Fiscal Management: Budget Revision Summer 2015

What is a BUDGET REVISION? When making certain changes to the last approved budget to meet federal requirements or to pay for expenditures not originally budgeted. A budget revision is when you make certain changes to the last approved budget to meet federal requirements or to pay for expenditures not originally budgeted. A budget revision must be completed when the activity is contemplating – prior to obligating funds. Failure to adhere to this provision may subject sub recipient to findings, questioned costs and repayments of project funding. The revision is effective on the day it is received by the Ohio Department of Education (ODE) via CCIP when the organization’s CCIP status is at Authorized Representative Approved. All revisions are subject to negotiation and approval by ODE. No budget revisions will be accepted after June 30th of the grant year.

What you should know about Budget Revisions… What you should know about budget revisions….a budget revision is necessary when program activities are EXPECTED to exceed 10 percent of the current total approved budget in an object code. If the revision exceed 10% in an object code, a CCIP history log comment is required as justification. Required when program activities are expected to exceed 10% of the current total approved budget in an object code. A CCIP history log justification is required based.

Budget Revision According to OMNI Circular, 2 CFR Part 225 Appendix A-Section c(3)(a) and C(1)(a-j), budgeted expenditures must be reasonable, allocable, necessary & compliant for programming purposes When considering a budget revision, all anticipated expenditures must be within reason, allocable, necessary, and compliant for 21st Century programming purposes.

Budget Revision Budget revision must be approved by the department prior to obligating the funds. Make note: Updated business rules are forthcoming July 2016 resulting from Omni Circular.

Budget Revision Status Changes 1st STEP Application Status: Reviewed Change Status To: Revision Started or FER Draft Started Application Status: Revision Started Change Status To: Revision Completed Application Status: Revision Completed Change Status To: Fiscal Representative Approved Fiscal Representative Returned Not Approved Application Status: Fiscal Representative Approved Change Status To: Authorized Representative Approved Authorized Representative Returned Not Approved 2nd STEP 3rd STEP FINAL

Submit a budget revision Strategic Planning Review funds Monitor Funds Project spending Changes Submit a budget revision Fiscal management should involve a team of program (i.e. Program Director/Manager and/or Site Coordinator) and administrative (i.e. Treasurer, Superintendent) personnel. The team should come together regularly to monitor funds and discuss how to strategically use 21st Century dollars. For example, in February/March teams should review evaluative outcomes and compare cost to results shown in that year and over previous grant years. Out of that discussion, teams should decide what services are producing the greatest result and are most needed among their target population. A sound financial manager will review what funds have been spent so far and what funds are remaining. By January/February project what funds still need spent throughout the year and identify if any changes are needed. If significant changes are needed to the budget, submit a budget revision (required when proposed changes exceed 10% within an object code).

Substantial Approved Date/Period of Availability  Substantially Approved Date = determines the date that funds can be obligated. Substantially Approved Date is the date a sub recipient is legally allowed to obligate grant funds. The period of availability is the funding period when a sub recipient may charge to the award only costs resulting from obligations incurred. 21st Century grants period of availability ends June 30th of the award year. This is the last day a sub recipient may obligate funds. Items purchased must benefit current year programming. All funds must be liquidated by September 30th or prior to submitting your Final Expenditure Report. Period of availability = July 1st – June 30th 

Grants and Requirements All grants, federal or state, have requirements to ensure the grant is used for its intended purpose. If determined to be noncompliant the funds would be required to be returned and future funding could be in jeopardy. Determination could be through an audit, monitoring or simple desk review. In closing, all grants, federal or state, have requirements to ensure the grant is used for its intended purpose. If determined to be noncompliant the funds would be required to be returned and future funding could be in jeopardy. Determination could be through an audit, monitoring or simple desk review.

education.ohio.gov