Appendix A-1: Basic Budget Concepts Outline

Beginning Balances

          · For every fund, the net value of assets (line item values in the 1xxxxxx series) and liabilities               (line item values in the 2xxxxxx series) reported on the balance sheet at the end of a fiscal               year serves as the Beginning Balance of the fund for the new fiscal year.

          · Although not part of the revenue budget, the Beginning Balance of each fund represents               resources that may be utilized during the new fiscal year.

          · Beginning Balances of each fund can only be identified in the system at the fund level and               only through the balance sheet.

Revenues

          · Revenue budgets for each fund should be established for all revenues anticipated for the                fiscal year.

          · Revenue estimates should be established based upon the best available information.

Expenditures 

          ·Expenditure budgets for each fund cannot be greater than the sum of revenue budgets and              the anticipated Beginning Balance of the fund.