To minimize the financial burden incurred by the Ops Fund 2001 AND ensure compliance to Fed Fund 6001, What budget adjustments and reclassified journal entries would you recommend?

Compliance Rules of Fed Fund 6001:

You can change budget by account code, but the total budget can NOT change.

Actual expenditures by account code can exceed account code budget by more than 10% of the budget account code.

You can reclassify any portion of an expenditure from Fed Fund 6001 to Ops Fund 2001 if actual expenditures exceed budget.

An expenditure can not change account codes.

Year End Results of Fed Fund 6001:

Full Year Full Year (Over)

Account Account Budget Actual Under

Name Code Expenditures Expenditures Budget

Material & Supplies 6110 $ 1,000 $ 2,500 $ (1,500)

Purchased Services 6250 $ 3,000 $ 1,500 $ 1,500

Salary & Benefits 6500 $6,000 $ 6,500 $ (500)

Total $ 10,000 $ 10,500 $ (500)