1. Budget Training FY2016-17

2. 2017 Budget Training Annual Budget Preparation Process Budget Goals The goal of this budgeting standard operating procedure (SOP) is to acquaint new employees and further inform veteran employees of the City of San Angelo of the implementation and management of a department budget.standard operating procedure

3. 2017 Budget Training Annual Budget Preparation Process Further, the Budget Division has set the following goals as a philosophy in budgeting: Spend within our means; Establish and maintain reserves; Budget costs with all due transparency; and, Incorporate Council’s top priorities into the budget.

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5. Annual Budget Preparation Process Step 1: Budget Manual The Budget Division prepares a budget manual annually to distribute to directors and managers.budget manual The manual includes specific deadlines as a tool to complete the budget process. The packet is distributed to directors and managers in March.

6. 2017 Budget Training Annual Budget Preparation Process Step 2: Kickoff and Training Directors and managers attend budget kickoff which presents key economic data, local trends, and any changes in the budget preparation process.budget kickoff In addition, budget staff hosts annual training classes to educate new staff on the budget process in March-April.

7. 2017 Budget Training Annual Budget Preparation Process Step 3: Revenue Estimates The budget division distributes revenue instructions to divisions on April 1. The deadline for revenue submission is April 13.revenue instructions The packet’s instructions and previous fiscal year data aid divisions in calculating their revenue estimates for the new fiscal year.

8. 2017 Budget Training Annual Budget Preparation Process Step 3: Revenue Estimates, continued Revenue projections are based on trend analysis, economic forecasting and changes in regulations for the new fiscal year. Step-by-step instructions on how to key in the budget are available on the extranet for both HTE and Naviline. Remember to F7 Update.HTENaviline

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11. Annual Budget Preparation Process Step 4: Compensation Plan The Human Resources and budget divisions prepare a compensation plan for the new budget year on April 18. Depending on the economic condition, raises may be calculated by the budget division.

12. 2017 Budget Training Annual Budget Preparation Process Step 4: Compensation Plan, continued Budget and Human Resources staff will budget your full-time salaries including benefits (group insurance, FICA, retirement, and workers compensation). It is each director’s/manager’s responsibility to budget other payroll*

13. 2017 Budget Training Annual Budget Preparation Process Step 5: Meeting Your Expenditure Target You must balance your expenditure accounts to the target set for your department. Since full-time salaries will be budgeted in HTE for you, you will only review the payroll budgets.

14. 2017 Budget Training Annual Budget Preparation Process Step 5: Meeting Your Expenditure Target, continued You will receive the expense budget information via email and interoffice mail. All data entry and budget book forms are due May 6.expense budget information Step-by-step instructions on how to key in the budget are available on the extranet for both HTE and Naviline. Remember to F7 Update.HTENaviline

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16. Annual Budget Preparation Process Step 6: Target Increase Requests As your division’s services change, you may encounter a need to increase funds for operations (target increase) or request additional personnel.target increasepersonnel Personnel requests are due April 13, while target increase requests are due May 6. Council priorities will be addressed first, others will be considered as funding is available. Council priorities

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19. Annual Budget Preparation Process Step 7: Completing Budget Book Sheets Along with your expenditure target packet, Budget will provide budget book sheets for you to complete. Budget Book sheets communicate your department’s core functions and services to San Angelo. Budget book sheets are due May 6 along with your balanced budget with justified expenditures.

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22. Annual Budget Preparation Process Budget interview Scheduled for Friday, May 6 th Quick 15 minute meeting Go through checklist Submit documents

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25. Annual Budget Preparation Process Step 8: Presenting Your Department’s Budget City manager reviews are scheduled May 16-27. Finance analysis meetings are scheduled June 13-17 to discuss your budget. You should be prepared to present your justifications for revenue, expenditures, target increase requests, and any other financial issues.

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27. Annual Budget Preparation Process Step 9: Council Budget Discussions Council budget discussions begin in June and will continue at each Council meeting until September. Budget staff will prepare background memos and presentations, but staff may contact directors for additional information.

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31. Budget Management Internal Budget Amendment An internal budget amendment can be submitted when the sum of your total request is $0 or less.internal budget amendment Please only use the budget amendment form located on the extranet.

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33. Budget Management Internal Budget Amendment Budget Amendment Approval Levels: Within a division – Finance Director Among like divisions – Finance Director Between divisions – City Manager’s Office

34. 2017 Budget Training Budget Management Internal Budget Amendment Budget Amendment Approval Levels, continued: Utility accounts – City Manager’s Office Salary accounts – City Manager’s Office Reducing expenses only – City Manager’s Office Reducing both revenue and expenditures by the same amount – City Manager’s Office

35. 2017 Budget Training Budget Management Budget Amendment Memo If your department has a need for increased funds, you may submit a Budget Amendment Memo.Budget Amendment Memo While Internal Budget Amendments equal zero and are merely a transfer of funds within your Department, Budget Amendment Memos are used to increase your budget or transfer money between funds.

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38. Budget Management Budget Amendment Memo Budget Amendment Approval Levels: Reducing revenue only – City Council Between funds – City Council Increasing expense or revenue – City Council

39. 2017 Budget Training Budget Management Budget Carryovers A budget carryover is a budgeting function that provides for the carrying over of budgeted expense, and sometimes revenue, from one fiscal year to the next for grants or special projects where the activity is not completed in one fiscal year. The Budget Manager will e-mail all departments in October with specific instructions to request your carry-over.

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41. Budget Management Monthly Reports Your department has access to two types of monthly reports – a Blue Book and the Revenue & Expenditures Report (formerly known as the green bar).Blue BookRevenue & Expenditures Report Both are published in.pdf format on the extranet under Accounting.

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44. Budget Management Chart of Accounts Payroll Account Examples: 01-10 Full-Time Salaries 01-20 Part-time & Seasonal – for wages of part- time and/or seasonal employees 01-30 Overtime

45. 2017 Budget Training Budget Management Chart of Accounts, continued Benefit Account Examples: 02-10 Group Insurance 02-20 FICA 02-30 Retirement

46. 2017 Budget Training Budget Management Chart of Accounts, continued Professional & Technical Account Examples: 03-11 Indirect Costs – generally used by grant programs to show costs not directly accountable to a specific function 03-20 Professional Services – to pay architects, engineers, etc.

47. 2017 Budget Training Budget Management Chart of Accounts, continued Purchased Services Account Examples: 04-11 Water/Sewer Utilities 04-12 Natural Gas 04-13 Electricity 04-23 Custodial –custodial supplies and service

48. 2017 Budget Training Budget Management Chart of Accounts, continued Supply Account Examples: 06-10 Office Supplies 06-11 Forms –printed or custom ordered forms 06-12 Minor Apparatus & Tools 06-13 Uniforms

49. 2017 Budget Training Budget Management Chart of Accounts, continued Property Account Examples: 07-10 Land 07-20 Buildings 07-30 Improvements Not Bldg

50. Budget Training FY2016-17