Appendix A-1: Basic Budget Concepts Outline
· 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.
· 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.
·Expenditure budgets for each fund cannot be greater than the sum of revenue budgets and the anticipated Beginning Balance of the fund.