Budget Manual 2020

Budget Manual

B. Mid-Year Budget Changes The budget is an adopted plan for how the City will spend funds for programs and services. Key to this description is the fact that budgets are plans, and plans will change. To assist with changes in priorities, program needs, or opportunities, there are a few tools to assist with modifying the budget to reflect the updated budget plan. Budget adjustments are used for funds that have already been adopted by City Council. Budget ordinances are used to amend the budget and make a change to what was adopted. Budget Adjustments (Fund Reallocation) During the year, departments may find it necessary to adjust their budgets between and among various cost accounts that were adopted by City Council as part of the budget process. Budget Adjustments (or BAs) accomplish this transfer. Budget Adjustments are transfers of previously appropriated funds from one account to another. Budget Adjustments allow the totals in individual object codes to change as money is shifted from one account to another. Budget Adjustments can only transfer funds previously approved by City Council. Adjustments cannot be used to increase a fund’s overall adopted budget total. Also, a Budget Adjustment cannot be used to transfer money between funds. This requires a Budget Amendment. The primary reason for a Budget Adjustment is to correct fund insufficiency. The Lawson financial system continuously checks for funds available at the division level for the Maintenance and Operations, Debt Service, Capital Outlay, or Transfers Out cost categories. If a division expenses or encumbers all available appropriations within a cost category, no additional expenditures or encumbrances will be allowed. More details about account categories and structure can be found in the section titled “Account Structure”. Some other typical reasons for budget adjustments include shifting funds within project activities, moving funds to meet the needs of a budget ordinance or other Council agenda item, and reorganized functions or position-related M&O. Budget adjustments impacting position or benefits budgets are rarely allowed and should be discussed with assigned analysts. Who makes the Budget Adjustment? Departmental Budget Representatives typically enter Budget Adjustments through the Budget Request application. Refer to the “Budget Applications” section of the Budget Manual for instructions on how to use the application.

The Budget Programs Technician will complete the Budget Adjustment process once it has been submitted.

Mid-Year Changes B-1