Chapter 10 LOCAL BUDGET

Question 1

Accounts must be

Answer 1

Self balancing - assets must equal liabilities

Question 2

CURRENT FUND

Answer 2

general fund of the municipality for the current year

Question 3

GENERAL CAPITAL FUND

Answer 3

All general capital improvements, equipment acquisition and facility acquisition Or major facility improvements

(Derived from budgetary appropriations or approved bond ordinance)

Question 4

TRUST FUND

Answer 4

Records specific receipts that can be used for only that purpose. Ex dog license trust

Question 5

Flexible Chart of Accounts

Answer 5

13 digit code - provides a standardized method of budget reporting
XX FUND
XXX GENERAL LEDGER
XX APPROPRIATION
XXX SUBSIDIARY ACCOUNT
XXX DETAIL LINE ITEM

Question 6

GENERAL LEDGER

Answer 6

Official financial permanent record of the municipality that contains a summary of all financial transactions as recorded on the original books of entry

Question 7

What are major revenue items included in the budget

Answer 7

Anticipated revenue
Surplus
State aid
Grants
Miscellaneous revenues
Delinquent taxes
Current taxes

Question 8

Budget

Answer 8

Cash basis - every municipality must budget revenue to meet appropriations

Question 9

Adoption of temporary budget

Answer 9

By resolution within the first 30 days of the budget year
Majority of full membership
Not to exceed 26.25% of total appropriations

Question 10

What is the FAST System

Answer 10

Online system to submit the budget to dca

Question 11

Budget procedure

Answer 11

2 readings
INTRODUCTION either by Feb 10 (current year) or Aug 10 (fiscal year)
Advertise 10 days before public hearing
Public hearing not less than 28 days after introduction
Read in full
ADOPTION
Read in full by March 20 or Sept 20
Resolution majority of full membership
3 days certify to director
15 days send to board of taxation

Question 12

Municipal Levy Cap Law

Answer 12

Can’t raise taxes by more than 2%

Question 13

COLA

Answer 13

Cost of Living Adjustment
Annual percentage increase

Question 14

EMERGENCY APPROPRIATIONS

Answer 14

Made for unseen purpose after the adoption of the budget

Question 15

Reasons for Special emergency appropriations

Answer 15

Preparation of tax maps
Codification of ordinances
Preparation of master plan
Engineering and planning for sewer system

Question 16

Self liquidating municipal utilities

Answer 16

Example sewer - must be self financing

Question 17

Special district

Answer 17

Independent government entities created within local municipal unit ex fire district

Question 18

Fire district budget

Answer 18

Must be approved by voters at the fire district elections

Question 19

Uniform shared services and consolidation act

Answer 19

Facilitate and promote interlocal and regional service agreements

Question 20

When does the annual audit have to be completed and who prepares it

Answer 20

Within 6 months after close of the fiscal year
Registered Municipal Accountant

Question 21

Report of Audit

Answer 21

File original with municipal clerk
File duplicate with DLGS
Distribute to governing body within 30 days of receipt
Clerk forwards to the director proof of publication, resolution of governing body and signed group affidavit from governing body

Question 22

DEDICATION BY RIDER

Answer 22

Request to the Director to approve in the budget dedicated revenues anticipated to be received during the fiscal year

Question 23

UTILITY OPERATING AND CAPITAL FUNDS

Answer 23

Account for the operation and acquisition of capital facilities of municipal owned and operated utilities

Question 25

Annual financial statement

Answer 25

Verified statement of the financial condition of the municipality Filed annually with the director by CFO

Question 26

Annual debt statement

Answer 26

Filed annually with the clerk and director before the end of the first month of each fiscal year