Summary of Requirements: Any appropriation measure may be amended or supplemented if the entity complies with the same laws used in making the original appropriation. However, no appropriation may be reduced below an amount sufficient to cover all unliquidated and outstanding contracts or obligations against them. * may be made by resolution or “Transfers” ordinance from one appropriation item to another. Subject to certain limitations, the annual appropriation measure may contain an appropriation for contingencies. Rulings filed in the case of C. B. Transportation, Inc. v. Butler County Board of Mental Retardations, 60 Ohio Misc. 71, 397 N.E.2d 781 (C.P. 1979), as well as Burkholder v. Lauber, 6 Ohio Misc. 152 (1965), held that a board or officer whose judgment and discretion is required, was chosen because they were deemed fit and competent to exercise that judgment and discretion and unless power to substitute another in their place has been given, such board or officer cannot delegate these duties to another. Following such reasoning, a local government’s governing board would be prohibited from delegating duties statutorily assigned to it, such as the ability to amend appropriations as provided for in Ohio Rev. Code section 5705.40. Per AOS Bulletin 97-010, budgeted expenditures coincide with either the final appropriations the legislative body passed prior to fiscal year-end or the sum of those final appropriations plus encumbrances carried forward from the prior year. That is, the AOS does not recognize The statutory budget process codifies appropriation amendments retroactive to the prior year. what are or should be good management practices. These processes provide a framework that helps management and legislators reasonably control spending. * in this context mean reallocations of appropriations within a fund. These do not “Transfers” refer to transfers of cash between funds. In determining how the government ensures What control procedures address the W/P compliance, consider the following: compliance requirement? Ref. Accounting system capable of recording appropriations and comparing them to actual results. Reconciling appropriation totals to totals recorded in the accounting system. Policies and Procedures Manuals Knowledge and Training of personnel Comparison of Outstanding Encumbrances and Balances to Proposed Amendments Legislative and Management Monitoring Management’s identification of changes in laws and regulations Management’s communication of changes in laws and regulations to employees Suggested Audit Procedures - Compliance (Substantive) Tests:
Summary of Requirements: Any appropriation measure may be amended or supplemented if the entity complies with the same laws used in making the original appropriation. However, no appropriation may be reduced below an amount sufficient to cover all unliquidated and outstanding contracts or obligations against them. “Transfers” * may be made by resolution or ordinance from one appropriation item to another. Subject to certain limitations, the annual appropriation measure may contain an appropriation for contingencies. Rulings filed in the case of C. B. Transportation, Inc. v. Butler County Board of Mental Retardations, 60 Ohio Misc. 71, 397 N.E.2d 781 (C.P. 1979), as well as Burkholder v. Lauber, 6 Ohio Misc. 152 (1965), held that a board or officer whose judgment and discretion is required, was chosen because they were deemed fit and competent to exercise that judgment and discretion and unless power to substitute another in their place has been given, such board or officer cannot delegate these duties to another. Following such reasoning, a local government’s governing board would be prohibited from delegating duties statutorily assigned to it, such as the ability to amend appropriations as provided for in Ohio Rev. Code section 5705.40. Per AOS Bulletin 97-010, budgeted expenditures coincide with either the final appropriations the legislative body passed prior to fiscal year-end or the sum of those final appropriations plus encumbrances carried forward from the prior year. That is, the AOS does not recognize appropriation amendments retroactive to the prior year. The statutory budget process codifies what are or should be good management practices. These processes provide a framework that helps management and legislators reasonably control spending. * “Transfers” in this context mean reallocations of appropriations within a fund. These do not refer to transfers of cash between funds. In determining how the government ensures compliance, consider the following: What control procedures address the compliance requirement? W/P Ref. Accounting system capable of recording appropriations and comparing them to actual results. Reconciling appropriation totals to totals recorded in the accounting system. Policies and Procedures Manuals Knowledge and Training of personnel Comparison of Outstanding Encumbrances and Balances to Proposed Amendments Legislative and Management Monitoring Management’s identification of changes in laws and regulations Management’s communication of changes in laws and regulations to employees Suggested Audit Procedures - Compliance (Substantive) Tests:
OCSChapter1-budgetaryAndRelated.docx