Budget Amend Guidelines

							Alabama State Department of Education
Administrative and Financial Services
                           PROCEDURES FOR AMENDING BUDGET
                             AND/OR PROGRAM APPLICATIONS

A.        Amendments to the budget must be approved by the local board. The following should be
          submitted to the SDE:

                    1. Annual Budget form to include Exhibit B-1-A (indicate amendment number)

                    2. Magnetic disk

                    3. Program Application (If Applicable)

B.        Reason for the Amendment - Indicate in detail in the space provided on page 1 and fill in the
          amendment number.

C.        Budget amendments submitted that present a deficit ending fund balance in any fund source will not be
          approved.

D.        Budget Amendments are required when:

                    1. it is determined collections will fall short by more than 10% of the budgeted amount of all
                    anticipated revenues in a major revenue source (State, Federal, Local or Other) and when this
                    major revenue source accounts for at least 10% of the total revenues in the fund source.

                    2. an additional State allocation is received that is material in amount and(or) has special
                    budgeting and reporting requirements.

                    3. an additional Federal allocation is received (regardless of amount) and has special budgeting
                    and reporting requirements.

                    4. the estimated Beginning Fund Balance originally budgeted is significantly more than the actual
                    ending fund balance reported on the General Purpose Financial Statements of the previous year.

                    5. the estimated positive Beginning Fund Balance originally budgeted is a deficit on the General
                    Purpose Financial Statements of the previous year.

                    6. the cumulative expenditures in a major program category for a particular fund source will
                    exceed 10% of the total amount budgeted in a major program for that fund source or when a new
                    major program is added.

                              Major Program categories are defined as follows:

          1100-1199     Kindergarten Program                 4200-5999 Non-Regular Day School Inst. Prog.
          1200-1299     Elementary Program                   8100-8199 Instructional Services
          1500-1699      Secondary Program                   8200-8299 Instructional Support Services
          1700-1799     Alternative School Programs          8300-8399 Operations & Maintenance
          1800-1899      Supplementary Educ. Programs                8410-8419 Auxiliary Services - Student
          1900-1999     Other Regular Educ. Programs                         Transportation
          2000-2999     Special Education Programs           8420-8429 Auxiliary Services - Food Services
          3000-3999     Voc Tech Ed Programs                 8600-8699 General Administration Services
                        4100-4170                    Adult Education         9000-9997 Non-Instructional
Programs




Revised: 05/20/98
Alabama State Department of Education
Administrative and Financial Services



E.        Federal Programs

          Effective Date: Will be the date the amended program application is received in the SDE in substantially
          approvable form. Program staff should coordinate the submission with the Budget Officers in order that
          budget changes on magnetic media will be in agreement with the program amendment.

          Programmatic Amendments are required when:

                    1. any changes are made to the scope or objectives of the program, regardless of whether there is
                    an associated budget revision requiring prior approval.

                    2. initial or additional capital outlay items are needed. If additional capital outlay items are
                    needed but the amount of funds involved does not warrant a budget revision, a letter outlining what
                    is needed may be submitted over the Superintendent’s signature.

                    3. changes in staff positions (replacing a staff position already approved not applicable) may
                    require a revision to the staff summary page of the applicable federal program application.

                    4. for non-construction projects, contracting out or otherwise obtaining the services of a third
                    party to perform activities which are central to purpose of the program.

                    5. for combined construction and non-construction projects - before making any fund transfer
                    from non-construction to construction or vice-versa.

                    6. any revision which would result in the need for additional funds (i. e. when actual carryover
                    amount exceeds amount previously budgeted).




Revised: 05/20/98