BC15, BC19 & BC20 Budget class accounts

BC15

BC15 is the budget class code for the operating grant. The operating grant for each budget unit is approved for each calendar year.  The amount of the operating grant does not change during the year.

The operating grant is the primary 'income' source for all budget units. This 'income' is transferred to the budget unit at the beginning of the year, (even though ANU as a whole receives the income throughout the year). This means that, in the initial budget the operating grant is posted into the STD_BUDGET ledger and F&BS then replicates the operating grant as actual income in the ACTUALS ledger.

Therefore if the operating grant is then later devolved to show the operating grant as income at the department and/or project/grant level, this devolution is to be done as both a STD_BUDGET journal and an ACTUALS journal. The total amount in BC15 cannot change, therefore a journal affecting BC15 must have all entries going to BC15 only.

Illustration

For example, for R99 the entire operating grant ($150,000) was put to R99510 BC15 (credit balance).

To spread that operating grant across three departments, the following journal is required as a STD_BUDGET journal AND as an ACTUALS journal:

DR BC15 R99510 150,000 Allocate 2003 Op Grant
CR BC15 R99100 -50,000 Allocate 2003 Op Grant
CR BC15 R99200 -50,000 Allocate 2003 Op Grant
CR BC15 R99510 -50,000 Allocate 2003 Op Grant

BC20

BC20 is the budget class account used to record the prior year cash result brought forward. The amount of the cash result from the prior year also cannot change during the current year. The prior year cash result is transferred by F&BS to each budget unit at the beginning of the year, as soon as it is confirmed.

In a similar fashion to the BC15 account, F&BS have to recognise the prior year result, in both the STD_BUDGET ledger and the ACTUALS ledger, as it is of course also an actual surplus or deficit carried forward.

Therefore, if the prior year cash result is to be devolved to department and/or project/grant level, both a STD_BUDGET journal and an ACTUALS journal are required. As for BC15, the total amount in BC20cannot change, therefore the only journals that can processed against BC20 are to move an amount in BC20 from one area to BC20 in another area. 

Illustration

For example, the prior year result for R99 was a surplus of $20,000.  This was journalled by F&BS into R99510 BC20 (credit balance).  It comprises $25,000 surplus in R99100 and $5,000 deficit in R99200. The following journal to devolve the amount at the department level is required as a STD_BUDGET journal AND as an ACTUALS journal:

DR BC20 R99510 20,000 Allocate Prior Yr result
CR BC20 R99100 -25,000 Allocate Prior Yr surplus
DR BC20 R99200 5,000 Allocate Prior Yr deficit

BC19

BC19 is a balancing account, used to maintain the two-sided journal entry system. BC19 is used in a budget journal where it is necessary to affect the current year operating result.

Illustration

The budget unit's cash carry forward is advised after the INITIAL budget has been entered into the system.  The initial budget only recognised the confirmed operating grant for the year, and associated expenditure of that amount. The current year operating result balances to nil. The cash carry forward balance of $20,000 is confirmed.  The INITIAL budget needs to be adjusted to spend the $20,000 on additional teaching resources as promised to department heads.  Therefore a budget journal is required, which will increase your expenditure by $20,000 and reduce your current year operating result by $20,000.

DR 5202 R99100 10,000 Expense prior yr cash result
CR BC19 R99100 -10,000 Expense prior yr cash result
DR 5202 R99200 10,000 Expense prior yr cash result
CR BC19 R99200 -10,000 Expense prior yr cash result

This would result in the current year operating result showing a deficit for the year overall of $20,000.  The deficit is funded by the prior year cash result of $20,000. This results in an operating result of Nil.