Budgetary Entry - Mid-Year Budget Amendment (Supplemental Appropriation)
Recording a mid-year budget amendment approved by the governing body to increase appropriations for an unanticipated expenditure or to appropriate a grant award received after the original budget adoption.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Estimated Revenues Control (Grant - Unanticipated) | Budgetary Dr (+) | 850,000.00 | - |
| Appropriations Control (Grant-Funded Program) | Budgetary Cr (+) | - | 850,000.00 |
💡 Accountant's Note
When a government receives an unexpected grant or needs additional spending authority mid-year, the governing body must formally amend the budget. The amendment is recorded as an additional budgetary entry adjusting Estimated Revenues upward (if funded by new revenue) and Appropriations upward (new spending authority). In most states, it is unlawful to expend funds without an appropriation — even for emergency purposes — without legislative approval.
Practitioner & Systems Framework
💻 ERP Architecture
Budget amendment workflow in government ERP systems typically requires departmental request, finance department review, and governing body approval before the amendment is posted. Maintain a log of all budget amendments with the date adopted, ordinance/resolution number, amount, and justification. The budgetary comparison schedule must reflect the FINAL amended budget, not the original.
⚠️ Audit Flags
Auditors verify that all mid-year budget amendments were properly approved by the governing body. Expenditures in excess of original appropriations that were not amended are a finding. GASB 34 requires the budgetary comparison schedule to show original budget, final amended budget, and actual results — missing the 'original' column is a common deficiency.
📄 Required Documentation
Amendment ordinance or resolution adopted by governing body with vote count, staff memo justifying amendment, original and amended budget comparison, grant award letter (if grant-funded).
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