment:

All unused equipment funds for the college or division will be carried forward to the new year. This carryover applies only to original Equipment funds. Budget transferred to Equipment from supplies or 1% carryover will be excluded when calculating the amount carried forward.

Software:
All unused software funds will be carried over to the New Year. This carryover applies only to original software funds. Budget transferred to software from supplies or 1% carryover will be excluded when calculating the amount carried forward.

Research:
Unused balance in the 0030 account will be carried forward to the New Year (one year only). All other fund 11 research budgets will end with the year. Only original 0030 funding has carry over capacity. Money may not be moved into the 0030 account from other categories for carry over purposes. Many recipients for University Research or Alcuin funding erroneously assume that this funding continues indefinitely and therefore do not use their funding in a timely manner. The funding in the 0030 account will only carry forward one year-end regardless of when it was awarded. For example, funding given out in the eleventh month of the year will expire thirteen months later - the next year-end.

1% carryover:
Up to 1% of your departmental base budget may be carried forward to the new budget year. The amount carried forward cannot exceed the amount of funds you have available at year-end. In calculating the funds available for the 1% carryover, base budget and balance available in the Equipment and Software categories are excluded because they are carried over in total.

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How are budget to actual comparisons done?

Budget is placed in major categories such as 5100, 5600, 6100 etc. Expenses are incurred at the detail level, (5510, 5610, 6140, etc.) Expenses in each category are summarized and compared to the budget. For example, an expense in 5610 (student employee on a time card) would be summarized with other 56XX expenses and compared to the 5600 budget.

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What happens if I overspend?

An over-expenditure reduction is given when your account has a deficit at the end of the fiscal year. This deficit amount is taken out of your funds for the New Year.

The amount of the over-expenditure reduction is calculated by pooling the expenditure categories as follows:

	Wages & Benefits	5000 through 5999
	Equipment	1625 and 6250
	Computer Services	6010 through 6029
	Software	6000 through 6009
	Supplies & Other	6100 through 6999
	Travel	7000 through 7099

The balances available are added in each pool. If the pool has a positive balance, then no penalty is given in any expense code in that pool. For example, there may be a deficit of $300.00 in category -5100 and a surplus of $500.00 in category -5500; overall there is a net positive balance and the -5100 will not receive an over-expenditure reduction because they are in the same pool.

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What year-end budget adjustments can I expect?

The 1% Carryovers, Over-expenditure Reductions, or other carryovers will not be calculated for amounts less than $25.00. These adjustments from the prior year will appear in your January financial statements following the completion of the audit.

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What are the budget transferability rules?

	Administrative Salaries	-5000
	Regular Faculty Salaries	-5100
	Faculty Supplemental Earnings	-5200
	Part-Time Faculty Salaries	-5300
	Regular Staff Salaries	-5400
	Student Wages (Contract)	-5500
	Student Wages (Time Card)	-5600
	Non-Student Part-Time Wages	-5700
	Payroll Taxes, Insurance, Retirement	-5900
	Equipment	-1625
	Access Devices (ITI)	-6600
	Library Books	-1640
	Software	-6000
	Computer Services	-6010
	Materials, Supplies, and Other	-6100
	Travel	-7000

Purple Categories - Budget transfers may be made within these expenditure categories: Salaries, Wages, and Benefits. The only constraint is that no additional full-time or part-time faculty or staff may be employed in excess of the approved FTE (Full Time Equivalents).

Orange Categories - Funds can be transferred into Equipment or Software from any expenditure category listed in red. Funds cannot be transferred out of these categories.

Red Categories - Budget transfers may be made between these categories: Library Books, and Materials, Supplies, and Other.

Blue Category - Funds may be transferred into this category (Computer Services) from any expenditure category listed in red. Transfers out may occur only with the approval of the Managing Director of University Computing Services.

Green Category - Funds cannot be transferred into or out of travel.

Light Blue Category - Fund can only be transferred within itself.

Carryover Funds - Have no restriction as to how they are spent. The carryover funds can be transferred to any expenditure account (except Access - 6600) during the year and spent in the account.

Exchanges can be made within your college or division among departments as long as the net effect complies with the restrictions. Also, when possible, the Budget Office will work with the Deans/Directors to serve as a clearing agent for transfers between colleges or divisions.

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Nothing here has helped, where can I get more information?

If you have any questions, or if we can be of help in any way, please contact Paul Behrmann at 8-6633 or Joel Christensen at 422-3693, or Brian Andelin at 422-1710. We are located at D-208 ASB.

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