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HomeMy WebLinkAbout188-90 RESOLUTION' RESOLUTION NO., 188-90 A RESOLUTION APPROVING AN AMENDMENT TO THE CITY'S BUDGET ADJUSTMENT POLICY. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Board of Directors hereby approves the new budget adjustment policy as set out in the outline presented and authorizes the City Manager to initiate the necessary steps to incorporate this new policy to the City's Policies & Procedures Manual. A copy of the new Policies & Procedures Manual update authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 20th day of November APPROVED: By 8 V -`ATTEST: City C erk • 1990. Mayor SUBJECT: ADMINISTRATIVE POLICIES a PROCEDURES MANUAL NUMBER REVISIONS EFFECTIVE OATE: PAGE SUPERSEDES APPROVED BY:. BR -1.0 PURPOSE: The procedures outlined in this section define, standardize and set forth responsibilities for budget adjustments. BR -1.1 DEFINITION AND EXPLANATION: A budget adjustment is a change in the authorized budget, either revenue or expense. A budget adjustment transfers a specific dollar amount from one line item or capital item within a line item to another, thereby decreasing the budget for one line item or capital item and increasing another. Since a budget adjustment is a change in allocated funds, great care must be taken and only changes for good reason will be accepted. All Department Directors & Division Heads are mandated to stay within each major category for each operational program budget as adopted and to stay within the total budget, by project, within the line item for any capital programs.. Neither the Accounting or Purchasing Offices will process payments or purchase orders, which will cause a category to be over the annual budget amount. Each line item, in the budget, is grouped into a category (i.e. Personnel Services, Materials & Supplies, Contract Services, Maintenance, Capital, etc.). Budget adjustments will only be required in the following instances: 1) When the budgeted amount per ,category is exceeded (an offsetting adjustment must be made from a line item in another category or program.) 2) When the budgeted amount per operational program is exceeded (an offsetting adjustment must be made from another operational program or fund balance.) 3) When the budgeted amount for a capital proiect is exceeded (an offsetting adjustment must be made from: another capital project within the same line item, another line item, another program, or fund balance.) Any changes in the personnel services category must meet the City's policy for raises, promotion, and staff increases. BR -1.2 TYPES OF BUDGET ADJUSTMENTS There are basically five (5) categories of budget adjustments. These are: A. Adjustments between major categories in an operational program, between capital projects, or to an operational. program, up to $1,000, may ;be approved by the Budget Coordinator; Adjustments between major categories -in an operational program or between capital projects, for $1,001 to $10,000, may be approved by the Administrative Services Director; C. Adjustments to the program whichtotal less than 5% of the total operational program budget may be approved by the City Manager; D. Adjustments which exceed 5%; of the total operational program may be approved by the Board of Directors; E. Adjustments to a category within a program which exceed $10,000 may be approved by the Board of Directors. This includes capital projects within a line item, between major categories within an operational program, or between operational programs Adjustments to an item, project, or program are considered to be cumulative. Therefore, a single adjustment may meet the criteria for one type of adjustment, but fall into another type due to prior adjustments to the same item, project, or. program. The Budget Coordinator shall have the authority to make the final determination as to which type of adjustment is necessary. Adjustments to an operational program's total budget must be justified by modifying program objectives and performance measures. These items must be submitted with the budget adjustment and approved simultaneously.• BR -1.3 RESPONSIBILITIES AND PROCEDURES' It is the responsibility of each Department Head to prepare his/her adjustment whenever the required signatures, and return! the Coordinator. Following review by the Budget Coordinator, the adjustment is either processed through the Budget & Research Office or returned to the Division Head requesting the adjustment for placement on the Board agenda. It is the responsibility of the City Manager to present the adjustments to the Board of Directors and advise the them of any consequences. Director or Division required, obtain all form to the Budget 1 • BR -1.4 PREPARATION OF THE BUDGET ADJUSTMENT FORM: Use of the budget adjustment form will provide the following: 1. Documentation for revisions to the approved budget; 2. Documentation of proper approval and authorization by the Budget Coordinator, Department Director, City Manager, and the Board of Directors as required; and 3. Uniformity in adjustment requests. All information on the budget adjustment form must be completed by the Department Director or Division Head requesting the adjustment prior to receiving the approval of the Budget Coordinator. Instructions to complete the duplicate• form are as follows: 1. .Budget Year - the current year 2. Department - the department of the division head initiating the request 3. Division - the division of the individual initiating the request 4. Program - the program that is in need of the increase 5. Date Requested - the current date 6. Proiect or Item - list the project or item with a brief description 7. Justification of the Increase - Explain the reason for the change in the adopted budget (the cost effectiveness and/or the service it would provide, etc.) 8. Project or Item Deleted - List the item(s) to be deleted, with a brief description 9. Justification of the Decrease - Explain how the decrease will effect the current operations or objectives of the program. 10. Account Title - Fill in the appropriate title of the account being adjusted. If more than one account is listed, information must be kept in a consistent order. A blank sheet of paper can be used if needed. - 11. Account Number - Fill in the account number(s), which correspond to the account title(s). 12. Requested By - the signature of the division head initiating the request 13. Budget Coordinator - the signature of the Budget Coordinator 14. Department Director - the signature of the department director from the department in which the request is being made 15. Administrative Services Director - the signature of the Administrative Services Director (if necessary) 16. City Manager - the signature of the City. Manager •(if necessary) - 17. Budget Office Use Only - to be completed by the budget staff Once the adjustment has received the approval of the Budget Coordinator, it will be returned to the requesting Division Head for further approval and/or to be included in an agenda item. Approval signatures should be obtained in the order in which they • • appear on the budget adjustment form. !Once final approval has been received, the form should be returned to the Budget Office for processing. The division head should keep the 3rd copy of the triplicate form for his/her records. The two remaining forms will be distributed by the Budget Office, after processing, as follows: Original - Budget Office 2nd Copy - Department Director 1