FY2021 Adopted Budget

FY2021 Adopted Budget Budget and Finance Policy Finance Policy

The County uses fund accounting to ensure budgetary compliance. A fund is a grouping of related accounts that is used to maintain control over resources that have been separated for specific activities or objectives. All of the funds of the County can be divided into four categories: Governmental Funds, Enterprise Funds, Internal Service Funds and Fiduciary Funds. Governmental Funds : These funds account for the near-term inflows and outflows of spendable resources. Governmental Major Funds are presented on a sources and uses of liquid resources basis. This is the manner in which the budget is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds are established for various purposes and the fund financial statements allow for the demonstration of sources and uses and/or budgeting compliance. The largest is the General Fund ZKLFK LV FRPPRQO\ UHIHUUHG WR DV WKH ³ Operating Budget ´ 7KH Capital Fund is commonly referred t R DV WKH ³ Capital Budget ´ DQG LV WKH ILUVW \HDU RI WKH six-year CIP . Frederick County adopts an annual appropriated budget for all of these Governmental Funds including the Special Revenue Funds . Enterprise Funds : These funds are used to report functions as business-type activities in the Government- Wide Financial Statements. Frederick County has four individual enterprise funds: the Water and Sewer Fund, the Solid Waste Management Fund, the Bell Court Apartments Fund and the Comprehensive Care Facilities Fund. Internal Service Funds : These are accounting devices used to accumulate and allocate costs internally DPRQJ )UHGHULFN &RXQW\¶V YDULRXV IXQFWLRQV DQG DFWLYLWLHV )UHGHULFN &RXQW\ XVHV LQWHUQDO VHUYLFH IXQGV WR acc RXQW IRU ZRUNHU¶V FRPSHQVDWLRQ IOHHW VHUYLFHV DQG YRLFH VHUYLFHV RSHUDWLRQV Budgets are presented for informational purposes only and are not adopted by the County Council. Fiduciary Funds : Fiduciary funds are used to budget for resources held for the benefit of parties outside the JRYHUQPHQW 7KH &RXQW\¶V ILGXFLDU\ IXQGV LQFOXGH WKH 3HQVLRQ 7UXVW )XQG the Other Post Employment Benefit Fund (OPEB) and the Length of Service Award Program Trust Fund (LOSAP). Budgets are presented for informational purposes only and are not adopted by the County Council. Finance and Budget Policy Formal budgetary integration with the accounting general ledger, project accounting and procurement system is employed as a management control device for all funds for which a budget is legally adopted, namely, the General Fund, Special Revenue Funds (exce SW 6KHULII¶V -XGLFLDO $FWLYLWLHV 1RQ -Profit Organization Loans, Fire/Rescue Loans and Watershed Protection and Restoration), Enterprise Funds and Capital Projects Fund. Budgets that are maintained for management control but are not legally adopted include: the Debt Service Fund, Fiduciary Funds, and Internal Service Funds. During the fiscal year the Executive may transfer unencumbered appropriations in the Operating Budget within the same Division, Agency, or Office and within the same fund. On the recommendation of the Executive, the Council may transfer unencumbered appropriations in the Operating Budget between Divisions, Agencies and Offices within the same fund. A transfer may not be made between the Operating Budget and Capital Budget appropriations. On the recommendation of the Executive, the Council may transfer appropriations between Capital Projects within the same fund provided the Council neither creates nor abandons any Capital Projects except in accordance with Section 512 of the County Charter.

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