Reaching out to Municipalities that adopt their budgets by January 1. Who are you and what are you doing about projects in progress (carry forward values).
Hi Christine, we at the City of Abbotsford typically approve our bylaw mid-December, and always have an amendment in March/April to adjust the budget to include the capital (significant) and operating (minor) carryforwards. We always pass the amendment before our tax rate bylaw so we are able to use this version of the bylaw to produce our financial statements. Our capital carryforwards for the past few years have made it necessary to use that version so we are being transparent in those statements. Contact me at [email protected] if you want to chat.
Thanks Emily - I suspected it would be a two step bylaw process. Happy to hear if any other solutions out there.
We do the same as Abbotsford, adopt the financial plan by mid-December, then carry-forwards are handled as an amendment to the financial plan in the new year.
Kris Boland, Director of Finance, District of Mission
Burns Lake same: two step process. The April version contains yearend carryovers, updated amounts for collections/remittances other gov'ts and misc late changes that didn't make it into the December version. I have only been here since Oct 2017 and both our 2017 and 2018 budget cycles ran late so the original version didn't get adopted until Feb, but December is the target. A small finance dept doesn't have the human resources to be dealing with budget and year end at same time.
Susan Meeds, CPA, CGA
Director of Finance
Village of Burns Lake
When does everyone put the budget out for public viewing when adopting the budget in December? I quite like this approach, we are a small municipality as well it would really help having budgets out of the way to be able to concentrate on year end for sure.
Does everyone have this in their financial policy or do you have a separate budget policy? I'd really appreciate anyone sharing their policies as this is a project I have for this year to get in place.
We present to council and the public the second week of November in order to have time to pass the bylaw before the holiday in December. The only challenge with budgeting on this timeline (we have found) is that departments are at some of their busiest points when we are asking for budget inputs/requests (during June/July). It works, but there is definitely grumbling about it . We open budget for departments early June, and are presenting to senior leadership in late September the draft versions.
Thank you all for the feedback and to those that called to discuss with us directly. When you present financial statements then, are you using the December version for your statements as the "original"?
Are both bylaws sent to the Province? The original FP bylaw and the amendment? Also, why an amendment and not rescind the original and have a new FP bylaw with the additional information gathered in the new year. We are looking to get the ball rolling on an early FP....
The budget version that goes on the financial statements is the one that was used to set the tax rates. Therefore the most recent FP that was adopted prior to the annual tax rates bylaw.
Only the version that was used to set the Tax Rates goes to the Province.
The amending bylaw contains a repeal clause, repealing and replacing the original schedule attached to original bylaw.
In the past our auditors have told us that if we want to use the amended budget bylaw for our financial statements we need to add an additional note disclosure in the financial statements outlining the difference in the original bylaw and amended bylaw. We typically end up using the original bylaw even though it isn't as relevant in order to avoid the extra disclosure. Has anyone else encountered this?
PSAS 1201.130 states that "the statement of operations should present a comparison of the results for the accounting period with those originally planned". The results "originally planned" means the budget version associated with the setting of the tax rates. It is irrelevant whether or not it took two steps to get to the original plan. The original plan and the original bylaw are not necessarily the same thing. The Financial Plan adopted immediately prior to the Tax Rates bylaw constitutes the original plan.
We do include note disclosure of the date the budget bylaw was adopted. It goes in the same note that reconciles the statements to the budget. It won't let me attach an example but I can email you one.