Budgets for agency accounts are set during the annual budget process. Agency budgets define the spending authority for a given fiscal year. An agency account may have an operating budget, a personnel budget, or both an operating and a personnel budget. Agency budgets should align with expected expenditures for the fiscal year. When setting agency budgets, consideration should be given to current cash balance and expected revenue for the remainder of the current fiscal year as well as the upcoming fiscal year (budget year). It is the responsibility of budget officers and their administrators to ensure that overdrafts do not occur in the budgeted accounts for which they are responsible.
Additionally, budget officers are responsible for ensuring cash balances end the year at zero or a positive balance. Budget Officers are also responsible for keeping cash balances at appropriate levels in alignment with the 7.6.1 Excess Funds Policy.