Budget 102 Training_FOR DISTRIBUTION.pptx

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1. Welcome to Budget 102! We'll get started in a few minutes Please mute yourself Integrity Innovation Teamwork Excellence 1

2. 2 Housekeeping Please stay muted OSBM staff will be monitoring the chat for Q&A We'll have activities – please be prepared to participate Availability of slides – slides were sent on 4/26 to registered attendees Budget 101 is on the OSBM website and Budget 102 will be added

3. Welcome to Budget 102! Integrity Innovation Teamwork Excellence 3

4. 4 General Outline

5. 5 General Outline

6. About OSBM: Major Functions Provide fiscal advice to the Governor   Prepare Governor’s recommended budget Apply State law and policy in the administration of the budget Publish the State Budget Manual – includes State Budget Act and policies on budget preparation, administration, travel, and other matters Forecast and monitor state revenues Conduct management analysis requested by legislature or agencies Produce official population estimates for state, counties, municipalities Staff the Council of Internal Audit 6

7. About OSBM: OSBM & Governor Governor appoints the State Budget Director who leads OSBM OSBM provides non-partisan fiscal advice to the Governor and Budget Director   Provides administrative continuity and institutional knowledge of prior budgets and policy decisions OSBM develops the Governor’s Recommended Budget consistent with the Governor’s goals and agenda OSBM executes the budget as enacted by the General Assembly, interpreted by the Governor, and in compliance with State law 7

8. About OSBM: Office Structure OSBM Budget Staff Structure OSBM budget staff work on either budget development or budget execution Your agency has both a budget development and budget execution analyst Budget Development Develops Governor's Budget Certifies budget enacted by General Assembly Assists agencies with strategic planning and performance management Budget Execution Develops Base Budget Executes budget enacted by General Assembly monitors revenue and spending and revises budget as authorized in law interpretation of legislation and other governing language and developing and issuing budget policies and procedures Conducts year-end carryforward and closeout process 8

9. 9 General Outline

10. Revising the Budget OSBM certifies the budget enacted by the General Assembly. Statutes require the budget to be certified by program (fund) and object (line item) . The budget can only be changed if authorized by statute or a provision in session law. GS 143C-6-1 “The Director of the Budget shall certify to each State agency the amount appropriated to it for each program and each object from all funds included in the budget as defined in G.S. 143C‑3‑5(d).”  10

11. Revising the Budget The BD307 is the static certified budget report and should not be confused with the certified budget column on dynamic budget reports. The General Assembly has defined how the certified and authorized budget may be changed through budget revisions. The certified budget represents the budget the General Assembly enacted/approved.  The authorized budget (adjusted certified budget) is composed of the certified budget plus allowable budget revisions . This is the working budget. General Assembly is interested in comparing the two. 11

12. 12 Budget Revisions: Justifications Revision Justifications ​ Purpose : A description of the purpose/function of the revision. Explain what is happening on the revision -- why it is needed and what will be accomplished by its approval. ​ Source of Fund : The source of funds being budgeted (i.e., state appropriations, federal grant, other receipts). ​ Authority : References to Session Law and General Statutes that authorize the budget action. ​ Reciprocal : References to previously approved budget revisions when making a change to those revisions OR  a transfer in/out involving two revisions

13. Budget Revision Types Revision Type Impacts OSBM Approval Action Transfer Across Funds R/NR 13

14. Budget Revision Types Changes Mandated by the General Assembly Revision to the  Certified and Authorized  Budget   GS 143C-1-1(d)7    Type 11 Distributions of Statewide Reserves  Legislative Increase Pay Plan Reserve Distributions of Reserves Appropriated to an Agency Programs in which specifics are not known at time of certification. E.g. Digital Learning, Excellent Public Schools Act Other Changes Mandated by General Assembly UNC System Appropriation Transfers Between Budget Codes (GS 116-30.2(a)) and Revisions to Budget BOG-Approved Tuition and Fees (116-40.22(c)) 14

15. 15 Example: Type 11 Budget Revision

16. Budget Revision Types Responses to Unforeseen Circumstances Revisions to the  Authorized  Budget   GS 143C-6-4 Type 12 The Over-expenditure is required due to unforeseen circumstances . The scope of the program is not increased . The over-expenditure is authorized on a one‑time non-recurring basis . Includes transferring appropriations between funds and budgeting over-realized receipts . UNC System Revision within a budget code impacting receipts of more than $5K or 537xxx or 538xxx  accounts (GS 116-30.2(a)). 16

