Accounting Services Section (ACT)
POLICY 8
Effective Date: 01/01/1999
Last Modified Date: 07/17/2009
General
Automatic Budget Reallocation (ABR) is a feature of the Financial Records System wherein budgets are recorded at a control (or pool) level and automatically reallocated to the detail level as encumbrances or expenditures are made. Conversely, if credit encumbrances or credit expenditures occur, budget is reallocated back to the pool level. This procedure results in budget being equal to obligations at the detail level.
Pool Levels
Different types of funds have different pool levels. The levels are assigned by the accounting office controlling those funds. There are at present ten different possible ABR pooling methods in FRS. Budgets maybe entered at a pool level for a group of University objects or at the detail subcode (object) level. FRS on-line screen 047 provides a list of pool levels for defined methods and related group objects. Subcodes not included within a pool will be budgeted at the detail level.
Methods
Method 0
The ABR pool levels are at the UNC-Chapel Hill or detail subcode level. This method is line item budgeting.
Method 1
This method is utilized primarily for State Funds. The ABR pool levels are at the budget control levels established for State Funds. Those levels are listed in FPB Appendix 1.
Method 2
This method is utilized primarily for Sponsored Research. The ABR pool levels are as follows:
ABR Pool Subcode Subcode Range Drawing from Pool 1001 1112-1561 1800 181l-1892 1920 1921-1922 2000 2111-2924 (excludes 2511) 3100 3111-3129 3130 3131-3139 3200 3211-3222 (excludes 3221) 4200 4211-4316 4400 4411-4413 5001 5111-5519 6751 6571,6578,6579 6901 6901-6902 The subcodes (objects) may be separately budgeted as necessary.
Method 3
This method is used for certain trust funds. The ABR pool levels are as follows:
ABR Pool Subcode Subcode Range Drawing from Pool 1110 1112, 1114, 1117, 1118, 1121,
1131-11341230 1231-1234 1400 1411-1473 1500 1531, 1541, 1591-1595 1800 1801, 1802-1809, 1812, 1813, 1822, 1831-1839, 1861, 1872-1876, 1892 1900 1911-1979, 1981-1989, 1991-1999 1980 1981-1989 2000 2111-2611, 2721-2724, 2911-2913, 2919, 2921-2924 2700 2711-2718, 2725, 2731-2739 3100 3111-3139, 3141-3144 3155 3200 3211-3294 3300 3311-3322 3500 3511-3519, 3521-3525 3711 3711-3717 3900 3901-3925, 3927, 3929, 3931-3934, 3952, 3953, 3984, 3991 4000 4111-4521, 4911-4916 5000 5111-5112, 5191, 5192, 5211-5214, 5291, 5292, 5311-5316, 5391-5396, 5411-5415, 5491-5495, 5511-5517, 5519, 5591-5596, 5599 6570 6571-6579 8100 8145, 8156-8159, 8163 8400 8401-8421, 8433-8474 The subcodes (objects) may be separately budgeted as necessary.
Method 4
This method is used for certain trust funds and contract and grant funds. ABR pool levels are as follows:
ABR Pool Subcode Subcode Range Drawing from Pool 1000 1112-8496, 8511, 8700-8985 The subcodes (objects) may be separately budgeted as necessary.
Methods 5-9
These methods are reserved for use by the accounting offices in establishing ABR levels unique to a particular account or group of accounts.
Users having funds with ABR methods 5-9 should contact the appropriate accounting office for specific information regarding the pool levels.
Method 6
This method should be used for professorships, e.g., Kenan Professorships.
ABR Pool Subcode Subcode Range Drawing from Pool 1100 1112-1118 1300 1311-1318 1400 1411-1473 1800 1801-1892 2005 1531, 1592, 1911-1999, 2111-5599, 6577, 8511 Utilizing Information
In utilizing the FBM090/91 reports, remember the following information regarding ABR:
- If budgets are entered at pool levels at the beginning of a fiscal year, it is advisable to continue this level of budgeting throughout the fiscal year for the defined group of subcodes.
- The remaining budget balance available can be identified by looking at the pool level subcodes (objects) on the FBM090 or the single object level if the budget is controlled at the detail object level.
- Overdrafts do not appear in specific subcodes defined in the pool, where expenditures are actually charged. Overdrafts due to insufficient funding are reflected at the pool level.
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