The University of Chicago
The University of Chicago

Local Business Center, Division of the Physical Sciences

Math formula

Budget Pools

Budget pools enable simplified budgeting by allowing FAS to automatically allocate expenses under broad budget categories based on the subaccount of an expense. To enable budget pools the proper ABR (automatic budget reallocation) code must be applied to the account in ACCTS. The codes to use are 1, 3, 9, or 0 - see the ABR section in the FAS manual for details. ABR 1 allows one budget pool for the account (sub 0990) while ABR 3 allows budget pools for seven categories (personnel 0999, services 2001, supplies 5000, equipment 6000, travel 7000, other 7600, unallowable 9900). ABR 9 requires individual subaccount budgeting with no budget pools and disables budget reallocation. ABR 0, like ABR 9, requires individual subaccount budgeting but does allow limited budget reallocations (for example, if subaccount 5501 is not budgeted, it will reallocate from from 5500 when an expense is charged). Standard procedure is to use ABR 9.

Both ABR 1 and 3, allow individual subaccounts to be budgeted in addition to pools, if needed. When combining pools and individual subaccount budgeting, it is best not to mix them within the same budget category. For example, it is acceptable to use budget pools for equipment and services and individual subaccount budgeting for all other expenses. However, it is not a good idea to create a supplies budget pool (5000) and budget computer supplies and software by subaccounts (5550 and 5800) within the supplies budget category. This can make reading the budget details in FAS confusing.

When expenses are incurred, the pool under which it is applied will be reduced and the "budget" for that subaccount will be increased by the amount of the transaction, hence automatic budget reallocation. Within budget pools, any given expense subaccount will never have a negative budget balance, but the pools can.

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