Fiscal Year 2013 Recommended Budget Book - Lake County

Budget PoliciesStatutory Requirements of a Balanced BudgetChapters 129 and 200, Florida Statutes, govern theCounty’s annual budgetary process. These Statutesrequire that the County prepare, approve, adopt andexecute an annual budget for such funds as may berequired by law or by sound financial practices andgenerally accepted accounting principles. The budgetshall control the levy of taxes and the expenditure ofmoney for all County purposes during the ensuing fiscalyear. Other provisions include:• A budget shall be balanced, and adopted by theBoard of County Commissioners.• The revenues of the budget shall include 95percent of all receipts reasonably to beanticipated from all sources, including taxes tobe levied.• The appropriations of the budget shall includeitemized appropriations for all expendituresauthorized by law, contemplated to be made, orincurred for the benefit to the County during theyear and the provision for the reserves asfollows:Budget Amendment PolicyChapter 129, Florida Statutes, governs amendments to theadopted budget. This Chapter states that the Board at anytime within a fiscal year may amend a budget for that yearas follows:1. Appropriations for expenditures in any fund maybe decreased and other appropriations in thesame fund correspondingly increased by motionrecorded in the Minutes, provided that the totalof the appropriations of the fund may not bechanged.2. Appropriations from the reserve forcontingencies may be made to increase theappropriation for any particular expense in thesame fund or to create an appropriation in thefund for any lawful purpose.3. A receipt of a nature from a source notanticipated in the budget and received for aparticular purpose, including but not limited togrants, donations, gifts or reimbursement fordamages, may, by resolution of the Boardspread on its Minutes, be appropriated andexpended for that purpose.4. Any changes not included above may be madeby resolution or ordinance adopted after apublic hearing.5. Only the following transfers may be madebetween funds:• Transfers to correct errors in handlingreceipts and disbursements.• Budgeted transfers.• Transfers to properly account forunanticipated revenue or increasedreceipts.Funds Checking PolicyThis policy allows the overexpenditure of individualline items within a major object in any organizationalcode (org code). Major object codes are personalservices, operating expenses, capital outlay, debtservice and grants and aids. Budget transfers under$25,000 between the various major object codes withina fund by department may be approved by the CountyManager or his/her designee. All other transfers, aswell as transfers from reserve accounts, must beapproved by the Board.Reserve for Outstanding Purchase Orders PolicyThis policy establishes outstanding purchase orderreserves by fund to be included in the subsequentyear’s budget and provides for the administrativeadjustment of department and division budgets inamounts not to exceed the purchase order reserve byfund. At the end of a fiscal year, some purchase orderswill remain open because the goods or services havenot been received. These purchase orders are “rolledover” to the new fiscal year. The purchase orderrollover is an automatic process in the County’sfinancial system. Any excess purchase order reservesthat remain after the rollover process is completedwould be de-appropriated as part of the mid-yearbudget amendment.D - 5