17. Budget Revision Types Responses to Unforeseen Circumstances Revisions to the  Authorized  Budget   GS 143C-6-4(b1)  If the over-expenditure causes authorized requirements to exceed the department's certified requirements by more than 3% , OSBM shall consult with Gov Ops prior to authorizing the expenditure. Check performed by ensuring single budget revision does not increase requirements at the 2 digit GASB Code level (e.g. 11xx) by more than three percent (3%). UNC System is authorized to budget receipts Up to 10% above budgeted – i.e. certified – levels (GS 116-30.3A). 17

18. 18 Example: Type 12 Budget Revision

19. Budget Revision Types Realignments within a Fund Revisions to  Authorized  Budget   GS ( G.S. 143C-6-4 ) Type 14 In certain cases, OSBM has delegated authority to agencies to revise the  Authorized Budget. NR revisions within a fund/purpose code between 1xxx and 5xxx accounts and $5K or less in adjustments to receipt accounts ( State Budget Manual Section 3.8.6 ). Budget revisions that agencies can approve internally are known as  Type 14  revisions. UNC Type 14 Authority Based on GS 116-30.2 and State Budget Manual Section 3.6.6.   19

20. 20 Example: Type 14 Budget Revision

21. 21 Type 14: Lapsed Salary When do I mark a revision as using Lapsed Salary? When an agency moves funds from a personal services type account (531XXX) to any other allowable operating expense (including another 531XXX account) See Budget Manual section 3.8.7 Lapsed Salary Revisions for further detail

22. 22 Budget Revision Types Delegated Type 14 Authority Realign Requirements Between 1XXX-5XXX Within Purpose/Fund Codes (UNC Between Purpose/Fund Codes) Reflect the Expenditures of Lapsed Salary, Subject to Section 3.8.7 Increase Receipts by $5,000 or Less Prohibited Type 14 Activity Recurring Revisions (Except UNC) Realignments that Impose Ongoing Obligations Realignments Between Funds/Purposes (Except UNC) Realignments Between Different Funding Sources Realignments from Operating  Accounts (2XXX to 5XXX) to Personal Services (1XXX) (Except UNC)

23. 23 Budgeting Positions The establishment of a new position is not routinely allowed.  An increase in the position count  is generally only accomplished through a specific appropriation by the General Assembly Exceptions:  (1) Establishing new receipt-supported position, i.e., federal (agencies no longer required to complete form on OSBM website).  Receipt-supported positions generally time-limited (143C-6-4) (2) Position may be established using authority in 143B-10(c) if agency appropriations allow (e.g., salary reserve, or repurposing existing position): “The head of each principal State department may establish or abolish positions, transfer officers and employees between positions, and the change the duties, titles, and compensation of existing offices and positions as he deems necessary for the efficient functioning of the department….” Revision must include statement from the “head of department” approving the action (3) Various agency-specific authorizations – e.g. North Carolina Center for the Advancement of Teaching (NCCAT) may establish positions using authority under 115C-296.5(c) , and UNC institutions may establish positions under 116-30.4.

24. 24 Budgeting Positions: Approval Process HR and budget offices should pay special attention to position number, position title, effective date, salary amount/budget, and classification If PCR is rejected, then the position must be recreated 143C-6-6 directs agencies to request approval from OSBM for new positions. OSBM shall ensure agency has enough funds available. ​ ​ Revision shall include: ​ Authority for establishing new position​ Position description, effective date, permanent or time-limited, position number, classification, FTE count, annual salary, proposed funding source, organizational chart  (UNC Only Provides FTE) ​ Requirement section should reflect payable salary and benefits based on  effective date  of the position. ​ IBIS/BEACON processes are independent so agency budget and HR offices MUST coordinate

25. 25 Example: Budgeting Positions

26. 26 Annualizations What does the annualized column on budget revisions do? Activates for recurring revisions with an effective date other than 07/01/XX. This data will be pulled into IBIS in the next biennium . If left blank, no budget will be copied into the new fiscal year. IBIS technical staff is monitoring prior to loading into the new fiscal year.

