Budget Control Approval and

Transfers

• The College receives funding from state and local taxpayers and therefore, its expenses receive a more substantive review.

• As such, the College employees must ensure that all expenses necessary in the fulfillment of its stated mission are incurred at a reasonable cost and are bona fide business expenditures.

The college is required to adhere and report to the Integrated Postsecondary Education Data System (IPEDS) and other agencies (i.e. THECB, NACUBO, etc.). Therefore, expenses must be properly categorized.

FOAPAL codes are the primary chart of accounts elements used for classification, budgeting, recording, and/or reporting.

When requesting a budget transfer or initiating a requisition, the main point we want to put across is:

1. Each department should record the expenses in the FOAP code most relevant to the expense to ensure that expenses are being properly categorized and charged against the correct budget, and

2. the FOAP code to charge is not to be determined solely on the basis of where the funds are available.

Operating Expense - Account Code List Accounts Payable Website:

http://finance.southtexascollege.edu/businessoffice/forms/Account_Classifications.pdf

• Reconciliation is of utmost importance. Verify the budget availability frequently, so that budget transfers can be prepared with ample time, thus avoiding delays.

• A budget transfer increases or decreases the available budget balance in the current fiscal year. Usually, budget is reallocated for future purchases, and/or cover negative balances.

When preparing a Budget Transfer or a Requisition, see FGIBAVL – Budget

Availability Status.

FOAP

The Request for Budget Transfer Form is B0-3500. http://finance.southtexascollege.edu/businessoffice/forms.html

General Rule of Thumb:

Budget Transfers are recorded within the:1. Same fund,2. Same/different

organization,3. Same/different

account code.4. Increase/

decrease amount always offset.

Budget Transfer Form Requirements:

Fund CodeOrganization Code

Account Code

Increase/Decrease Amount

Organization Name

-Justification (Brief and clear explanation of reason for the

departmental budget transfer).

-Approval Review Signatures

Program Code Not Applicable

Budget CategoryFinancial

Manager(s)Appropriate

Vice President President

Salaries and Benefits

Increase to College Budget Not Allowed Not Allowed Not Allowed

Decrease to College Budget Not Allowed Not Allowed Not Allowed

Direct Expenditures and Travel

Increase to Organization Budget Required Required $1,000 or more

Decrease to Organization Budget Required Required $1,000 or more

Capital

Increase to Organization Budget Required Required $1,000 or more

Decrease to Organization Budget Required Required Required

Example of Budget Approval Types and Signatures The following table outlines allowed usage and the corresponding signatures required. All transfers must be within the same fund code (except for restricted and plant funds).

• Due to the number of approval signatures needed and the availability of individuals, please submit your transfer request with ample time to avoid processing delays.

• Your request will be processed within 48 hours, granted that the form is properly completed and is not misrouted.

• How Soon Are Budget Transfers Posted?

Tips

• Requisition Initiator• Purchasing Department-Reviews requisition and documentation to ensure

rules and regulations are met• Business Office – Approves/Disapproves requisition based on budget

availability• Financial Manager-Approves/Disapproves requisition• Purchasing Department-Assigned purchasing staff member reviews

documentation. A Purchase Order # is assigned at this point.• Vendor-Receives the PO#, issues items, and issues an invoice to Accounts

Payable Department• Receiving Department-Receives and Delivers purchased items• Accounts Payable-Process invoice for payment• At any point the requisition is disapproved, it goes back to initiator and the

cycle restarts each time

Requisition Cycle

Tips

FOIAPPH – Documents Approval History Form FOIAPHT – Approval History FormFPIREQN – Requisition Query Form FPIPURR – Purchase Order Query Form FAIINVE – Invoice Query Form FGIDOCR – Document Retrieval Inquiry FOIDOCH

FOAAINP – Document Approval Form See: Queue Level5 – Purchasing10 – Business Office20 – Financial Manager

Other Document Inquiry Forms

REQ – RequisitionPO – Purchase OrderINV – Invoice

If FBIBAVL shows Pending Documents

TipsIf FBIBAVL shows Pending Documents

Tips Printed Marketing

Allowedto

PurchasePrinted Marketing

Materials

Allowed to

Purchase Promotional Items

Process IDTfor

Promotional Item Expense

Process

Budget Transfer for

Promotional Item Expense

1

Unrestricted Instructional Organization

(Fund Code 110000)

Yes, through the unrestricted

instructional marketing organizations

Yes, through OPRM (Unrestricted Organization) No

No, Unless items are unique and cost is

significant, as determined by OPRM

2

Unrestricted Non-Instructional Organization

(Fund Code 110000)

Yes, items must be related to department

operation requirements

Yes, through OPRM (Unrestricted Organization) No

No, Unless items are unique and cost is

significant, as determined by OPRM

3 Dual2Degree Yes Yes N/A N/A

4 Student Activities Yes Yes N/A N/A

5

Auxiliary Conference

Organizations (Fund Code = 3104**)

Yes, through the auxiliary conference

organizationsYes, through OPRM

(Auxiliary Organization) Yes No

6

Auxiliary Organizations

(Fund Code = 310000)Yes, through OPRM

(Auxiliary Organization)Yes, through OPRM

(Auxiliary Organization) No

No, Unless items are unique and cost is

significant, as determined by OPRM

7

Grant/Restricted Organizations

(Fund Code =2*****)

Yes, through the grant/restricted

organization Yes, through OPRM Yes No

Note: -Transfer requests should be properly completed prior to review and consideration of

approval. -Handwritten, faxed, scanned, incomplete, or altered budget transfer forms are not allowed

and will be disapproved.