The budget process provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided given the anticipated level of available resources. Budget policy states how this is achieved and addresses the need for financial health and stability.
The budget shall be balanced for each and every budgeted fund. Total anticipated revenues plus that portion of the fund balance that is designated as a budget funding source shall equal total estimated expenditures for each fund.
Current expenditures shall be financed with current revenues which shall include that portion of fund balance available for expenditure. The Library shall avoid budgetary procedures that balance current expenditures through the incurrence of debt, or which finance on-going expenditures with one time revenues.
All budgets shall be adopted at the legal level of budgetary control which is the fund/department level (i.e., expenditures may not exceed the total appropriation for any department within a fund without the Library Board’s approval). All budgets shall be adopted on a basis consistent with Generally Accepted Accounting Principles as promulgated by the Governmental Accounting Standards Board.
The following classes exist for budgetary preparation and presentation:
The following budget objectives are established for the different types of funds utilized by the Library:
A system of budgetary controls shall be maintained to assure adherence to the budget. Timely monthly financial reports shall be prepared comparing actual revenues, expenditures and encumbrances with budgeted amounts.
The budget is a dynamic rather than a static revenue and spending plan which requires adjustment from time to time as circumstances change. Approval of the Library Board is required for increases or decreases in staff base pay amounts and/or optional benefits, increases in the level of authorized positions, inequitable decreases of county funds or state grant funds to budget class appropriations within the same associated county, or changes to capital outlay items in amounts greater than $5,000.
All operating budget appropriations, except for Capital Project Funds, shall expire at the end of a fiscal year. In accordance with generally accepted accounting principles, purchases encumbered in the current year but not received until the following year are paid from the budget of the following year, with the following exception:
Outstanding current year funds required to cover material (i.e. physical goods) purchases encumbered in the current fiscal year and applied by the Director against the current year budget will be re-apportioned as an assigned fund balance in the same budget class, automatically transferring the funds from an ‘unassigned fund balance’ status to ‘assigned: carryover purchases for <class>’ for a period of thirty days following the end of the current fiscal year. Any funds remaining in an ‘assigned: carryover purchases for <class>’ designation thirty days after the end of the current fiscal year will be transferred to an ‘unassigned fund balance’ designation until re-appropriated by the Library Board.
Utilization of Prior Year’s Fund Balance in Budget
Unrestricted fund balances may be used as a funding (revenue) source for library budgets. The amount of unrestricted fund balance shall be estimated very conservatively.
Priority shall be given in budget preparation and enactment for adequate maintenance of capital equipment and facilities, and for their orderly replacement.
The Library Board President shall approve all grants and grant applications. All Federal and State grants shall be subject to the Library’s accounting and budgetary policies. All key financial provisions, including required local match, shall be included in the board actions. Accounting and budgeting information shall be inclusive of the Federal /State participation as well as local participation.
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