Budget Transfers Within a Fund/Agency

SUBJECT:

BUDGET TRANSFERS WITHIN A FUND/AGENCY
NUMBER:

A.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS
EFFECTIVE: 12/01
signed
_________________________________
David E. Sundstrom, Auditor-Controller
1. POLICY
All transfers of appropriations between expenditure object accounts within a fund/agency must be submitted to the Auditor-Controller on an Expense Budget Transfer form. (See Exhibit I.) All transfers of appropriations from the salary and benefit expenditure object accounts must also receive County Executive Office (CEO) approval. All transfers of estimated revenues between revenue source accounts within a fund/agency must be submitted to the Auditor-Controller on a Revenue Budget Transfer form. (See Exhibit II.)

Transfers of appropriations or estimated revenues between fund/agencies and transfers of appropriations from the appropriation for contingencies are not covered by this County Accounting Procedure (CAP), and cannot be made on Budget Transfer forms. These types of transfers require approval of the Board of Supervisors. Refer to CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for these types of transfers.
1.1 Purpose
To provide forms and procedures for making budget transfers between expenditure object accounts and revenue source accounts within a County fund/agency, in accordance with applicable statutes and Board of Supervisors (Board) resolutions.
1.2 Authority
To provide forms and procedures for making budget transfers between expenditure object accounts and revenue source accounts within a County fund/agency, in accordance with applicable statutes and Board of Supervisors (Board) resolutions.
1.2.1 State of California Government Code
  • Sections 29120 and 29121
    Section 29120 limits obligations to appropriated amounts. Section 29121 states that "…the official authorizing the obligation in an amount known by him to be in excess of the unencumbered balance of the appropriation against which it is drawn is liable therefore personally and upon his official bond."
  • Section 29125
    Section 29125 provides that the Board may make transfers and revisions with respect to the appropriations as specified in the resolution of adoption of the budget, except with respect to transfers from the appropriation for contingencies (which are covered by Section 29130), by a majority action formally adopted by the Board. Section 29125 also allows the Board to designate a County official to approve transfers and revisions of appropriations within a budget unit, which is defined as a fund/agency in the County Budget. (See Section 1.2.2 of this procedure for the Board's delegation of this authority to the Auditor-Controller.)
1.2.2 Board of Supervisors' Resolution No. 97-415
Adopted pursuant to Government Code Section 29125, Board Resolution No. 97-415 dated September 16, 1997, delegates to the Auditor-Controller the power and authority to make transfers and revisions of appropriations within a budget unit, with the exception of transfers of appropriations from salary and benefit account codes, which must receive CEO approval. A budget unit is a discrete fund/agency in the County Budget.
1.3 Definitions
1.3.1 Appropriations
A legal authorization granted by the Board to make expenditures and to incur obligations for specific purposes, as provided for in the Board's annual adoption of the County Budget, and as changed thereafter by budget transfers and by changes to the Budget made by the Board. An appropriation is limited in amount and in the time it may be expended. Appropriations in the County Budget are controlled at the major object of expenditure, also called "category" of expenditure, which are:
  • Salaries and Employee Benefits (Object Codes 0100-0490)
  • Services and Supplies (Object Codes 0500-2890)
  • Other Charges (Object Codes 3000-3900)
  • Equipment (Object Code 4000)
  • Land, by Project (Object Code 4100, Controlled by Organization Code)
  • Buildings and Improvements, by Project (Object Code 4200, Controlled by Organization Code)
  • Other Financing Uses (Object Codes 4700-4809)
  • Residual Equity Transfers (Object Codes 5000-5009)
  • Contingencies (Object Code 5200)
  • Miscellaneous (Object Codes 5300-5500)
In addition, Operating Transfers Out (Object Codes 4800-4809) and Residual Equity Transfers Out (Object Codes 5000-5009) are controlled at the Object level
1.3.2 Estimated Revenues
The budgeted financing sources, exclusive of fund balance available and reserve cancellations, expected to be received or accrued during the fiscal year to finance the budgeted appropriations. Refer to the County's Chart of Accounts Manual for the individual revenue source codes and the type of revenue to be recorded in each one.
1.3.3 Fund
A separate fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and equities or fund balances, and changes to those accounts, are recorded and segregated to carry on specific activities. Separate funds are normally only established when required by the State Constitution, State statute, Federal law, court order, other applicable laws, Federal or State regulations, or Board policy. For example, the County General Fund, Fund 100, is a fund comprising a number of subsidiary agencies, or departments. Other examples of separate County funds are the Road Fund No. 115, the Orange County Library Fund No. 120, and the Orange County Flood Control District Fund No. 400.
1.3.4 Agency
A separate budget unit within a fund that classifies a grouping of expenditure requirements into accounting or organizational units that are deemed necessary or desirable for financial and administrative control purposes. For example, the separate County departments within the County General Fund, Fund No. 100, are each budgeted in a separate agency code: Agency 003 for the Auditor-Controller, Agency 042 for the Health Care Agency, Agency 060 for the Sheriff-Coroner, etc. The fund/agency combination defines a unique budgetary unit within a fund. For example, Fund/Agency 100/003 is the Auditor-Controller within the General Fund.

