Thurston County
Financial Policies and Procedures
Policy
POL-2100 BUDGET AMENDMENTS
(Changes to the Original Adopted Budget)
PURPOSE:
The purpose of this policy is to:
1. Outline when the county budget should or must be amended or otherwise modified.
2. Ensure compliance with State Law and County Resolutions.
REFERENCES:
RCW 36.40
Budgeting, Accounting and Reporting System (BARS) Manual
DEFINITIONS:
Appropriation: Budget authority designated for a special purpose that is authorized by a resolution of the Board of County Commissioners. Expenditure appropriations constitute a maximum spending authorization during the fiscal period and should not be exceeded.
Budget Period: The budget fiscal year for Thurston County is the calendar year January 1 to December 31.
Budget Transfers: A budget transfer moves adopted budget authority from one revenue object code line to another or from one expenditure object code line to another. The total appropriation of an office/department’s budget does not change. An example would be to move appropriation authority from supplies to repairs and maintenance.
Expenditure Budget Amendments: Expenditure budget increases raise the total dollar amount of an office/department expenditure appropriation level. Correspondingly, expenditure budget decreases lower the appropriation level. An example would be a mid-year receipt of a federal stimulus grant for equipment. Expenditure budget amendments can be requested by an office/department for both General Fund and those funds under the office/department’s primary jurisdiction.
Object Code: Budgetary information is maintained through the establishment of detailed line item revenue and expenditure entries at the object code level. An object code is a six-digit code derived from the BARS manual. An example is supplies with the code 531000. The object codes are listed in the financial system.
Original Adopted Budget: The original budget is adopted by resolution passed by the Board of County Commissioners in December for the ensuing year.
Revised Budget: The revised budget is the original adopted budget plus all approved amendments during the fiscal year. Budgets are revised on a quarterly basis to reflect any approved budget amendments or transfers.
Revenue Budget Amendments: Revenue budget increases raise the total dollar amount of an office/department revenue level under the office/department’s jurisdiction. An example would be a mid-year recording fee increase for the homeless. Correspondingly, revenue budget decreases lower the revenue level. All proposed changes in General Fund revenue amendments originate in the Board of County Commissioner’s Office.
POLICY STATEMENTS:
APPLICABLE TO ALL OFFICES/DEPARTMENTS
1. Offices/departments are responsible for monitoring their budgets throughout the year and for preparing a budget amendment or transfer if needed.
2. Offices/departments are required to prepare a budget amendment in the following circumstances:
A. A material amount of additional revenue, which was not anticipated in the budget for the current fiscal year, will be received.
B. Proposed or mandated additional expenditures will increase an appropriation above the current authorized amount. For example, the passage of a new law with required service obligations or the receipt of a new grant award.
C. A material revenue shortfall becomes apparent. For example, a significant change in the local economy adversely effects the revenue budget projections and corresponding budget expenditure levels.
D. A material expenditure that was budgeted in the current fiscal year will not be expended until the next budget year, or will never be expended. The current year expenditure budget should be reduced.
E. A major program change occurs midyear. This could result in a budget increase or decrease.
3. The Auditor’s Office, Financial Services Division monitors the revenue and expenditure budgets on a monthly basis. If significant budget to actual variances are noted, the office/department involved will be asked to provide a verbal or written explanation and may be asked to submit a plan for recovery.
4. A review and approval by the Budget Team and Board of County Commissioners (BOCC) must occur prior to receiving authorization to use the General Fund, fund balance as a proposed funding source to support additional expenditures.
Pol-2100
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