Title
Chief Administrative Office, Facilities Services Division, recommending the Board approve and authorize the Chair to sign a Fiscal Year 2020-21 budget transfer increasing General Fund Contingency and increasing the Accumulative Capital Outlay (ACO) Fund operating transfers expense by $149,000.
FUNDING: ACO Fund.
Body
DISCUSSION / BACKGROUND
Expenses for Facilities capital projects are recorded in the Accumulative Capital Outlay (ACO) Fund. Based on detailed time studies, when Facilities staff work on ACO projects the proportional share of the salary and benefits costs are charged directly to the ACO Fund via payroll processing. The overhead rate is charged to the ACO Fund as an operating transfer.
During Fiscal Year 2020-21, ACO labor expense is expected to be $149,000 higher than budgeted and the recommended budget transfer is needed to transfer appropriations in the ACO Fund from fixed assets to operating transfers to allow these labor charges to post. The increased revenue to the General Fund will reduce the General Fund cost in the Facilities division general fund budget, and will therefore increase General Fund contingency.
ALTERNATIVES
The Board may elect not to approve the budget transfer as proposed, and ACO labor revenue would not be realized.
PRIOR BOARD ACTION
20-1264 10/13/2020 Board approved Capital Workplan
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
This budget transfer represents a decrease in net County Costs and an increase in General Fund contingency of $149,000.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain Chair's signature on budget transfer and forward to Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Laura Schwartz, Deputy Chief Administrative Officer