School Board of the City of Virginia Beach
Regulation 3-10.1

 

Budget Major Classification and Line-Item Transfers

A. Definitions

1. Budget Major Classification

The Operating Budget is segregated into four (4) classifications as specified in Section 22.1-115 of the Code of Virginia. The Operating Budget classifications are (1) Instruction, (2) Administration, Attendance and Health, (3) Pupil Transportation, (4) Operations and Maintenance.

2. Budget Unit Code  

A Budget Unit Code is a definitive subdivision within a Budget Major Classification such as Elementary Classroom, or Custodial Services.

3. Expenditure Categories

An Expenditure category is a subdivision of costs within a Budget Unit Code for the purpose of aggregating similar costs. There are ten (10) Expenditure Categories available to be utilized within each Budget Unit Code:

a. Personnel Services

b. Fringe Benefits

c. Purchased Services

d. Other Charges

e. Materials and Supplies

f. Internal Services

g. Capital Outlay

h. Land, Structures and Improvements

i. Debt Service

j. Transfers to Other Funds

4. Line Item

Within each Expenditure Category are Line Items which define individual expenditure items such as Elementary Teacher Compensation, Instructional Supplies, or Electricity.

5. Budget Transfer

A budget transfer is the movement of funds within or between Budget Major Classifications, the movement of funds from one or more line items to one or more other line items within a Budget Unit Code, or the movement of funds between Budget Unit Codes.

6. Restricted Accounts

The Capital Outlay Expenditure Category in each Budget Unit Code will not be permitted to exceed the total available appropriations. Any proposed expenditure or encumbrance which would exceed the total available appropriations in the Budget Unit Code Capital Outlay Expenditure Category will require a budget transfer prior to expenditure or encumbrance of funds from either (1) within the Budget Unit Code from another Expenditure Category, (2) between Budget Unit Codes within the Budget Major Classification, or (3) between Budget Major Classifications subject to City Council approval (unless the School Operating Budget is appropriated by City Council in lump sum).

B. Purpose

Periodically, the need will exist for funds to be transferred from one Budget Major Classification to another Budget Major Classification and from one Budget Unit Code to another Budget Unit Code within a Budget Major Classification.

C. Budget Major Classification Transfers

The transfer of funds from one Budget Major Classification to another Budget Major Classification must be approved by the School Board in advance of any commitment of funds that will necessitate such a transfer. If the appropriation of the School Board Operating Budget by City Council was made by Budget Major Classification, (a "Categorical Appropriation") the Board must pass a resolution requesting that City Council approve the transfer of appropriated funds between Budget Major Classifications and the City Council must approve the transfer between Budget Major Classifications prior to the execution of the transfer or the commitment of funds which would require a transfer. All fund transfers must comply with the requirements of law.

D. Line-Item Transfers

Management and accountability within each Budget Major Classification will be considered at the Budget Unit Code level. Therefore, with the exception of the Capital Outlay Expenditure Category, the transfer of funds from one line item to another line item within a Budget Unit Code is not required and should be avoided. The total expenditures and encumbrances for all expenditure categories within a Budget Unit Code may not exceed the total appropriations available for that Budget Unit Code. If a line item transfer within or between Budget Unit Codes becomes necessary, it must adhere to the following procedures:

1. All requests for Budget Transfers within or between Budget Unit Codes must originate with the budget unit manager(s) and that request must be signed and approved by the budget unit manager(s) and the applicable cabinet member(s).

2. The Chief Financial Officer is authorized to approve line-item transfers within or between Budget Unit Codes not exceeding $10,000 per transfer.

E. School Board Approval

Budget transfer items requiring School Board action will be included on the School Board's action agenda.

 

Adopted by School Board: July 19, 1994
Revised by Superintendent: June 18, 1996
Revised by Superintendent: April 29, 1999