HomeMy WebLinkAbout24- Finance CITY OF SAN BERN_ RDINO - REQUEST FC L COUNCIL ACTION
From: BARBARA PACHON, Subj ect: ORDINANCE RELATING TO THE
DIRECTOR OF FINANCE APPROVAL OF BUDGET TRANSFERS.
Dept: FINANCE I
Date: OCTOBER 22, 1996
Synopsis of Previous Council action:
CITY ATTORNEY'S LEGAL OPINION NO. 96-12 10/17/96.
Recommended motion:
ADOPT ORDINANCE.
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Signature
Contact person: BARBARA PACHON, DIRECTOR OF FINANCE Phone: x - 5242
Supporting data attached: POLICIES & PROCEDURES, STAFF REPORT Ward:
FUNDING REQUIREMENTS: Amount: N/A
Source: (Acct. No.) N/A
(Acct. Description)
Finance:
Council Notes:
L,q;d OVeAe LVA h r -"
Agenda Item No. y
CITY ' OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
BACKGROUND
The City has the historical practice of allowing individual
departments to request budget transfers within their departmental
budgets as long as the total department budget allocation is not
increased. For your information, attached are the "Fiscal Policies
and Procedures" pertaining to budget amendments as established by
the Finance Department . The City Attorney' s Office has drafted the
attached ordinance relating to the approval of budget amendments .
In response to an inquiry by a Council Member, the City Attorney' s
Office released Opinion No. 96-12, relating to budget amendments .
The opinion notes that although there is no specific Council
authorization for budget amendments, the process has been followed
for many years and has been approved by a myriad of independent
auditors; therefore, it is assumed based on this long-standing
practice, which practice was known to Council, that there was
sometime in the distant past specific approval given. For purposes
of clarity and to give specific direction to the departments
involved, the City Attorney' s Office has recommended that the
attached ordinance drafted by their department be adopted.
Also attached for your information are "Fiscal Policies and
Procedures" relating to budget amendments . Working within the
parameters set by the ordinance, the policies and procedures offer
more details for departments on operational matters . For example :
- Departments must initiate budget amendments on the appropriate
form and provide adequate back-up.
- The Finance Department will review requests for budget
amendments and complete the necessary accounting functions
upon approval .
- Requests for transfers between funds or departments, and
transfers involving personnel services accounts require the
approval of the Mayor and Common Council .
- For purposes of consistency with established authority limits
in other financial areas, budget amendments under $25, 000
meeting the appropriate criteria will be approved by the
Director of Finance. Requests for budget amendments over
$25, 000 require the approval of the Mayor and Common Council .
RECOMMENDATION
Staff recommends the Mayor and Common Council adopt the attached
ordinance relating to the approval of budget amendments .
CITY OF SAN BERNARDINO
FISCAL POLICIES AND PROCEDURES
TITLE: BUDGET AMENDMENTS
PURPOSE:
To establish the administrative procedures for recording all changes to the City's annual budget.
Changes include increases, decreases and transfers in both revenues and expenditures. Changes
to the budget may be required for several reasons, including changes in Memorandums of
Understanding (MOD's), acceptance of grant programs, revisions of currently funded programs,
as well as minor administrative adjustments such as intradepartmental revisions between line
items.
POLICY:
Administrative adjustments to the budget within the same fund and department that do not
increase a department's total budget allocation and do not increase or decrease personnel services
accounts may be approved by the Director of Finance (or designee) up to $25,000.
Administrative changes over $5,000 that do not increase a department's total budget allocation
and do not increase or decrease personnel services accounts may be further reviewed by the City
Administrator (or designee) up to $25,000. These approval amounts are similar to established
purchasing authority limits. All expenditures must comply with established purchasing
procedures.
Any request for changes to the budget that do not meet the requirements above must have
approval of the Mayor and Common Council.
PROCEDURES:
1.0 ADMINISTRATIVE AMENDMENTS - changes to the budget that do not require the
approval of the Mayor and Common Council and may be approved administratively by the
Finance Department.
1.1 BUDGET TRANSFERS -Requests for amendments to the budget of$25,000 and under
that do not increase a department's total budget allocation and do not increase or
decrease personnel services accounts.
1.2 Departments will initiate budget transfers by completing a "Budget
Transfer/Amendment" form (blank forms can be obtained from the Print Shop). On
the form departments will specify from which account the funds are coming from, to
which account the funds will go, and the amount of the transfer. Each transfer request
should have a thorough justification and include any supporting back-up documentation.
1.3 All requests for budget transfers require the signature of the department head or
designee.
1.4 All requests for budget transfers not requiring Council approval will be directed to the
Finance Department for review and processing. The Finance Department will
determine the following:
a. availability of funds
b. level of approval authority required.
C. validity of account numbers
1.5 Budget transfers of $25,000 or under will be approved by the Finance Director or
designee. Transfers over $5,000 may be forwarded to the City Administrator's Office
for further review.
1.6 After the request for budget transfer has been approved and processed, the Finance
Department will return the pink copy of the "Budget Amendment/Transfer" form to the
requesting department indicating the journal entry number for the budget transfer.
2.0 LEGISLATIVE AMENDMENTS - changes to the budget that require the approval of the
Mayor and Common Council and may not be approved administratively.
2.1 SUPPLEMENTAL BUDGET REQUESTS - requests for additional appropriation of
funds. All supplemental budget requests require the approval of the Mayor and
Common Council.
2.2 BUDGET TRANSFERS - Any requests for the transfer of funds from one account to
another over $25,000 require the approval of the Mayor and Common Council.
2.3 All requests for budget transfers that impact any personnel services accounts require the
approval of the Mayor and Common Council.
2.4 All requests for transfers between departments or funds require the approval of the
Mayor and Common Council.
2.5 Departments will initiate budget transfers/supplemental budget requests by completing
a "Budget Transfer/Amendment" form (blank forms can be obtained from the Print
Shop). All requests must be adequately justified, explaining the conditions creating the
need for additional funds in the specified account. The "Budget Amendment/Transfer"
form should be submitted to the Council as part of the department's agenda item
pertaining to the use of the funds.
The Finance Department will review the budget amendment for accuracy and
availability of funds at the time the agenda item is reviewed and prior to going to the
Mayor and Common Council for approval.
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2.6 Upon Council approval, the department should forward the "Budget
Amendment/Transfer" form with proof of Council approval to the Finance Department
for processing.
2.7 After the budget transfer/supplemental budget request has been approved and processed,
the Finance Department will return the pink copy of the "Budget Amendment/Transfer"
form to the requesting department indicating the journal entry number for the budget
amendment.
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