Ordinance No. 35-92-7 v ORDINANCE NO. 35-92-7
AN ORDINANCE AMENDING SEC. 2-315 OF THE ATLANTIC BEACH
CODE, ESTABLISHING AN ENCUMBRANCE SYSTEM, AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, Sec. 2-315 of the Atlantic Beach Code provides that
"All appropriations shall lapse at the end of the budget year to
the extent that they shall not have been expended, " and
WHEREAS, the City Commission desires to establish an
encumbrance system in regard to appropriations.
NOW THEREFORE, be it ordained by the City Commission of the
City of Atlantic Beach, Florida:
SECTION 1. Sec. 2-315 of the Code of Ordinances of the City
of Atlantic Beach, Florida, is hereby amended to read as follows:
"Sec. 2-315 Encumbrances.
(a) An appropriation shall be obligated for
expenses properly chargeable against it as soon as the
expense, or the liability therefor, is incurred. The
Director of Finance shall establish an encumbrance system
• where appropriate, as required by the National Committee
on Governmental Accounting, that will accomplish this
obligation and shall prescribe methods of documentation
so that an adequate audit trail is available as to the
placing, modification and satisfaction or release of
encumbrances. Once encumbered, appropriated funds shall
be considered obligated and unavailable for expenditures
(except to satisfy the encumbrance) , transfer or reappro-
priation, and obligated balances of appropriations
remaining undisbursed at the close of the fiscal year
shall be treated as provided in subsection (b) . An
encumbrance may be modified either to increase or
decrease the amount of funds encumbered by it, but no
increase in an encumbrance shall be larger than the
amount of unobligated funds then remaining in the
appropriation account. An encumbrance may be released,
in whole or in part, to the extent that the funds so
released are not needed to pay the expense for which they
were encumbered, and the funds thus released shall become
unobligated funds in the appropriation account, except
funds released from an encumbrance which is carried over
from a prior fiscal year, which shall be treated as
provided in subsection (b) .
(b) The encumbered balance of an appropriation
account at the end of the fiscal year shall be carried
over to and become a part of the appropriation account
for the ensuing fiscal year, provided that the encum-
brances outstanding at year end represent the estimated
amount of the expenditures ultimately to result if
unperformed obligations in process at year end are
completed. The carryover of an encumbered balance shall
not release or discharge the encumbrances, but it shall
be subject to the provisions of subsection (a) in the
ensuing fiscal year, provided that funds released from an
encumbrance which carried over shall become unappro-
priated funds in the beginning fund balance for the
ensuing fiscal year. Encumbered balances carried over to
the ensuing fiscal year shall not be reported as expendi-
tures for the previous fiscal year, but as reservations
of fund balance for subsequent fiscal year expenditures. "
Section 2 . This Ordinance shall take effect immediately upon
its final passage and adoption.
PASSED by the City Commission on first reading this 28th day
of September , 1992 .
PASSED by the City Commission on seco - . . inal reading this
12th day of October , 1992 .
ATTEST:
.)-2/C2 9(":„„2, 1 AL A I d
MAUREEN KING I' _'GUL " O' ' R.
City Clerk Mayor, Presiding Oi
Approved as to form and correctness:
9rAN C. JE " , ESQUIRE
City Atto' ► -y