[HISTORY: Adopted by the Town Council of the Town of Smithfield 1-27-1976
(Ch. 2, Art. III, Div. 2, of the 1985 Code of Ordinances). Amendments noted
where applicable.]
GENERAL REFERENCES
Purchasing policy — See Ch. 81.
The following terms, when used in this chapter, shall have the meanings
ascribed to them in this section, except where the context clearly indicates
a different meaning:
Refers to the numerical code assigned to each element of Town government
to identify that element's approved portion of the total budget, as well as
to indicate the general accounting category for expenditures charges during
the fiscal year.
Refers to the numerical code assigned to each subcategory of each
budget account to identify categorically the budget amount applicable to that
subaccount, as well as to indicate the general accounting subcategory for
expenditures charges during the fiscal year.
This chapter is adopted for the purpose of establishing a financial
management system for the documentation and control of the approved Town budgets
on an account and subaccount basis.
A.
The Town Treasurer is authorized to execute the responsibilities
assigned and to promulgate procedures deemed necessary to implement the provisions
and intent of this chapter.
B.
The Town Council reserves the authority to render decisions
on any and all matters included in, or related to, this chapter and its implementation.
Such decisions shall be final and binding on all parties involved, unless
subsequently found to be in violation of the Council's delegated authority,
or unless subsequently changed by the Council.
A.
Town department heads, office supervisors and all other
persons responsible for the preparation and execution of any portion of the
annual budget of the Town shall be responsible for:
(1)
Submitting annual budget requests which project the needs
of the submitting element for the fiscal year, by account and subaccount categories,
as accurately as possible;
(2)
Executing their approved portions of the budget in such
a manner that overexpenditure of any subaccount is precluded;
(3)
Obtaining approval of the Town Council to transfer funds
from one subaccount to another prior to any subaccount being over expended;
in this respect no expenditures shall be committed against any subaccount
if such commitment would result in overexpenditure of that subaccount. Transfer
of funds from one subaccount to another, or from one account to another, or
any combination thereof, shall in all cases be with the prior approval of
the Town Council only; disapproval of such a request shall be binding on the
status of any and all subaccounts involved; and
(4)
Insuring that expenditures made from, or commitments
made against, any subaccount are appropriate to the category of the subaccount
cited in the transaction.
B.
The Town Treasurer shall be responsible for:
(1)
Establishing a budget accounting system in such a manner
as to identify every budget account by subaccount category and reflecting
the amount of funds allocated to each subaccount at the start of each fiscal
year. Such subaccount categories shall be defined, and the amount of funds
authorized for each, by the Town Council prior to the start of any fiscal
year;
(2)
Maintaining continuing records of expenditures from each
subaccount, for each account, in such a manner as to reflect an accurate balance
in each subaccount on a monthly basis;
(3)
Informing the Town Council, in writing, by the 10th day
of each month, of any and all subaccounts, by account identification as well,
which have been overexpended, or, in the Treasurer's judgment may be overexpended
before the end of the fiscal year if not carefully administered. In addition,
the Treasurer shall inform the person responsible for the accounts involved
of the situation and of the report being rendered to the Town Council, prior
to the report being submitted;
(4)
Transferring funds from one account to another, from
one subaccount to another or any combination thereof, only by prior approval,
in writing, from the Town Council; and
(5)
Reviewing each expenditure document submitted for assurance
that the purpose of the expenditure is in consonance with the subaccount category
against which the expenditure has been recommended by the submittor. In those
cases where the expenditures and the recommended subaccount under which the
expenditure has been identified are not considered compatible, the Treasurer
shall attempt to resolve the issue with the submitting element; if resolution
cannot be made, the matter shall be referred by the Treasurer to the Town
Council for decision, with the submittor so prior informed.
C.
The Town Council shall be responsible for:
(1)
Providing the Town Treasurer with the account and subaccount
categories, with authorized budget amounts applicable to each, prior to the
start of any fiscal year;
(2)
Receiving reports from the Town Treasurer, by the 10th
of each month, on the overexpenditure or potential overexpenditure of subaccounts,
and taking appropriate action thereon;
(3)
Making decisions on requests for transfer of funds from
one account to another, from one subaccount to another or any combination
thereof; such decisions shall be documented in writing; and
(4)
Making decisions on any matters brought to its attention
by the Treasurer in regard to any unresolved subaccount classification issues,
or any other matter dealing with this chapter requiring decision.
