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HomeMy WebLinkAbout16.5 Authorization of Unbudgeted Expenditures POLICY Section Policy No. Page `rl Financial 16-5 1 of 1 a r Co my Policy Title Date: Resolution v� No. Authorization of Unbudgeted Expenditures May 12,2015 220/15 Policy Guidelines/Procedures: Pursuant to Section 248 of the Municipal Government Act, a municipality may only make an expenditure that is included in the operating budget, interim operating budget, capital budget,for an emergency, legally required to be paid, or otherwise authorized by Council. Policy Statements: 1) All capital expenditures, non-tangible capital asset projects (including gravel acquisition expenditures) that exceed budget will require Council approval and a budget amendment. 2) Department managers will have responsibility of monitoring ongoing expenses including those which have been encumbered and consider future expenses prior to authorizing current expenditures. It will be their responsibility to prioritize and ensure that given expenditures do not exceed the line item budget. Directors/Managers/Supervisor will be given the discretion to adjust planned operating expenditures within a GL line budget so long as it is not exceeded and approved by the Directors.All expenses must keep their GL object code integrity. 3) Operating expenditures that exceed budget on a line item basis will be brought to the Chief Administrative Officer for review with an explanation of the variance.The Chief Administrative Officer will either: a) Determine whether the expenditure can be absorbed within the department manager budget with underexpended line items. b) Report the overbudget expenditure to Council and request an operating budget amendment,and, request for funds to come from contingency. 4) The Chief Administrative Officer will be given authority to: correct budget coding errors, and, make changes to budget funding of expenses between operating funds, grants and reserves, but not add to it. 5) Council will receive a monthly capital project listing and a quarterly operating financial report that will identify variances on a consolidated object line item basis. 6) Any department hat exceeds the total appropriated amount of budget f s will recuire Council approval with a ritten explanation and funds to come from Continge cy Reserve. �- AI Ho gan, _- Bob Long CA Reeve Approved: March 20, 2002 Amended: May 12, 2015 220/15 Review Date: May 12,2018