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444' P '1 'PO' e,C,(! Resolution No. 14-154
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RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF BUTTE
ADOPTING THE BUTTE COUNTY BUDGET POLICY
WHEREAS, on January 13, 1998 the Board of Supervisors adopted Resolution No. 98-02 in order to
implement a policy to define the level of budget appropriation transfer authority for all entities under the
budgetary control of the Board of Supervisors; and
WHEREAS, on March 9, 2004 the Board of Supervisors adopted Resolution No. 04-029 revising the
Butte County Appropriation Transfer Policy to provide additional ability for County department heads to
manage their budgets; and
WHEREAS, since March 2004 certain County practices have changed and the state's County Budget Act
has been updated; and
WHEREAS, Administration, working with the department head Finance Work Team, has developed a
County Budget Policy (Exhibit A) to account for these changes, clarify certain responsibilities, and provide
additional ability for department heads to efficiently manage their budgets; and
WHEREAS,this Resolution supersedes Resolution No. 04-029 in its entirety.
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Butte, State of
California adopts the County Budget Policy as set forth in Exhibit A attached hereto, to become effective as of
November 4, 2014; and
BE IT FURTHER RESOLVED that Resolution No. 04-029 is rescinded in its entirety.
PASSED AND ADOPTED by the Butte County toard of Supervisors this 4th day of November, 2014 by
the following vote:
AYES: Supervisors Connelly, Wahl, Kirk, Lambert and Chair Teeter
NOES: None
.„„,_
ABSENT: None ____'_%
:--,,, ....„.........—. ,,,,
ABSTAIN: None i, ,,,,) \
DOUG TEETER,Chair
Butte County Board of Supervisors
,.'"?ATTEST: / /77„07
Hi 42"///7/
By: /,,,,, / i', fl
/
Paul lin, ,,h ief Administrative Officer and
Clerk of the Board of Supervisors
11 EXHIBIT A
Butte County Administration
County Budget Policy Effective Date: 11/04/14 Version 1.0
taloird County:1 Approval Date: 11/04/14 Last Revision Date:
II * CALIFORNIA *
1. Purpose
To meet the requirements of applicable State law and define the level of budgetary
control and appropriation transfer authority for the County budget.
2. Policy Scope
This policy applies to all governmental and proprietary funds of the County,
dependent special districts and other agencies whose affairs and finances are under
the supervision and control of the Board of Supervisors.
3. Policy
A. Compliance with State law and guidance
The County shall adhere to the provisions of the County Budget Act (Government
Code §29000—29144 and §30200) and the County Budget Guide issued by the
State Controller.
B. Responsibility for compiling the Recommended Budget
The Chief Administrative Officer shall be responsible for compiling and reviewing
the departmental budget requests and preparing a recommended budget in
compliance with the timelines set forth in the County Budget Act.
C. Revision of Appropriations— Governmental Funds
Transfers and revisions to the adopted budget for governmental funds may be
made as follows:
i. Transfers or revisions of appropriations between funds require approval of a
super-majority of the Board of Supervisors, with at least four affirming.
ii. Increasing total appropriations for a fund requires approval of a super-
majority of the zoard of Supervisors, with at least four affirming.
iii. Transfers of appropriations between budget units within a fund require
approval of a simple-majority of the Board of Supervisors, with at least three
affirming.
iv. Transfers of appropriations between objects of expenditure within a budget
unit require approval of the Chief Administrative Officer or designee. For
example, a transfer between the salaries and employee benefits object and
services and supplies object requires approval of the Chief Administrative
Officer or designee. Transfers into or out of the Capital Assets object are
excluded (see (vi.) below).
v. Transfers of appropriations between accounts within an object of expenditure
in a single budget unit are not required. If desired by a Department these
transfers may be approved by the Department Head.
vi. This policy does not affect the requirement for Board of Supervisors' approval
to purchase capital assets.
a. In the event that the total cost of acquisition or development of a capital
asset exceeds the amount originally approved by the Board of
Supervisors, the appropriation may be increased by up to 10% of the
amount approved for that asset by the Board of Supervisors if there is an
equal decrease of appropriation within the same budget unit. Such a
transfer requires approval from the Chief Administrative Officer or
designee.
b. Transfers of appropriation from the capital asset object to other objects
within the same budget unit require approval from the Chief
Administrative Officer or designee.
c. Transfers of appropriation within the capital asset object are allowed to
appropriately account for the capital items in the correct account. For
example, staff time to put a capital asset into functional use should be
included in the capital asset approval requested by the Department to the
Board of Supervisors, but the account these costs are accounted for will
be distinct from the original purchase.
d. All accounts within a budget unit in the Capital Project fund are
capitalized and, as such, appropriation may be transferred between
accounts within a budget unit in the Capital Project fund with only
Department Head approval.
vii. Transfers of appropriations from contingencies require approval of a super-
majority of the Board of Supervisors, with at least four affirming.
