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Budget Transfer and Amendment Policy (BF-7, Rev.7)Page 1 of 3 DEPARTMENT: Finance POLICY NUMBER: BF-7 SUBJECT: Budget Transfer and Amendment Policy SUPERSEDES: BF-7, Rev 6 (10-1-2021) REVISION: 7 EFFECTIVE DATE: March 1, 2023 APPROVED BY: Terrence R. Moore, ICMA-CM, City Manager PURPOSE The purpose of this policy is to define, standardize, and set forth procedures and responsibilities for amending or adjusting the adopted budget. It is understood that from time to time the originally adopted budget needs to be amended or adjusted because of unplanned or unforeseen circumstances. The City of Delray Beach formally authorizes, appropriates, and adopts the budget by department and by fund. Expenditures cannot exceed individual departmental and fund appropriations without formal action of the City Commission. Department Heads are responsible for monitoring their respective budgets. The following information sets forth the authority and process by which the originally adopted budget may be amended or adjusted. POLICY BF-7.1 Definition: The process for amending the budget is based upon Section 166.241, Florida Statues as well as Section 4.05(F) of the City Charter. This administrative policy establishes the process for making amendments or adjustments to the adopted budget. In the context of this administrative policy, the term department is defined as the following: 00-Administration 25-Disaster Services 59-Economic Awards 10-Administrative Services 26-Development Services 61-Miscellaneous 11-City Commission 34-Sanitation 72-Parks & Recreation 12-City Manager 36-Water & Sewer 73-Cultural Services 13-Finance 37-Geographic Information Systems 74-Special Events 14-City Attorney 38-Stormwater 75-Recreational Facilities 15-City Clerk 39-Cemetery 79-Other Recreational Facilities 16-Information Technology 40-Environmental Services 85-Debt Service 17-Human Resources 41-Public Works 90-Miscellaneous 18-Pensions 42-Engineering 91-Transfers 21-Police 43-City Garage 95-Contingency 22-Fire 45-Parking Facility 24-Neighborhood & Community Services 54-Neighborhood Services CITY OF DELRAY BEACH ADMINISTRATIVE POLICIES AND PROCEDURES Page 2 of 3 If a department is not specifically listed above, or is not combined with one of the above, it will be considered a separate department based upon the individual department number established in the ERP (Enterprise Resource Planning) financial accounting software. BF-7.2 Appropriation of Expenditures – City Commission Approval Required: A. New Appropriations - Budget appropriation requests that increase the budgeted level of expenditures for a given department or fund must be approved by resolution, requiring formal action of the City Commission. Pursuant to Florida Statutes, budget amendments must be adopted in the same manner as the original budget. A receipt of revenue from a source not anticipated in the budget and received for a particular purpose including, but not limited to, grants, donations, gifts, or reimbursement for damages, may, by resolution of the City Commission, be appropriated and expenditures provided for in the budget. B. Transfers Between Funds – Transfers of appropriations between funds must be approved by the City Commission. C. Transfers Between Departments – Transfers of appropriations between departments must be approved by the City Commission. D. Transfers Between Major Object Code Groups – Transfers of $65,000 or more between major expense object code groups (i.e., Personnel, Operating and Capital), including those within the same fund and department, must be approved by the City Commission. Transfers between major object code groups of less than $65,000 within the same fund and department are approved by the City Manager. E. Transfers of Appropriations Between Capital Improvement Projects - Capital improvement projects are controlled by project total. Transfers of appropriations between capital improvement projects require the approval of the City Commission. BF-7.3 Appropriations of Expenditures – Administrative Budget Adjustments A. General Information 1. Department personnel will be prevented from processing a transaction in the ERP system against an object code that does not have a sufficient budget balance. A Departmental Budget Transfer Request will be required to move budgeted funds between allowable object codes within the Fund/Department before the transaction can be completed. 