1 Budg e ta ry Proc e ss T he b udg e ta ry pro c e ss is pre sc - PDF document

Ba sic Ac c ounting for T ownships Pre se nte d b y: Christo phe r S. M c K e e L GS Assista nt Pro je c t Ma na g e r Justin W. Slo a n L GS Pro je c t Ma na g e r Course Ca ta log • Pa rt o f a thre e -c o urse se ssio n 1. F und Ac c o unting fo r T o wnships 2. Cha rt o f Ac c o unts fo r T o wnships 3. Ba sic Ac c ounting for T ownships 2 Course Obje c tive • T o g ive a n o ve rvie w o f the diffe re nt tra nsa c tio ns, pro c e sse s, fo rms, a nd re q uire me nts re la ting to yo ur jo b a s fisc a l o ffic e r 3 1

Budg e ta ry Proc e ss • T he b udg e ta ry pro c e ss is pre sc rib e d b y pro visio ns o f the Ohio Re vise d Co de • T he b udg e ta ry pro c e ss invo lve s pla nning the g o a ls o f the T o wnship a nd the a c tio ns tha t ne e d to b e ta ke n to a c hie ve the g o a ls • T he fisc a l o ffic e r mo nito rs c o mplia nc e with Ohio b udg e ta ry la w 4 Compone nts of the Budg e ta r y Pr oc e ss • T a x Budg e t o r Alte rna tive Me tho d • Offic ia l Ce rtific a te o f E stima te d Re so urc e s • Ce rtific a te o f T o ta l Amo unt F ro m All So urc e s Ava ila b le fo r E xpe nditure s, a nd Ba la nc e s • Ame nde d Offic ia l Ce rtific a te o f E stima te d Re so urc e s • Appro pria tio n Re so lutio n 5 T he T a x Budg e t Ove rvie w • Purpo se o f the ta x b udg e t • T he ta x b udg e t se ts limita tio ns • T he ta x b udg e t is a pla nning to o l • F ina nc ia l ne e ds a re inc lude d in the ta x b udg e t • Ava ila b le re so urc e s/ re ve nue s a re inc lude d • Ohio Re vise d Co de § 5705.29 lists spe c ific info rma tio n to b e inc lude d in the ta x b udg e t 6 2

T he T a x Budg e t Ove rvie w (c o ntinue d) • T he ta x b udg e t pro vide s de ta ile d info rma tio n o n re ve nue s a nd e xpe nditure s fo r the g e ne ra l fund • T he ta x b udg e t pro vide s summa ry info rma tio n o n re ve nue s a nd e xpe nditure s fo r a ll o the r funds re c e iving pro pe rty ta xe s • F unds no t re c e iving pro pe rty ta xe s a re re po rte d in a summa ry fo rma t with re ve nue s, e xpe nditure s, a nd e stima te d b e g inning b a la nc e s • Sc he dule s a re pre se nte d fo r pe rma ne nt impro ve me nts, judg me nts a nd ta x le vie s/ de b t 7 T he T a x Budg e t Alte rna tive Me tho d • Ohio Re vise d Co de § 5705.281 a llo ws the Co unty Budg e t Co mmissio n to wa ive filing a ta x b udg e t • T he Co unty Budg e t Co mmissio n must a do pt a n a lte rna tive me tho d o r fo rmula b a sis • All info rma tio n re q uire d b y the Co unty Budg e t Co mmissio n must b e pro vide d b y the da te spe c ifie d 8 T he T a x Budg e t E stima te d T a x Ra te s • Afte r sub missio n, the ta x b udg e t o r a lte rna tive is re vie we d b y the Co unty Budg e t Co mmissio n • On o r b e fo re Se pte mb e r 1 st , the Co unty Budg e t Co mmissio n re turns a n Offic ia l Ce rtific a te o f e stima te d Re so urc e s a nd e stima te d ta x ra te s • I f dissa tisfie d, the fisc a l o ffic e r, o n b e ha lf o f the truste e s, c a n a ppe a l to the b o a rd o f ta x a ppe a ls within 30 da ys • I f sa tisfie d, a re so lutio n a utho rizing the ta x le vie s sho uld b e c e rtifie d to the c o unty a udito r b y Oc to b e r 1 st . 9 3

T he T a x Budg e t I mpo rta nt Da te s he ta x b udg e t sho uld b e a do pte d b y July 15 th. • T • A he a ring must b e g ive n with a 10 da y no tic e • Afte r b e ing a do pte d, the ta x b udg e t must b e sub mitte d to the Co unty Audito r b y July 20 th 10 Offic ia l Ce r tific a te of E stima te d Re sour c e s • Pre pa re d b y the Co unty Budg e t Co mmissio n • Ba se d o n the info rma tio n pre se nte d in the ta x b udg e t. • I nc lude s e stima te d re ve nue s fo r e a c h fund • I nc lude s e stima te d une nc umb e re d fund b a la nc e s he Se pte mb e r 1 st da te ma y b e e xte nde d b y the • T ta x c o mmissio ne r fo r a g o o d c a use • Prio r to De c e mb e r 31 st , the T o wnship must re vise the ta x b udg e t so tha t e xpe nditure s do no t e xc e e d e stima te d re ve nue 11 Ce rtific a te of T ota l Amount F rom All Sourc e s Ava ila ble for E xpe nditure s, a nd Ba la nc e s • T he c e rtific a te o f to ta l a mo unt fro m a ll so urc e s a va ila b le fo r e xpe nditure s, a nd b a la nc e s must b e file d with the c o unty a udito r o n o r a b o ut Ja nua ry 1 st • I t c e rtifie s the a c tua l une nc umb e re d fund b a la nc e s a nd e stima te d re ve nue s fo r e a c h fund (no t inc luding a ny re se rve a c c o unts) • T he first pa g e is a summa ry o f a ll funds b y fund type a nd the re ma ining pa g e s ide ntify the individua l funds • T he fo rm sho ws c a sh b a la nc e s a t De c e mb e r 31 st , e nc umb ra nc e s, a dva nc e s no t re pa id, c a rryo ve r b a la nc e s a va ila b le fo r a ppro pria tio ns, to tal e stima te d re ve nue s fro m a ll so urc e s a nd to ta l c a rryo ve r b a lanc e s plus e stima te d re ve nue s 12 4