27. 27 Annualizations for Positions – Depends on Date Position 1: Effective Date 07/01/XX, no annualized amount required Example 1: Effective Date 07//01/XX, no annualized amount required Position 2: Effective Date 12/01/XX, annualized amount required

28. 28 Notification of Grant Applications/Awards GS 143C-7-1 requires agencies to submit a copy of new grant applications along with any other information required by the Budget Director. The  Application for Grants form satisfies statutory requirements and should be sent to OSBM when agency applies for a grant. When the grant is awarded, the agency must update form line 29 with actual amount of grant received and resubmit to OSBM.

29. 29 New Grants and Gov Ops A new grant award for less than $2.5 million , that requires no state match , and has no funds spent on capital can be budgeted immediately. Agencies must report these grants to Gov Ops within 30 days of receipt (S.L. 2021-180, Sec. 4.2) If a new grant award exceeds $2.5 million , requires state matching funds or funds for a capital expenditure , a consultation with Gov Ops is required.  Agency requests that OSBM submit the consultation request to Gov Ops. Funds cannot be budgeted until consultation requirement is met (Gov Ops meets or 90 days following OSBM submission of consultation request)

30. 30 Continuation/Renewal of Existing Grants and Gov Ops Grants IN the Base Budget No additional reporting or consultation with Gov Ops is required for continuation/renewal of existing grant awards that are included in an agency’s Base Budget. Agencies should submit an updated Application for Grants form to OSBM for continuation/renewal/revision of existing grants.  Grants NOT currently in the Base Budget If the purpose of the continuation/renewal grant award has not changed, no additional reporting or consultation with Gov Ops is required. If the purpose has changed following the initial reporting/consultation, the amended purpose must be sent to Gov Ops Grant award for less than $2.5 million, that requires no state match, and has no funds spent on capital can be budgeted immediately. Agencies must report to Gov Ops Grant award exceeds $2.5 million, requires state matching funds or funds for a capital expenditure, consult with Gov Ops is required. Ongoing grant funding (more than two years) should be included in Base Budget at earliest opportunity.

31. Knowledge Check 1 A new position is needed for several months to support the planning and execution of a bi-annual conference. The new position will be funded through conference registration fees. Please answer the following questions about the budget revision needed to budget the receipts and new position.  Should the position be budgeted as permanent or time-limited? Answer options: Permanent Time-limited Should the revision be recurring or NR? Answer options: Recurring Non-recurring What authority should be cited? Answer options: 143B-10 143C-6-4 None It’s the way we’ve always done it. Would the revision be a type 11, 12, or 14? Answer options: Type 11 Type 12 Type 14 31

32. Knowledge Check 2 Should the revision be recurring or NR? Answer options: Recurring Non-recurring What authority should be cited? Answer options: 143B-10 143C-6-4 Section 4.2(a) or SL 2021-180 It’s the way we’ve always done it. Would the revision be a type 11, 12, or 14? Answer options: Type 11 Type 12 Type 14 Would the revision need to be annualized for the next fiscal year? Answer options: Yes No Your department receives a federal grant renewal. The grant is formula-based and renewed every five years.   The grant was submitted to Gov Ops when it was first awarded.   You need to revise the budget based on the amount of the renewal. The revision is effective 1/1.  32

33. 33 Questions Questions?

34. 34 General Outline

35. 35 Captial Budget Revisions: Definition of a Capital Project Defined in the State Budget Act (G.S. 143C): “A term that includes real property acquisition, new construction or rehabilitation of existing facilities, and repairs and renovations over $100,000 in value.”

36. 36 Capital Budget Revisions: Funding Types Capital can be funded by various types of financial instruments: General Fund Appropriation Appropriation of State Capital and Infrastructure Funds (type of General Fund) General Fund Supported Debt (General Obligation, Two-Thirds, Special Indebtedness) Agency and Campus Receipts Agency and Campus supported debt (Performance Contracting and Self Liquidating)

37. 37 Capital Budget Revisions: Budget Codes Budget Codes are established for the individual Fiscal Year.  Or, in some cases for a General Fund Supported bond program.   OSBM sets up each campus/agency budget code at the beginning of the Fiscal Year Budget Code structure is as follows: 4 (denotes capital) XX (denotes Fiscal Year) YY (denotes Agency 42201 (Capital, FY 2023, Department of Administration) 

