Understanding Budget Carryover Entries in Financial Management
Budget carryover entries are essential in maintaining budgetary controls, reestablishing prior year balances, and ensuring accurate expenditure planning. Learn about the types, importance, submission timelines, and practical considerations for budget carryovers in financial management.
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Ca rryo vers i n E xc el Presented by: Samuel Pauley, CPA
W ha t i s a c a rryo ver entry? A budget carryover entry is a type of budget adjustment entry (BJE) that re-establishes unspent budgetary balances from the previous fiscal year to the new fiscal year. Specifically, a carryover is a budget supplement type of BJE, but the entry must be flagged as a carryover type in WOW when submitting it to WVDE for approval. This process is needed to ensure the entries route appropriately to each district s assigned School Finance coordinator rather than another program office within the district. WVDE School Finance coordinators are trained in reviewing carryover entries. 2
W hy a re c a rryo ver entri es needed? Carryover entries help maintain appropriate level of budgetary controls. Carryover entries reestablish prior year grant budgets in the new year, so they are available to program offices for expenditure in the new year. Due to the timing of the completion of county proposed budgets, final unspent balances are not available and cannot be included accurately in the proposed budget. WVDE does require an estimated carryover within district proposed budgets, but those figures are often high-level estimates that must be trued-up once final unspent balances are determined. 3
W hen m ust c a rryo ver entri es b e sub m i tted? Budget carryovers should be submitted to WVDE for approval by the end of October. Be sure to get your Board s approval for the entries early enough that you can submit the entries to WVDE by the due date. However, carryovers should be completed as soon as reasonably possible after the start of the new fiscal year to allow program staff to properly plan for the liquidation of expiring funds. 4
W ha t a re the typ es o f c a rryo vers needed? Unliquidated Encumbrances Earmarks Reimbursements Receivable Outstanding encumbrances for which no corresponding revenue could be recognized Reinstatement of unencumbered, unearmarked budget amounts 5
U nl i qui da ted E nc um b ra nc es Depending upon how your district records invoices received after year-end, encumbrances will likely continue to liquidate 6
