Agenda 05/13/2008 Item #16F 9
Agenda Item No. 16F9
May 13, 2008
Page 1 of 2
EXECUTIVE SUMMARY
Recommendation for approval of a budget amendment that reduces certain Fiscal Year
2008 capital project budgets and appropriates certain Fiscal Year 2007 capital grant
project revenues carried forward into Fiscal Year 2008.
OBJECTIVE: Board of County Commissioners' approval of a budget amendment which reduces certain
capital project budgets in Fiscal Year (FY) 2008 for goods and services received in FY 2007 but the
actual payment was charged to the FY 2008 budget. The budget amendment also reclassifies certain grant
revenues.
CONSIDERATIONS: At the end of any fiscal year, the Board's accounting system (known as SAP)
automatically rolls all unexpended capital project appropriations (budgets) forward into the next fiscal
year's budget. This is a normal activity for multi-year capital project budgets. On October I, 2007,
unexpended capital project budgets rolled forward into the FY 2008 budget. The Board approved this roll
forward budget amendment on October 23, 2007, agenda item 16.E,9.
Payments for goods and services are made after vendor/contractor invoices have been reviewed and
approved for payment. Vendor/contractor invoices for capital project goods and services generated in the
latter part of a fiscal year may not be received and processed until one or more months after the end of the
fiscal year. Payments (cash disbursements) are recorded in SAP when the payment is released.
Florida statutes and generally accepted accounting practices require that expenditures be recorded in the
fiscal year the services were actually received. Accounting entries have heen made to properly record, in
FY 2007, $40,648,555.94 representing goods and services received before October I, 2007 but were paid
for and charged to the FY 2008 budget. As stated above, the budget for these goods and services rolled
forward into the FY 2008 budget on October 1,2007. The accounting entries move the actual cost of the
goods and services received to FY 2007, but the budget remains in FY 2008. FY 2008 capital project
budgets need to be reduced by the amount of the accounting entries, which total $40,648,555.94.
Grant revenues awarded in FY 2007 and their respective project budgets were recorded in SAP in FY
2007. $29,257,532.17 of revenue grants awarded in FY 2007 was not spent by the end of the year. The
difference between grant revenues awarded in FY 2007 and their respective project expenditures rolled
forward on October I, 2007 into the FY 2008 budget as carry-forward revenue and became part of the
project Fund(s) budgeted reserves. The grant revenues need to be reestablished. This bndget amendment
will rednce Carryforward revenue and reestablish the remaining unspent portion of the specific Fund(s)
grant revenue budgets.
A change in SAP budget functionality is being considered. This change will allow transactions of this
nature to be recorded in the proper fiscal year so this type of budget amendment should not be needed in
future years.
FISCAL IMP ACT: This amendment will reduce various project budgets to the appropriate level and
reestablish the appropriate capital grant project budget.
GROWTH MANAGEMENT IMPACT: There is 110 growth management impact associated with this
budget amendment.
RECOMMENDATION: That the Board of County Commissioners approve the necessary budget
amendment.
Prepared Jointly By: Kelly Jones, Senior Accountant, Department of Finance and Accounting
Susan Usher, Senior Budget Analyst, Office of Management and Budget
Page 1 of 1
Agenda Item No. 16F9
May 13, 2008
Page 2 012
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16F9
Recommendation for approval of a budget amendment that reduces certain Fiscal Year 2008
capital project budgets and appropriates certain Fiscal Year 2007 capital grant project
revenues carried forward into Fiscal Year 2008.
Meeting Date:
51131200890000 AM
Approved By
OMS Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
516120089,44 AM
Approved By
Susan Usher
Senior ManagemenUBudget Analyst
Date
County Manager's Office
Office of Management & Budget
5/6120083,22 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
5/6120083,51 PM
file://C:\AgendaTest\Export\ I 07-Mav%20 13.%202008\] 6.%20CONSENT%20AGENDA \ 16... 5/7/2008