Biennial Budget Process

The Munis Budget module can process a biennial (2 year) budget. Clients who have a biennial budget format can view the current year information, and then verify what is left over for the next year.

 

Budget Settings

Within the Budget Settings program, the Biennial Budgeting in Use and Current Budget Year options enable you to have the current year of the budget process update automatically as each new budget year is opened. Only level 5 users have access to these fields. When selecting the Biennial Budgeting in Use field, the following warning displays: "It is critical for clients to contact Munis Support or Implementation before setting this field."

The first time you run a biennial budget, the Current Budget Year option must be 2nd Year. When the budget is run and the year is closed, and if the Holding Current Year Open check box is not selected in General Ledger Settings, the Munis program updates the Current Budget Year option to 1st Year. The next time the budget is run and the year is closed, the Munis program changes the setting to 2nd Year.

 

Define/Start Budget Projection

To use the biennial budget process, the Define/State Budget Projection program must be run every year. The program checks the biennial budget settings in Budget Settings for which budget year is being posted (first or second).

When posting the first year of a biennial budget projection, the program populates both the current year and next year original budget fields using the amounts indicated or using the default values of one-half of the budget to each year. The program distributes the budgets over 24 months, as indicated, or uses the default value of one-twelfth in each month. After posting the projection, the program automatically creates an identical projection for the second year. The program populates the final budget level for the projection records and includes any budget detail records that were identified as year two. This projection is posted at the start of the second budget year. You cannot update the second year budget projection; any modifications to year two must be made through the Budget Transfers and Amendments program.

When posting the second year projection, post as usual for an annual projection. However, for each account, the program calculates the difference between the budget for the prior year (first year of the budget cycle) and the amount spent. The program creates a budget amendment for this amount and posts it to the current year as follows:

When you complete the budget processing for either year, the program rolls the current biennial budget year appropriately.

Note: It is important that no multiyear funds are included in the projection. Multiyear funds are not affected by biennial budgeting as long as they are not included in the biennial budget projection. A biennial budget creates budgets for annual funds for a two-year period, while a multiyear fund is only budgeted once for the life of the fund.

 

Next Year Budget Entry

There are three different methods for entering a two-year budget for an annual fund, and one or all methods can be used on any one budget projection.

Amounts. If your organization uses the Amounts method of entering budget, the Munis program open the next year fiscal year column and the amounts you enter in these fields is for the total of year 1 and year 2 (2004 and 2005). Munis automatically splits the amount evenly. If the budget is an even of the entire amount, no other entry is needed except to roll to the final level.

5 Year. Use the Amounts option to enter the budget, splitting the budget evenly between year 1 and year 2. The 5 Year option enables you to change the even split. Click the Update toolbar option to change the amount needed in year 2; year 1 adjusts automatically. The total amount of year 1 and year 2 cannot be different than the total amount on the main screen.

Detail. The last method for entering budget is the Detail method. At least two detail records must be entered: one for the first year and one for the second. The program updates the total of the two-year amounts. These amounts are also reflected in the 5 Year screen, but detail should only be updated by using the Detail option.

The budget projection for year 2 is created during the projection for year 1, and cannot be updated. Once the projection for year 1 has been processed, changes can only be made to year 1 and year 2 using the Budget Transfers and Amendments program.

 

Next Year Budget Reports

All report definitions have been modified to print the original two-year budget projection for the biennial budget cycle in the current Fiscal Year Projection column. For example, Report Definition 1 column headings are listed below:

 

2002

2003

2003

2003

2003

2004

PCT

ACTUAL

ORIG BUD

REVISED BUD

ACTUAL

PROJECTION

ADOPTED

CHANGE

 

Working with the Biennial Budget

If you do not use all of an account's budget in year 1, when the Budget Completion Journal is run for year 2, the program looks at each account. If the account is under spent, Munis generates a BUA in year 1. The program takes the left over budget from year 1 and then creates a second BUA for year 2, placing the left over budget in year 2.

The revised budget at the end of year 1 should match the actuals of year 1. The program makes the opposite BUA entries for accounts that are overspent taking the budget from year 2 and placing it in year 1. This is also true for revenue accounts.

 

Using Budgetary Control Accounts

If you use budgetary control accounts, the system operates as it would for an annual fund with the following exception:

If you make a budget transfer or amendment (BUA) to last year, the budgetary control accounts are not hit in an annual fund; however, between year 1 and year 2, when the system generates the BUAs for over/under spending after year-end close, the control accounts are hit and then zeroed out as expected by a last year adjustment.