Fort Walton Beach Council agenda — 08-16-11 special budget — reading text

Administrative Policy retains the same levels of control as Resolution 2008 -31 3. 3. 1 Staff requests that City Council adopt Resolution 2011 -19 to establish that budget transfer procedures will be governed by Administrative Policy FIN- 13. ATTACHMENTS: Budget Transfers Resolution 2011 - 19 ( DOC) Administrative Policy FIN- 13 Budget Transfers ( DOC) Brandy Wunker Completed 07/ 29/2011 11: 09 AM Finance Completed 07/ 29/2011 11: 09 AM City Attorney Completed 08/ 01/ 2011 11: 23 AM DOCID : 1355 Page I Packet Pg. 25  0 RESOLUTION ( ID # 1355) Carole Jones Completed 08/ 01/ 20113: 12 PM City Manager Completed 08/ 02/ 20113: 05 PM City Council Completed 08/ 15/ 2011 11: 31 AM  4". r'_..n RESOLUTION 2011 -19 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ESTABLISHING BUDGET TRANSFER PROCEDURES; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, THAT 9 to SECTION 1. The Annual Budget of the City of Fort Walton Beach, Florida shall be adopted by 11 Resolution with budgetary control at the fund level. 12 13 SECTION 2. Transfers between funds and transfers to increase a fund' s total budget require 14 City Council approval through a budget amendment adopted by resolution. 15 16 SECTION 3. Budget transfers may be needed throughout the year to ensure costs are expensed 17 to the proper account per the State of Florida' s Uniform Accounting System Manual and to 18 account for unanticipated activities. Appropriations for expenditures within a fund may be 19 decreased or increased, provided that the total of the appropriations of the fund is not changed, in 20 accordance with Administrative Policy FIN- 13. 21 22 SECTION 4. In no instance shall a budget transfer increase the total budget of any fund without nM 23 prior City Council approval. 24 25 SECTION 5. Budget amendments that increase or decrease the total appropriations of a fund 26 will be prepared no less than once per year, or more often as may be needed, to record transfers 27 and activities not specifically adopted by motion recorded in the minutes. Such budget 28 amendments may include, but are not limited to, use of reserves or recording of donations or 29 other revenues and the corresponding expense. Budget amendments for grant activity will be 30 included in the resolution accepting the grant award. 31 32 SECTION 6. This Resolution shall take effect immediately upon approval by the City Council. 33 34 35 36 Adopted Mike Anderson, Mayor 37 38 39 40 ATTEST: Approved for form and legal sufficiency. 41 42 43 44 Helen Spencer, City Clerk Hayward Dykes, Jr, City Attorney Packet P0. 27  F. CITY OF FORT BEACH ADMINISTRATIVE VE POLICYPOLICY NUMBER—FIN -13 SUBJECT: Budeet Transfers REVISION DATE: n/ a ORIGINAL EFFECTIVE DATE: Aueust 16. 201 l APPROVED: Robert T. Mesons, City Manager 1. PURPOSE/ INTENT 1. 1 To establish policies and procedures for budget transfers between line items within a fund. 2. BACKGROUND and DEFINITIONS 2. 1 This policy is intended to provide direction and internal control over budget transfers that may be needed throughout the year to ensure costs are expensed to the proper account per the State of Florida' s Uniform Accounting System Manual and to account for unanticipated activities. 2. 2 Appropriations for expenditures within a fund may be decreased or increased, provided that the total of the appropriations of the fund is not changed. 2. 3 Transfers between funds and transfers to increase a fund' s total budget require City Council approval through a budget amendment adopted by resolution. In no instance shall a budget transfer increase the total budget ofany fund without prior City Council approval. 2. 4 BUDGET AMENDMENT —an increase or decrease to the total appropriations of an accounting fund that requires City Council approval. 2. 5 BUDGET CUTS — excess budget funds transferred out of an account by the Finance Department in response to a reduction in revenues. These funds are not available for reallocation because the expense reduction is needed to offset the anticipated revenue reduction. 