Four Types of Budget Transfers:

1) Transfer budget between accounts (budget pools) within the same fund and organization

2) Transfer budget between organizations but within the same fund

3) Transfer budget from one fund to another fund

4) Request an additional allocation to the approved operating budget

Such a transfer may become necessary when anticipated expenditures exceed the existing unencumbered balance reflected within the Fund / Organization / Program budget. 

The approval of the budget for expenditures (and encumbrances) is not authorized until the necessary approvals are obtained and the budget is entered into the accounting system.  In the case of additional allocations, this may require Board of Regents approval as specified.

The requested transfer should not exceed the category’s unencumbered balance.  The originating department must verify the availability of funds online, and adjust for any transactions or transfers not yet processed.

Funds cannot be transferred from a State account to a Local account.


1) Transfer budget between accounts(budget pools) within the same fund and organization

  • This type of budget transfer can be completed online within the established security approval system (Banner Self-Service) as long as you are transferring only between the following budget pools. 
    • 6300 (Student Salaries)
    • 6400 (Non-Student Wages and Allowances)
    • 7000 (Travel)
    • 7200 (Maintenance and Operations a.k.a. M&O)

Banner Self-Service Transfer Instructions

  • If you are not transferring between the pools listed above, a written email request is also acceptable. The Budget Office will execute the request on your behalf. Upon completion, the document will be reviewed by the Director of Budget and Strategic Financial Planning, the Budget Analyst, or the Controller. It will then be scanned into the accounting system by the Business Office. 
  • For access to make transfers through Banner Self-Service, please email the Budget Office with which account you want to access. 

Budget Office Contact Info


2) Transfer budget between organizations but within the same fund

  • This type of budget transfer can also be completed online within the established security approval system (Banner Self-Service) as long as you are transferring only between the following budget pools and are within the same fund. 
    • 6300 (Student Salaries)
    • 6400 (Non-Student Wages and Allowances)
    • 7000 (Travel)
    • 7200 (Maintenance and Operations a.k.a. M&O)

3) Transfer budget from one fund to another fund

  • Must complete the Budget Request Form
  • The budget request should be completed and approved by the budgetary unit head of the decreasing account. The total increase and decrease must be equal. 
  • Approval must be obtained from the Senior Administrator of the decreasing account.
  • The Director of Budget and Strategic Financial Planning or the Vice President for Administration and Finance will approve the transfer after reviewing.
  • The President or the President’s assigned designee will grant the final approval.
  • The Budget Office will then execute the Budget Request by assigning the batch reference number, verifying availability, noting the date, and then processing.  Upon completion, the document will be reviewed by the Director of Budget and Strategic Financial Planning or the Budget Analyst. It will then be scanned into the accounting system by the Business Office. The approved budget changes are incorporated into the university’s operating budget through this process.
  • Routine salary and fringe benefit budget sweeps are excluded from this approval process as well as end-of-year processes including fiscal year clean-up to roll forward balances, and any additional clean-up deemed necessary by the Budget Office or Controller’s Office. For these entries, only one approval signature beyond the preparer’s signature is required by either the Controller, Director of Budget and Strategic Financial Planning, Budget Analyst, or the Vice President for Administration and Finance.

4) Request an additional allocation to the approved operating budget

  • The Budget Request Form should be completed and approved by the budgetary unit head. The justification should be completed with plans as to why the expenditure budget increase is needed.
  • The budget request must then be approved by the Senior Administrator.
  • Either the Vice President for Administration and Finance or the Director of Budget and Strategic Financial Planning, and then the President must each review and approve the budget request. 
  • The Budget Office will complete the budget request by assigning the batch reference number, verifying fund availability, and noting the date. Funds are transferred to the account (increase) on the budget request. Through this process, the approved budget request is incorporated into the university’s operating budget.
  • The Budget Office will complete the budget request by assigning the batch reference number, verifying fund availability, and noting the date. Funds are transferred to the account (increase) on the budget request.  Upon completion, the document will be reviewed by the Director of Budget and Strategic Financial Planning, the Budget Analyst, or the Controller. It will then be scanned into the accounting system by the Business Office. Through this process, the approved budget request is incorporated into the university’s operating budget. 

Definitions

  • FOAPAL = Fund-Org-Account(or Budget Pool)-Program-Activity-Location

 

  • Fund– The fund element of the FOAPAL is used to specify the funding source.

Fund Type Examples:

  • E & G Funds – 1xxxx
  • HEF – 11110
  • Designated Funds – 2xxxx
  • Auxiliary Funds – 3xxxx
  • Restricted Funds – 4xxxx
  • Agency Funds – 9xxxx

 

  • Organization – The organization code is used to identify the organizational unit that is responsible for financial activity within that unit. This code greatly enhances financial reporting due to the ability to establish a multi-level hierarchy that follows the University’s organizational chart Example: 23241 (Designated Tuition fund code) – 22231(Accounting/MIS/Legal Studies organization code) or 26000 (Student Service Fee fund code) – 22512 (MSU Cycling Team organization code).

 

  • Account a.k.a. Budget Pool– A budget pool is where a revenue or expense account rolls up. For example, all staff salaries are budgeted to the budget pool 6100, but there are multiple expense codes that pay against that budget pool.  Example: 7010 – Professional Admin Salaries and 7015 – Classified Salaries.

 

  • Program- The program code identifies the functional categories set forth by NACUBO and used for financial reporting.
10 – Revenues
12 – Instruction
14 – Research
16 – Public Service
18 – Academic Support
20 – Student Services
21 – Student Services Athletics
22 – Institutional Support
24 – Operations and Maintenance
26 – Scholarships
28 – Auxiliary Enterprises
90 – Agency Funds

Any questions regarding budget requests should be directed to the Budget Office.         

Responsible for Implementation:  Vice President for Administration and Finance

Fiscal Procedure Updated December 4, 2023