REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  February  28, 2017
CATEGORY:  Consent - General Government-16.

SUBJECT:

Information Technology Budget Amendment to Increase Appropriations for Excess Working Capital Refund

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Thomas Schreiber, Chief Information Officer, (530) 245-6612

STAFF REPORT APPROVED BY:  

RECOMMENDATION

Approve a budget amendment increasing appropriations by $720,000 in the Information Technology Internal Service Fund budget to be offset by use of fund balance.

SUMMARY

A budget amendment is proposed to increase the Prior Period Revenue Adjustment budget in the Information Technology Internal Service Fund in order to complete a refund of excess working capital reserve as required by the State Controller’s Office.

DISCUSSION

The State Controller’s Office performed a Field Review of the FY 14/15 Countywide Cost Allocation Plan during February 2016.  A finding was reported the Information Technology Internal Service Fund needed to reduce their excess working capital reserve by $400,000 (approximately half of the total excess working capital reserve) by the end of FY 15/16.  This requirement was not achieved.  The finding further stated that if this reduction was not achieved, the entire amount of the remaining excess working capital (approximately $720,000 as of June 30, 2016) would need to be refunded to the departments who have paid for services.  This budget amendment adjusts the FY 16/17 budget to accommodate this SCO required refund.

ALTERNATIVES

The Board may decline to approve the proposed budget amendment.  Expenditures will be overstated.

OTHER AGENCY INVOLVEMENT

The Auditor-Controller’s Office has reviewed this recommendation.

FINANCING

There is adequate fund balance and cash available in the Information Technology Internal Service Fund to fund this additional appropriation. There is an addition of approximately $404,000 to General Fund revenue from this refund and $316,000 to other departments.