ctcLink Accounting Manual | 20.10.40 Allotment – Preparation and Approval

Allotments are a detailed plan of expenditures authorized in the budget, revenue estimates, and FTE estimates as required by law (RCW 43. 88. 110).

State agencies, like OFM, the Legislature, and the public use these values to monitor an agency’s spending and revenue against actuals.

Allotments also help prevent over-expenditure and improve budgets, spending plans, and other financial decisions for the agencies and the state.

The allotment process incorporates controls to ensure obligations and expenditures are within applicable appropriations; appropriation purposes conform to legislative intent; sufficient funds exist to allow the state to incur financial obligations; and changes in planned expenditures can be proposed, evaluated, and authorized in a manner consistent with state law.

Before the beginning of each biennium, and following enactment of the biennial budget, agencies submit allotments to the Office of Financial Management that represent the proposed agency expenditures, revenue and staff FTE for the ensuing biennium.

The allotment is part of the implementation phase of the state budget process and exists to provide agencies the authority to obligate and spend state funds.

Agencies must submit biennial allotment plans for the ensuing biennium within 45 days after the beginning of the fiscal period, or within 45 days after the Governor signs the Omnibus Appropriations Bill, whichever is later.

The Governor determines form and submittal dates. OFM reviews the allotment plans in light of the agency work plan and may approve the allotment in part or in whole, authorizing the agency to spend within an appropriation.

As required by law, OFM continuously reviews and evaluates the revenue and expenditure relationship so that expenditures do not exceed available revenues.

The submittal for the initial biennial allotment and any subsequent amendments consists of:

• Estimated monthly expenditures by object and fund/appropriation for each budgeted program;
• Monthly estimates of full-time equivalents (staff FTEs) categorized as General Fund-State or Other Funds; and
• Estimated monthly revenue by fund and fund source

The allotments must match both the dollar amounts and appropriation codes shown in the appropriation schedule as provided by OFM. Only public funds specifically exempted by OFM are excluded from the allotment process.

After initial approval, expenditure plans can be revised quarterly. Revisions may be needed to reflect changes in initial assumptions, such as changes in the timing or the amount of expenditures or for changes in revenue estimates. Legislative changes in appropriation levels or across-the-board reductions mandated by the Governor will also result in revised allotments. Retroactive allotment revisions in prior years or months are not allowed.

The State Board for Community and Technical Colleges prepares and submits the biennial allotment for the system.

The State Board prepares monthly allotments by object of expenditure and fund/appropriation for the General Fund-State (Fund 001) for the following budgeted programs:

• 010 – Instruction
• 040 – Primary Support Service
• 050 – Libraries
• 060 – Student Services
• 080 – Institutional Support
• 090 – Plant Operation and Maintenance
• 110 – State Board Office
• 120 – State Board Special Projects
• 130 – Computing Services

The State Board prepares monthly allotments for expenditures, revenue and staff FTE.

• Expenditures are allotted for each program by object and expenditure and fund/appropriation.
• Revenue is allotted by the source of revenue (state, federal, private/local) and subsource (used to identify a particular revenue item within a source).
• FTE allotments are allotted by program, categorized as General Fund-State or Other Funds.

Historical expenditure, revenue and FTE data obtained from the state accounting system is used to determine the monthly allotments. Only certain funds are required to be allotted.

The State Board submits the system allotments to OFM via The Allotment System (TALS). This system allows online development of the agency’s capital and operating allotment packages. It supports the allotment development, management, review, reporting and monitoring needs for state agencies, the Legislature, the Office of Financial Management (OFM), and the public.

OFM reviews and approves the State Board system allotments, thus authorizing expenditures within an appropriation.

The term “lapse” means the termination of an appropriation. To the extent they have not been expended or lawfully obligated, most appropriations and allotments automatically lapse at the end of the fiscal year for which the appropriations were made.