Title
Chief Administrative Office recommending the Board:
1) Approve an amendment to the Fiscal Year 2021-22 Budget to adjust fund balances to actual Fiscal Year 2020-21 ending amounts as delegated by the Board with Resolution 123-2021 that adopted the County Budget for Fiscal Year 2021-22 (4/5 vote required).
FUNDING: Countywide Budget.
Body
DISCUSSION / BACKGROUND
On September 17, 2021, the Auditor-Controller’s Office closed the Fiscal Year (FY) 2020-21 financial records, finalizing the fund balance amounts that will need to be included in the FY 2021-22 Adopted Budget. Due to the short time between when the financial records closed and the adoption of the budget on September 28, 2021, only the General Fund had the actual fund balance and budgeted use of fund balance aligned in the Adopted Budget changes approved by the Board on September 28, 2021 with Legistar item 21-1519. The Adopted Budget Resolution 123-2021 authorized the Auditor-Controller to make the adjustments to the FY 2021-22 budget where the FY 2020-21 actual year-end closing figures for any fund differ from the FY 2021-22 beginning fund balance budget estimates. The Resolution outlined the following parameters for these adjustments:
(1) Should the available financing exceed the financing requirements for any individual fund other than the General Fund, the excess shall be applied to Increase the Appropriation for Contingency in the respective fund as provided by Government Code Section 29084.
(2) Should the financing requirements for any individual fund exceed available financing, the Auditor shall reduce the Appropriation for Contingency in the respective fund, until exhausted, and then shall reduce Reserves/Designations in the respective fund, excepting the General Fund General Reserve. If financing requirements still exceed available financing, the Auditor-Controller shall inform the Chief Administrative Officer and the Chief Administrative Officer will make recommendations to the Board for adjustments in appropriate operating accounts.
(3) Should the available financing exceed the financing requirements for the General Fund, the excess General Fund fund balance available shall be used to increase Appropriation for Contingency for the purpose of Caldor Fire impacts.
(4) The Auditor-Controller and Chief Administrative Officer shall return to the Board no later than November 1, 2021 with a budget amendment detailing the adjustments as a result of the fund balance differences for each fund, for ratification by the Board of Supervisors.
The proposed budget amendment adheres to the provisions of the Adopted Budget Resolution and is being brought to the Board for approval. Attachment A outlines, by subfund, the variance between budgeted and actual fund balance amounts with the proposed adjustments.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
All Departments with fund balance adjustments have been consulted on these adjustments.
FINANCIAL IMPACT
Countywide Budget Adoption
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair’s signature on the budget amendment, if approved.
CONTACT
Sue Hennike, Chief Administrative Officer