Accounting Tips from Dave Lyons

Using the BARC (Budget Adjustment Restriction Code)

In the KFS, budget adjustments are made with the BA electronic document (e-doc). This e-doc has two sides--"from" and "to"--which must be equal. The budget adjustment restriction code, or "BARC," establishes limits on budget adjustments. In the Chart of Accounts (COA), the fund group and sub fund group both contain a BARC, which determines how budget adjustments can be made within each group.

The fund group BARC can have one of these values:
• C (chart)
• O (org)
• A (account)
• F (fund)

The sub fund group BARC can have one of these values:
• C (chart)
• O (org)
• A (account)
• S (sub fund)
• N (none)

The sub fund group BARC is the most restrictive. If it has any value other than "N," the account number on both sides of the BA must be within that sub fund group.

For example, if the sub fund for Nongovernment Grants has BARC value "S," only budget adjustments between accounts within the sub fund will be permitted. If the BARC value is "A," the only BA permitted in this sub fund will be adjustments between object codes within the same 7-digit KFS account.

Note that if the sub fund BARC value is "N," the BARC for the fund group governs. In this case, a BARC value of "O" for a particular fund group would permit an organization to make budget adjustments between its own accounts in that fund group. Budget adjustments may not cross fund groups, but fund transfers can be made between fund groups.

With the BARC, a central budget or finance office can give end users the ability to make budget adjustments within limits set by university policies. Of course, delegating these adjustments is up to the university--another example of how the KFS can be configured for the business practices of individual institutions.