Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Amendment
Doc ID: 5060
AGENDA ITEM
AGENDA MATTER:
FY2020-2022 PROPOSED BUDGET AMENDMENT FOR YEAR-END CLEAN-UP ADJUSTMENTS EXECUTIVE SUMMARY:
Discussed herein for your review and consideration is the Fiscal Year 2020-2022 two-year budget yearend clean-up resolution necessary for the Fiscal Year ended June 30, 2022. This report provides a summary of necessary budget adjustments at year-end to true-up budget to actual presentations within the City's financial statements and demonstrate budgetary control by providing periodic review and updating of the City's two-year financial plan, its adopted operating and capital improvement budget.
The purpose of this report is to update and "clean-up" budget to actual presentations demonstrating budgetary control as required by and in compliance with Governmental Accounting Standards promulgated by the Governmental Accounting Standards Board (GASB) and in further compliance with Statements on Auditing Standards (SAS) promulgated by the American Institute of Certified Public Accountants (AICPA) and further codified within the "Yellow Book." Changes noted herein in attachment 1 are generally ministerial in nature and/or related to carryover adjustments for previously approved Capital Improvement Projects and/or encumbrances for approved purchase orders issued and outstanding. To that end, included within this report are certain proposed budget adjustments to various estimated revenues and categories of expense due to financial events occurring throughout the current fiscal year and subsequent to adoption of the two-year budget.
DISCUSSION:
The City Council adopted the FY 2020-2022 Two-Year Operating and Capital Improvement budget on June 15, 2020. The Adopted Operating and Capital Improvement budget is the City’s two-year spending plan for Fiscal Years 2021 and 2022. It serves as a planning guide for the ensuing fiscal year. The adopted budget also demonstrates how established short-term goals and objectives will be implemented over the next fiscal year and demonstrates how available resources are matched against the City’s service priorities to provide essential services to the community.
After adoption, financial events occur throughout the course of the year that impact upon the budget and the implementation of spending priorities. These events necessitate adjusting the budget projections from time to time during the course of the fiscal year to keep the spending plan up-to-date based on current financial conditions. There are several estimated revenue and appropriation adjustments proposed by staff based upon actual experience and/or historical data contained herein.
Discussed herein for your review and consideration is the Fiscal Year 2020-2022 two-year budget yearend clean-up resolution necessary for the Fiscal Year ended June 30, 2022. This report provides a summary of necessary budget adjustments at year-end to true-up budget to actual presentations within the City's financial statements and demonstrate budgetary control by providing periodic review and updating of the City's two-year financial plan, its adopted operating and capital improvement budget.
These adjustments to the two-year FY 2020-2022 adopted budget for all funds are summarized in the attached proposed Budget Adjustment (Attachment 1).
The purpose of these adjustments is to update and "clean-up" budget to actual presentations Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Amendment
Doc ID: 5060
AGENDA ITEM
demonstrating budgetary control as required by and in compliance with Governmental Accounting Standards promulgated by the Governmental Accounting Standards Board (GASB) and in further compliance with Statements on Auditing Standards (SAS) promulgated by the American Institute of Certified Public Accountants (AICPA) and further codified within the "Yellow Book." Changes noted herein in attachment 1 are generally ministerial in nature and/or related to carryover adjustments for previously approved Capital Improvement Projects and/or encumbrances for approved purchase orders issued and outstanding. To that end, included within this report are certain proposed budget adjustments to various estimated revenues and categories of expense due to financial events occurring throughout the current fiscal year and subsequent to adoption of the two-year budget.
From time to time, the City Council may approve adjustments to appropriations for various programs and services throughout the course of the fiscal year. Some of the adjustments to appropriations that may be approved throughout the year include adjustments to project appropriations due to increasing the scope of the project or for those programs that receive grant funding after adoption of the budget. The City, as a matter of fiscal conservancy, does not typically budget grant revenues until such time as the grant award has been received and receipt of the grant funding is eminent.
Integration of the budget into the City’s accounting system and internal control processes is essential in demonstrating the strength of the City’s financial policies and management practices. This process is essential, for example, during a financial management assessment performed by credit rating agencies, such as Standard & Poor’s or Moody’s Investor Services. It helps underscore the City’s credit worthiness should the City decide to issue debt for capital equipment purchases, capital projects or other purposes.
The budgetary integration process is demonstrated through adoption of reasonable and comprehensive budget assumptions with budget reviews and revisions performed at interim periods throughout the course of the fiscal year.
The year-end clean-up adjustments primarily focus on the City’s General Operating Fund revenues and expenditures. The majority of the City’s operating expenditures are accounted for within this fund. Other budgetary funds, such as special revenue funds or debt service funds, do not usually require adjustments due to the specific nature of the resource allocations and program requirements. When revenues for these special revenue funds are not fully expended during the year, balances may be carried forward for re-appropriation in the subsequent years’ budget process. Adjustments to other funds are submitted to Council on an “as needed” basis periodically throughout the year.
All City departments have provided feedback to the Finance department regarding the status of their current year’s expenditures and budgetary performance as projected through the end of the fiscal year.
Based on staff’s analysis of the current year’s operating revenues and expenditures and, based upon information and input provided by all departments, staff recommends “year-end clean-up” net adjustments as outlined in attachment 1.
SUMMARY
The FY 2020-2022 budget was adopted on June 15, 2020. After adoption, financial events occur throughout the course of the year that impact upon the budget and the implementation of spending priorities. These events necessitate adjusting the budget projections from time to time during the course of the fiscal year to keep the spending plan up-to-date based on current financial conditions. Changes noted herein in attachment 1 are generally ministerial in nature and/or related to carryover adjustments for previously approved Capital Improvement Projects and/or encumbrances for approved purchase orders issued and outstanding. To that end, included within this report are certain proposed budget Joint Special Council/BFPD
06/20/22 07:00 PM
Finance
Marc Puckett
Amendment
Doc ID: 5060
AGENDA ITEM
adjustments to various estimated revenues and categories of expense due to financial events occurring throughout the current fiscal year and subsequent to adoption of the two-year budget. These adjustments as noted in attachment 1 are recommended for Council’s approval.
FISCAL IMPACT:
The attachment number 1 summarizes proposed adjustments in revenue estimates and appropriations (expenditures) to the two-year adopted operating and capital improvement budget. These "year-end clean-up" adjustments are generally considered ministerial in nature and/or related to carryover adjustments for previously approved Capital Improvement Projects and/or encumbrances for approved purchase orders issued and outstanding. The attached budget adjustment summarizes the proposed adjustments in revenue estimates and appropriation adjustments for all affected funds.
RECOMMENDED ACTION:
Approve amendments to various funds and accounts in the City's adopted FY2020-2022 Operating and Capital Improvement two-year Budget as outlined in the attached proposed Budget Amendment (Attachment 1).