HomeMy WebLinkAboutRes 054 - Measures to Address Over-Expended Appropr:"t"ES
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D -< Deschutes County Board of CommissionersO1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of June 6, 2012
Please see directions for completing this document on the next page.
DATE: May 9, 2012
FROM: Marty Wynne Finance Phone # (541) 388-6559
TITLE OF AGENDA ITEM:
Consideration and signature of Resolution #2012-054, setting forth corrective measures with regard to
budget law violations.
PUBLIC HEARING ON THIS DATE? NO
BACKGROUND AND POLICY IMPLICATIONS:
Consideration of Resolution #2012-054, recommending measures for adressing over expended
appropriations).
FISCAL IMPLICATIONS:
None.
RECOMMENDATION & ACTION REQUESTED:
Approval and signature of Resolution #2012-054.
ATTENDANCE: Marty Wynne
DISTRIBUTION OF DOCUMENTS:
Marty Wynne, Finance Department 388-6559
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
*A Resolution setting forth the corrective measures
with regard to budget law violations. * RESOLUTION NO. 2012-054
*
WHEREAS, over expended appropriations are a violation of Local Budget Law (ORS
294.435); and,
WHEREAS, auditor comments and disclosures reported such over expended appropriations in
the County's audit report for the period July 1,2010 through June 30, 2011; and,
WHEREAS, upon receipt of an audit report under ORS 297.465, the governing body of a
county shall determine the measures it considers necessary to correct any deficiencies disclosed in the
report; and
WHEREAS, a resolution is required by ORS 297.466 setting forth planned corrective measures
with regard to the budget law violations, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. That the County shall undertake the corrective measures listed in Attachment A
DATED this ____6th day of June, 2012.
BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON
ANTHONY DEBONE, Chair
ATTEST: ALAN UNGER, Vice-Chair
Recording Secretary TAMMY BANEY, Commissioner
PAGE I OF 2·RESOLUTION NO. 2012-054 (06/06/12)
Attachment A
Recommended corrective measures:
Special Transportation Fund
• Resources, in excess of what was estimated for the FY 2011 budget, were received and were
required to be paid to sub-recipients. The amount of the resources to be expended was not
known until after the end of the fiscal year; payment was made to the sub-recipients resulting in
an over expended appropriations in the amount of $7,374.
REMEDY: Corrective action consists of greater oversight in this particular activity.
Public Health Fund
• The Public Health Fund over expended appropriations by $91,802. This was the result of an
error, by department personnel, in projecting expenditures for the year. An appropriation
transfer, in the amount of $32,000, was approved by the governing body during its final
meeting of the fiscal year, on June 29, 2011.
REMEDY: Corrective action consists of additional review of computations of projected
expenditures by others in the department
Fair & Expo Center
• The Fair & Expo Center over expended appropriations by $4,267. All expenditures for the year
had been taken into consideration and an appropriation transfer in the amount of $100,000, was
approved by the governing body during its May 5, 2011 meeting. However, on the last day of
the fiscal year some services were required on the Fair & Expo Center's fire safety system.
REMEDY: Corrective action consists of allowing for unplanned expenditures in determining
the amount of appropriation to transfer from contingency
Project Development (sub-fund of the General Fund), IT Reserve, Landfill Closure Fund (sub-fund of
Solid Waste) and PERS Reserve
• The Board of County Commissioners approved various resolution, at normally scheduled
public meetings, to transfer appropriation from the "Reserve for Future Expenditure" category
for each of the above listed reserve funds. At the time the FY 2011 budget was prepared, the
County was under the impression, based on discussions with personnel in the Oregon
Department of Revenue, that transfer of appropriation could be made in a manner similar to
transfer of appropriation from Contingency. It was later determined that such transfers required
the advanced notification process similar to the Supplemental Budget process. As this process
was not followed, it was determined that the transfer of appropriation was not in fact approved.
REMEDY: As the appropriate procedure for transferring appropriation from the "Reserve for
Future Expenditure" for Reserve Funds is now known, such procedures will be followed for
subsequent transfers.
PAGE 2 OF 2·RESOLUTION NO. 2012-054 (06/06112)