2008-2009 - Saginaw County

SUMMARY OF SIGNIFICANT BUDGET POLICIES
BUDGETS AND BUDGETARY ACCOUNTING
The County follows these procedures in establishing the budgetary data reflected in the budget book:
• Prior to June 30, the County Controller submits to the Board of Commissioners a proposed operating
budget.
• Public Hearings are conducted by the Board of Commissioners to obtain taxpayer comments.
• Prior to September 30, the budget is legally enacted through passage of a resolution. The budget is
adopted at the fund and activity level for the General Fund and at the fund basis for the rest of the
funds. These are the legal levels of control.
• The County Controller is authorized to transfer budgeted amounts between accounts within the same
department of any fund upon written request by a department or division head for amounts up to the
lesser of $50,000 or 5% of the budget for non-equipment expenditures and up to $25,000 for
equipment expenditures. Revisions that alter the total expenditures of any fund or total activity
within a fund must be approved by the Board of Commissioners.
• Annual budgets are legally adopted and formal budgetary integration is employed as a management
control device during the year for the General Fund and Special Revenue Funds. Annual
Informational Budget Summaries are prepared for Enterprise Funds (except the Building Authority
Administration Fund) and Internal Service Funds. Additional annual informational summaries for
Fiduciary Funds are also included.
• Budgets for General and Special Revenue Funds are prepared on a modified accrual basis, while the
Internal Service and Enterprise Fund budgets are prepared using the accrual basis of accounting.
Both methods are consistent with Generally Accepted Accounting Principles (GAAP) and consistent
with the basis of accounting.
• Budget appropriations lapse at the end of the year.
• The original budget can be amended during the year in compliance with local and state laws. The
budget to actual expenditures in financial statements represent the final budgeted expenditures as
amended by the County.
• The County’s annual budgeting process includes the adoption of a budget resolution to establish the
manner in which a surplus fund balance in the General Fund is distributed among the County funds.
The budget resolution adopted for the year ended September 30, 2009, established that the 2009
General Fund budgeted surplus be transferred as follows: two-thirds (2/3) of any such surplus shall be
transferred to the Public Improvement Fund, and one-third (1/3) to the General Fund Reserve Fund
Balance.
BUDGETARY CONTROLS
The County maintains budgetary controls to ensure compliance with legal provisions embodied in the
annual appropriation resolution. The Financial Management System provides on-line access to
account transactions and activity balances. It also conducts budget checks to verify that sufficient
funds are available within an approved budget prior to authorizing payments.
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