Augmenting a departmental budget (which also augments the Budget Area's budget) is called a Budget Adjustment. Usually the reason for a Budget Adjustment is because the Budget Area's overall budget is not enough to cover anticipated expenditures. Budget Officers are not authorized to over-expend any of their general ledger accounts. Careful planning and monitoring are necessary to ensure adequate budget dollars are allocated and posted to each departmental general ledger account before expenditure of funds to avoid any budget overage or shortfall. Should a Budget Officer need additional funds, there is a process outlined below to accommodate or cover a budget shortfall, IF there are funds available.
Step 1: The departmental Budget Officer should first try to cover the shortfall within his/her own departmental budget. If this is not possible, the Budget Officer should go to Step 2.
Step 2: The Budget Officer should contact his/her Budget Area Officer to explain the situation and try to obtain funds to cover the shortfall. Any budget shortfall should be covered within their Budget Area, if at all possible, via a Budget Transfer. If the Budget Area Officer cannot cover the shortfall within his/her area, then he/she will contact the Vice President over the area and try to cover the shortfall within his/her VP area.Step 3: If the VP cannot cover the funds within his/her area, then the VP will need to submit a proposal to the President's Cabinet for approval. IF:
A. No additional funds are authorized, that will be communicated to the department's Budget Area Officer by his/her VP and he/she will need to make appropriate cuts within the Budget Area to cover the shortfall. End of process.
B. Additional funds are approved by the President's Cabinet, his/her VP will communicate that information to the Budget Area Officer. He/She will also communicate that information to the Assistant Vice President for Finance and Administration (AVPFA) along with the source of funds so that a Budget Adjustment can be made. The source of funds may be from budget savings, the Contingency account, donation, or other source. Then go to Step 4.
Step 4: AVPFA will make the budget adjustment by debiting and crediting the appropriate general ledger accounts to cover the shortfall. The AVPFA will also notify the Budget Area Officer that the adjustment has been made.