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1�& I f, <br />h TO: Mayor & Council <br />FROD1: finance Dirac tor. -`treasurer 01•ager <br />DATE: December 15, 1983 <br />RE: BUDGET TRANSFERS <br />Recently authorizations were given to the Chief of Police and the <br />Clerk -Administrator for expenditures which were not included in their <br />respective 1983 budgets. It was my understanding that your author- <br />izations specified that these items be charged to their 1983 budgets. <br />Charging those items to the 1983 budget may cause a conflict with the <br />generally accepted accounting principles which the State of Minnesota <br />has mandated municipalities follow. Those principles specify that in <br />order for an expenditure to be considered an expense of the current <br />accounting period (in this case 1983) goods or services purchased <br />must either be received or provided prior to the end of the account- <br />ing period (December 31, 1983). The date that the goods and services <br />are ordered is not a criteria in determining whether the expenditure <br />is an expense of the current accounting period. Nor is the date that <br />they are paid for. The problem is that the Clerk -Administrator's <br />drapes, the Police Chief's blinds, Police Department uniform patches, <br />police badget, and Police Department office redecorating will either <br />not be received or the work will not be completed prior to December 31, <br />1983. Thus, those expenditures can not be considered expenses of 1983. <br />Instead they would be considered 1984 expenses. Since these items were <br />not included in the 1984 budget the Clerk -Administrator and the Chief <br />of Police do not want them charged to that budget. <br />A solution to this problem would be to ammend the 1983 budget downward <br />and to ammend the 1984 budget upward for those items by resolution. <br />These items are: <br />Police Department <br />- venetian blinds $ 350.00 <br />- uniform patches 460.00 <br />- badges 135.00 <br />- investigator's office 600.00 <br />Total $1,545.00 <br />Administration <br />- draperies $ 350.00 <br />RECOMMENDATION: Council instruct staff to prepare a resolution <br />ammending the 1983 & 1984 budgets for these items <br />for consideration at the next Council meeting. <br />DB/ds <br />