38. 38 Successful Capital Budgeting Budgeting is a partnership between the following

39. 39 Budget Revisions: Setting up a Capital Project When can an Agency/Campus begin a Capital Project: 143C-8-7 provides that no agency can begin a capital project unless it is to comply with the State Budget Act or is otherwise authorized by the General Assembly

40. 40 Budget Revisions: Common Capital Project Authorizations General Assembly appropriates University of North Carolina Receipt Supported Project and Carry Forward Funds (G.S. 143C-8-12) Unforeseen Circumstance (G.S. 143C-6-4) Project is an emergency that is necessary to prevent an impact to public health and life safety (G.S. 120-76.1) Grant Funded (S.L. 2021-180, Sec. 4.2 or G.S, 143C-5-4) Agency has an authorization and appropriation in Statute.

41. 41 Capital Budget Revisions: Fund Codes A capital fund code is a distinct project/purpose or type of project for which a capital budget is required.  A capital project can be the following: General Assembly appropriates funds for a specific project Agency/Campus has authorization to undertake projects in Statute Allocation of Repairs and Renovations Reserve funds: Replace Administration Roof Replace Roofs across the Department of Adult Correction

42. Capital Budget Revision Revision Type Impacts OSBM Approval Action Transfer Across Funds R/NR 42

43. 43 Budget Revision Types: Continued Type 11:  General Assembly specifically tells an agency/campus to do a project Initial allocation of the Reserve for Repairs and Renovation Type 12:  Agency/Campus undertakes an action within its statutory authority Type 14: Agency/Campus is moving funds within a project to realign requirements to match expenditures without a change to total project budget. 

44. 44 Capital Budget Revisions: Setting Up a Project A fund code and revision to set up a project should be in the Budget Year for which the action occurs, which some exceptions.  For example: The General Assembly funds a project in FY 2023 to the Department of Administration: Project set up should be in the unique fund in budget code 42201.  Changes to an existing project may be made via a budget revision in the existing project fund, after consulting your analyst.  Budget Revision should be for the total amount of funds appropriated and authorized by the General Assembly

45. 45 State Capital and Infrastructure Fund SCIF Projects may be set up in their entirety for the year that the General Assembly appropriates SCIF Funding Each year of SCIF Funding is a separate account (438SXX for State Agencies and 432SXX for UNC Campuses) Other receipts may be budgeted as well. 

46. 46 Budget Revisions Capital: Increasing a Project Increases to a capital project may occur via a budget revision.  Some common increases are: Funded by available Repair and Renovation Funds at the Agency/Campus Funded entirely non-General Fund receipts (must be reported to the General Assembly) and the agency/campus has authority to use receipts for this purpose (G.S. 143C-8-8)

47. 47 Capital Budget Revisions:  Transferring Funds  Repair and Renovation Funds may be transferred to other projects that are eligible to receive Repair and Renovations Funds: Transfers within a budget code/year should be handled as a reduction to the project transferring funds and corresponding increase to the project receiving funds.  The requirements and receipts to a budget code would remain unchanged.  Transfers to another budget code/year must be an expense to transfer from the project transferring funds.  The receiving project increases receipts and requirements by the amount of funds being transferred.  

48. 48 Capital Budget Revisions: Tips Revision Titles should be clear to external audiences (include fund code number, project title, etc.) Justification for the Capital Budget Revision should include: Statutory or Session Law authorization to establish a project Any approval dates (Board of Governors, Commission, etc ) Any other relevant information that helps the analyst evaluate the project Project budgets must match the State Construction Office's project management system (Interscope).

49. 49 BREAK

50. 50 General Outline

51. 51 Budget Execution – Operating Allotments Relevant Questions What is an allotment? Why is an allotment required? When should an allotment be requested? How should an allotment be requested? What should the requested amount of the allotment be based on? How does cash on hand impact an allotment request? What happens after an allotment is submitted in IBIS?

