2803.01  GOVERNOR'S BUDGET

The information for the Governor's Budget is estimated by the Chancellor's 
Office approximately two years in advance.  Previous levels of expenditure 
are reviewed and an attempt is made to anticipate changes in the federal 
funding levels for each financial aid program.

After approval of the budget for each fiscal year, the Chancellor's Office, 
through an automatic computer data feed, can input into the campus 
accounting records the amount of federal funds that the Legislature has 
approved for expenditure in each of the financial aid programs.  This budget 
is for a specific fiscal year beginning July 1 and ending June 30.  Even though 
the funds are allocated and accounted for by the campus by individual 
financial aid programs, the State Controller's Office monitors expenditures in 
the aggregate and receipts (remittances) by the individual financial aid 
programs.

The campus receives an allocation order from Budget Planning and 
Administration (BPA) that confirms and documents the automatic data feed.  
This allocation order must be posted to the campus' general ledger so that the 
expenditure side of the budget can be reconciled to the State Controller's 
expenditure accounts.  In State budget jargon, when the income side 
(revenue) of this entry is posted, the money has been expended.  This explains 
the net amount of zero on the allocation order.  It is a matter of aggregate 
totals rather than individual financial aid programs for a specific fiscal year.