University of Illinois System
Policies & Procedures
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FAQs

Budget Procedure Questions

1. What is the difference between a budget adjustment and an expenditure transfer?

When a budget needs to be changed, the unit requests a budget adjustment from the office of their campus OBFS chief business officer using a Budget Adjustment Request form. When actual charges already incurred need to be moved from one C-FOAP to another, the unit initiates an expenditure transfer using a Banner Journal Voucher form. Expenditure transfers and adjustments for external restricted funds (grant and contract) must follow the regulations of the sponsor or agency. If you have questions about your transaction, contact the office of your campus OBFS chief business officer.

2. What types of budget adjustments are allowed?

In general, you can only adjust budgets within or between state and institutional funds.

3. May I make a one-sided budget adjustment?

Adjustments to state or institutional fund budgets must have equivalent debits and credits. Adjustments to self-supporting or service plan budgets may be one-sided to revise initial estimated amounts.

General Budget Questions

4. Where does the money for our budget come from?

Our annual operating budget comes from unrestricted and restricted funds.

Unrestricted funds are from state appropriations, tuition revenue, and institutional funds. The money from the state comes from the General Revenue Fund (GRF) and several other special-purpose funds. Institutional funds come from University administrative and educational allowances, indirect cost recoveries, and patent/copyright royalties.

Restricted funds come from grants and contracts, gifts, self-supporting activities, auxiliary enterprises, service plans, and some sponsored programs. Restricted funds have special conditions regarding their use.

5. How may we use state and institutional funds?

State and institutional funds support academic and administrative unit operations in a wide variety of expenditure categories. Some common categories include:

  • Personal services
  • Commodities
  • Travel
  • Contractual services
  • Telecommunications
  • Equipment

Indirect Cost Recovery funds are not used to support instructional activities.

6. How may we use restricted funds?

Each restricted fund has unique rules for its use. These usually include a time limit for spending or obligating the funds, limits on how the money can be spent, deliverable requirements, or other sponsor limits. Budgets of internal restricted funds (self-supporting) are based on their estimated income and may be adjusted as the fiscal year progresses. Expenditures are limited to actual income. Any surplus income may be expended only for the operation of that activity.

7. What is the University of Illinois Budget Summary for Operations?

This document reflects the planned operating revenues and expenditures of the University for the fiscal year. Estimated expenditures are summarized by source of funds and function for the entire University, each campus, University programs, and University of Illinois System Offices. More detailed budgets for individual colleges and units are also included. The University of Illinois Budget Summary for Operations is presented annually to the Board of Trustees and expenditure authority is granted to the University upon Board approval.

Last Updated: January 9, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 2010