COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: FINANCIAL REPORTING AND
TRANSFER AUTHORITY
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-02
11/08/202210/1
7/2023
1 OF 2
ADOPTED BY: Resolution No. 18191 (01/23/96) DATED: 1/23/1996 AMENDED BY: 2022-250 (11/08/2022)xxxx+xxx (10/17/2023) Purpose
To clarify the authority for budget transfers which may be required to fund needed services in each city department within a given fiscal year.
Reference
City Charter Section 504.c - the Finance Director shall… have control over all expenditures to ensure that budget appropriations are not exceeded…
Section 504.f - Submit to the City Council through the City Manager a quarterly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the City
Policy
It is the intent of the City Council that the budget authorization be maintained and that transfers should be limited and used only when it is necessary to continue the effective operations of the City.
This policy shall establish guidelines for determining the authority level of transfers within the departments.
It is the City Manager’s responsibility to maintain the integrity of the adopted budget and to allow transfers only as a means for continuing the programs and policies of the City Council as approved via the budgetary process. Department heads shall be held responsible to exercise adequate financial controls to ensure the accomplishment of scheduled work programs withing available appropriations.
Departments shall maintain budgetary control at the budget category level rather than by line item to give flexibility of operations. Toward this end, the following guidelines are established:
1. Budgetary control shall be established at the budget category level, i.e. Personnel Services, Supplies & Services Utilities, etc., giving departments the flexibility to manage within broader limits, rather than controlling at the individual line item account level.
2. Council approval shall be required for all transfers of appropriations between departments, regardless of amount.
3. Council approval shall be required for transfers of appropriations which are greater than $75,000 between summary accountsbudget categories within a department.
Attachment 3
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: FINANCIAL REPORTING AND
TRANSFER AUTHORITY
POLICY
NUMBER EFFECTIVE
DATE
PAGE
220-02
11/08/202210/1
7/2023
2 OF 2
ADOPTED BY: Resolution No. 18191 (01/23/96) DATED: 1/23/1996 AMENDED BY: 2022-250 (11/08/2022)xxxx+xxx (10/17/2023)
4. The City Council delegates authority to the City Manager for approval of transfers of appropriations up to and including $75,000 between budget categories within the same department upon certification by Director of Finance that appropriations are available.
5. The City Council shall receive a quarterly status report [required by Charter section 504(f)], from the Director of Finance which provides actual vs. budgetary comparisons by department, as well as projections for fiscal year. This report will include a listing of any transfers within departments.
Attachment 3