Revenue Assumptions

 

Self-Supporting Operations are required to show that they have sufficient revenues to cover their operations. All ongoing revenues should be reflected in a business plan (considered “base” revenues). Revenues should be delineated by the account in which the revenues will be posted.

Business Plan subtotals indicate when a self-supporting operation is drawing on carryforward balances or when a projected surplus will be added to prior year carryforward. However, the adopted budget in the campus financial system for self-supporting operations is a little different. For self-supporting operations, budgeted revenues MUST equal budgeted expenditures.

Budgeting Revenue Surplus and Revenue Shortfall

Revenue Surplus

When revenues are estimated to exceed estimated expenditures for the fiscal year, the surplus revenue surplus should be posted to account 699999 – Reserves. Class code 1144 – Reserve, or 1170 – Holding can be used in conjunction with this account.

Revenue Shortfall

If revenues are anticipated to fall short of estimated expenditures for the fiscal year, the self-supporting operation will need to draw down carryforward balances. To show carryforward as a revenue/source for a given fiscal year, use account 305002 – Fund Balance-Continuing Appropriation.