Number
030712
Version
SUBSTITUTE 1
Reference
940843
Sponsor
THE CHAIR
Title
A substitute ordinance relating to budgeting and accounting procedures for grant projects and programs.
Sections
304-81-1-b am
304-81-2-a-1-a am
304-81-2-a-1-b am
304-81-2-b-1-d am
304-81-2-c-1 am
304-81-3-b-1 rc
304-81-4-b am
304-81-6-b am
304-81-7-d-2 am
304-81-7-d-3 rp
304-81-7-d-4 rn
304-81-9-a am
Analysis
This ordinance updates current code provisions relating to budgeting and accounting provisions to reflect changes in the city's financial management information system relating to grant projects and programs.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-81-1-b of the code is amended to read:
304-81. Grant Projects and Programs.
1. DEFINITIONS. b. "City share" means the difference between total grant costs and grantor eligible costs. "City share" may be required or nonrequired match. A [[nonrequired]] >>required<< match is [[grant]] >>project<< costs incurred but not eligible for reimbursement [[or]] >>and<< required by grantor agreement for matching purposes.
Part 2. Section 304-81-2-a-1-a and a-1-b of the code is amended to read:
2. ANNUAL CITY BUDGET.
a. Central Grant Parent Accounts. a-1-a. Grant fund parent account (operating grants): Grantor share; [[City share in-kind or local noncity share;]] City share out-of-pocket.
a-1-b. Capital improvement fund parent account (capital grants): Grantor share; City share required or nonrequired match borrowing/cash [[:[City share in-kind]].
Part 3. Section 304-81-2-b-1-d of the code is amended to read:
b. Budget Submitted and Review.
b-1. Operating Grants.
b-1-d. The city comptroller shall review the BMD-28 [[and BMD-2]] forms or their successors for reasonableness and submit a communication to the department of administration, indicating concurrence or disagreement with the requests, including necessary revenue estimates.
Part 4. Section 304-81-2-c-1 of the code is amended to read:
c. Departmental Operating Budgets.
c-1. Positions authority shall be included with funds, on a line by line basis, for grant-related positions other than "in-kind", which are required by existing grant agreements or contracts. An amount equal to the sum of the salaries for all grant positions included in each [[budgetary control unit or decision unit]] >>organization<< shall be entered as an offsetting deduction on the line [["less grants"]] >>"grants and aids" deduction<<. Such positions shall be identified in the budget under an appropriate caption identifying the grant project. Definite termination date notations for each position, to coincide with or approximate the period of the grant, shall also be included in the budget and companion positions ordinance. This subdivision applies to those grant-related positions which were not in existence prior to the receipt of the original grant nor are expected to continue after the grant project is completed.
Part 5. Section 304-81-3-b-1 of the code is repealed and recreated to read:
3. INDIVIDUAL GRANT BUDGET.
b. Operating Grants.
b-1. Budgets shall be itemized into the following cost categories in accordance with the city expenditure accounts:
b-1-a. Personnel-direct labor (0060xxxx) and labor related (0060xxxx).
b-1-b. Fringe benefits (00618xxx).
b-1-c. Operating expenditures (0063xxxx).
b-1-d. Equipment (00680xxx through 00689xxx).
b-1-e. Indirect costs on applicable direct costs as defined by the city comptroller.
Part 6. Section 304-81-4-b of the code is amended to read:
4. FUNDING INDIVIDUAL GRANT.
b. Common council resolutions for grants shall be required prior to application [[,]] >>and<< acceptance [[or]] >>of<< funding. No department may apply for or accept grant funds without the prior approval of the appropriate resolution by the common council.
Part 7. Section 304-81-6-b of the code is amended to read:
6. EXPENDITURE OF GRANT FUNDS AND GRANT FINANCIAL REPORTING.
b. Expenditures shall be charged directly to the grant accounts and shall be coded to the city's [[object]] >>expenditure<< code for expenditures as maintained by the city comptroller. The accounts established by the city comptroller shall be the official financial records for grants. The city comptroller shall review and approve specialized transaction coding to meet individual grant accounting and reporting requirements. Any variance from these procedures shall be approved by the city comptroller.
Part 8. Section 304-81-7-d-2 of the code is amended to read:
7. BUDGET MODIFICATIONS AND COSTS OVERRUNS AND DISALLOWED COSTS.
d-2. [[Except for major bridge and street improvements, if]] >>If <<expenditures charged to a [[grant for in -kind match]]>>major street and bridge improvement grant<< exceed the amount authorized by 10% of the total cost or $5,000, whichever is greater, the administering city department shall request additional authorization from the budget and management division in accordance with
s. 18-10-6, city charter. The city comptroller is authorized and directed to make the approved transfers.
Part 9. Section 304-81-7-d-3 of the code is repealed: (Note: The provisions being repealed read as follows:)
d-3. If expenditures charged to a major street and bridge improvement grant exceed the amount authorized for city shall be 10% of the total costs or $5,000, whichever is greater, the administering city department shall request additional authorization from the budget and management division in accordance with s. 18-10-6 of the city charter. The city comptroller is authorized and directed to make the approved transfers.
Part 10. Section 304-81-7-d-4 of the code is renumbered 304-81-7-d-3.
Part 11. Section 304-81-9-a of the code is amended to read:
9. GENERAL POLICY STATEMENTS.
a. Indirect costs shall be included as a grantor participating costs when permissible under the grant regulations. [[If not eligible, they shall be included as city share - in-kind.]] The decision to exclude indirect costs from grant or participating costs shall rest with the common council.
LRB
APPROVED AS TO FORM
________________________
Legislative Reference Bureau
Date:______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
_____________________________
Office of the City Attorney
Date:________________________
Requestor
Drafter
LRB03412-2
TWM/cac
9/11/2003