Budget Management and Cash Control Overview

What is Budget Management and Cash Control?

Budget Management and Cash Control includes the management of Appropriations, Releases and Reserves, Allotments, and Spendable Cash resources. The Commitment Control (KK) module administers and manages tight integration with all Florida PALM modules (i.e., General Ledger, Accounts Payable, Purchasing, Accounts Receivable, and InterUnit / IntraUnit) to provide budgetary and cash control to determine how financial transactions are tracked and recorded. 

How will budget and cash be handled in Florida PALM?

Budget Management (BM): Management of budget activities and transactions will include recording and maintaining ledger balances for appropriations, releases, reserves, allotments, projects, investments, spendable cash, revenue ledger balances; budget and cash check controls for transactions; management of Carry Forward, Certified Forward, and Continuing Appropriations processes; and other related activities.

Cash Control (CC): Management and control of spendable cash balances for General Revenue and Trust Funds will be handled through cash check controls for transactions, reporting, reconciliations, and other related activities.

Budget and Cash Control Lifecycle

Entering and Processing Budget Journals

What is different or changing?

• Budget Structures define KK module ledgers, which enable rules to control and track budget, cash, investments, encumbrances, expenditures, and revenue.
• Agencies select their preferred Allotments Budget Structure Control Option (Option #1 – Track with Budget or Option #2 – Control) that will be set up in Florida PALM.
• Budget Allotments cannot exceed appropriations and will be prohibited from doing so by the parent/child relationship of appropriations and allotments. There are three methods to create budget allotments: manual online (includes workflow), spreadsheet upload, and interface (if using an agency business system).
• In addition to reports, online inquiry screens with drill down capability are available to provide transaction details.

What is the same?

• The GAA/Adjusted Appropriations are transmitted from LAS/PBS and posted to the Account, Florida PALM Budgetary Fund, Budget Entity, and Category level.
• Florida PALM and LAS/PBS budget ledgers will continue to be reconciled daily throughout the fiscal year to ensure budget ledgers remain balanced.
• Agencies are required to create budget allotments of their appropriations to support budget management methods.

Other Helpful Information

• Visit the Budget Journal Lifecycle page for more information, including Associated Business Processes, Interfaces, Conversions, and Reports.

Executing and Managing Budget

What is different or changing?

• The KK module supports the Manage Budget Checking, Manage Cash Checking, and Invested Balance Checking business subprocesses that validate all source modules transactions to available Appropriations, Releases, Reserves, Allotments, Investments, Spendable Cash, and Revenue ledgers, along with the appropriate ChartField values.
• Florida PALM has been designed for extraordinary instances whereas an agency can submit an Override Request Form (budget, cash, and invested balance) which includes workflow to DFS for review and consideration. This process is not intended as an accounting and budget management tool for day-to-day operations.

What is the same?

• If there are appropriations and cash available, transactions will pass and, if not, transactions will fail budget and cash checking.

Other Helpful Information

• Use the Simplified Disinvestment Journal functionality for reducing errors.
• Visit the Manage Budget Lifecycle for more information, including Associated Business Processes, Interfaces, Conversions, and Reports.

Performing Budget Close

What is different or changing?

• There are no statutory changes to this business process, therefore Florida PALM enables efficiencies to perform the budget close process where appropriate.

What is the same?

• The Department of Financial Services (DFS) and the Executive Office of the Governor/Office of Policy and Budget (EOG/OPB) publish fiscal year (FY) end closing memorandums that provide instructions, guidance, and deadlines.
• DFS maintains a FY end closing activities document that includes tasks/milestones, task descriptions, resources contact information, and contingency/notes. This document is used throughout the FY end closing processes.
• Each agency is required to use Florida PALM for all Carry Forward and Certified Forward processes, as well as to retrieve reports.

Other Helpful Information

• Coming Soon following Segment IV Design Session

Budget and Cash Resources

• Business Process Models (BPMs)
  • How to Read a Business Process Model
  • Budget Management and Cash Control Business Process Models (BPMs)
    • 20.1 Enter and Process Budget Journals - Segment I - as of 12/22/23.
    • 20.2 Budget Execution and Management - Segment III - as of 04/04/24.
    • 20.3 Perform Budget Close - Segment IV - as of 09/05/24.