Dissolution of Coverage Circles

What is meant by Dissolution of Coverage Circles?

The term "Dissolution of Coverage Circles" refers to the process of terminating or deactivating coverage circles in budget management. This involves separating previously combined budget items and managing them individually again. This typically occurs at the end of a fiscal year or when changes are made to the budget structure.

Typical software functions in the area of "Dissolution of Coverage Circles":

1. Deactivation of coverage balance accounts: Automatic removal of all budget items from the coverage circle.
2. Individual monitoring: Switching to individual availability control for each budget item.
3. Balance settlement: Automatic distribution of remaining funds or deficits to individual budget items.
4. Report generation: Creation of final reports on the use of funds within the dissolved coverage circle.
5. Archiving: Storage of coverage circle history for audit and verification purposes.
6. Notification system: Automatic information to relevant departments about the dissolution of the coverage circle.
7. Data transfer: Transfer of relevant data to the new fiscal year or into new structures.
8. Negative balance check: Identification and handling of budget items with negative balances before dissolution.

Examples of "Dissolution of Coverage Circles":

1. Year-end closing: Dissolution of all temporary coverage circles at the end of the fiscal year.
2. Structural change: Dissolution of a coverage circle due to reorganizations in administration.
3. Project completion: Termination of a project-related coverage circle after project conclusion.
4. Legislative change: Dissolution of coverage circles due to new budgetary law provisions.
5. Budget cut: Dissolution of a coverage circle for more precise control of expenditures in times of scarce resources.
6. Audit order: Dissolution as directed by control authorities for better traceability of fund usage.