52. 52 What is an allotment? An allotment is a request to have available operating funds appropriated to an agency made available for expenditure . Why is an allotment required? G.S. 143C-6-3 - To receive the operating funds appropriated to it, a State agency shall submit to the Director, at intervals and in a format prescribed by the Director, a request for an allotment of the amount estimated to be required for the agency's operating costs during the ensuing fiscal period. The Director shall approve or modify the allotment requests, and the State Controller shall implement the allotments as approved or modified by the Director . Budget Execution – Operating Allotments

53. 53 When should an allotment be requested? Currently, allotment requests are made on a monthly or quarterly basis for payroll and operating expenses during the fiscal period for the request. Additional allotments for receipts or appropriations may be submitted during the quarter as needed. Budget Execution – Operating Allotments

54. 54 How are allotments requested? Allotment requests are processed utilizing the Integrated Budget Information System (IBIS) for the requested period. The request should be made for the appropriations and receipts required to support the estimated expenditures for the fiscal period. Include a   justification and/or attachments that will aid in analysis. Budget Execution – Operating Allotments

55. 55 What should the requested amount of the allotment be based on? Agencies should develop an annual spending plan based on the total amount of appropriations and receipts, as well as their business needs. Allotment requests should be based on projected spending needs for the applicable period (monthly or quarterly), and the anticipated collection of receipts. Budget Execution – Operating Allotments

56. 56 What should the requested amount of the allotment be based on? (cont.) Budget Execution – Operating Allotments

57. 57 How does cash on hand impact an allotment request?  Unspent funds are no longer reverted at the end of the quarter; only at year end. The estimated cash available from the previous period must be included on the allotment request form. If the estimated cash on hand is zero, place $0 on the form. The Cash Availability Report (NCFS) or the BD-702 Report (NCAS) can be used to determine cash availability. Estimated cash is not included in the formula which calculates the amount of appropriation needed:  (requirements – receipts = appropriation) Budget Execution – Operating Allotments

58. 58 How does cash on hand impact an allotment request? (cont.) Cash availability will be considered when analyzing and approving allotment requests but will not prohibit agencies/universities from receiving available appropriated funds. Identifying cash availability will help inform needs, encourage use of cash on hand, and provide a systematic allocation of cash from the General Fund. Budget Execution – Operating Allotments

59. 59 What happens to an allotment request after it is submitted in IBIS? The OSBM Budget Execution analyst assigned to your agency will review the request and follow up with any questions/concerns. Request is approved in IBIS or returned for adjustments. After the request is approved in IBIS, it is entered into the North Carolina Accounting System (NCAS) through a journal entry by the agency. The OSC updates the North Carolina Financial System (NCFS). Funds are now available in NCAS for expenditure to support the approved allotment request. Budget Execution – Operating Allotments

60. 60 What happens to an allotment request after it is submitted in IBIS? After an allotment request is approved, it can’t be unapproved in IBIS. A new request should be submitted to make any required adjustments. Budget Execution – Operating Allotments

61. 61 Budget Execution – Operating Allotments

62. 62 Forms and Reports Operating Allotment Request Form – NC IBIS BD-702 Report – NCAS General Fund Cash Balance Report - NCFS Cash Availability Report – NCFS Budget Execution – Operating Allotments

63. Unspent funds do not revert until year end Based on Annual Spending Plan for the period 63

64. Requested Appropriation 64

65. 65

66. Ending Balance 5,390,218.59 Unexpended Allotted Balance 5,423,275.23 66

67. 67 Comparison of Cash Balances Report Amount BD 702 $ 5,199,979.29 NCFS – Cash Balance Report $ 5,423,275.23 NCFS – Cash Availability Report $ 5,390,218.59 Budget Execution – Operating Allotments

68. 68 General Outline

69. 69 Capital Allotments A capital allotment is the authority to expend funds.  In some cases, an allotment also moves cash from OSBM to the agency campus.  There are four different types of allotments: Regular Allotment Internal Allotment  State Capital and Infrastructure Fund Allotment Bond Allotment

70. 70 Capital Allotments A regular allotment occurs under the following circumstances: The agency/campus has the funds available in their fund code to satisfy the allotment request.  Allotments may be for the following amounts: A receipt (non-bond, non-SCIF) project may be for 100% of the project budget or follow the set up below for General Fund A General Fund project should be allotted by project stage: Planning Construction Reserves Close out

71. 71 Capital Allotments: Internal Allotments An internal allotment is allowed without OSBM approval.  Agencies may use an internal allotment to align fund expenditures Internal allotments may not exceed external (OSBM approved) allotment totals. 

