sample budget manual
STATEMENT OF GENERAL POLICY
Purpose
The primary purpose of this budget manual is to provide Department Heads with a guide as to format and procedure in formulation of their operating expenditure budgets.
Responsibility
General Manager
The General Manager is wholly responsible to justify the submitted budget package of requests to Council. Therefore, the General Manager has final say on what figures constitute the preliminary budget. As the General Manager is responsible for all managerial departments, so too he has final say on the staff position regarding these organizational units.
These organizational units for which the General Manager is not responsible may, during budget review sessions with Council, take issue with the preliminary budget recommendations. Examples of such include: Tribal Clerk, Tribal Attorney, Boards and Commissions, organizations affected by the Community Promotions budget and, of course, the Tribal Council budget.
Department Heads
The Department Heads are responsible for preparing their budgets in accord with the procedures outlined in this manual, or other special budget instructions which may be provided by the Office of the General Manager.
Of specific concern are these areas:
The figures will be accurate (and, in the case of dollars, rounded to the nearest $10 unit);
Position titles will be the official position classification titles as registered in the Personnel Department;
The budget submittal due date to the General Manager will be met.
Finance Department
The Finance Department will provide cost experience data as may be required by any Tribal departmental source. The Director of Finance will prepare all revenue, carryover project, and reserve estimates. The Finance Department will comp check twice and confirm the completeness (per the “prescribed” budget submittal layout) of all departmental budgets. If a budget is found to be in error, or incomplete, the budget will be promptly returned to the originating Department Head for correction and returned by that Department in one work day, corrected. The Finance Department will not change any departmental request without written consent of the affected Department Head.
Budget - Definition
The budget is simply a spending plan or guide subject to certain reasonable restrictions which serve as safeguards. The use of control accounts is an example of such a safeguard. To expect that any operation will spend or receive (as revenues) funds as specifically predicted up to 18 months previously is not practical. The budget serves as a guide by which the Tribal Manager gauges the continuing financial situation of the organization.
The detail which provides an estimate of need for any expenditure account is subject to many variables which may require change to meet new conditions or priorities. The Department Heads, subject to consent by the General Manager, exercise operational discretion over use of expenditure account funds. Accounting control is exercised by the Tribal Director of Finance.
The Accounts
Control Accounts - Identification
Control accounts are the funding groups from which the General Manager may not extend the administrative prerogative of transfers. Appropriations by Council to control account to another therefore require Tribal Council action.
Individual expenditure (object) accounts are not control accounts. Control accounts normally cover the expenses for a total departmental budget.
Expenditure (Object) Accounts
These are the authorized accounts as included in the Tribal Chart of Accounts. They provide for accounting isolation of allotted funds by type of expenditures involved. Transfer of funds between such accounts is a proper administration prerogative of the General Manager, providing, however, that the transfer does occur only within the same control account.
BUDGET CALENDAR
Step / Target Date / Action1 / 1-24-2012 / A.Distribution of budget manual;
B.Distribution of record of first six months of 2010-11expenditures;
C.Distribution of budget preparation forms;
D.Distribution of 2012-13 budget preparation calendar;
E.Distribution of General Manager's special instructions;
F.All Department Heads prepare their 2012-13 budgets.
2 / 2-9-2012 / Equipment Maintenance Division forwards to General Manager:
A.Its 2012-13 budget;
B.A detailed breakdown of its anticipated revenues from the using departments;
C.A list of official 2012-13 equipment rental rates.
3 / 2-14-2012 / The following Group A budgets are forwarded to the Tribal Manager:
Bond Interest and Redemption
Bus Operations
Tribal Attorney
Tribal Clerk
Tribal Manager
Elections
Library
Parking Meters
Personnel
Planning
Purchasing
Tribal Council
4 / 2-28-2012 / The following Group B budgets are forwarded to the General Manager:Boards and Commissions
Building and Housing Inspection
Capital Improvement Program
Community Promotions
Emergency Services
Finance/Data Systems
Fire Insurance
Parks and Recreation
Police/Animal Regulation
Public Works
Retirement
Sewer Service
Step / Target Date / Action
5 / 4-2-2012 / Review of nonexpense portion of fiscal budget with Director of Finance:
A.Estimated revenues
B.Reserves and carryovers
6 / 4-10-2012 / Finish 2012-13 preliminary budget changes made by General Manager.
