Procedures for Budget Adjustments

Adjustments to approved budgets should be made when they serve the same planning or control purposes that are served by setting up annual budgets at the start of the fiscal year. Developing a sound budget plan should minimize the need for adjustments but it will not eliminate it.

Evaluating Proposed Budget Adjustments

• Adjustments should be material and a real variance from the original budget (new revenue or unplanned expense).
• Adjustments should be considered in light of the annual budget, including actual activity to-date and anticipated activity through the end of the fiscal year.
• Reasonable budget variances are expected and do NOT mean that budget adjustments should be made. Budget adjustments that simply match budgets to actual activity will NOT be allowed.
• The value of a budget as a planning tool and a means to control spending will diminish as the fiscal year unfolds. After midyear, budget adjustments should not be needed except in highly unusual circumstances.
  • Budget adjustments that involve either a net increase or a net decrease should be done using a budget journal in PeopleSoft.
• Budget journals should be reviewed by the appropriate RRC Manager. To ensure compliance with this policy, all budget journals will be monitored by the University Budget & Finance Office. Budget journals that do not meet the above criteria, may be reversed.