72. 72 Capital Allotments: SCIF Allotments State Capital and Infrastructure Fund (SCIF) allotments move funds directly from the Office of State Budget and Management to the campus/agency.  The campus/agency receives the funds from OSBM and assigns them to the correct fund and receipt line item.  SCIF allotments may not exceed the total of the current Fiscal Year and previous unalloted Fiscal Years. 

73. 73 Capital Allotments: SCIF Allotments A SCIF Allotment may be requested in two ways: Under $3 million total SCIF budget Up to 100% of total SCIF funds appropriated in the past and current year may be requested OSBM asks that agencies, when possible, allot via the normal allotment that includes planning, construction, reserves, close out.  Over $3 million total SCIF Budget Agencies are requested to make a quarterly allotment request based on projected project cash expenditures Allotment requests in IBIS should be accompanied by the OSBM allotment request form, or corresponding UNC System Office allotment form.  The OSBM form is found:  Capital Job Aids   Important Note: If you already have the SCIF cash, a regular or internal allotment should be requested to adjust funds. 

74. 74 State Capital and Infrastructure Fund Only past and current Fiscal Year funds may be allotted via a SCIF Allotment to receive funds A capital allotment can be used to realign funds.

75. 75 Capital Allotments: SCIF Allotments SCIF Allotments Cash Flows information may be obtained from the following: Consult your facilities staff to understand project timing (planning, construction letting, etc ) Consult your architect, construction manager at risk, etc to obtain cash needs of the project. Additional funds can be requested should they be needed in any quarter, provided the project has enough availability.   

76. 76 Capital Allotments: Bond Allotments Bond Allotments are for General Fund supported debt projects.  Agency/campus supported debt projects are handled as a receipt supported project. Bond allotments will transfer funds from the Department of State Treasurer and OSBM to the agency and campus.   Bond allotments may only be for current invoices Bond requisitions occur via a schedule found here:  Capital Job Aid

77. 77 BREAK

78. 78 General Outline

79. What is a Deviation Calculating Threshold Consultation Process Example of Submission Exceptions to Process Take aways Agenda 79

80. 80 What Is a Deviation? A deviation is when an agency seeks to spend more than what was appropriated in the certified budget by adjusting the authorized budget by more than 3%.  Budget deviations occur when 1) expenditures exceed certified budget levels for a purpose or programs; 2) budgeted receipts collected exceed amounts authorized (over realized receipts); or 3) transfers occur between purposes/programs/funds.

81. 81 What is a Deviation G.S. 143C-6- 4   governs the authority to make budget adjustments due to unforeseeable circumstances

82. 82 Calculating Threshold Fund - GASB (Governmental Accounting Standards Board) Fund as assigned by OSC Download OSC “Company BC GASB Correlation Data” excel file via link on OSBM’s website

83. 83 Calculating Threshold

84. 84 Calculating Threshold

85. 85 Calculating Threshold Filter GASB file by your agency’s number Group GASB Fund codes at the 2-digit fund level. For example, 11xx or 12xx total.

86. 86 Calculating Threshold Certified Budget – BD307 verse RK325 When are you calculating during the fiscal year? BD307 RK325 Start of fiscal year after certification  “Original” for 1 st year of biennium “Revised” for 2 nd year of biennium During fiscal year if certified budget has been changed due to 11-type revisions

87. 87 Calculating Threshold Start of Year During Year Total Total Calculate 3% of total Certified Budget

88. 88 Consultation Process If budget revision’s deviation is 3% or more of the TOTAL for all the budget codes (BC) within a GASB, consultation with Joint Legislative Commission on Governmental Operations (Gov Ops) is required. Complete Deviate form ( on OSBM’s website under “Common Agency Request”) List all BC for the GASB Put Budget Revision amount on the line of applicable BC

89. 89 Consultation Process A ttach to IBIS budget revision with copy of current BD701 OSBM reviews revisions and supporting documentation Budget Director submits request to Gov Ops Date of memo is the start of the consultation period Per G.S. 120-76.1(b) If the Gov Ops Commission does not hold a meeting to hear the consultation within 90 days of receiving the submission of the detailed report, the consultation requirement is satisfied. Budget revision will be approved in IBIS at the time of the Commissions next meeting or after 90 days, whichever occurs first.