2. 6 BUDGET TRANSFER — transfer of budget funds between line items of the same accounting fund that do not increase the accounting fund' s total budget. 2. 7 BUDGET RESIDUALS — excess budget funds transferred out of an account by the Finance Department once the budgeted expense has been incurred ( e. g. capital purchase, maintenance contract incurred). Reallocation of these fonds requires City Manager approval. 2. 8 CONTINGENCIES —funds appropriated in the General Fund and Enterprise Funds to guard against unanticipated price increases ( e. g. fuel, utilities), emergency purchases /repairs, or revenue shortfalls. The State of Florida allows up to a maximum of 10% of anticipated revenues to be allocated toward contingencies. I of 3  Imal The City budgets 1% of personnel and operating expenses as contingency funds. Budget residuals will be exhausted before contingency funds are used. Use of these funds requires City Manager approval. 2.9 DEPARTMENT —a major administrative segment of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area (e. g. Police Department, Recreation Department). 2. 10 DIVISION — the smallest organizational unit budgeted; each division indicates responsibility for one functional area ( e. g. Library Division within Recreation Department). 2. 11 PERSONNEL — includes wages ( regular, overtime, add pays) and benefits ( Social Security, Medicare, pension, health insurance, workers compensation). 3. POLICY/PROCEDURES e 3. 1 Budget transfers between line items within a fund that do not change the total appropriations of the fund may be requested using the " Line Item Budget Transfer a° Request " form. e 3. 2 Once approved by the Department Director, the completed Budget Transfer form is d submitted to the Finance Department for processing. 3. 3 The Budget Transfer form reviewed by the Finance Department for accuracy and Nn completeness and is processed with the following approvals: 3. 3. 1 Level 1 — Department Director Approval a i. The budget transfer amount is $ 1, 500 or less, and ii. The transfer is within the same division of a department, and iii. The transfer excludes personnel - 1200 to - 2500, contractual services 3400, communications - 4100, postage - 4200, utilities - 4300, rentals and leases - 4400, insurance - 4500 & - 4501, maintenance contracts - 4610, safety - 4905, fuel - 5204, uniforms - 5210, computer hw /sw - 5231, training - 5500, tuition reimbursement - 5501, grants & aid - 8200, capital outlay - 6XXX, contingencies - 4995, residuals - 4996, debt service, interfund transfers, capital improvement projects, grants, and carryovers. iv. All computer hw /sw budget transfers require IT Director approval. 3. 3. 2 Level 2 — Budget & Grants Manager Review, Finance Director Approval i. The budget transfer amount is between $ 1, 501 and $ 6,000, or ii. The transfer is between divisions within the same department, or iii. The transfer includes personnel, contractual services, communications, postage, utilities, rentals and leases, insurance, maintenance contracts, safety, fuel, uniforms, computer hw /sw, training, tuition reimbursement, grants & aid, capital outlay, debt service, interfund transfers, capital improvement projects, grants, or carryovers. 3. 3. 3 Level 3 — Budeet & Grants Manager Review. Finance Director Approval. City Manager Approval i. The budget transfer amount is over $6,001, or ii. The transfer is between departments, or 2 of 3 Packet Pg. 29  5. 2. b iii. The transfer includes contingencies or residuals. 3. 4 All questions regarding budget transfers should be directed to the Finance Department. 4. ADDITIONAL INFORMATION, REOUIREMENTS AND RESPONSIBILITIES 4. 1 All forms referenced in this policy me available on the FWB Intranet Website under Finance Forms, and are attached herewith. 4. 2 It will be the responsibility of the Finance Director to uphold this policy and keep it current. 5. AUTHORITY 5. 1 Resolution 2011 - 19 adopted August 16, 2011. NNOI orb Packet Pg. 30  6. 3 City Council of Fort Walton Beach FINANCE MEMORANDUM To: Robert T. Meams, City Manager From: Brandy Wunker, Finance