You are here: Chapter VI Budgets > 1. Budget Control Overview and Policies

VI.1
Budget Control Overview and Policies

 

The Budget Control chapter provides an overview of Commitment Control (or KK) at the Statewide Appropriation, Segregation, and Project level of detail.

BUDGET PROCESS

After appropriations, which are statutory authorizations to spend for specific purposes, become law, the State Comptroller will establish appropriation control records based on the enacted State budget. These appropriation control records are at the bill copy level of detail and assure that no more than the amount authorized for agency administered programs is spent. Once the appropriation control records are established by the State Comptroller, the Budget process enters a new phase called the budget execution phase. Enacted budget bills provide that “No moneys appropriated by this chapter shall be available for payment until a certificate of approval has been issued by the director of the budget”. Budget certificates, which are now represented by budget journals, specify the amounts to be made available for major objects of expense (e.g. personal services, travel, contractual services, equipment, fringe benefits, etc.) and are used by the Division of Budget to control the rate of spending from appropriated funds. Segregation budget journals will be approved by the State Comptroller and will also be set up at the bill copy level of detail.

COMMITMENT CONTROL

The sections of this chapter will also explain various other Commitment Control topics. Within Commitment Control (KK) a state agency can create, adjust, and transfer control budgets. Budget journals thus allow agencies to establish segregation and child project budgets and to interchange, transfer, or suballocate authority to another agency. Statewide KK also enforces spending against these control budgets. Transactions entered into SFS, such as expenditure vouchers and journal vouchers, proceed through a budget checking process that prevents the processing of a transaction when it exceeds the available budget authority. Budgetary control is also implemented when setting up and transacting against Federal grants. Each Federal grant will have its own project budget that will ensure that expenditures do not exceed the available Federal funds. The Project Parent is equivalent to the Federal Grant Award, and the Project Child is the funding allocation to specific project activities.

 

 

Guide to Financial Operations
REV. 05/16/2012