Budgeting Techniques

The Office of Contracts and Grants will enter original budget data into the financial accounting system as awarded by the sponsoring agency or as provided by the responsible unit if the sponsor required no detailed budget. Each College/School/unit should submit budgets with the sponsored award packages in the level of detail that the responsible individuals (i.e., PIs and College Research personnel) wish to see the related budget available balances (after being affected by actual expenditures posted to their respective account codes).

The current financial accounting system allows flexibility in the manner in which funds are budgeted. However, budgets are no longer systematically adjusted to reflect posting of expenditures in that budget cost category. Therefore, submitting budgets in as much line item detail as possible to gain a clear reflection of available budget balances (reduced by actual expenditures) is recommended.

Three different budgeting options that affect the appearance of the budget and the budget available balance as actual expenditures are posted are available.

  • Option 1/OLD ABR 0

    Reflects budgets at the detailed account (object) code level. This option offers a precise look at available budget balances.

  • Option 2/OLD ABR 5

    Reflects budgets at the summary account (object) code level. Once detailed expenditure transactions begin to affect these projects, the budgets will appear to be over-expended in the detailed account codes. However, at the summary level and in total, the budget should be in agreement.

  • Option 3/OLD ABR 6

    Reflects budgets in a “budget pool” account (object) code of 58950. This is the default method of budget entry for most Memorandums of Agreement (MOA) and other sponsored awards that do not require detailed budgets. Once detailed expenditure transactions begin to affect these projects, the budgets will appear to be over-expended in the detailed account codes. However, the budget should be agreement in total.

 

See also: Budgeting Guidelines on the SPARCS web site