290 DEPARTMENT RESPONSIBILITY IN MAINTAINING INTERNAL FINANCIAL RECORDS, FILES, AND DOCUMENTATION

APPENDIX II

SECTION F - BUDGETS

1. General
   
   A budget is required to support the allocation of Federal and other funds made available to the States to carry out Extension programs. It is a document which relates directly to plans of work and financial reports. This document serves as a basis for preparation of financial information needed to properly administer and coordinate the Extension programs.
   
   As soon as the appropriation act is passed, the States will be informed as to the fiscal year allocation and the specific date for submitting the budget. Ordinarily, congressional intent regarding the activities of the State Extension Services is reflected in the annual appropriation act for the Department of Agriculture. However, more specific expressions of congressional intent as to projects or activities may appear in the House, Senate, or conference reports; hearings before the Committee on Appropriations; or in debate presented in the Congressional Record. Any such expressions of intent should be carefully taken into consideration in the budgeting and use of Federal funds appropriated for the Extension program. Before budgeting or expending Federal or offset funds for any activity, the Land-Grant Institution should first determine that such activity is in furtherance of the plans of work approved by Extension and supported by annual updates to the plans of work.
   
2. Annual Budgets
   
   The Cooperative Extension Budget Statement provides for the budgeting of all funds appropriated under the Smith-Lever Act. Funds are received from State, county, non-tax, and other Federal agencies for Cooperative Extension work should also be reported on this form. Any funds from other Federal agencies that are authorized under the ES letter of authorization also require a separate budget. These budgets should also be included as a part of the plan of work or project proposals.
   
   The 1890 Budget Statement provides for the budgeting of Federal and non-Federal funds allocated to the 1890 Institutions for Extension work.
   
3. Revised Budgets
   
   Each year, after April 1, there is an opportunity for each State to submit a revised budget reflecting adjustments based on expenditures up to the time of the revision and projecting estimated costs for the balance of the year. If Federal funds budgeted as "reserve" in the original budget are used or there is at least a variance of 10 percent, of the total budget in any one object class, then a revised budget use should be submitted.
   
   Preparation of the revised budget is essentially the same as for the original submission and includes distribution of any unobligated balances that remained on September 30 of the previous fiscal year. After approval, the revised budget supersedes the budget submitted at the beginning of the year. The revised budget is due on or about June 15, or as instructed by the ES.
   
   In lieu of a budget revision, a letter of detailed explanation may be submitted. Upon approval the letter is made a part of the approved budget.
   

Revised May 1994