Michigan State University
Controller's Office

305 Administration Bldg
East Lansing, MI 48824
517 355-5020

SECTION 12: Budget Reallocations

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  1. General Information
  2. General Procedures
  3. Preparation of the Form
  4. Exhibits/Forms

I. General Information

The university budget officer has the responsibility to ensure that financial integrity is maintained for the university's budgets.  Within the scope of that responsibility is the recognition that while units must operate within the limits of their resources, budgets function in a dynamic environment and that circumstances or needs occur during the fiscal year which require adjustments to selected lines within a unit's budget.  As a result, the budget reallocation process is provided to address those situations.  All changes to the budgets must be made within the procedures outlined below.

II. General Procedures

The following are procedures for requesting a budget reallocation for the general fund, the Michigan Agricultural Experiment Station (MAES), and Michigan State University Extension (MSUE).

  1. The basis for requesting a budget reallocation must result from a change in circumstances that was not known at the time the original unit budget was established.  Additionally, sufficient funds are required in the account that will be debited and the reallocation must conform to appropriate accounting and budgetary conventions.
  2. There are two categories of budget reallocations:
    1. Reallocation of special/contingency funds budgeted centrally in the office of the dean, vice president, or the directors of MAES and MSUE;
    2. Reallocation of funds among accounts to accommodate changes in program needs or requirements after the budget has been established.  This category consists of all reallocations not described in No. 1 above.
  3. The budget reallocation form is the proper document on which to request all budget reallocations (see exhibit 12-A).
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III. Preparation of the Form

  1. Reallocation Request - General Fund, MAES, and MSUE
    1. Reallocations of unit and centrally-budgeted special/contingency funds require a brief statement of the intended use or purpose of the reallocation.  An additional explanation is not necessary.
    2. Reallocations for changes in program needs or requirements require appropriate justification and supporting rationale.  In the space provided on the form, provide a statement of the intended use or purpose of the reallocation.  This statement should highlight the circumstances that have changed or the conditions that have been altered since the time the budget was established which now make the reallocation necessary.
    3. Form Routing - General Fund:
      Forward the form to the university Office of Planning and Budgets.
    4. Form Routing - MAES/MSUE Funds:
      Forward the form to the College of Agriculture and Natural Resources Budget Office. Following this review, the form should be sent to the university Office of Planning and Budgets for final review.
  2. Form Completion - General Fund, MAES, and MSUE
    1. Complete the department name(s), common unit code(s), account number(s), and dollar amount(s) for both the debit and credit side of the reallocation entry.
    2. Provide a precise description of the budget reallocation within the 19-space grid at the bottom of the form.  Because this is the only explanation that will appear on the fund ledger, it should be self-explanatory.  Please avoid such descriptions as "budget reallocation" or "transfer funds."
    3. Reallocations are to be signed by the unit administrator (Chairperson or Director, or their designate); or the unit Dean, Assistant Vice President, or their designate; or MAU Vice President or Provost.
    4. Areas in the body of the form designated for use by the Accounting Section of the Controller's Office should not be filled in.
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IV. Exhibits/Forms

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