Budget Policy & Procedures

General
1. The County's budget policy will address the process by which a budget is formulated, adopted and monitored throughout the year.
2. A budget policy addresses the authorization levels for the approval of the annual budget and all budget adjustments for revenues and expenditures of all funds.
3. A key factor is ensuring the adopted budget, as well as the amended budget, is balanced at all times throughout the year.
Governing Standards
1. Governmental Accounting Standards Board (GASB)
2. Generally Accepted Accounting Principles (GAAP)
3. Government Financial Officers Association (GFOA)
4. Financial Accounting Standards Board (FASB)
5. Uniform Financial Reporting Model - Auditor of Public Accounts (APA) Commonwealth of Virginia
6. Code of Virginia
7. Commonwealth of Virginia, Department of Education
8. Commonwealth of Virginia, Library and Archives Public Records Management
Planning and Performance
1. The King George County Board of Supervisors will hold a budget kick-off work session to review prior year performance, identify proposed budget objectives and directives for the upcoming fiscal year.
2. The budget directives and the strategic goals will be used as the foundation in the formulation of the County Administrator’s recommended budget.
3. Real estate property must be reassessed, at a maximum, every four years and equalized rate developed to ensure revenues are maintained at the same level as prior year actual.
  
  The following areas shall be annual budget objectives: (Note: these may change once strategic goals are developed)
  1. Ensure financial stability to avoid tax increases.
  2. Evaluate the effects of the economy and change in demographics on County revenues and expenditures.
  3. Ensure compliance with financial policies and maintain bond ratings.
  4. Include a budget for contingencies in the General Fund and carry over year-end remaining funds each year.
  5. Contribute to a revenue stabilization (rainy day fund) fund annually, when feasible. (See Revenue Stabilization Policy)
4. The following items will occur in conjunction with the budget preparation and adoption
  process unless it is determined otherwise, in which case the Board of Supervisors’ approval is required:
  1. Ordinance changes involving fee/rate changes.
  2. New positions or changes to existing positions.
  3. Requests for bond referendums for which the results of the referendum will occur prior to the appropriation of bond proceeds and expenditures.
  4. Reassessment of strategic goals and objectives.
Operating Budget Preparation
(Note: Due dates apply unless otherwise stated by the approved budget schedule for that budget year)
1. The Director of Finance, in conjunction with the County Administrator, will develop a budget schedule identifying important dates to present to the Board of Supervisors for approval during the month of October.
2. Budget objectives and directives, as communicated by the Board of Supervisors will be communicated to all departments and agencies no later than the first week in December.
3. Outside agencies will receive their directives no later than November 15 with requests due to King George County Department of Finance no later than December 15. (This includes Regional Jail, Juvenile Detention Center, Court Services Unit, etc.)
4. All departments, excluding the School Board, will submit their requested budgets to the Finance Department by the first week of January or according to the budget schedule. Note: Budgets should include operating costs resulting in capital improvements or projects that will affect that fiscal year’s budget. (This includes the Library and Social Services)
5. Departments are to submit their strategic goals, objectives and performance measures to Department of Finance by January 15.
6. Finance develops revenue estimates to be submitted to the County Administrator by January 31. (Should include estimated grants received by County and School Board)
7. County Administrator reviews revenues and presents revenue estimates to the Board of Supervisors the first week in February.
8. The School Board shall submit their requested budget to the County Administrator or Director of Finance no later than March 1. Schools’ budget is to be presented to the Board of Supervisors no later than first week in March.
9. Finance will review expenditure budget requests and submit to the County Administrator no later than the end of January.
10. The County Administrator will conduct budget hearings with Department Heads and Constitutional Officers, as deemed necessary, to review budget requests and formulate a recommendation to the Board of Supervisors.
11. Finance updates the multi-year financial model used for long-term financial planning before the budget is presented to the Board of Supervisors. This is included with the budget packet.
12. At a scheduled meeting of the Board of Supervisors no later than March 31, the County Administrator shall submit to the Board of Supervisors a proposed balanced budget, which includes proposed revenues and expenditures.
Budget Adoption
1. Once the County Administrator has presented the recommended budget to the Board of Supervisors, they will conduct work sessions as deemed necessary to develop a proposed budget for advertisement.
2. The Board of Supervisors will advertise the consolidated public hearing notices at least seven days prior to the public hearing date.
3. A consolidated public hearing on the budget, ordinance changes, and tax rates, shall be held to obtain citizen comments.
4. No earlier than one week following the public hearing, the Board of Supervisors shall adopt a balanced budget.
  Note: Schools budget must be adopted by May 1 every year.
5. The budget is legally enacted through passage of an appropriations resolution for all governmental and proprietary fund types which places legal restrictions on expenditures at the function level or category level. This occurs no later than June 30.
  Note: King George County Schools’ budget is legally adopted and appropriated by category. Not as a total.
Budgetary Controls
1. For all funds except School Funds, the level of control (level at which expenditures may not exceed budget) is at the function level as established by the Commonwealth of Virginia Auditor of Public Accounts.
2. For School Funds, the level of control is the activity level as established by the Commonwealth of Virginia Department of Education.
3. Although legal restrictions on expenditures are established at the function or activity level, effective administrative control over expenditures is maintained through the establishment of a more detailed line-item budget.
4. Included with the budget resolutions is approval for the re-appropriation of all encumbered balances and capital project unencumbered balances at fiscal year-end.
5. The Adopted Budget Document is forwarded to the GFOA within 90 days of budget adoption to apply for the Distinguished Budget Award program.
6. The adopted budget is also placed on the County’s website.
Budget Amendments
1. The County Administrator is authorized to approve the transfer of up to $25,000 from or within any County operating budget, excluding School funds, with the following requiring approval of the Board of Supervisors:
  1. Transfer(s) for any one item, function or project that exceeds $25,000
  2. All transfers involving reserves
  3. All revenue transfers
  4. Any transfers between funds, regardless of amount
2. The County Administrator is authorized to approve transfers for Capital Projects between line items as long as it is within the same project in which funds were appropriate by the Board of Supervisors (regardless of amount). Transfers between capital projects must be approved by the Board of Supervisors, regardless of amount.
3. The School Superintendent is authorized to approve transfers within any School Category, with exception to the following requiring approval of the School Board and the Board of Supervisors:
  1. All transfers involving reserves or contingency
  2. All revenue transfers regardless of amount
  3. Transfers between categories, regardless of amount
4. Per the Code of Virginia, any additional appropriation which increases the total budget by more than $500,000 or 1% of the total budget is required to be advertised for a public hearing at least seven days prior to the Board of Supervisors approval.
5. All transfers requiring Board of Supervisors’ approval that have been initiated from the Schools, Library, or Social Services, must have the School Board, Library Board or Social Services Board, as applicable, approve the transfer prior to presentation to the Board of Supervisors.
6. If deficits appear to be forthcoming within a fiscal year, recommended spending reductions will be proposed by the County Administrator during the fiscal year in order to sufficiently offset the deficit. (This may include the Schools, Library, Social Services, Commissions, etc.)
Budgetary Accounting
1. Budgets are adopted on a basis consistent with GAAP for all governmental funds. All budget data in the Comprehensive Annual Financial Report represents the revised budget (adopted budget, re-appropriation and budget transfers)

Budget Policy & Procedures

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