7 / 4-10-2012 / Start production of preliminary budget:
A.Compilation of summaries
B.Comp check
C.Typing
D.Printing
8 / 5-22-2012 / A.Preliminary budget given to Council and resolution calling for public hearing adopted.
B. Copy of preliminary budget sent to Taxpayers Association, the press, and three copies on file in the Tribal Clerk's Office.
9 / 6-5-2012
(earliest)
6-26-2012
(latest) / Public hearing(s) and adoption of resolution regarding 2012-13 budget, and the 2012-13 salary ordinance.
BUDGET SUBMITTAL LAYOUT
The Department Head will submit his budget package(s) in a manila folder in the following sequence:
1.Budget Transmittal Memo
2.Statement of Budget Program Commentary
3.Proposed Organization Chart
4.Form 1, General Summary
5.Form 2, Personal Service Summary
6.Form 3, Additional Personnel Budget Request
7.Form 4, (explanation of overtime, differentials, and temporary staffing expense)
8.Form 5, Expenditure Expense Account Summary
9.Form 6, Nonpersonal Expense - Detailed Explanation
10.Form 7, Equipment Outlay Request Summary
11.Form 8, Equipment Outlay Budget Request
The Department Head will keep at least one copy of the budget package and forward the original and one extra copy directly to the Office of the General Manager on the submittal due date as specified in the Budget Calendar of this Budget Manual. Thereafter, the Tribal Manager will forward the budget to the Finance Department for comp checking.
BUDGET TRANSMITTAL MEMO
In standard memorandum format the Department Head will forward his budget package(s) with a cover memo including these following points:
1.The total dollar and percentage increase or decrease in his budget.
2.The total regular staff increases or decreases in his budget, specifying the position titles of such staff.
3.A brief statement on any new budget proposals: Decreasing or increasing levels of service; adding or deleting types of service, changes causing reorganization; any programs tied to commitments to their governmental entities; any markedly different uses of existing job assignments; and any new inter-departmental programs.
4.A paragraph specifically stating that the Department Head vouches for the accuracy of his budget figures and use of official position classifications.
5.Identification of the departmental liaison for review coordination with the assigned budget analyst.
6.Identification of the division or activities in the submitted budget package by activity number.
A sample budget transmittal memo is on the following page for general reference.
TO:John Thomson, General Manager
FROM:Joe Doaks, Director of ABC
SUBJECT:2012-13 ABC Department Budget Request
Enclosed in the attached manila folder is the 2012-13 budget request (two copies) for the ABC Department which includes these following activities:
1610ABCAdministration
1612ABCTraining
1625ABCOperations
The total departmental increase is $14,310, or plus 3.5%. This includes the addition of one position of ABC’s Specialist II assigned to activity 1625, ABC Operations.
The budget proposal for activity 1625 provides for an increase in the level of our monitoring of ABC service meters. This program should eliminate citizen complaints regarding ABC service flow levels. No other program changes are proposed.
The Assistant Director of ABC, Jane Doe, will function as departmental budget liaison.
The accuracy of the budget figures and position classification titles has been checked and confirmed. The budget package as provided conforms to the budget submittal layout as specified in the budget manual.
BUDGET PROGRAM COMMENTARY
The statement of budget program commentary is a three-part narrative-statistical summary identifying the following as pertaining to the budget submittal:
Description of Functions:
Here the operational purpose is indicated and tied to basic operating work program (primary) goals. This section also describes, in brief, the organizational approach employed. We also may mention secondary goals of the work performed.
Department Commentary:
This section discusses program changes in the proposed budget regarding methodology: Mechanization; manpower utilization; reorganization; planning systems; reporting techniques; coordination and/or communications changes; and operating relationship changes on either an inter- and/or intra-city basis.
Here we may tie-in specifics of the budget regarding additional staff, acquisition of major equipment, special contractual arrangements to dollar costs and staffing increases.
Department Statistics:
This section presents a statistical program record of past and future work program units to identify operating work impact, and shifts of trends in basic program output.
The monthly operating reports already maintained by the departments readily give the necessary data for this section.
