FY2023 Adopted Operating and Capital Budget

FY2023 Adopted Budget Budget and Finance Policy Finance Policy

The County uses fund accounting to ensure budgetar y compliance . A fund is a groupin g of related accounts that is use d t o maintain control over resources that have been separated for specifi c activitie s or objectives. All o f the funds of the County can be divided int o four categories: Governmental Funds , Enterprise Funds , Internal Service Funds and Fiduciary Funds. Governmental Funds : These funds account for the near ter m inflow s and outflows of spendable resources. Governmental Majo r Funds are presented on a source s and uses of liquid resources basis . This i s the manner in which th e budget is typically developed. The flo w and availabilit y of liqui d resources i s a clear and appropriate focus of any analysis of a government . Funds are establishe d for various purposes an d the fun d 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 to as th H ³ Capital Budget ´ DQG LV WKH ILUVW \HDU RI WKH six year CIP . Frederic k County adopts an annual appropriate d budget for all of these Governmental Funds including the Special Revenue Funds . Enterprise Funds : These funds are used to report functions a s business type activities in the Government Wid e Financial Statements . Frederick County has four individual enterprise funds: th e Water and Sewe r Fund , the Solid Waste Management Fund , the Bell Court Apartments Fund and the Comprehensive Care Facilities Fund . Internal Service Funds : These are accountin g devices used t o accumulate and allocat e costs internall y DPRQJ )UHGHULFN &RXQW\¶V YDULRXV IXQFWLRQV DQG DFWLYLWLHV )UHGHULFN &RXQW\ XVHV LQWHUQDO VHUYLFH IXQGV WR DFFRXQW IRU ZRUNHU¶V FRPSHQVDWLRQ IOHHW VHU vices an d voice services operations . Budgets are presented for informational purposes only and ar e not adopted by the County Council . Fiduciary Funds : Fiduciary funds are used to budget fo r resources held for th e benefit of parties outsid e the JRYHUQPHQW 7KH &RXQW\¶V ILGXFLDU\ IXQGV LQFOXGH WKH 3HQVLRQ 7UXVW )XQG th e Other Post Employment Benefit Fund (OPEB) and the Length of Service Award Progra m Trust Fun d (LOSAP) . Budget s are presente d fo r informational purposes onl y an d are not adopted b y the County Council . Th e County also ha s several custodial funds for specia l purposes. The custodial fund s are not budgeted .

Finance and Budget Policy Formal budgetary integratio n wit h the accounting general ledger, project accounting and procurement syste m is employed as a management control device for all funds fo r which a budge t is legall y adopted , namely, the General Fund , Special Revenu e Funds (except: 6KHULII¶V -XGLFLDO $FWLYLWLHV 1RQ Profit Organization Loans , Fire/Rescue Loans and Watershe d Protection and Restoration) , Enterprise Funds an d Capital Project s Fund . Budgets that are maintained for management control but are not legally adopted include: Trust Funds and Interna l Service Funds.

Durin g the fisca l year the Executive may transfer unencumbered appropriations i n the Operating Budget within the sam e Division, Agency , or Office and within the same fund. On th e recommendation o f the Executive , the Council may transfe r unencumbere d appropriations i n th e Operating Budget betwee n Divisions , Agencies and Office s within the sam e fund . A transfe r may not be made between the Operating Budget and Capital Budget appropriations . On the recommendatio n of th e Executive , the Council may transfer appropriation s between Capital Projects withi n th e sam e fund provide d th e Council neithe r creates nor abandons any Capital Projects except i n accordance with Section 512 of the County Charter.

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