Key Financial Documents
The budget document is the annual financial plan for City operations for the period covering one fiscal year. The City of Randleman's fiscal year begins on July 1 and ends on June 30. This plan describes the sources of revenues and how the funds will be spent during the year. The annual operating budget, the Capital Improvement Program (CIP), and the Comprehensive Annual Financial Report (CAFR) are the key documents, which describe the City's financial plans and financial status each year. The following is a link to the prior year's CAFR:
2003-2004 CAFR part 1 of 2
2003-2004 CAFR part 2 0f 2
The annual budget shows the funding plan for how the City's dollars are to be spent in the coming year. The CIP serves as a guide for the next five fiscal years to provide a long-range view of the City's financial policies and goals. The CAFR provides a review and assessment of the year-end fiscal condition of the City overall, including the status of fund balance in all fund types.
Organizational Structure of the Budget
The operations of the City are grouped into different funds. Within each fund are one or more departments. A department is an organizational unit, which provides a major type of public service, such as the Police Department or Public Works Department.
At the most detailed level of the budget are account codes, also known as line items. These are the most basic units in the budget and make it possible to determine, for example, how much is spent on chemicals for the operation of the water plant.
Interfund transfers, also known as interfund appropriations, involve the budgeting of money from one fund to another in order to support the functions to be carried out by the receiving fund. When reviewing the budget, it is more accurate to use a figure, which excludes appropriations to other funds. This prevents counting the transfer amounts twice -- once in the sending fund and once in the receiving fund.
General Statute Requirements
In accordance with the North Carolina General Statutes, the City is required to budget and account for its funds on the modified accrual basis of accounting. Under this method, revenues are recognized in the accounting period in which they become available. Expenditures are recognized in the accounting period in which the goods and services are received (except for unmatured interest on general long-term debt, which is recognized when due). The City's accounting records for general governmental operations are reported on the modified accrual basis. The City's enterprise and fiduciary fund are reported on the accrual basis.
The General Statutes also provide for balanced project ordinances for the life of projects, including both capital and grant activities (which are expected to extend beyond the end of the fiscal year). The budgeted appropriations for capital projects do not lapse until the completion of the project, while appropriations for funds that adopt annual budgets lapse at the end of the fiscal year.