Item:
Title
Budget Ordinance Amendment No. 27BCC0040 FY 2026-27 Encumbrance Rollover – Increasing Multiple Funds Budgeted Expenditures and Revenues by a total of $22,655,384.42
Body
Date of BOCC Meeting: November 9, 2026
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment No. 27BCC040 FY 2026-27 Encumbrance Rollover – Increasing Multiple Funds Budgeted Expenditures and Revenues by a total of $22,655,384.42 for the outstanding encumbrances at fiscal year-end FY 2025-26. Encumbrances outstanding at fiscal year-end represent obligations/commitments entered by the County for either services not yet completed or performed, or goods not yet received. This money must be restricted in the fund balance within the equity section of the balance sheet for FY 2025-26 to honor these obligations/commitments once completed and/or received. These encumbrances outstanding at year-end do not represent expenditures or liabilities. These encumbrances outstanding are included in the amount reported as “Restricted Stabilization by State Statute” in the fund balance section of the Balance Sheet in the Annual Comprehensive Financial Report (ACFR).
According to generally accepted accounting principles (GAAP), governmental type funds are the only funds to record encumbrances in the ACFR. However, during the fiscal year, the County maintains encumbrances (purchase orders and service contracts) for all fund types (governmental and proprietary) to ensure funds are set aside for obligations and commitments appropriately at the time that they are ordered and/or entered into.
Because these encumbrances lapse at year-end and are re-appropriated in the subsequent fiscal year, they do not affect unassigned fund balance. It is merely a re-appropriation in the subsequent fiscal year of funds for obligations and commitments for goods and services already ordered but not yet received in the prior fiscal year. Encumbering these funds is a statutor...
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