Business, Legal & Accounting Glossary
Virement is the process of moving money from one financial account or part of a budget (a plan for how the money will be spent) to a different one. For example, within the Government where one department underspends and another department needs more funding, the funds can be procured through virement.
/ˈvʌɪəm(ə)nt,ˈvɪəmɒ̃/
noun
the process of transferring items from one financial account to another.
The transfer of a surplus from one account to cover a deficit in another.
virement in British. an administrative transfer of funds from one part of a budget to another.
In some budgetary control systems, Virement is an agreed practice in which funds may be transferred from one segment of the budget to another within a financial year.
For example, a projected surplus in one budget may be used to cover another budgets deficit.
Example: The budget for road maintenance has been underspent for the financial year 2018-2019 and so they have decided to support the building of a new hospital through virement.
According to the governor, it was not covered in the budget for road maintenance and was instead received through virement.
The virement of unspent environmental funds to the World Heritage Site road-building project was something not seen before in this country.
The council are able to use virement to transfer funds from one department to another.
The level of virement that is permitted, without requiring further prior approval from the secretariat, is to be specified fully within the conditions of the grant.
The proposed virement and preservation of the Planning Delivery Grant is to be managed in such a way as to ensure that the Department does not exceed its overall budget allocation.
The position is monitored regularly by the central finance committee, which will adjust any imbalance by virement and/or by means of a supplementary estimate.
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This glossary post was last updated: 22nd November, 2021 | 0 Views.