Initial and final budget scenarios

In order to establish the budget in ESP Financials for the new year, there are two stages. As the budgets at budget unit level are interrelated to the entire ANU budget, F&BS require business managers to submit their initial budget journal to F&BS for uploading.

F&BS will cross check the initial budget with the overall ANU budget to ensure the operating grant allocation is as approved by Council. The initial budget forms the INITIAL budget scenario.

When the initial budget is uploaded it is created in both the INITIAL and FINAL scenarios. That is, the budget will appear in the INITIAL budget scenario, and it will also appear as the base within the FINAL budget scenario.

Once the initial budget has been uploaded, all subsequent budget amendments are entered within the FINAL budget scenario. The business manager can amend the budget for new information, such as changing patterns in actual income and expenditure, expensing cash carry forwards once confirmed, new commitments and things of this nature.  This method allows for a comparison between the INITIAL approved budget, and the FINAL budget within which the area has operated for the full year.

Whilst both the INITIAL and FINAL scenarios are held in the ESP Financials system, it is the FINAL scenario that is featured in the nVision FMR report

It is a generally accepted accounting principle that budgets (apart from being devolved to the lowest reporting level) will generally remain static (that is, the expected year end result is unchanging). Best practice then provides that variances from budget to actuals are supported by explanation.