HomeMy WebLinkAboutBIL 026 Draft 01 2010-2012COUNTY OF HAWAII
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ORDINANCE NO.
STATE OF HAWAII
BILL NO. 2
AN ORDINANCE AMENDING CHAPTER 2 OF THE HAWAII COUNTY CODE 1983
(2005 EDITION, AS AMENDED) BY ADDING A NEW SECTION RELATING TO THE
FUND BALANCE.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Purpose. In accordance with Section 10 -10 of the Hawaii County
Charter, general appropriations shall lapse at the close of the fiscal year to the extent that the
same has not been expended or encumbered. In March 2009 the Governmental Accounting
Standards Board issued Statement 54, Fund balance Reporting and Governmental Fund Type
Definitions, which establishes definitions for the different types of fund balances and the
requirements of the government for reporting those balances beginning June 30, 2011. The
purpose of this ordinance is to establish a policy regarding the dates on which the department of
finance shall deliver information to the Council relating to the unaudited and audited, unassigned
fund balances. Provision of the unassigned fund balance on these dates allows the council the
time to evaluate, facilitate recommendations by suggestion, and potentially make policy
decisions regarding the annual budget.
SECTION 2. Chapter 2, article 4 of the Hawaii County Code 1983 (2005 Edition, as
amended) is amended by adding a new section to be appropriately designated and to read as
follows:
" Section 2 -12. Fund Balance.
(a) Definitions.
"Unassigned fund balance" means the residual classification for the general fund
and includes all amounts not contained in the other classifications such as non-
spendable, restricted, committed, and assigned fund balances. Unassigned amounts are
technically available for any purpose.
If a governmental fund has a fund balance deficit, then it shall be reported as a
negative amount in the unassigned classification in that fund. Positive unassigned
amounts will be reported only in the general fund.
(c) The director of finance shall provide the unaudited, unassigned fund balance in a
written report to the council no later than October 15 for the Preceding fiscal iscal year.
This report shall be presented to the committee designated to review financial
matters as soon as practicable after its receipt. In the absence of council
committees, the report shall be sent to the council in the same time frame.
The director of finance shall provide the Comprehensive Annual Financial Report
(CAFR) containing the audited, unassigned fund balance to the council no later
than December 31 for the preceding i�year. This report shall be presented to
the committee designated to hear financial matters, or in the absence of council
committees, the report shall be sent to the council as soon as practicable after its
receipt.
(e) If a report may be late, the director of finance shall submit a written
communication to the council with an explanation of the reason for being late
before the deadlines in (c) and (d) above. The communication shall be placed on
the agenda in the committee charged with financial issues or in the absence of
council committees, the communication shall be sent to the council as soon as
practicable.
SECTION 2. New material is underscored. In printing this ordinance, the underscoring
need not be included.
SECTION 3. Severability. If any provision of this ordinance or the application thereof
to any person or circumstance, is held invalid, such invalidity does not affect other provisions or
applications of the ordinance which can be given effect without the invalid provision or
application, and to this end, the provisions of this ordinance are declared to be severable.
SECTION 4. This ordinance shall take effect upon approval.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
, Hawai`i
Date of Introduction:
Date of 1 Reading:
Date of 2 nd Reading:
Effective Date:
REFERBgM Comm, 82 2