Allotments (Allotment Options)
Allotments are a budget tool that allows the control of spending against a budget over defined time periods. As with budget structures and levels, allotments must also be designed into a structure. Online setup pages will not enable allotments to exist for a structure that does not have them designed.
Allotment lines are just like a budget line in almost every respect. They both are defined by COA elements, contain multiple budget amounts that correspond to the type of budget (expense or revenue), are created by budget transactions, have an online query, are tracked in the budget journal, and have an audit level. The only three differences are: they are stored in a separate allotment structure; are never automatically generated; and are required to have a time component in their definition.
Allotments are always designed to be for just one budget level. The budget level for allotment attachment does not have to be the lowest or highest level, but can be in between the two. Sample structures would be:
Determination of where allotments should exist rests on the question of what level should be broken down into time components. Budget levels below the one allotted will be eligible for funding on a first-come first-serve basis. For example, in the 3rd diagram above, if $10,000.00 is allotted to the 1st quarter for a line at level 1, then spending of that money will be done by the department or departments that process spending transactions to that sum.
Just like budget lines, allotment lines are defined on budget transactions. A more in depth discussion on that procedure is located in the Budget Transaction topic. When an allotment line is created, the amount updated on that allotment will be the same one updated on the budget line. The Event Type ID on the budget line will call a posting code that directs the system to update a particular stand alone budget amount. Therefore a budget line that adopts $10,000.00 with four equal quarterly allotments will update the Adopted amount on the budget line for the $10,000.00 and the Adopted amount on each of the four allotment lines for $2,500.00. If a budget control exists to keep spending in check using that Adopted amount, then if that control is also checked to Include Allotments, then the most that can be spent out of the first quarter is $2,500.00 and not the $10,000.00 at the budget line. The "Budget Control” topic contains more information on budget controls and their application to allotment lines.
When creating or maintaining an allotment line, an update to the budget line is not required - the dollar amount can be zero, however an event type must be entered so the allotment line can be created or updated. Having that amount set to zero will require the use of the allotment distribution amount. There is an edit that prevents the sum of allotment lines on a budget transaction from exceeding the distribution amount if that amount is not zero. If it is zero, then the sum of allotment lines cannot exceed the dollar amount.
Given that only 1 choice of frequency can be made within a BFY and budget structure combination, the need often arises to allot certain budget lines differently than others. In such a case, the allotment frequency must be the most detailed. Additionally, accumulation must be used. Not every frequency combination will work. Annual and accounting period frequencies will work not because a frequency of accounting period does not allow for the definition of any accounting periods outside of the fiscal year, which is the budget fiscal year of the allotted budget line. The following example shows allotments for three different budget lines with the same total allotted amount using an allotment frequency of accounting period. The first line allots by accounting period, the second by quarter and the third by semi annual periods.
The annual allotment frequency provides the ability for a multi year budget, such as a capital spending budget, to be defined by no particular budget fiscal year and maintain the ability to track and control spending by allotments defined by a fiscal year. Without the Inception-to-Date accumulation option, spending in a fiscal year can be capped, thus controlled. With that accumulation option, spending in one fiscal year will be limited to the amount allotted to that year and any in any previous year that is still available, thus partially capped.
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
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1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
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3000 |
0 |
0 |
3000 |
0 |
0 |
3000 |
0 |
0 |
3000 |
0 |
0 |
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6000 |
0 |
0 |
0 |
0 |
0 |
6000 |
0 |
0 |
0 |
0 |
0 |
Samples are provided below depicting the logic used by the system to determine what allotment period should be found when making an update with an accounting transaction that has a budgetary impact. Sample dates have been given for clarity. For the semi annual calculation, accounting periods 0 to 7 will be in period 1 and 8 to 99 will be in period 2. The Accounting Period page has 13 as the highest numbered Adjustment Period besides 99, which is for annual closing purposes.
Fiscal Year = Budget Fiscal Year
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An accounting transaction with: Record Date of 12/31/2004 Fiscal Year (FY) 2005 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 2 Accounting Period (APD) 6 Semi Annual 1 |
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Fiscal Year < Budget Fiscal Year
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An accounting transaction with: Record Date of 06/15/2004 Fiscal Year (FY) 2004 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 4 Accounting Period (APD) 12 Semi Annual 2 |
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Fiscal Year > Budget Fiscal Year
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An accounting transaction with: Record Date of 07/15/2005 Fiscal Year (FY) 2006 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 1 Accounting Period (APD) 1 Semi Annual 1 |
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From the above rules it can be seen that if the Allotment Frequency is:
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Accounting Period, then the APD from the accounting transaction's posting line will be the one used to find the allotment line as long as FY = BFY on that posting line. When the FY < BFY, then APD 1 is used. When the FY > BFY, then the highest APD marked as an Adjustment Period on the APD page other than APD 99 will be used.
