ACO Budgets Form 11 Preparation and Review Presented by: Tanya S. - - PowerPoint PPT Presentation

ACO Budgets Form 11 Preparation and Review

Presented by: Tanya S. Harris, CPA, MPA

Agenda

• Guidelines for preparing the Financial Data on Form

11’s

• ACO Budget Review Process
• Common Mistakes
• Examples
• Checklist

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Guidelines for Preparing the Financial Data on Form 11’s

• Board of Supervisors Policy A-5 provides all the

information required for: – Completing a Form 11 – Submittal Instructions and Deadlines – Required Approvals

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Guidelines for Preparing the Financial Data on Form 11s

• Agenda Deadlines

– County Executive Office

• Noon on Thursday, 12 days prior to the Board’s Tuesday

Agenda

– Auditor-Controller

• Routine Form 11- Noon on Monday, three days prior to

the County Executive Office deadline

• Non-Routine Form 11- Noon on Monday, eight days

prior to the County Executive Office deadline

• Rate Reviews require at least a 30 day review window

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Guidelines for Preparing the Financial Data on Form 11s

• INFORMATION CHANGE ON FORM 11

– During the Auditor Controller Office review, we will contact the person listed on the workflow setup on MinuteTraq for any change on the Form 11. – It is the Department’s responsibility to notify anyone who needs to be aware of the change.

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Guidelines for Preparing the Financial Data on Form 11’s

• All Form 11’s that involve a fiscal matter MUST be

approved by the Auditor-Controller’s Office.

(per BOS Policy A-5, Page 13)

–This includes all items involving:

• Financial Data
• Adjustments of estimated revenues or appropriations
• Establishing revolving funds
• Establish or close funds or dept ids
• Contracts, agreements, and grants that involve financial

matters

• New or revised rates and fees

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ACO Budgets Review Process

• Subject: In the Following Order

– Include number of years for term of contract or agreement. – Sole source should be stated in the subject, if applicable. – List the district number(s), – Total or ongoing cost in brackets [$] and – Source of fund – 4/5 vote (if budget adjustment required)

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ACO Budgets Review Process

• Recommended Motion:

– The request or recommendation must be specific. – It should take the form of a legislative motion. – The clarity and completeness of this section is extremely important. – If the Form 11 includes a budget adjustment, or request to establish fund, account, dept. ID, there MUST be a motion to “Approve and direct the Auditor-Controller to make the budget adjustments on the attached Schedule A” or “Approve and direct the Auditor-Controller to establish the fund/account/department ID number.”

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ACO Budgets Review Process

• Financial Data:

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ACO Budgets Review Process

• Financial Data:

– The financial data section must be completed for all Fiscal Matters. – The availability and source of funds must be indicated such as specific revenue sources, grants, state and federal resources, bond issues, retained earnings, contingency, designated fund balance, etc. – All ongoing costs should be clearly stated in the

• background. Financial data must relate to the motion.

– Amendments to contracts should address only the difference between the originally approved contract and the amended amount.

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ACO Budgets Review Process

• Financial Data:

– Current Fiscal Year:

• The expense that will be incurred in the current fiscal year as a result of

approval of the motion.

– Next Fiscal Year:

• The expense that will be incurred in the next fiscal year as a result of

approval of the motion.

– Total Cost:

• Total cost should be filled out for the cost of entire project, contract,

agreement or grants that have a finite term.

• If any additional contingency fund is request, the amount of contingency

is required to include in the total cost.

• The total cost is the same amount on the subject line in the brackets.
• The total cost only relates to the amount in the motion that the Board of

Supervisors is approving. In the case of amendment, the amount of the amendment is the total cost.

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ACO Budgets Review Process

• Financial Data:

– Ongoing Cost is for any program that will require

• ngoing funding that has indefinite period of time.

Ongoing cost should be included in the subject line in brackets if there is no corresponding total cost.

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ACO Budgets Review Process

• Financial Data:

– Net County Cost

• The net cost (impact on the general fund) that will be incurred

annually in future fiscal years as a result of approval of the motion.

– Budget Adjustment

• Indicates “YES” or “NO” whether the costs indicated require

budget adjustments to amend appropriations.

• If budget adjustments are required, this should be included in the

motion and adjusting entries attached on Schedule A.

– For Fiscal Year

• Indicate fiscal year the item will initiate.
• Fiscal year need to match with what number of years indicated on

the subject line and also to match with the term on the agreement or contract.

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ACO Budgets Review Process

• Financial Data:

– Source of Funds

• Describes or names the funding sources that will cover the costs.

Examples include references to the following:

– Specific revenue sources – Grants – State and Federal resources – Bond issues – Net Assets – Contingency – Fund Balance

• If there is an internal funding source, please provide the fund name

that matches with what listed on the chart of accounts.

• If external, please be specific about the source.
• If there are multiple sources, please include the percentage of each

source covers (the total of the percentages should equal 100%)

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ACO Budgets Review Process

• Background:

– Information in this section should be brief and concise, yet consistent with a clear explanation of the request. – The following information is required:

• If the request is for approval of an agreement or contract, basic features of the

document such as purpose, cost and term shall be included

• Reference any previous Board actions relating to the item.
• Discuss relevance to current policy; i.e. is it consistent with past actions, does it

require an exception to Board policy, or is it a new issue before the Board?

– Other information that is not required but useful when reviewing the form 11 is including detail information of partial payments, partial receivables, partial budgeted amounts, spending requirements of grants and commitments beyond the current fiscal year. – All ongoing costs should be clearly stated in the Background.