PROPOSED ORGANIZATION CHART
An organization chart is to be submitted with your budget package. A simple method of preparing the organization chart would be to copy your current organization and have it reflect proposed changes in staffing or organization pattern in red pencil or ink.
The position count should be in balance with total positions requested of Form 2.
Remember that each box represents a separate operating unit. The descending layer of boxes indicates descending layers of authority and responsibility. The lines linking the boxes show “relationship” in one of two ways:
Line Characteristics
______line authority
____ . _____ . _____ . _____ . _____ . _____ functional authority
GENERAL INSTRUCTIONS
1.Double-space all entries on forms 2, 5 and 6.
2.When indicating travel conference and meetings, list in order of their priorities, and when possible the approximate date of attendance.
3.In “rounding off” the dollar amount, round off to the nearest $10 increment; (i.e., $1,624 = $1,620; $1,625 = $1,630). Where more than one figure is involved, add the total and then round off to the nearest $10 increment; (i.e., $25, $30, $18 = $73, the round-off amount = $70).
4.List capital outlay items in order of their priorities.
5.Low-priced items such as pencils, paper clips, etc., need not be individually justified. Make the justification pertain to the total request under the respective account number.
6.All equipment should be justified in detail. The justification should include an explanation of the relationship of the requested items to the department work program, and its effect on the efficiency of operation. The degree of utilization should also be fully explained.
7.Differential pay should not be included as part of the salary.
8.Use double lines to indicate all totals and grand totals.
9.Personnel positions should be listed in their numerical order according to the standard range number as listed in the Classified and Unclassified personnel booklet (Form 6).
General Summary
Form 1
This form is used to present a summation of all accounts that appear on Form 5. It is also used to present a “Grand” summation of all accounts within each division in their respective departments.
INSTRUCTIONS FOR USE
This form should be completed as indicated in the numbered blocks and columns appearing in the sample form following these instructions.
1.Insert the fund title (i.e., General Fund).
2.Insert the department title (i.e., Purchasing).
3.Insert the division or activity (i.e., Purchasing and Central Stores).
4.Insert the activity number (i.e., 1520). In the preparation of the “grand” summary, indicate all respective activity numbers.
5.Insert in this column the previous approved budget for the appropriate sub-headings appearing in the classification column.
6.Insert the present current approved budget for items appearing in the classification column (this is reflected in Form 5).
7.Insert the department’s present requested budget for each of the items appearing in the classification column (obtained from Form 5).
8.Leave blank.
9.Leave blank.
10.Insert totals at bottom of columns for items 5, 6, and 7.
11.Insert total positions for personal services, items 5, 6, and 7 (obtained from Form 2 - Personal Services Summary).
12.This block is reserved for program commentary.
1
Annual BudgetGeneral Summary
FUND
(1) / DEPARTMENT
(2) / DIVISION OR ACTIVITY
(3) / ACTIVITY NUMBER
(4)
Classification / 201__ - 201__
Previous
Budget / 201__ - 201__
Current
Budget / Department Request / 201__ -201__
Manager Recommended / Council
Approved
Personal Services
Contractual Services
Commodities
Other Charges
Capital Outlay / (5) / (6) / (7) / (8) / (9)
Total Dollars (10)
Total Positions (11)
(12)
Form 1, Rev. 5/11Tribal Government
1
Personal Services Summary
Form 2
Budgeting for personal services is to provide for Tribal force work, the Tribe-hired temporary or regular personnel. There are six expenditure accounts which can be utilized for this purpose:
Account NumberTitle
5101Salaries and Wages
5102Differential
5103Overtime
5110Clothing and Equipment Allowance
5130Vacation - Pay in Lieu
5131Sick Leave - Pay in Lieu
There are three forms which can be utilized to formulate personal services budget requests: Form 2 - Personal Services Summary; Form 3 - Additional Personnel Budget Request, and Form 4 - No Title.
INSTRUCTIONS FOR USE
This form should be completed as indicated in the numbered blocks and columns appearing in the sample form following these instructions.
1.Insert the appropriate fiscal year (i.e., 2012-13).
2.Insert the fund title (i.e., General Fund).
3.Insert the department title (i.e., Public Works).
4.Insert the division or activity title (i.e., Traffic Engineering).
5.Insert the activity number (i.e., 3130).