90. 90 Example of Submission Memo from State Budget Director

91. 91 Example of Submission Deviation Request Form

92. 92 Example of Submission Current BD701

93. 93 Exceptions to Process NOT required when is: To support court orders ( § 143C-6-4(b)(2)(a)) Unanticipated disasters  ( § 143C-6-4(b)(2)(b)) To call out the National Guard  ( § 143C-6-4(b)(2)(c)) Budgeting funding from grants under $2.5 million ( Section 4.2(a) of S.L. 2021-180) Budgeting Appropriations made through the General Assembly (Type-11) Budgeting grants from other state agencies if included in grantor’s certified appropriations (example: DPS Governor’s Crime Commission grant awarded to AOC)

94. 94 Take aways Be proactive to identify over expenditures early so that deviation requests can be submitted with the 90 day Commission process in mind Deviations predicted for year-end should be addressed with a deviation request no later than April 1st Review over expenditures monthly.  Reduces the amount of the budget revision to cover current negatives, potentially avoiding hitting the 3% threshold (threshold is per budget revisions not cumulative) Cleaner quarterly close-outs Utilize the Base budget process to address reoccurring deviations with WSI entries to increase Certified budget (thus increasing 3% threshold) Are receipts in a fund consistently over realized? Is a grant source awarding funds on a reoccurring basis?

95. 95 General Outline

96. BD307 RK325 RK457 Previous Month Comparison of BD701 and RK325 Previous Month Over Expenditure Previous Month Negative Cert/Auth RK15 RK 402 Capital Report Agenda 96

97. 97 BD307 – Certified Budget Report Static report – once the budget is certified, this report will not change Signed BD 307 Reports can be found on OSBM's website following certification Original vs. Revised BD 307 Report Original reflects the budget as approved by the General Assembly in the first year of the biennium (even years) Revised reflects the budget as amended by the General Assembly in the second year of the biennium (odd years)

98. 98 RK325 – Certified and Authorized Budget Report Reports current certified and authorized budget, as amended throughout the year via budget revisions Updates every hour

99. 99 RK457 – Allotment Summary Report Runs as an Excel file Summarizes allotments by month, allowing agencies and OSBM to track funds that have been allotted and still remain unallotted compared to the authorized budget

100. 100 Previous Month Comparison of BD701 and RK325 Runs as an Excel file If your agency is not listed in this report, there are no reconciliation issues.  The BD 305-1 report in NCAS identifies revisions that did not interface with NCAS NCAS and IBIS should always be in alignment. This report is used during the closeout process to ensure there are no reconciliation issues between the two systems. There is also a current month report that can be used outside of the closeout process.

101. 101 Previous Month Over Expenditure Report Runs as an Excel sheet The data provided shows a list of each agency/division that was over expended last month If your agency is not listed in this report, there are over expended accounts.  Both fund code and account codes are listed, revisions should be done to resolve these issues

102. 102 Previous Month Negative Budget Report Runs as an Excel sheet The data provided is a list of all accounts with a negative budget last month for all budget codes If your agency is not listed in this report, there are no accounts with negative budgets  Both fund code and account codes are listed, revisions should be done to resolve these issues Cautiously review this report as some accounts should be negative

103. 103 Quarter and Year-End Closeout With year-end closeout approaching, the following reports will be critical to ensure the State's success: RK325 BD701 BD702 Previous Month Negative Budget Previous Month Over-expenditure Previous Month Comparison of BD701/RK325

104. 104 RK15 – Multi Purpose Report Provides a list of revisions that have adjusted the budget for specific accounts in a budget code and/or fund code. This can be especially useful if something looks unusual in your budget and a record of the what adjustments have been made to the specific account would be helpful

105. 105 RK 402 Capital Report Provides a list of all actions taken in IBIS for Capital Budget and Fund Codes IBIS and NCAS (BD 725) must match at the Fund Code and Budget Code Summary Level To track any errors, a report can also be run at an IBIS transaction detail report.

106. BD 725 (NCAS/DSS) RK 402 Capital Report RK 402 Capital Report 106

107. Stay in touch! Phone: [phone] Website: www.osbm.nc.gov Follow us: @ NC Office of State Budget & Management @ NCDemographer 107