Ame nde d Offic ia l Ce rtific a te of E stima te d Re sour c e s • T he a me nde d o ffic ia l c e rtific a te o f e stima te d re so urc e s will b e re turne d a fte r filing the c e rtific a te o f to ta l a mo unt fro m a ll so urc e s a va ila b le fo r e xpe nditure s, a nd b a la nc e s • Re me mb e r to po st e stima te d re ve nue s to the syste m (o r to yo ur re c e ipt le dg e r, if ma nua l) • Ohio Re vise d Co de § 5705.36 re q uire s tha t this fo rm will b e re vise d to inc lude a c tua l fund b a la nc e s a t De c e mb e r 31 st a nd a ny re visio ns to e stima te d re ve nue s 13 Ame nde d Offic ia l Ce rtific a te of E stima te d Re sour c e s 3 Prima ry Re a so ns to Re q ue st a n Ame nde d Ce rtific a te • It is de te rmine d tha t re ve nue s to b e c o lle c te d will b e g re a te r o r le ss tha n the a mo unt inc lude d in the pre vio us a me nde d c e rtific a te o f e stimate d re so urc e s • It is de te rmine d tha t re ve nue s to b e c o lle c te d will b e g re a te r tha n pre vio usly e stima te d a nd it is inte nde d to a ppro priate a nd e xpe nd the e xc e ss re ve nue • It is de te rmine d tha t re ve nue s to b e c o lle c te d will b e le ss tha n pre vio usly e stima te d a nd this de fic ie nc y will re duc e a vaila b le re so urc e s b e lo w the c urre nt le ve l o f a ppro priatio ns 14 Appropria tion Re solution • Ohio Re vise d Co de § 5705.38 sta te s tha t the T o wnship must a do pt a n a ppro pria tio n me a sure o n o r a b o ut the first da y o f the ye a r • A te mpo ra ry a ppro pria tio n me a sure ma y b e pa sse d fo r the pe rio d o f Ja nua ry 1 st thro ug h Ma rc h 31 st • T he pe rma ne nt a nnua l a ppro pria tio n me a sure must b e pa sse d b y April 1 st fo r the pe rio d Ja nua ry 1 st thro ug h De c e mb e r 31 st. 15 5

Appropria tion Re solution T he a ppro pria tio n pro c e ss is a func tio n o f the le g isla tive a utho rity o f the lo c a l g o ve rnme nt a nd c a nno t b e de le g a te d • T he T o wnship must ha ve a ppro pria tio ns a do pte d to le g a lly spe nd mo ne y • T he a ppro pria tio ns a re no t le g a l until the re so urc e s a re c e rtifie d b y the Co unty Audito r • T he a ppro pria tio n re so lutio n ma y b e a me nde d during the ye a r o nly b y a re so lutio n a ppro ve d b y the T ruste e s • Re me mb e r to po st a ppro pria tio ns to the syste m (o r to the a ppro pria tio ns le dg e r, if ma nua l) 16 L e g a l L e ve l of Control • Sta tuto ry a ppro pria tio n le ve l • Ohio Re vise d Co de § 5705.38(C) • T his implie s “pe rso na l se rvic e s” a nd “o the r” a s the minimum le ve l to b e a ppro pria te d fo r e a c h o ffic e , de pa rtme nt, a nd divisio n • Do no t c ha ng e a ppro pria tio ns in the syste m (a t o r a b o ve yo ur le g a l le ve l o f c o ntro l) unle ss a ppro ve d b y T ruste e s 17 L e g a l L e ve l of Control • Annua l Appro pria tio n Re so lutio n E xa mple T o wnship Ge ne ra l F und Ge ne ra l Go ve rnme nt Administra tive Pe rso na l Se rvic e s $25,000 Othe r $15,000 Pub lic Sa fe ty Po lic e Pro te c tio n Pe rso na l Se rvic e s $50,000 Othe r $150,000 Ca pita l Outla y Pe rso na l Se rvic e s $0 Othe r $60,000 T o ta l Ge ne ra l F und $300,000 18 6

L a psing of Appropria tions • T he une nc umb e re d b a la nc e o f e a c h a ppro pria tio n re ve rts to its re spe c tive fund a nd is a va ila b le fo r future a ppro pria tio ns • T he e nc umb e re d a ppro pria tio n b a la nc e (c a rry o ve r purc ha se o rde rs) is c a rrie d fo rwa rd a nd is no t re a ppro pria te d 19 Appropria tion L e dg e r • Additio na l info rma tio n o n the Appro pria tio n L e dg e r, a nd e xa mple s, c a n b e fo und in the Ohio T o wnship Ha ndb o o k 20 E nc umbra nc e s • Co mmitme nts fo r the e xpe nditure o f mo nie s a re re c o rde d a s the e q uiva le nt o f e xpe nditure s o n the b udg e ta ry b a sis • T his re se rve s the po rtio n o f the a pplic a b le a ppro pria tio n a nd ma inta ins le g a l c o mplia nc e 21 7