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ACO Budgets Review Process

• Additional Fiscal Information:

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Include prior contract history and how the rate or price attributes to a cost savings, if applicable.

ACO Budgets Review Process

• Schedule A:

– Departments are recommended to prepare Schedule A in a spreadsheet to ensure the accuracy of totals and balances. – All budget adjustments referenced for approval in the motion must be listed on the schedule in a journal entry format. – The entries should be complete and self- balancing.

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ACO Budgets Review Process

• All accounting strings must have three components:

FUND, DEPARTMENT ID, and ACCOUNT and they must be valid (active).

• Account numbers should be followed by the account

description and the description should match the description of the Chart of Accounts.

• Fund, Department, and Account numbers must be at

Budget Level (Level 4) except for equity accounts.

• Fund/Department combo must be valid.
• Amounts must be rounded to whole dollars.

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ACO Budgets Review Process

• Account description must match

description on Chart of Accounts.

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ACO Budgets Review Process

• Schedule A:

– Entries should be grouped by the following:

• Fund
• Type of Action (Example: “Increase Estimated Revenues”
• r “Decrease Appropriations”)
• Dept ID
• Account

– If a set of budget adjustments arranges for a transfer of funds, all adjusting entries for one fund are grouped together followed by all adjusting entries for the other fund.

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ACO Budgets Review Process

• Schedule A Examples:

– Adjusting Estimated Revenues and Appropriations: Increase Estimated Revenues:

XXXXX-XXXXXXXXXX-7XXXXX Description of Revenue Acct $50,000

Increase Appropriations:

XXXXX-XXXXXXXXXX-5XXXXX Description of Expense Acct $50,000

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ACO Budgets Review Process

– Adjusting appropriations between funds:

Decrease Appropriations:

10000-2500200000-510040 Regular Salaries $1,000,000

Increase Appropriations:

10000-25002000000-551100 Contribution to Other Funds $1,000,000

Increase Estimated Revenues:

4XXXX-XXXXXXXXXX-790600

Contrib Fr Other County Funds $1,000,000

Increase Appropriations:

4XXXX-XXXXXXXXXX-5XXXXX

• Descr. of Expense Account

$1,000,000

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ACO Budgets Review Process

– Adjusting appropriations utilizing fund balance:

Increase Appropriations: 10000-1000100000-536200 Contrib to Other Non-Co Agency $10,000 Decrease Committed Fund Balance: 10000-1000100000-330135 CFB-Community Improvement $10,000 ======================================================== Increase Appropriations: 10000-xxxxxxxxxx-5xxxxx

• Descr. of Expense Account

$200,000 Use of Subfund Fund Balance: 1xxxx-xxxxxxxxxx-3301xx Committed FB-Account Descr. $200,000

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Please ensure that the proper closing fund is used, see ACO Chart of Accounts

ACO Budgets Review Process

– GASB 54 Fund Balance Crosswalk

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ACO Budgets Review Process

– Look for Closing Rule

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ACO Budgets Review Process

• Adjusting entries using Appropriation 7:

– The Natural Budget Ledger Balance for Appropriation 7 is a Debit

Increase Appropriations:

XXXXX-XXXXXXXXXX-529540 Utilities $1,000,000 XXXXX-XXXXXXXXXX-573800 Intra-Utilities <$1,000,000>

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ACO Budgets Review Process

• Accounts being decreased must have available balance

at the APPROP Level.

• Accounts being decreased must have available balance

at the ORG Level.

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Common Mistakes

• Background section does not include previous agenda

items

• Subject does not include total cost
• Financial information incorrect or not explained in

background

• 4/5 Vote not noted at the end of the subject line
• Source of Funds does not equal 100%
• Accounting string not rolled up to budget level (level 4)
• Amounts not rounded to whole dollars
• Description of type of action incomplete (i.e., “Increase

Revenue” should be “Increase Estimated Revenue”)

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Common Mistakes

• Decrease appropriation and/or revenue but not

enough budget to perform decrease

• Budget adjustment does not match the amount in the

financial data section

• Fiscal year does not match with the motion and

subject line for contracts and amendments

• The motion references the total amount of a contract

when it should only be the amount of the amendment.

• Incorrect use of interfund rules

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• 1. Type of action should be “Increase Estimated Revenue:”.
• 2. Program numbers are unnecessary.
• 3. Account description is incorrect.

1 2 3

Common Mistakes

Common Mistakes

• Missing ACO approval when Form 11 requires a

budget adjustment, establishment or rate review.

• Unable to verify costs under the Financial Data section

because:

a. Background information does not include information about previous Board actions related to the issue. (i.e. What was the original contract amount?)

• Schedule A is missing the account number and/or

description.

• Fund/Dept ID/Account is inactive or incorrectly keyed.

Examples

• Fiscal Year is 16/17 and 17/18.
• Current Fiscal Year is for 16/17 and Next Fiscal Year is 17/18

Examples

• Multiple Years Contract

Examples

• Cost Decreased

Examples

• Contingency Amount

Examples

• Amount already budgeted

We will send out ACO Checklist

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ACO Form 11 Budget Review Team

• Tanya Harris, CPA, MPA

– General Accounting Division Chief Accountant – (951) 955-8375

• Susana Garcia, CPA

– Principal Accountant – (951) 955-4529

• Misley Wang

– Supervising Accountant – (951) 955-0335

ACOBudgets@rivco.org

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And Questions

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