What is an Allocation of Program Expenses to Funds Model?

Budget Allocation Input forms are considered key components of an annual budget and are used by budget managers to allocate operating expenses to programs and funds. Some of the main functionality in this type of input form is that it it lists expense account categories across the columns and funds grouped by program down the rows. The users can view the budgeted amounts at the program level and then break this up by fund using the yellow input cells. The “Difference” columns automatically display the remaining balance to be allocated. You find an example of this type of input form below.

Purpose of Budget Allocation Models for Program Expenses

Universities and colleges use Budget Allocation Models for Program Expenses to make it easy for users to spread the program expenses to the individual funds tied to that program. When used as part of good business practices in a Budgeting and Planning department, a higher education institution can improve its expense planning process, and it can reduce the chances that the fund budgets don’t reconcile to the program and account level budgets.

Budget Allocation Models for Program Expenses Example

Here is an example of a Budget Allocation Input Form to allocate program expenses to funds.

Higher Education Budgeting Example - Allocations of Expenses to Programs and Funds

Higher Education Budgeting Example – Allocations of Expenses to Programs and Funds

You can find hundreds of additional examples here

Who Uses This Type of Input form?

The typical users of this type of input form are: Budget Managers and Department Managers.

Other Input forms Often Used in Conjunction with Budget Allocation Models for Program Expenses

Progressive Budgeting and Planning departments sometimes use several different Budget Allocation Models, along with  payroll budgets, capex and operating expense budgets, revenue templates and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from management systems or enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples