Quarterly Management & Expenditure Report FY 2014 First Quarter November 12, 2013 Page 2. Current Situation is as follows:

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2 Quarterly Management & Expenditure Report FY 2014 First Quarter November 12, 2013 Page 2 II. Current Situation is as follows: A. Updates from Adopted FY 2014 Budget As noted in the first quarter revenue report, projected revenues remain steady with the adopted budget projections. B. Position Transfers In September 2013 the County Executive authorized the transfer of two employees from Parks to Information Technology (DoIT). The two employees are located at Hellwig and continue to provide fulltime support for the Parks technological infrastructure. C. First Quarter General Fund Expenditures As of September 30, 2013, agencies have expended 25% of the FY 14 general fund expenditure appropriation. Attachment A provides the first quarter detail for general fund agency expenditure budgets. Accounts are maintained on the modified accrual basis of accounting for governmental, expendable trust and agency funds. Items of particular interest are noted below. 1. Operating Budgets Agencies function within the adopted annual appropriation. Encumbrances for routine operational expenses are generally set up in the first quarter. Personnel and fringe benefit costs are distributed fairly consistently throughout the year through the bi-weekly payroll; however, agency variances can occur due to vacant positions. Internal services such as information technology are billed on an allocated cost recovery basis and cannot be spent or reallocated independently by agencies. 2. Annual Technology Billing - Information technology costs are billed to agencies annually. FY 14 IT costs will be billed during the second quarter. 3. Agency Revenues Some agencies have revenue sources other than the general fund. Department heads monitor revenues carefully throughout the course of the year; if non-general fund revenues are less than budgeted planned expenditures will be reduced to ensure that the agency does not exceed the actual revenues.

3 Quarterly Management & Expenditure Report FY 2014 First Quarter November 12, 2013 Page 3 4. General Fund Agency Variances All agency budgets show a positive variance in internal services due to the timing of the information technology annual billing. Some general fund agencies also have restricted subfunds which are included in the totals below. Notable variances as reported in the % of Budget column in Attachment A are described below. Magistrates The local salary supplement is paid in full at the beginning of the fiscal year. Transportation First quarter expenses from capital projects will be cost recovered from the actual project budgets. Parks & Recreation Financial reporting is being migrated from the Parks financial system to the County system and should be completed by December 31, Salaries for park staff are included in the first quarter total; all other expenditures will be booked as journal entries prior to the end of the fiscal year. Area Agency on Aging The annual payment to Birmingham Green was made in the first quarter. Public Health The general fund transfer to Public Health generally occurs in the third quarter. At Risk Youth & Family Services A prior year credit in provider services created the favorable variance. Board of Equalization Members of the BOE are paid on a per diem basis. Registrar Expenses (other than salary and benefits) will begin to be recorded once the November elections are completed. Non-Departmental Approximately 60% of the County s Non- Departmental budget was spent during the first quarter. The largest expenditure during the first quarter was $25.2 million from the County s general debt budget (nearly 58% of the total debt budget). Debt service payments are generally made in July (first quarter) and January (third quarter) of each fiscal year. In addition to debt service, the following, annual payments are made during the first quarter of each fiscal year from the Non-Departmental budget: o Self-Insurance Workers Compensation ($4.0 million) o Self-Insurance Casualty Pool ($1.0 million) o Property and miscellaneous insurance premiums ($0.5 million)

4 Quarterly Management & Expenditure Report FY 2014 First Quarter November 12, 2013 Page 4 D. Status of FY 14 New Position Hires as of November 1, 2013 Total FY 14 Positions Added 75 New Public Safety Positions 56 Total New Positions Filled Through Q1 57, or 76% New Public Safety Positions Filled Q1 46, or 82% E. Local Effects of the Federal Government Shutdown The federal government failed to appropriate new funding prior to the start of the October 1 federal fiscal year. The ensuing shutdown affected only one program in the County s Department of Social Services, employment for SNAP recipients. F. Continuing Resolution Extends Federal FY 13 Budget Authority to January 15, 2014 Congress has authorized federal spending at the FY 13 sequestered amounts until January 15. Congress will need to take action by that date for programs funded through current appropriations. 1. Federal Programs Funded Through 12/31/2013 The Office of Housing and Community Development is funded through a separate HUD appropriation which expires at calendar year end. Staff continues to monitor the situation. III. Recommendation: This report is provided for information purposes only no action is needed at this time. Staff Contact: Michelle A. Casciato x5539 Attachment: FY 14 Q1 General Fund Expenditures by Department

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