Fort Walton Beach Resolution — 2011-19--budget transfer procedures — reading text

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 Sectionwith by Resolution 1. The Annual control budgetary Budget atofthethefund Citylevel. of Fort Walton Beach, Florida shall be adopted Section 2. Transfers between funds and transfers to increase a fund' s total budget require City Council approval through a budget amendment adopted by resolution. Section 3. Budget transfers 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 be to accountorforincreased, decreased unanticipated activities. provided that Appropriations the total of the forappropriations expenditures ofwithin the a fundis may fiord not changed, in accordance with Administrative Policy FIN -13. Section 4 In no instance shall a budget transfer increase the total budget of any fund without prior City Council approval. Section 5. Budget amendments that increase or decrease the total appropriations of a fund will be prepared no less than once per year, or more often as may be needed, to record transfers and activities not specifically adopted by motion recorded in the minutes. Such budget amendments may include, but are not limited to, use of reserves or recording of donations or other revenues included and the corresponding in the resolution accepting the expense. Budget amendments for grant activity will be grant award. Council.Section 6. This Resolution shall take effect immediately upon approval by the City Adopted Mike Anderson, Mayor ATTEST: Approved for form and legal sufficiency. r Helen Spencer, Ce Clerk 4 a+Yw ykes, Jr, C Alto  5. 2. b CITY OF FORT WALTON BEACH ADMINISTRATIVE POLICY NUMBER—FIN -13 SUBJECT: Budget Transfers REVISION DATE: n/ a ORIGINAL EFFECTIVE DATE: August 16 2011 APPROVED: Robert T. Means, City Manager 1, PURPOSE /INTENT 1. 1 aTofund. establish policies and procedures for budget transfers between line items within 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 shallapproval. City Council a budget transfer increase the total budget of any fund without prior 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 funds 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. 1 of3 Packet Pg. 28  5. 2. b 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 Department). for one functional area ( e. g. Library Division within Recreation 2. 11 PERSONNEL — includes wages ( regular, overtime, add pays) and benefits ( Social Security, Medicare, pension, health insurance, workers compensation). 3. POLICY /PROCEDURES 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 Request' forrn. 3. 2 Once approved by the Department Director, the completed Budget Transfer form is submitted to the Finance Department for processing. 3. 3 completeness The Budget Transfer form reviewed by the Finance Department for accuracy and and is processed with the following approvals: 3. 3. 1 Level 1 — Department Director Approval 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, grants & fuel, uniforms, computer hw /sw, training, tuition reimbursement, aid, capital outlay, debt service, interfund transfers, capital improvement projects, grants, or carryovers. 3. 3. 3 Level 3 Budget & Grants Manager Review Finance Director Annro a] Cttv Manager Approval i. The budget transfer amount is over $6, 001, or ii. The transfer is between departments, or 2 of 3 Packet Pq. 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. REQUIREMENTS AND RESPONSIBILITIES 4. 1 All forms referenced in this policy are 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. 3 of 3 Packet Pg. 30