Interpreting Your Budget Balance Available

How to interpret your Budget Balance Available (BBA) in FRS by ledger. 

• Ledger 2 are Unrestricted University Support accounts
• Ledgers 3 & 4 are Unrestricted Self-Support accounts (Ledger 3 are Auxiliary Services)
• Ledgers 5 & 6 are Restricted accounts (Ledger 5 are Federally Sponsored Programs)

Ledger 2  Expense Only Ledger

• Funding is provided centrally in the form of your budget.
• Use the BBA column to determine whether the account has a surplus or a deficit.  A negative in this column requires your attention. Process an A1 to cover the negative.  Move budget funds between subcodes or budget pools or between FRS accounts.

Ledgers 3 & 4  record revenue and expense in the subsidiary ledger

• Compare the ‘Actual’ column with the ‘Budget’ column to determine whether your budget estimates are valid.
• Use the Net revenue less expense at the bottom of screen 19 to determine whether your revenue will cover your expense. A negative here is good. It means that your revenue is greater than your expense.
• Read the general ledger (GL) fund balance (subcode 3$$$) to determine how all of the accounts that map to the GL are doing. Factor in encumbrances if you expect to have them paid before year end.  A negative fund balance indicates that your accounts are doing well, sources are greater than uses.
• Notice the subcodes that start with a 4 and 5.   The 4$$$ subcodes indicate funds added to your GL account.  This increases your fund balance. The 5$$$ subcodes indicate funds deducted from your GL.  This decreases your fund balance. Revenue, expense, fund additions and fund deductions all impact your fund balance.

Ledgers 5 & 6  record revenue in the general ledger (GL) and expense in the subsidiary  ledger

• Use the GL to determine whether the account has a surplus or deficit.
• Read the GL fund balance (subcode 3$$$) to determine how the account is doing. Factor in encumbrances if you expect to have them paid before year end.  A negative fund balance indicates that your account is doing well, sources are greater than uses.
• Notice the subcodes that start with a 4 and 5.  The 4$$$ subcodes indicate funds added to your GL account.  This increases your fund balance. The 5$$$ subcodes indicate funds deducted from your GL.  This decreases your fund balance. Revenue, expense, fund additions and fund deductions all impact your fund balance.

Updated: 7/18/08