This procedure only applies to transfers of appropriations or estimated revenues within a single individual fund/agency. For transfers of appropriations or estimated revenues between agencies in the same fund, refer to CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves.
2. PROCEDURE
2.1 Expense Budget Transfers
Transfers of appropriations between expenditure objects within a fund/agency are submitted on the Expense Budget Transfer form (See Exhibit I). The following information is required and must be completed on the form:
  • FUND and AGCY: Enter the Fund and Agency code from the Chart of Accounts Manual for each line item being decreased or increased.
  • ORG and ACTV: Enter the Organization and Activity code for each line item being decreased or increased.
  • ORG and ACTV codes should be verified using the Organization Index table (ORGN) or Organization table (ORG2) in the Advantage Financial System (AFNS). Organization codes beginning with "L" are always required for Land (Object Code 4100) and beginning with "P" are always required for Buildings and Improvements (Object Code 4200) to identify the particular capital project.
  • OBJ: Enter the Expenditure Object account code from the Chart of Accounts Manual for each line item being decreased or increased.
  • DECREASE and INCREASE: Enter the dollar amounts of decreases and increases in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.
  • For all decreases, line item coding and budget amounts should be verified using the Expense Budget Summary Inquiry table (EESM) in AFNS. If any line item coding or budget amount on a budget transfer form is submitted which creates a deficit, none of the line items on the budget transfer form will be processed.
  • DESCRIPTION: Enter the description of the accounts for each line item being decreased or increased. Account descriptions are available from the County Chart of Accounts Manual. Descriptions for land or building projects or acquisitions should also include the name of the specific project or acquisition.
  • TOTALS: Enter the total for the "Decrease" and "Increase" column in whole dollars only (no cents, not even ".00"). Totals for the "Decrease" and "Increase" columns must equal each other.
  • EXPLANATION: State the reason for the budget transfer.
  • NAME OF ORIGINATING DEPARTMENT/AGENCY and AGENCY CODE: Enter the department/agency name and fund/agency code of the department that is submitting the budget transfer form.
  • NAME OF CONTACT PERSON, PHONE NUMBER, and EMAIL ADDRESS: Enter the name, phone number, and email address of a contact person in the budget section at the department/agency submitting the budget transfer form.
  • DEPARTMENT/AGENCY AUTHORIZED SIGNATURE and DATE: A person authorized to sign for budget transfers for the department/agency submitting the request must sign and date the budget transfer form.
  • CEO APPROVAL: If the Expense Budget Transfer includes a transfer from any Salaries and Benefits account (Object Codes 0100 through 0490), the form must be submitted to the CEO for approval. If approved by the CEO, the CEO then submits the form to the Auditor-Controller. If no transfer from Salaries and Benefits is included, submit the form directly to the Auditor-Controller General Ledger Unit.
The Expense Budget Transfer form (Exhibit I) cannot be used for transfers between different agencies in the same fund or for transfers from the Appropriation for Contingencies. These require Board approval. See CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for procedures for these types of transfers.
2.2 Revenue Budget Transfers
Transfers of estimated revenues between revenue source accounts within a fund/agency are submitted on the Revenue Budget Transfer form (See Exhibit II). The following information is required and must be completed on the form:
  • FUND and AGCY: Enter the Fund and Agency code from the Chart of Accounts Manual for each line item being decreased or increased.
  • ORG and ACTV: Enter the Organization and Activity code for each line item being decreased or increased.

    ORG and ACTV codes should be verified using the Organization Index table (ORGN) or Organization table (ORG2) in AFNS.
  • REV SRCE and SUB REV: Enter the Revenue Source account code from the Chart of Accounts Manual and Sub-Revenue code for each line item being decreased or increased. The Sub-Revenue code should be verified using the Sub-Revenue Source table (SREV) in AFNS.
  • REVISED BUDGET: Use the Revenue Budget Summary Inquiry table (RSUM) in AFNS, "Current Amount" column for the revenue source code being decreased or increased. Enter the calculated amount after taking into account the decrease or increase being made, in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.
  • DECREASE and INCREASE: Enter the dollar amounts of decreases and increases in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.

    For all decreases, line item coding and budget amounts should be verified using the Revenue Budget Summary Inquiry table (RSUM) in AFNS. If any line item coding or budget amount on a budget transfer form is submitted which creates a negative revenue budget amount, none of the line items on the budget transfer form will be processed.
  • DESCRIPTION: Enter the description of the accounts for each line item being decreased or increased. Account descriptions are available from the County Chart of Accounts Manual.
  • TOTALS: Enter the total for the "Revised Budget," "Decrease," and "Increase" column in whole dollars only (no cents, not even ".00"). Totals for the "Decrease" and "Increase" columns must equal each other.
  • EXPLANATION: State the reason for the budget transfer.
  • NAME OF ORIGINATING DEPARTMENT/AGENCY and AGENCY CODE: Enter the department/agency name and fund/agency code of the department that is submitting the budget transfer form.
  • NAME OF CONTACT PERSON, PHONE NUMBER, and EMAIL ADDRESS: Enter the name, phone number, and email address of a contact person in the budget section at the department/agency submitting the budget transfer form.
  • DEPARTMENT/AGENCY AUTHORIZED SIGNATURE and DATE: A person authorized to sign for budget transfers for the department/agency submitting the request must sign and date the budget transfer form.
Submit the completed and signed form to the Auditor-Controller General Ledger Unit.

The Revenue Budget Transfer form (Exhibit II) cannot be used for transfers between different agencies in the same fund. These require Board approval. See CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for procedures for these types of transfers.
Back to Top