HomeMy WebLinkAboutResolutions - 1993.08.26 - 21977MISCELLANEOUS RESOLUTION #93156 August 26, 1993
BY: Finance Committee, John P. McCulloch, Chairperson
IN RE: DEPARTMENT OF MANAGEMENT & BUDGET/ESTABLISH POLICY FOR
APPROPRIATIONS CARRIED FORWARD AND ENCUMBRANCES
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners adopted a
FISCAL POLICY MANUAL (Misc. Resolution #90095, May 24, 1990) which
specifies in Section III.C.(7) that ....encumbrances and carried
forwards require Board of Commissioners' approval to be included in
the subsequent year's budget....; and
WHEREAS a clear policy statement does not presently exist for
determining which unexpended appropriations should lapse at year-
end and which should be carried forward into the ensuing budget;
and
WHEREAS it would be in the best interests of Oakland County to
revise the policy for Appropriations Carried Forward and Encum-
brances to be included in the revised FISCAL POLICY MANUAL and as
an integral part of the annual General Appropriations Act.
NOW THEREFORE BE IT RESOLVED the Oakland County Board of
Commissioners revises Section III.C.(7) of the FISCAL POLICY MANUAL
by deleting the first paragraph and substituting the following
language:
All appropriations are annual as authorized by the
General Appropriations Act and the unexpended portion
shall lapse at year end. Encumbrances and Appropriations
Carried Forward, under which purchase orders, contracts
and other commitments for the expenditure of monies are
recorded to reserve that portion of the applicable
appropriation, are employed as an extension of formal
budgetary policy in the General, Special Revenue,
Proprietary, and Capital Project Funds. Encumbrances and
Appropriations Carried Forward shall be recorded as a
reservation of fund balance since they do not constitute
expenditures or liabilities. All requests for amounts to
be carried forward must be completely documented with a
well defined program and a specific timetable for
implementation of that program. Encumbrances and Appropri-
ations Carried Forward shall be disclosed in the year-end
closing resolution and require approval of the Board of
Commissioners to be reappropriated in the ensuing year's
budget. Appropriations shall not be carried forward for
more than six (6) months into the budget year following
the year in which they were originally appropriated. A
status report on Appropriations Carried Forward will be
incorporated as an integral part of the ensuing year's
Second Quarter Financial Forecast for purposes of
determining their continuation for the remainder of the
year.
BE IT FURTHER RESOLVED that Section 24 of the General
Appropriations Act be amended by deleting the second sentence and
substituting the following language:
Encumbrances and Appropriations Carried Forward will be
recorded as a reservation of fund balance and the
subsequent year's budget amended to provide authority to
complete these transactions. Appropriations shall not be
carried forward for more than six (6) months into the
budget year following the year in which they were
originally appropriated. A status report on Appropria-
tions Carried Forward will be incorporated as an integral
part of the ensuing year's Second Quarter Financial
Forecast for purposes of determining their continuation
for the remainder of the year.
Mr. Chairperson, on behalf of the Finance Committee, I move
the adoption of the foregoing resolution.
FINANCE COMMITTEE
Resolution #93156 August 26, 1993
Moved by McCulloch supported by Kingzett the resolution be adopted.
AYES: Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar,
Kingzett, Law, McCulloch, McPherson, Miltner, Moffitt, Obrecht, Palmer, Pernick,
Powers, Price, Schmid, Taub, Wolf, Crake, Dingeldey. (23)
NAYS: None. (0)
A sufficient Majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the
foregoing resolution is a true and accurate copy of a resolution adopted by the
Oakland County Board of Commissioners on August 26th., 1993 with the original
record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 26th. day of August 1993.
Lynn D. Allen, County Clerk