Action 9.
Regular Board of Supervisors Meeting
Finance
- Meeting Date:
- 08/11/2020
- Title:
- Inter-fund Transfers from Capital Projects Fund for Building Enhancements and BDI Well Repair & Maintenance
- Submitted By:
- Daniel Duchon, Finance
- Department:
- Finance
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
2
NAME
of PRESENTER:
of PRESENTER:
Daniel S. Duchon
TITLE
of PRESENTER:
of PRESENTER:
Budget Manager
Mandated Function?:
Local Mandate or Policy
Source of Mandate
or Basis for Support?:
or Basis for Support?:
GAAP/GASB
Docket Number (If applicable):
Information
Agenda Item Text:
Approve two Inter-fund transfers from Fund 400 Capital Projects, the first for $1,000,000 to Fund 105 BDI Enterprise, and the second for $1,200,000 to the General Fund Facilities Building Enhancement Department.
Background:
In July 2020, the BOS approved the FY21 Budget which included approximately 1.0m for repair and maintenance of the infrastructure at the BDI well, and 1.2m for County Building Enhancements (repair, maintenance, remodels, department relocations). After working with the auditors, and in accordance with GAAP/GASB accounting standards, we believe this two items should be budgeted elsewhere, necessitating the inter-fund transfers of 1.0m to BDI enterprise, and 1.2m to General Fund, Facilities Department.
First, the BDI well repairs & maintenance, which had traditionally been paid out of the Capital Fund (fund 400), should be expensed out of Fund 105 BDI Enterprise. This will keep the all the BDI expenses in one location/fund, which is the best accounting practice for an enterprise fund.
Second, the building enhancement funds, which again, had traditionally been paid out of the Capital Fund (fund 400), should be expenses out of the General Fund, Facilities Department, Building Enhancement Activity. This is the best accounting practice for the Capital Fund 400 to have depreciable capital items, while the repair, maintenance, remodel, and relocation expenses are in the General Fund.
It is very important to note: none of this is new money, and none of these are new expenses. All revenues and expenses were budgeted for and approved by the BOS in the FY21 Budget. We are simply moving the expenses to the appropriate fund location to better adhere to auditors recommendations.
First, the BDI well repairs & maintenance, which had traditionally been paid out of the Capital Fund (fund 400), should be expensed out of Fund 105 BDI Enterprise. This will keep the all the BDI expenses in one location/fund, which is the best accounting practice for an enterprise fund.
Second, the building enhancement funds, which again, had traditionally been paid out of the Capital Fund (fund 400), should be expenses out of the General Fund, Facilities Department, Building Enhancement Activity. This is the best accounting practice for the Capital Fund 400 to have depreciable capital items, while the repair, maintenance, remodel, and relocation expenses are in the General Fund.
It is very important to note: none of this is new money, and none of these are new expenses. All revenues and expenses were budgeted for and approved by the BOS in the FY21 Budget. We are simply moving the expenses to the appropriate fund location to better adhere to auditors recommendations.
Department's Next Steps (if approved):
If approved, Finance and Budget will execute the interfund transfers, moving the funds as described. Then the funds will be expenses on the projects as approved in the budget.
Impact of NOT Approving/Alternatives:
If not approved, the County will not be adhering to GAAP/GASB account practices and auditors recommendations.
To BOS Staff: Document Disposition/Follow-Up:
Meeting minutes sent to Budget Manager.
Fiscal Impact
Fiscal Impact & Funding Sources (if known):
Inter-fund transfers from Fund 400 to Fund 105 (1.0m) and Fund 100 (1.2m).
Attachments
No file(s) attached.