Budget Adjustment Training

1. Budget Adjustment Training University Budget Office Megan Bergstedt mbergstedt@montana.edu Mackenzie Seeley mackenzie.seeley@montana.edu

2. Agenda • Overview of budget adjustments • The importance of properly budgeted positions • How to determine a proper position budget • How to request a budget adjustment if current budgets are not correct

3. What is a budget adjustment? • A budget adjustment is used to move budget from one index/account to another • Budget adjustments can only be done within the same fund type (i.e. state fund to state fund) • Budget adjustments always must balance within the same fund type

4. Types of Budget Adjustments • Base Budget Adjustments • This type of adjustment is “permanent” • All positions use base budgets • Show up as a BD02 in reports • One-Time Only Budget Adjustments • This type of adjustment only increases budget for the current fiscal year • Show up as a BD04 in reports

5. Reasons for a Budget Adjustment • A one-time adjustment would be made for a commitment in a year • Reallocating budget authority from one index to another • Position adjustments happen when any permanent change to a position occurs (new hire, FTE change, rate change) • Moving budget from positions to ops and vice versa

6. Properly Budgeted Positions • Especially important for state funded positions • If not properly budgeted, you may not be allocated enough budget to cover pay plan increases • Position budgets assume that the current employee has been in the position for the whole fiscal year

7. Position Budget Changes • A position budget will change if a new hire is made a lower or higher rate than the previous employee • If an employee has a change in FTE • If a change to the employee’s base rate occurs • If there is a labor distribution change • We do not budget grant funded positions

8. Determining Position Budgets • To determine the proper position budgets, we use Salary Projections • A different Salary Projection worksheet is used for each type of employee (classified, professional, faculty) • These projections account a % increase as determined by a pay plan • These do not account for out-of-cycle increases

9. Salary Projections • We will use the step-by-step instructions found here for • Faculty Salary Projections • Professional Salary Projections • Classified Salary Projections

10. Budget Adjustment Request • After completing salary projections, if the projected budget is different from the current budget, an adjustment is needed • If you need to adjust budgets for any other reason, send a request to the budget office • This can be done via your own spreadsheet, an email, or the forms provided here

11. Questions?