D. Revision of Appropriations—Proprietary Funds
Transfers and revisions of appropriations to proprietary funds (which include
internal service funds and enterprise funds) are not required by statute, the State
Controller or Governmental Accounting guidelines. Adopted budgets for
proprietary funds are operational plans for entities that provide business-like
services, or services shared throughout the government, rather than legal
restrictions on spending. As such, Board of Supervisors' approval of adjustments
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to the operating plan is not required. However, Butte County department heads
managing proprietary funds must manage costs and rates to ensure positive net
assets for each proprietary fund. The Auditor-Controller shall prepare and report
a statement of fund net assets for proprietary funds and a separate statement of
fund net assets for internal service funds at the conclusion of each fiscal year.
E. Responsibilities
The Auditor-Controller shall audit appropriation transfers to ensure compliance
with this policy and California law prior to posting transfers to the County
General, Expenditure and Revenue Ledgers.
The Auditor-Controller, or the Chief Administrative Officer or designee, may
perform periodic audits of County departments, to ensure compliance with this
policy and any procedures generated to implement this policy.
County department heads and other officials shall not authorize any expenditure
or other obligation unless the Board of Supervisors has appropriated funding in a
budget unit for that purpose, except as otherwise provided by law.
County department heads are responsible for planning for and ensuring
adequate levels of appropriations for cost plan and internal service charges based
on estimates provided by Administration.
4. Definitions
Account: A line item classification of expenditure or revenue. Example:
"Communications—Telephone Charges" is an account in the object of expenditure
"Services and Supplies" and the subobject "Communications."
Appropriations: Authorizations for the County to make expenditures and to incur
obligations during the current fiscal year.
Budget Unit: The midlevel classification of appropriations that includes one or more
objects of expenditure to fund a department, division or set of goal-related
functions. A department or agency may have one or more budget units assigned to
it.
Capital Assets: An object of expenditure for land, structures and improvements,
equipment, infrastructure and intangible assets.
Classification of expenditures: The grouping of expenditures within a major section,
category, or classification, such as salaries and employee benefits, services and
supplies, and capital assets. Also called object of expenditure.
Cost Center: See sub-budget unit.
Fund: The highest level classification of appropriations. Also, a separate fiscal and
accounting entity within the County. Each fund is a separate division for accounting
and budgeting purposes. Funds may contain one or more budget units.
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lntrafund Transfers: Operational transfers of costs between budget units in the same
governmental type fund. These transfers distribute costs to various departments for
budgeting and informal operating statement purposes. These transfers are shown as
Intrafund Transfers-In and/or Intrafund Transfers-Out under expenditures and other
operating uses (an increase for the receiving budget unit and a decrease for the
servicing unit).
Object of Expenditure: The lowest level classification of appropriations; a unique
identification number and title for an expenditure category or means of financing.
Examples: "Salaries and Employee Benefits" and "Services and Supplies."
Other Charges: An object of expenditure for accounts that do not fit the definition of
the other reporting objects. This includes debt payments and general assistance
payments.
Other Financing Uses: An object of expenditure for Transfers-Out.
Salaries and Employee Benefits: An object of expenditure for salaries, wages and
employee benefits of permanent and non-permanent positions.
Services and Supplies: An object of expenditure for accounts which provide for the
operating expenses of County departments.
Subobject of expenditure: A further breakdown of classification of expenditures for
detailed accounting within an object of expenditure. For example, office expense is a
subobject within the services and supplies object.
Subbudget unit: A further breakdown of a budget unit for departmental
management needs including, but not limited to, divisions, programs and cost
centers.
Transfers-Out: Non-recurring transfers of equity from one fund to another fund.
S. Procedure
The Chief Administrative Officer, in cooperation with the Auditor-Controller, shall
develop and periodically review procedures for implementing this policy and
processing all appropriation transfers.
6. Background
On March 9, 2004, the Butte County Board of Supervisors approved changes to the
Budget Appropriation Transfer Policy that provided additional ability for County
department heads to manage their budgets. Since that time, certain County
practices have changed and the County Budget Act has been updated. This policy
has been developed to account for these adjustments.
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