Chapter 3.04
FISCAL, BUDGET AND AUDIT PROCEDURES

Sections:

3.04.010    Fiscal year--Annual budget and capital program--Adoption procedure.

3.04.020    Appropriations--Expenditure restrictions--Transfer of funds.

3.04.030    Annual budget--Appropriations--Ordinance required when.

3.04.040    Annual audit--Procedure.

3.04.050    Interest earned on investments.

3.04.060    Writing off bad debt--Procedures.

3.04.010 Fiscal year--Annual budget and capital program--Adoption procedure.

The borough fiscal year shall commence the first day of July and end the thirtieth day of June.  The borough manager shall prepare and recommend to the assembly an annual budget and capital program, which will be prepared and submitted on or before the third Wednesday of March annually for the next fiscal year; it shall be accompanied by an explanatory message.  The budget and capital program shall cover and appropriate for all expenditures of money including contracts and other commitments except the bond fund project.

The budget shall be adopted not earlier than seven days following its submission and after three days’ notice to the public of its submission. Such notice to the public shall be given by posting a notice of the time and place of the assembly meeting at which the budget is to be considered, which notice shall be posted at the borough seat.

At such budget meeting department heads and such other officials as may be interested shall appear and be free to criticize the budget or any of its items. (Ord. 9 §1, 1965: Ord. 2 §7(a), 1963).

3.04.020 Appropriations--Expenditure restrictions--Transfer of funds.

A.    No officer, department or board shall, without assembly approval during any budget year, expend or contract to expend any money or incur any liability in excess of the amounts appropriated for that general classification of expenditure by the current budget. All general fund, enterprise fund, special revenue fund, and internal service fund operating budget appropriations lapse at the end of the budget year to the extent that they have not been expended or lawfully encumbered. Unencumbered appropriation balances may be transferred within a department by the borough manager at any time.

B.    At the request of the borough manager, or on its own prerogative, the assembly may transfer unencumbered fund balances from one fund to another.

C.    Capital project fund and land sales trust fund appropriations do not lapse at the end of the budget year. (Ord. 94-6 §1, 1994: Ord. 91-8 §1, 1991: Ord. 2 §7(b), 1963).

3.04.030 Annual budget--Appropriations--Ordinance required when.

After the public hearing mentioned in Section 3.04.010, the assembly may adopt, with or without amendment, the annual budget as proposed by the manager. The assembly may make supplemental or emergency appropriations, but appropriations may only be made by ordinance. No payment may be authorized or made and no obligation incurred against the borough except in accordance with appropriations duly made. Nothing contained herein, however, is intended to prevent the authorizing of payment or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds; nor is it intended to prevent the making, when permitted by law, of any contract or any lease providing for the payment of funds at a time beyond the end of the fiscal year in which the contract lease is made. But any contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by ordinance. (Ord. 76-18 §5, 1975: Ord. 2 §7(c), 1963).

3.04.040 Annual audit--Procedure.

Prior to the end of each fiscal year, the assembly shall designate a certified public accountant or accountants who, as of the end of the fiscal year, shall make an independent audit of the accounts and other evidences of financial transactions of the borough and every borough department.

The audit so made shall be submitted to the assembly and to the borough manager.  The audit shall be made by an accountant, designated by the assembly, who has no personal interest, direct or indirect, in the fiscal affairs of the borough or any of its departments.  (Ord. 2 §7(d), 1963).

3.04.050 Interest earned on investments.

All investment income produced by the investment of the central treasury of the borough shall be deposited in the general fund.  (Ord. 98-3 §3, 1998).

3.04.060 Writing off bad debt--Procedures.

A.  The treasurer is authorized with manager approval to write off from time to time without assembly approval charges to accounts which are a result of a borough clerical error and outstanding accounts receivable which are less than or equal to five thousand dollars and which have been determined to be uncollectible.  This shall include unpaid and outstanding delinquent personal property tax, delinquent transient tax, delinquent raw fish tax as well as delinquent, uncollectible checks.

B.  The treasurer is authorized to write off any delinquent accounts that are being sent to collection.  A list of these accounts will be presented to the assembly on a monthly basis.

C.  When write-offs exceed five thousand dollars the treasurer shall recommend to the assembly the appropriate course of action for resolution on the delinquency.

D.  The treasurer shall provide the assembly, on a monthly basis, a list of all unpaid and outstanding checks or receivables which were written off during the month.  (Ord. 2006-08 §1, 2006).