Budget

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__**Definitions**__

 * Account Code -** a number that is assigned to each category. It is used as a quick identifier.


 * Budget Code -** this is on what you plan to spend your school's money. (books, salaries, technology, etc.)


 * Budget Appropriation -** This is the amount you plan to spend in each category at the beginning of the year.


 * Appropriation Adjustment -** When you misjudge your budget appropriation you can adjust your plan here. NOTE: This column should sum to 0.


 * Adjusted Budget Appropriation -** This column shows your new budget plan after your adjustments


 * Spent To Date -** This column shows the amount you have paid out already. Think of this as a check that you have written and has been cashed.You no longer have this money.


 * Encumbrances To Date -** This is the amount of money which you have guaranteed to another individual or company. You have not yet paid these bills. Think of this as checks which you have written but have not been cashed. The money is still in your account but it is not really yours to spend. Except, for some reason, with salaries. Then you list the amount you have encumbered for the whole year. *** * *The best I can figure out for this is that the total amount of a contract remains in the encumbered column until it is paid. If you buy a $4000 A/C unit and pay for it in whole then you move that contract into the spent to date column. With salaries, you still have the contracts at large and so that amount remains in the encumbered column until it is paid in full. The amount you pay toward that contract is listed in the Spent to Date column.*** * *


 * Budget Balance -** This is the amount of cash you physically have in your account.


 * Fund Balance -** This is the amount of money you have free to spend. It has not been spent, nor has it been encumbered. If you have ever balanced a check book then you can think of this as the amount you have to reconcile after all of your checks have cleared.

__**Formulae**__

 * Account Code -** None, number is given to you.


 * Budget Code -** words, words, words...


 * Budget Appropriation -** Number provided to you, or generated by you. In the end, no formula.


 * Appropriation Adjustment -** you can subtract funds by entering a negative number, or you can add funds by entering a positive number. You need to decide how much money you want to remove or add from each account. Note: This column should always sum to zero. (you add one dollar for every dollar you subtract somewhere else.)


 * Adjusted Budget Appropriation -** This = **Budget Appropriation** + **Appropriation Adjustment**


 * Spent To Date -** This number is entered by hand. It represents the amount of money you have spent during the current year. You do not enter an amount in this account until it comes out of your bank account. (i.e. the check clears). If you are dealing with salaries and it is mid year, you will have paid out half of your appropriations to your teachers/admin/staff. Other budget codes can differ depending on the given circumstances.


 * Encumbrances To Date -** This number is also entered by hand. When you write a contract for something you encumber the money in this column. Effectively setting it aside for later use. Once you pay the contractor you move that amount from Encumbrances to Spent. With salaries, this will represent the amount of money you promised to pay your teachers/admin/staff for the entire year. If you are at mid year those contracts should still have all of their salaries encumbered.


 * Budget Balance -** This column is simple: = **Adjusted Budget Appropriation** - **Spent to Date**


 * Fund Balance -** OK, this is where things get a little odd. For most things, your **Fund Balance** is **Adjusted Budget Appropriation** - (**Encumbrances To Date** + **Spent To Date).** If your category has a partially paid contract, most commonly salaries, then you use **Fund Balance** is **Adjusted Budget Appropriation - Encumbrances To Date.**

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