Beginning in May 2023, the Controller’s Office is limiting inter-RC operating (Entity 02 and Dental clinic) Budget Modification Requests (BMRs) and encouraging RCs to use transfer journal entries that impact the actual rather than the budget. BMRs within an RC or within the School of Medicine Division (SOMD) will not change. Please continue to submit operating BMRs for the movement of funds within your RC.

BMRs Processed in FY 2023 Under the Old Method

• Budget & Planning (B&P) will do a one-time fix for both temporary and permanent operating BMRs
• BMRs will be balanced within each RC with a new BMR using subcode 8100 reference segment 58000 (temporary) or 59000 (permanent)
• B&P will prepare a transfer entry (impacting actual) in subcode 8260 using reference segment 58000 (temporary) or 59000 (permanent)
• Corrections will be reflected in the May level reports 
• Permanent BMRs will be reflected in FY24 Target Letter as a permanent adjustment on Schedule 1 (budgets in subcode 8100 / ref 59000 that balance the BMR will be excluded)

Temporary BMRs Moving Forward

• B&P recommends that RCs process actual transfers in subcode 826X (8260-8264 or 8269 range and the same subcode on both sides of the entry) instead of inter-RC BMRs moving forward
• RCs have the option to process a self-balanced (via subcode 8100 / ref 58000) BMR to correspond with the transfer, but this step is not necessary
• Information about creating transfer journal entries is located on the PRISM SharePoint site here (scroll down to Creating a JE – Transfer Journals (826x subcode) 
• Temporary BMRs will not be reflected in the Budget ReSTART Model

Permanent Operating Budget Adjustments Moving Forward – What To Expect in Target Letters and the Budget Restart Model

• For new permanent operating budget adjustments, we prefer that RCs notify B&P via email to BFRBMR@pitt.edu by July 14, 2023, for inclusion in the FY24 Target Letter
• The adjustment will be shown on Schedule 3 and seeded to a placeholder in the RCs’ budgets. RCs will need to provide detail of the adjustment and evidence approval from the affected RCs  
• Alternatively, RCs can submit budget loads in September that are over/under their target budget by equal/opposite amounts  
• Permanent adjustments made either in Target Letters or budget submissions will be included in the ReSTART model

• For adjustments that cannot be made by the budget submission due date in September and must be made mid-year:
  • Operating BMRs should be balanced within each RC using subcode 8100 reference segment 59000 (permanent)
  • RCs should prepare a transfer entry in subcode 826X (8260-8264 or 8269 range and the same subcode on both sides of the entry) using reference segment 59000 (permanent) 
  • Permanent BMRs will be reflected in the next year’s Target Letter as a permanent adjustment on Schedule 1 (budgets in subcode 8100 / ref 59000 from the balancing BMR will be excluded)
  • Permanent BMRs will not be reflected in the budget amounts in the Budget ReSTART Model until the following fiscal year