Budgetary accounts are provided to record, in summary form, established plans of financial activities for a particular period of time. In the majority of applications, both anticipated revenue or income and authorized expenditures or withdrawals will be recorded in the control accounts of an accounting entity.
Budgeted Receipts: Budgetary control accounts have been provided to record anticipated revenue or income to finance the disbursement portion of the annual financial plan. Control accounts have also been provided to record prior year revenue and income relative to con- tinuing revenue estimates. The Statewide Revenue Classification Index is provided to identify the nature of anticipated revenue or income. Each Revenue Estimate is recorded in the Revenue Estimate Control Ledger. This arrangement permits each anticipated collection to be identified in terms of a budget category and an uncollected balance to be produced. In this way, management is provided with a financial report showing the amount of revenue or income budgeted; the amount collected (or billed); and the uncollected balance by responsibility center.
Budgeted Disbursements: Two disbursement budget accounts are provided to record in summary form disbursements anticipated to be made from an accounting entity during a fiscal year. Two accounts are needed to distinguish between those disbursements actually constituting support of state government (3201, Appropriations - Expenditures) and disbursements for other purposes (3205 - Appropriations - Withdrawals). Each disbursement budget account is detailed in the Appropriation Control Ledger. This arrangement permits each disbursement to be recorded in terms of its underlying authorization and an available balance to be produced. In this way, management is made aware of how well actual expenditures (and encumbrances) compare with authorized expenditures.
During the year, budgetary accounts remain unchanged except for authorized budget increases, decreases, or agency allocations. At year-end, the nominal account balance is closed into its corresponding budgetary account. The post-closing balance in the disbursement budgetary accounts is closed to the applicable accounting entity's fund' balance. In all cases, the post-closing balance of disburse- ment budgetary accounts must be a credit balance because the over-expenditure or over-obliga- tion of amounts appropriated is not permitted.