This procedure describes how the Income Credit Program functions. The Income Credit Program (ICP) is designed to aid a department that generates special revenues from fees or charges that directly support a departmental activity or program within the general fund. Only income that is identified or unique to a single department will be handled by the ICP program.
The Income Credit Program (ICP) is designed to aid a department that generates special revenues from fees or charges that directly support a departmental activity or program within the general fund. Only income that is identified or unique to a single department will be handled by the ICP program.
ICP budgets should be established during the budget development process in January. After that time, a Budget Change Request Form with estimates of each revenue source needs to be submitted to the Budget Office.
A memo expenditure account is also included within the department's budget. A memo expenditure account is budgeted to match the revenue account(s) budgets either by activity unit or subgrant (identified by a 9666 (DAN) and 9600 (BAN)). As revenues accumulate in the revenue account, an expenditure dollar amount should be transferred from the ICP "memo" expenditure account budget (9600) to other departmental expenditure account budgets where expenditures are anticipated. Transfers may be made in anticipation of actual revenue but must be covered by the end of May. The transfer is made on-line or by using the Budget Change Request form.
Using the on-line financial system, compare the revenue budgets to the ICP expenditure budgets. The difference is the amount expended (transferred). Compare that difference amount to the actual received and the balance in the amount available to spend or the amount overspent. (The amount available for transfer is shown in the Total of the Available to Transfer column in the Departmental ICP Report.) The total transferred from the 9600 expenditure account budget, by the end of the fiscal year, may not exceed total revenues reported for the year in the department's ICP accounts. Thus, at the end of the fiscal year, the amount available for transfer must be equal to or greater than zero.
Total ICP revenue received during a fiscal year that is not transferred to other departmental expenditure accounts will normally carry over into the following fiscal year to be identified as ICP carryover for that year. If a department's budget is overexpended at the end of the fiscal year, any ICP revenue remaining is used to offset the overexpenditure.