6.This box is filled out in three parts:
a.All currently budgeted and proposed position classifications (i.e., Traffic Engineer).
b.All currently budgeted or proposed line items related to personal services but not involving a position count (i.e., overtime, part-time, interns).
c.The word “TOTAL”.
All of the above entries should be double-spaced.
7.Insert the number of currently budgeted positions to the right of the position classification in this column. Check the current fiscal budget. Show only whole positions. Insert a “dash” in this column for line entries (i.e., overtime, interns, part-time employment).
8.Insert the number of positions you would like to request to the right of the position classification in this column. Show only whole positions. Insert a “dash” for line entries (i.e., overtime, interns, part-time employees).
9.Leave blank.
10.Leave blank.
11.Insert the currently budgeted dollar amount for the position classifications or “line” entries shown in box 6.
12.Insert the dollar cost (rounded to the nearest $10 increment for the positions or line items). Multiply the number of positions by the pay step for that classification. Differential pay should not be included as part of an employee’s base salary.
Items 7, 8, and 12 should be totaled at the bottom of each column and a double line drawn under the entire total line.
13.Leave blank.
14.Leave blank.
1
Annual BudgetPersonal Services Summary 201__ - 201__ (1)
FUND
(2) / DEPARTMENT
(3) / DIVISION OR ACTIVITY
(4) / ACTIVITY NUMBER
(5)
Position or Item Title / Number of Positions / Dollar Amount
Current Budget / Department Request / Manager Recommendation / Council Approved / Current Budget / Department Request / Manager Recommended / Council Approved
(6)
Double Space / (7) / (8) / (9) / (10) / (11) / (12) / (13) / (14)
Totals:
Form 2, Rev. 5/11Tribal Government
Additional Personnel Budget Request
Form 3
This form is used only when an additional regular position is requested.
INSTRUCTIONS FOR USE
This form should be completed as indicated in the numbered blocks shown on the sample form following these instructions.
1.Insert the appropriate fiscal year (i.e., 2012-13).
2.Insert the department title (i.e., Purchasing).
3.Insert the division or activity (i.e., Purchasing and Central Stores).
4.Insert the activity number (i.e., 1520).
5.Leave blank.
6.Insert the number of positions requested for the particular classification as indicated on Form 2.
7.Insert the position classification title (i.e., Traffic Painter).
8.Check the appropriate box as to the employment status of the requested position.
9.Comment in this box as to special working conditions, such as split shift, night shift, etc.
10.In this box, justify the request for the position. Use a supplemental form (Form 4 - Blank Form) if needed. Do not generalize. Reply on specifics and use data if possible.
11.Answer this question by marking either the “Yes” or “No” box.
12.If the “Yes” box is marked, please explain. Use a supplemental form (Form 4 - Blank Form) if necessary.
13.Answer this question by marking the “Yes” or “No” box.
14.Leave blank.
15.Leave blank.
1
Annual BudgetAdditional Personnel Budget Request
Fiscal Budget 201__ - 201__(1)
DEPARTMENT
(2) / DIVISION OR ACTIVITY
(3) / ACTIVITY NUMBER
(4) / REFERENCE NUMBER
(5)
Personnel Request Description:
NUMBER OF POSITIONS:
(6) / CLASSIFICATION:
(7) / STATUS:(8)
Permanento
Limitedo
Full Timeo
Part Timeo / SPECIAL WORKING CONDITIONS:
(9)
Explain necessity for, or benefits to be expected from, this Personnel Expenditure:
(10)
Is request contingent upon additional, or unlike replacement of existing equipment? (If yes, explain.)
(11)(12)
Yeso
Noo
Classification Study: / Manager Recommended: / Council Approved:
Requiredo
Not Requiredo(13) / (14) / (15)
Form 3, Rev. 5/11Tribal Government
Blank Form
Form 4
This form is used as a supplement to other forms when more information is required, such as the following:
1.Explanation of overtime.
2.Differentials, vacation time expense calculations.
3.Temporary staffing expenses.
4.Individual nonpersonal expenditure account justifications.
5.Program commentary.
1
Annual BudgetForm 4, Rev. 5/11Tribal Government
Expenditure Expense Account Summary
Form 5
This form is used to summarize the following forms:
Form 6 - Nonpersonal Expense - Detailed Explanation;
Form 2 - Personal Services Summary; and