PREPARATION OF AN MDA OVERHEAD BUDGET

CONTENT Objective. Introduction. Structure of the overhead budget. Classification codes for the overhead. Understanding the Overhead budget ceilings. Entry of overhead budget. Manual entry. Import of overhead budgets. Overhead budget reports and multi-segment analysis.

Objective The objective is to simplify the process of preparing an MDA Overhead budget, Workflow and Reporting in GIFMIS, by using the manual and import functionalities, also to understand the entire overhead process in the BPS module.

Introduction Overhead can be referred to as an operating expense of an MDA, which is vital to the day to day business operations of all MDA as it provide critical support for effective service delivery. However, overhead in GIFMIS is directly linked with the FGN National Chat of Account that has been pre-configured in the System data base for smooth Preparation of Overhead Budget.

MDA ROLE PLAYERS IN OVERHEAD BUDGET PREPARATION MDA DESK OFFICER BUDGET MDA REVIEWER BUDGET MDA FIRST APPROVER BUDGET MDA FINAL APPROVER BUDGET

Structure of the Overhead Budget in GIFMIS The overhead budget which is a recurrent expenditure are grouped into these major categories: Travels and transport Utilities Materials and supplies Maintenance services Training Other services Consulting and professional services. Fuel & lubricants Financial charges Miscellaneous

Diagram showing a typical structure of Overhead budget based on the chat of accounts.

Diagram showing how the overhead structure is grouped based on chart of accounts in GIFMIS BPS System.

Classification codes for the overhead In GIFMIS, budget and accounting items in the overhead are classified by the national Chat of Account. All overhead budget and accounting items are uniquely represented by a code and grouped into tables of related data for the purposes of tracking, managing and reporting budgetary and accounting items in an orderly, efficient and transparent manner.

It is also a created list of codes which can be represented by numeric symbols. The fund code for overhead is 02201 like in the diagram seen below

Budget ceiling An overhead budget ceiling is a cap on public spending based on one or more limits set by the Federal Government through the Budget Office of the Federation. Using the GIFMIS Budget ceiling functionalities and Understanding the different methods Government use to set budget ceilings will help the MDA’s not to present above the limit set by FGN while preparing there overheard budget. However the GIFMIS system control will not allow MDA’S to input above their Budget ceiling

Controls put in place by ceiling in overhead budget preparation In order to successfully submit a budget plan version, the budget amounts cannot exceed the ceilings set on these budget lines. The GIFMIS BPS system provides the functionality to compare the budge amounts with overhead ceilings.

BOF ROLE PLAYERS IN IN BUDGET CEILINGS BUDGET MANAGER BOF BUDGET CEILINGS DESK OFFICER BOF BUDGET CEILINGS REVIEWER BOF BUDGET CEILINGS FIRST APPROVER BOF BUDGET CEILINGS FINAL APPROVER

Overhead budget entry The overhead budget can either be entered manually or imported in GIFMIS. MANUAL ENTRY: Overhead budget can be entered manually by editing the amount in the budget plan version from the budgeting dropdown menu.

Use the Overhead tab to open the Overhead Expenditures section, add new budget line, fill in the fields on the page, save and new to add a new budget line or save and close.

IMPORTING BUDGET LINE: The overhead budget can be imported by adding an already populated excel template. The budget lines can be imported by Click on the Import button to open the Import Budget Lines page then click on choose file button and select the overhead budget lines you want to import.

Reports and multi-segment analysis The reporting functionality in GIFMIS enables the user to generate reports and carry out multi-segment analysis on Overhead budgets. The user can generate these relevant reports: Budget Version by COA Segments Appropriation Bill

Budget Version by COA Segments: To generate a report on overhead Budget in GIFMIS, follow path Reporting > Budget Version by COA Segments then set the parameters as seen in the diagram below. Appropriation Bill

Appropriation Bill: To generate a report on overhead Budget in GIFMIS, follow path Reporting > appropriation Bill then set the parameters as seen in the diagram below.

Conclusion The GIFMIS BPS ensures full understanding of the overhead budget planning and preparation by the MDA’s, it is therefore essential not just to derive expenditure projections but to be able to advise policymakers on the feasibility and desirability of specific budget proposals.