Loading...
HomeMy WebLinkAboutCOM 0082.001 2010-2012BRENDA J. FORD Council Member District 7 - Central Kona Phone: (808) 323 -4277 Fax: (808)329-4786 E -Mail: bford @co.hawaii.hi.us HAWAII COUNTY COUNCIL County of Hawaii West Hawaii Civic Center 74 -5044 Ane Keohokalole Hwy. Kailua -Kona, Hawaii 96740 DATE: March 1, 2011 TO: FROM: SUBJECT Dominic Yagong, Chairperson and Members of the Hawaii County Council Brenda J. Ford, Council Member �`'��� jfZ Proposed Amendments to Bill No. 26, Relating to Fund Balance Below are proposed amendments to Bill No. 26. The proposed amendments are illustrated below in Ramseyer format with respect to the contents of Bill No. 26 (material to be deleted is bracketed and stricken through; material to be added in underlined.): The Purpose section of Bill No. 26 is amended to read: 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 [ ] fund [balanees] balance Provision of the [wed] 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. 2. Section 2 -12._, subsection (a), of Bill No. 26 is amended to read: "(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." Comm. No. 92.1 Serving the Interests of the People of Our Island Ref. To: lentee# Ci Hawaii County is an Equal Opportunity Provider and Employer R 0 2 2011 Ref. D e 3. Section 2 -12._, subsection (c), of Bill No. 26 is amended to read: "(c) The director of finance shall provide the [ „n.,,,dite , unassigne bud eg tart/ fund balance and the fund balance designated for a future year, as separate line items, in a written report to the council no later than October 15 for the preceding fiscal 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." 4. Section 2 -12._, subsection (d), of Bill No. 26 is amended to read: "(d) The director of finance shall provide the Comprehensive Annual Financial Report (CAFR) containing the audited[ ed ] fund balance to the council no later than December 31 for the preceding fiscal 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." A draft copy of Bill No. 26, Draft 2, is attached with the proposed amendments incorporated therein. BJF /dkr att. 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 fund balance. Provision of the 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. "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. (b) 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 budgetary fund balance and the fund balance designated for a future year, as separate line items, in a written report to the council no later than October 15 for the preceding fiscal 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 fund balance to the council no later than December 31 for the preceding i�year. This report shall be presented to the Serving the Interests of the People of Our Island Hawai `i County is an Equal Opportunity Provider and Employer 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. U 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.