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Quarterly, then the QTR from the accounting transaction's posting line will be the one used to find the allotment line as long as FY = BFY on that posting line. Quarter is not displayed on the posting line, but is determined by taking the APD of that posting line and looking up the Quarter on the APD page. When the FY < BFY, then QTR 1 is used. When the FY > BFY, then Quarter 5 will be used.
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Semi Annual, then the system takes the FY from the posting line and finds the total number of Accounting Periods defined to the FY on the APD page. That number is divided by 2 to determine which APD's are in Semi Annual periods 1 or 2. When there is an odd number of periods, then Semi Annual Period 1 has one more APD than 2. Semi Annual period is not displayed on the posting line. When the FY < BFY, then Semi Annual 1 is used. When the FY > BFY, then Semi Annual 3 will be used.
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Fiscal Year, then the FY from the accounting transaction's posting line will be the one used to find the allotment line. This is true for all three situations: FY = BFY, FY < BFY, and FY > BFY.
Within CGI Advantage, rules used to define allotments can differ across budget structures and budget fiscal years. Setup of these rules is on a page accessed through the Allotment Options listing in Related Pages in the row menu on the Budget Structure page.
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BFY - All allotment options for a budget structure are defined by Budget Fiscal Year (BFY), allowing for the flexibility of changing options in different years. Valid values are those years defined on the Fiscal Year table along with the value of 9999, which is for multi-year budgets.
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Allotment Frequency - Different frequencies are available, but only one can be chosen per the allotted budget structure. The choice should not be changed after allotment lines have been entered for a structure in a BFY. Such a change may make the allotment periods already established invalid, with no way to change them as this frequency is used to edit budget transactions.
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Accounting Period - Allotment periods can be defined to the same values established on the Allotment Period (APD) reference page.
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Quarterly - Allotment periods can be defined to the four common values for quarters: 1, 2, 3, and 4 with a special quarter 5 where the FY is greater than the BFY on the accounting transaction.
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Semi Annual - Allotment periods can be defined to one of two semi annual values: 1 and 2 with a special period of 3 where the FY is greater than the BFY on the accounting transaction.
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Annual - Allotment periods can be defined to the same values established on the Fiscal Year (FY) reference page. Budget levels lines with no BFY and budget lines with BFY of 9999 must use this frequency.
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No Allotments - When allotment lines are to be turned off on a budget level to prevent use, this selection will prevent their creation.
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Biennium-Monthly - Twenty-four allotment periods are allowed to segment two years. Accounting and budget activity in an adjustment accounting period against the first fiscal year posts to allotment period 12. Activity in the adjustment accounting period in the second fiscal year is posted against allotment period 24. Should activity against a third or latter fiscal year be necessary, it will post to allotment period 24 if the severity of A9447 is reduced.
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Allotment Accumulation - Three rules prescribe whether unused allotment spending authority for one allotment period is available in subsequent period(s). The default for this field is No Accumulation.
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No Accumulation - Any budget availability must be used in the period allotted. Any remainder will not be automatically carried forward. To perform that carry forward would require a budget transaction to move money between allotment lines.
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Year-to-Date Cumulative - A choice used for allotments defined by accounting periods, quarters, and on a semi annual basis to allow for budget availability not used in prior periods to be considered available in the current allotment period.
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Inception-to-Date Cumulative - A choice used for allotments defined by Fiscal Years to allow for budget availability not used in prior Fiscal Years to be considered available in the current Fiscal Year.
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Allotment Presence Optional - For a BFY and structure combination, allotment lines can be required for any accounting transaction to successfully process against a budget line by not making this indication. If optional, then allotment lines are not required for any budget line. However, if just one allotment line does exist for the budget line being updated, then the accounting transaction must find a matching allotment line. When allotment lines are optional for a budget level in a BFY, if at least one allotment line is created for a budget line in that BFY then allotment lines are required for the budget line.
