The governmental accounting process encompasses an entire fiscal year. For Belmont County, the actual budget process begins in late spring and ends the following January.
In late April or early May, the County Auditor’s Office distributes individual departmental budget request reports, reflecting the previous fiscal year’s total expenditures for each department. These reports detail each individual line item of expenditure (known as appropriations). Appropriations include salaries, withholdings, contract payments, utilities, office supplies, and miscellaneous items, depending on each department’s needs. The number of appropriations varies based on a department’s need for financial tracking.
At this stage, each department is responsible for creating its request for the following fiscal year. Once needs are determined, the departments forward this information to the County Commissioners. The Commissioners review the information and compare it to the prior year’s actual expenditures. Most departments note any significant changes in their request. These changes may result from hiring or retiring personnel, capital projects, or anticipated revenue from outside sources that will offset the use of the General Fund or other accounts.
At the same time, the County Auditor provides the Commissioners with the actual revenue received in the previous year as well as estimates for the current and following years. The annual budget is compiled based on all these calculations. The budget reports revenue received versus expenditures and indicates whether the county’s General Fund expects a surplus or deficit relative to taxes, other sources, and unencumbered funds.
The County Commissioners review and approve the budget no later than July 15 and submit it to the County Auditor by July 20. The Budget Commission—comprising of County Auditor, County Treasurer, and County Prosecutor—then reviews and certifies the estimated revenue.
Due to declining revenues in 2009, the Board of Commissioners began holding individual departmental budget hearings. Elected Officials and Department Heads met with the Commissioners to discuss the financial outlook and whether their departments could tolerate budget reductions. This information was compiled into temporary appropriations—no formal action was taken at that time. In mid to late December, the County Auditor advises the Commissioners of the anticipated revenue and carryover funds expected for the upcoming fiscal year.
In the last week of December or first week of January, the Budget Commission presents to the Commissioners and Amended Certificate of Estimated Resources. This document outlines the unencumbered balances (leftover funds from the current year that have not been committed via purchase orders), plus anticipated tax revenue and other sources. This total equals the certified amount allowable for expenditure in the new fiscal year.
The Commissioners are then responsible for setting up and adopting the Annual Appropriations for all county departments. Appropriations cannot exceed the amount certified on the amended certificate. If the Commissioners believe uncertainties exist that may affect appropriation needs, they can adopt temporary appropriations. This allows departments to continue operations, including payroll and bill payment. If the Commissioners determine the budgets are adequate and within certified limits, they may pass permanent appropriations. Regardless, the final permanent appropriations must be adopted by April 1. Once completed, the Budget Commission certifies that the appropriations do not exceed the amount on the Amended Certificate.
After adoption, appropriations are distributed to the individual departments. It then becomes the department’s responsibility to “live within” their budgets.
Historical Appropriations
The Commissioners distribute the final appropriations to all departments, and the entire process repeats annually.
Annual Appropriations can be viewed in the first regular meeting minutes of each year.
Explanation or Appropriations, Certifications, and Spending Procedures
Annual appropriations are broken down by department, with each department having multiple appropriations. Once adopted, departments may request to transfer funds within their appropriations. These requests must be formally submitted to the Board of Commissioners and are closely reviewed to prevent budgetary shortfalls.
If a department receives funds not originally budgeted, it may request additional appropriations. This requires the department to obtain additional certification from the Budget Commission. Once certified, the funds may be appropriated for expenditure. This is common for revenue sources such as donations to the Sheriff’s Department for reimbursement of animal care. Because such funds are not part of anticipated revenue, this process must occur each time before expenditures can be made.
To spend appropriations, departments must first encumber funds via a purchase order. The department determines the total purchase price of an item, creates a purchase order, and sets aside the money, which temporarily debits the appropriation. The vendor is then contacted, and the purchase is made. Upon receipt of the product and invoice, the department submits a voucher to the County Auditor’s Office, which processes payment and permanently deducts the amount from the appropriation.
The ultimate goal is to spend only the revenue allotted by appropriations. The purchase order system ensures that all funds are encumbered before any expenditures are made. In rare cases, unforeseen costs (e.g., shipping) may arise after the purchase. In these instances, a “then and now” purchase order can be issued. This allows for the same process while accommodating additional costs—stating that when the purchase was made (“then”), it was a certain amount, and that “now” the cost has increased.