Budget Policies

BT04 Budget Regulations for Departmental Allotment Including Fringe Benefits

Policy Status: 

Under Review

Subject Matter Expert: 

Budget Director, budget@psu.edu

Policy Steward: 

Associate Vice President for Budget and Finance


  • Purpose
  • Departmental Allotment Budget Control
  • Fringe Benefits
  • Offsetting Income and Expense Budgets
  • Capital Improvements
  • Further Information

    To present the University regulations pertaining to the budgeting of departmental allotment.




    e departmental allotment budget may not be reduced on a permanent basis. If exceptions are deemed to be necessary, such requests will be routed (via the budget amendment form) to the Office of Budget and Finance, which  in turn will route the request to the appropriate senior University officer for approval.


    Each administrative area with general funds will have a fringe benefits budget (with budget function established as employee benefits).  The permanent amounts in this budget consist of reallocations from Central billing accounts.  These reallocations will be adjusted for annual changes in the fringe rate.  In addition, the amounts will be adjusted for general salary increase allocations from Central, reorganizations/budgetary realignments of administrative areas and other allocations (as approved) from Central sources.

    The amounts in the administrative area fringe benefits budget must be budgeted in fringe benefits object codes (see SIMBA Chart of Accounts).  Any budgetary adjustments to the budget (via the budget amendment form) will be routed to the Office of Budget and Finance Central Desk for review.  Temporary adjustments may be made to this budget for purposes including transferring funds to accounts with actual fringe benefits charges.  The amount in this budget will not be included for calculation of a recycling base.  Consistent with the budget model for University Outreach, fringe benefits budget funds, either permanent or temporary, may not be transferred to any Outreach administrative area.


    Certain departmental budgets contain estimated fees, sales or other income which usually are offset by like amounts in the expense budget for the same departments. Since the expense budget is authorized on the assumption that the total estimated income for such budgets will be realized, it is the responsibility of the budget executive not to incur actual expenditures in excess of actual income received during the year. Permanent reductions in departmental expense and income budgets are required whenever departmental operations experience a curtailment of income of a continuous nature. Temporary reductions are required if curtailment of income occurs but is not expected to continue in the following fiscal year starting July 1.


    Charges for construction or other major improvements to facilities are not normally provided as part of operating budgets.


    For questions, additional detail, or to request changes to this policy, please contact the Office of Budget and Finance.

    Most Recent Changes:

    • May 2, 2024 - Editorial changes - IBIS Object Code list replaced with SIMBA Chart of Accounts link.

    Revision History (and effective dates):

    • February 1, 2023 - Editorial changes:
      • Added the Budget Director as the Subject Matter Expert (SME)
      • Changed the Policy Steward from the University Budget Officer to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
      • Changed the Further Information contact from the University Budget Officer to the Office of Budget and Finance
    • August 6, 2014 - Clarifying edits to DEPARTMENTAL ALLOTMENT BUDGET CONTROL section. Removal of the EQUIPMENT TRADE-INS section. Addition of a FRINGE BENEFITS section.
    • October 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
    • August 23, 2000 - The position title "Budget Officer of the University" was changed to "University Budget Officer."