2. Department directors or their designees, are authorized to transfer budgeted funds, with a net change effect of zero, between allowable object codes within their departments to prevent deficit balances and to allow for continuity in the processing of transactions. All object codes with an approved operating budget are allowable for transfer by the department in accordance with the criteria outlined below. 3. The number of transfers completed by departments is not limited; however, adequate budgeting and planning will prevent or reduce the number of transfers requested. 4. Failure of a department director to adequately monitor their budget, thereby exceeding the departmental appropriated budget, can lead to disciplinary action up to and including termination. Page 3 of 3 B. City Manager Approval Required 1. Transfers Within the Same Fund and Department, Same Major Object Code Group – Transfers of $10,000 or greater between activities within the same department, in the same major object code group, require approval by the City Manager. The cumulative amount of all such transfers shall not exceed $64,999.99 for any department in a given fiscal year. Transfers of less than $10,000 in the same fund and department, same major object code, may be approved by the Chief Financial Officer. 2. Transfers of Existing Appropriations Between Major Object Code Group – Transfers of less than $65,000 between major object code groups (i.e., personnel, operating and capital) within the same fund and department must be approved by the City Manager. The cumulative amount of all such transfers shall not exceed $64,999.99 for any department in a given fiscal year. Transfers of $65,000 or greater must be approved by the City Commission. C. Chief Financial Officer Approval Required Transfers Within the Same Fund and Department, Same Major Object Code Group – Transfers of less than $10,000 between activities within the same fund and department, in the same object code group, may be approved by the Chief Financial Officer. The cumulative amount of all such transfers shall not exceed $9,999.99 for any department in a given fiscal year. Transfers of $10,000 or more in the same fund and department, same major object code group, must be approved by the City Manager. D. Contingency Appropriations Provision shall be made in the annual budget for a reasonable contingency appropriation to be expended for use in the administration of the City’s affairs for unexpected maintenance or other unanticipated expenses that might occur during the year. This contingency will be available for use by the Mayor and City Commission via the budget amendment process or during the year for initiatives identified by the City Manager and approved by the City Commission. Transfers of appropriation from the Contingency Account to another department must be approved by the City Commission. E. Year-end Appropriations At the start of each fiscal year, encumbrances outstanding at the end of the previous year will be automatically reappropriated (rolled over), provided that the goods/services have been ordered before October 1. The encumbrances are budget amounts for goods or services for which a contract or purchase order has been issued but has not been paid prior to the fiscal year end. These encumbered budget amounts must be brought forward. Appropriations that are not expended, encumbered, or specifically designated to be carried forward lapse at the end of the fiscal year (September 30th). Exceptions include: 1. Certain unpaid purchase orders, outstanding contracts and other commitments 2. Unencumbered appropriations for grants and capital projects. F. Yearly Limits on Authority to Approve Amendments/Transfers 1. City Manager – The cumulative amount of all transfers approved by the City Manager in any given fiscal year for each department under this policy shall not exceed $64,999.99. 2. Chief Financial Officer – The cumulative amount of all transfers approved by the Chief Financial Officer in any given fiscal year for each department under this policy shall not exceed $9,999.99. Budget Transfer Amendment Policy (BF-7 REV.7)_FINAL_v5 Final Audit Report 2023-03-02 Created:2023-03-02 By:Hugh Dunkley (DunkleyH@mydelraybeach.com) Status:Signed Transaction ID:CBJCHBCAABAAuTC2csh2io_1CiCPOxI_170COe3JAxS2 "Budget Transfer Amendment Policy (BF-7 REV.7)_FINAL_v5" History Document created by Hugh Dunkley (DunkleyH@mydelraybeach.com) 2023-03-02 - 8:01:51 PM GMT Document emailed to Terrence Moore (moore@mydelraybeach.com) for signature 2023-03-02 - 8:03:13 PM GMT Email viewed by Terrence Moore (moore@mydelraybeach.com) 2023-03-02 - 9:34:55 PM GMT Document e-signed by Terrence Moore (moore@mydelraybeach.com) Signature Date: 2023-03-02 - 9:35:27 PM GMT - Time Source: server Agreement completed. 2023-03-02 - 9:35:27 PM GMT