TO: Board of Supervisors
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban - Accountant-Auditor Manager
SUBJECT: Fiscal Year 2024-25 Budget Carry Forward for Continued Projects and Related Contract Encumbrances and Purchase Orders
RECOMMENDATION
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Approve and authorize the carry forward budget amendment for fiscal year 2024-25, of estimated fiscal year 2023-24 remaining budget and related contract encumbrances for projects not completed, and encumbrances for approved purchase orders with goods not received as of June 30, 2024. (Fiscal Impact: Revenues of $21,933,372, Expenditures of $106,092,289, Various Funds, Not budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
Due to the size of the projects and timing of contract awards, projects are often started in one fiscal year, yet completed in a future year.
Attachment A provides a listing of approved Purchase Orders using the fiscal year 2023-24 budget, for which the goods have not been received in the current fiscal year, in the amount of $4,890,372. Funds for these purchase orders have been encumbered through the purchase order approval process and will flow into the following year.
Attachment B provides listing of current Capital Improvement Projects and non-capital projects with related contracts to be rolled over to the new fiscal year, in the amount of $101,201,917. Revenues of $21,933,372 listed are not yet received and will be carried forward budgeted amounts to be received in the following year. The remainder of funds needed for these projects have already been restricted through the project approval or contract encumbrance process and will flow into the following year.
None of the items listed on these attachments were included in the fiscal year 2024-25 budget. Once all June invoices are paid, these amounts will be adjusted and final carry forward budgets will be determined. The Auditor-Controller will provide a final listing as part of the year-end letter for the ratification of the final appropriations to be carried forward.
Requested Action:
Approve and authorize the carry forward budget amendment for fiscal year 2024-25, of estimated fiscal year 2023-24 remaining budget and related contract encumbrances for projects not completed, and encumbrances for approved purchase orders with goods not received as of June 30, 2024.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Revenue sources include planned use of fund balance, grants, or other revenue sources specifically related to these items. Please see Attachment A and B for a detailed listing. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of these entries will enable the continuation of work on these projects in fiscal year 2024-25. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Carry forward budgets and appropriations are needed for encumbrances and commitments entered into during the current fiscal year or prior year that have not been completed or fulfilled by June 30, 2024. These projects have not been re-budgeted as part of the 2024-25 adopted budget. |
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Consequences if not approved: |
Failure to approve the carry forward budgets will impede the smooth operation of continuing active projects and cause a delay in getting contractors/vendors paid timely. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.