§ A274-2. Budgets and budgetary accounting., Chapter A274. Accounting and Budgetary Policies, Appendix, Code of Ordinances, Fairfax

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

(1)

The City Clerk-Treasurer submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operation budget includes proposed expenditures and the means of financing them.

(2)

The budget is legally enacted through passage of a resolution.

(3)

The City Council may authorize transfer of budgeted amounts between departments within any fund.

(4)

Formal budgetary integration is employed as a management control device during the year for the General Fund.

(5)

The budget for the General Fund is adopted on a basis consistent with generally accepted accounting principles (GAAP).

(6)

Budgetary control is maintained at the object of expenditure category level within each activity. Also inherent in this controlling function is the management philosophy that the existence of a particular item or appropriation in the approved budget does not automatically mean that it will be spent. The budget process has flexibility in that where need has been properly demonstrated, an adjustment can be made within the department budget by the City Clerk-Treasurer, or between departments by the City Council. Therefore, there is a constant review process and expenditures are not approved until it has been determined that: (1) adequate funds were appropriated; (2) the expenditure is still necessary; and (3) funds are available.