Res 2005-047 - Laserfiche WebLink

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W.Vl. EXPENDITURE POLICIES A. Appropriations - The point of budgetary control is at the department level budget for all funds. Following fomlal adoption, the budget is an1ended as necessary through a submission made by a Department Director to the City Manager. The Department Director forwards a budget amendment form detailing the reason, line items aIld an10unts to be effected to the City Finance Department to verify available dollars. The form is then forwarded to the City Manager who then reviews the amendment for overall appropriate objectives and purposes. If the budget amendment requires a transfer between departments, funds, or requires the use of fund balance or contingent appropriations, the amendment is submitted to City Council for approval; otherwise, the City Manager has the authority to approve or disapprove. Budget amendments requiring the use of fund balance or a transfer between departments or funds shall be formally adopted as an ordinance of the City Council. Budget amendments involving the use of contingent appropriations shall be formally approved by a motion of the City Council. B. Encumbrance Accounting System - An encumbrance accounting system will be used to alert Department Directors when their maximum budget limits have been reached. Encumbrances are expenditure estimates and will reduce budgeted appropriations in the same manner as an actual expenditure. Once the actual expenditure amount is paid or the encumbrance lapses, the encumbrance will be deleted. Department Directors should use the encumbrance accounting system for all purchases. C. Personnel Savings - No recognized or significant personnel savings in any Department will be spent by the Department Director without the prior authorization of the City Manager. This control is used to realize personnel savings each year that will be recognized in the adopted budget as a reduction in the current fiscal year's personnel appropriations. D. Purchasing - All Department Directors will ensure their respective departments comply with the City's Purchasing Manual when purchasing goods or services. E. Prompt Pavment - All invoices approved for payment will be paid by the City Finance Department within thirty (30) calendar days of receipt in accordance with the provisions of State law. The Director of Finance will establish and maintain payment procedures that will make use of advance payment discounts. Advanced payment discounts will be used in all instances except when the City will earn more interest income than the advance payment discount through investing the idle cash. City of San Marcos financial Policy - Revised April 2004 Page 9