The board of each community college district shall within or before the first quarter of each fiscal year, adopt an annual budget which it deems necessary

to defray all necessary expenses and liabilities of the district, and in such annual budget shall specify the objects and purposes of each item and amount needed for each object or purpose. …The board may from time to time make transfers between the various items in any fund not exceeding in the aggregate 10% of the total of such fund as set forth in the budget.

(110 ILCS 805/3 20.1)‑

Revenue

• Local Property Taxes (41)• ICCB Operating Grants (42)– Base Operating (Cr Hr)– Square Footage– Equalization

• ICCB Restricted Grants (42)– Workforce Development– Adult Education

• Tuition and Fees (44)

Expenditure Budget

Appropriated by Fund, Function, and Object

Funds

• Operating Funds– Education (01)– Operations and

Maintenance (02)– Auxiliary Enterprises (05)– Audit (11)– Liability, Protection, and

Settlement (12)– Restricted Purposes (06)

• Capital Funds– Bond and Interest (04)– Operations and

Maintenance (Restricted) (03)

• Other Funds– Working Cash (07)– Trust and Agency (17)

Function(Program, Activity)

• Instruction (1)

• Academic Support (2)

• Student Services (3)

• Public Service/ Continuing Education (4)

• Auxiliary Enterprise (6)

• Operation & Maintenance of Plant (7)

• Institutional Support (8)

• Scholarships, Grants, & Waivers (9)

Program/Subprogram

1000 Instruction1010 BA Transfer1020 Business – Occupational1030 Technical – Occupational1040 Health – Occupational1050 Remedial Studies1060 Adult Basic and Secondary Ed1070 General Studies1090 Other

Program/Subprogram

2000 Academic Support2010 Library Center2020 Instructional Materials Center2030 Educational Media Services2040 Academic Computing Support2080 Academic Admin and Planning2090 Other

Program/Subprogram

3000 Student Services3010 Admissions and Records3020 Counseling and Career Guidance3030 Student Health Service3040 Financial Aid Administration3060 Social and Cultural Development3080 Administration3090 Other

Program/Subprogram

4000 Public Service/ Continuing Education

4010 Community Education (Noncredit Instructional)4020 Customized Training (Instructional)4030 Professional Development4040 Community Services (Non-instructional)4080 Administration4090 Other

Program/Subprogram

6000 Auxiliary Services6010 Food Service6020 Bookstore6030 Child Care Center6040 Intercollegiate Athletics6050 Student Organization6080 Administration6090 Other

Program/Subprogram7000 Operation &

Maintenance of Plant7010 Maintenance7020 Custodial7030 Grounds7040 Campus Security7050 Transportation7060 Plant Utilities7080 Administration7090 Other

Program/Subprogram8000 Institutional Support8010 Executive Management8020 Fiscal Operations8030 Community Relations8040 Administrative Support Services8050 Board of Trustees8060 General Institution8070 Institutional Research8080 Administrative Data Processing8090 Other

Program/Subprogram

9000 Scholarships, Student Grants, and Waivers

9010 Scholarships/Grants9020 Waivers9030 Chargeback/Contractual Agreements

Object

• Salaries (51)

• Employee Benefits (52)

• Contractual Services (53)

• Materials & Supplies (54)

• Travel & Conferences (55)

• Fixed Charges (56)

• Utilities (57)

• Capital Outlay (58)

Budget Management vsFinancial Reporting

Budget ManagementBudget assigns spending

authority to managers; represents planned use of resources.

Managers implement plan.Revenues are estimated;

expenditures are budgeted contingent on revenues being achieved and cash collected.

Financial ReportingExpenditures are recorded to

facilitate reporting of actual results.

Entries must be posted accurately to ensure correct reporting and analysis.

Move budget, not actuals unless posted in error.

Budget Management vsFinancial Reporting

Budget Management• 51000 – Salaries

Financial Reporting• 51101 – Administrators• 51201 – Professional• 51301 – Faculty• 51401 – Managers• 51601 – Support staff• 51602 – Support staff PT• 51604 – Support staff OT

Budget Management vsFinancial Reporting

Budget ManagementBudget Journal Entry

Transfer budgeted funds (spending authority) from one line item to another.Requires trustees’ approval if between funds, functions, or certain objects.No transfer of tax levy revenues between funds.

Financial ReportingJournal Entry

Reclassify expenditures from one fund-function-object to another.NOT for realigning spending authority.Expenditures should be recorded accurately, even if budget is not correctly distributed between line items.

Fund Department Object Grant01 810800

Finance & Admin51100 0000

01 841000Human Resources

51600 0000

01 919800Board of Trustees

54101 0000

Fund Department Object Grant01 81 0800

Finance & Admin51100 0000

01 84 1000Human Resources

51600 0000

01 91 9800Board of Trustees

54101 0000

Program/Subprogram

8000 Institutional Support8010 Executive Management8040 Administrative Support Services8050 Board of Trustees

9000 Scholarships, Student Grants, and Waivers

9010 Scholarships/Grants