[HISTORY: Adopted by the Mayor and Council of the Borough of Haddon
Heights 9-16-2003 by Ord. No. 1155 (Ch.
2 of the 1975 Code). Amendments noted where applicable.]
GENERAL REFERENCES
Claims approval — See Ch. 12.
The purpose of this chapter is to formalize and standardize the preparation
of the local budget. This chapter is for implementation at the local level
and is not intended to abrogate or to derogate from applicable state statutes
or regulations promulgated by the Director of Local Government Services or
the Local Public Contracts Law.[1]
[1]
Editor's Note: See N.J.S.A. 40A:11-1 et seq.
A.
Each department head is responsible for preparing the
other expense (OE) budget request for his or her respective department.
B.
All OE budget requests will consist of two separate documents,
an account summary and the narrative. Each document will have the general
heading of the department, be considered as a proposed procurement list and
follow the chart of accounts.
(1)
The account summary shall contain the description of
the Borough Council approved baseline budget amount allocated to the department,
the distribution of this allocation into various line items based upon the
department procurement list for the current year and the request for the next
budget year. Each line shall be annotated with a plus, minus or zero indicating
an increase, decrease or no change respectively from the previous budget year.
(2)
The narrative will explain each account, and the reason
for a reduction or no change. However, if the request is for more funding
(increase) than the current year allocation, a justification must be provided
for additional funding along with an impact statement as to the affect upon
operations if additional funding is not provided.
(3)
All line items must be fully defined. A miscellaneous
account will not have a budget status.
(4)
Department heads must stay within their approved OE procurement
list and cannot obligate funds the department does not have.
D.
Employees claiming mileage reimbursement for use of their
personal automobile on Borough business must complete the Borough's travel
expense report, on a timely basis, signed by the employee, approved by the
department head, and must be processed through a voucher regardless of the
dollar amount. Reimbursements will not be made through petty cash.
E.
After a budget is formally adopted, it is the responsibility
of the department head to monitor his or her budget and to control spending.
In the event that an approved line item is insufficient to meet a current
obligation, the department head may transfer budget funds between line items
to avoid an overexpenditure but must stay within the total approved budget
allocation for the department.
F.
When a budget line item procurement has satisfied the
requirement and a balance exists, the balance will not be arbitrarily encumbered
or spent just for the sake of spending any of the total line item.
G.
The Director of Local Government Services (DLGS), Technical
Accounting Directive No. 1, Encumbrance Accounting requires a budget line
item control to avoid overexpenditures. Not later than December 12 of the
current year, each department head shall review his or her commitments/obligations
and when necessary issue a purchase order on an actual or estimated basis
to a vendor to encumber an existing line item in the approved budget procurement
list. This process will cover the final commitments/obligations for the current
year.
All capital planning projects shall consist of two separate documents,
a summary and a narrative, containing the general heading of the departments.
A.
The summary will contain a description of the project
and estimated total cost.
B.
The narrative will explain and justify each project.
An impact statement as to the effect on operations if funding is not provided
shall be included.
C.
The dollar amounts submitted shall be considered budgetary
dollars only and shall not authorize acquisition of the items.
D.
The procedures established by the Local Public Contracts
Law must be followed after the capital ordinance is finally adopted and advertised.
Four copies of each budget request shall be submitted to the Treasurer/CFO
for review, consolidation and submission to the Finance Committee within the
following timetable:
|
Date
|
Action
|
|---|---|
|
July 30
|
Requests to department heads
|
|
September 30
|
Department heads to submit proposed budget requests to the Treasurer/CFO
|
|
November 15
|
Consolidated budget requests to Finance Committee
|
|
January 5-15
|
Scheduled department head meetings (availability of most complete expenditure
report)
|
|
January 25
|
Finance Committee wrap-up and meeting with Auditor
|
If any of the foregoing procedure is not followed, the Finance Committee
shall assign final allocation with no right of appeal.
Chapter 12, Claims Approval, of the Code of the Borough of Haddon Heights is hereby incorporated by reference.
