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FIN-6.03 - New Fund Establishment

NEW FUND ESTABLISHMENT
Administrative Rule Adopted by Council
ARC-FIN-6.03

 
Purpose
The purpose of this administrative rule is to establish minimum standards for the establishment of new funds.

 
Authority
Authority for this administrative rule is established in the City Charter and City Code. This administrative rule has been approved by the City Council.

 
Monitoring
The Accounting Division of the Bureau of Financial Services of the Office of Management and Finance (Accounting Division) will periodically monitor bureaus to assess compliance with the minimum standards of this rule. As instances of non-compliance are identified, bureaus will be required to develop and implement a corrective action plan. The Accounting Division will provide assistance to bureaus, if requested, to develop this plan. The Controller will report all instances of non-compliance annually to the Chief Financial Officer (CFO) and City Council.

 
Definitions
"Fund" means a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations (National Council on Governmental Accounting Statement No.1).

 
Fund Creation
  1. The Council shall establish the minimum number of funds that are required by law or necessary for sound fiscal administration. The funds will be structured to allow preparation of financial statements in accordance with Generally Accepted Accounting Principles.
  2. The Accounting Division will assign all new fund numbers and fund types.
  3. The Accounting Division will establish new funds in IBIS at the written request of the Financial Planning Division after communication with the requesting bureau. New funds require the approval of the City Controller and resolution by City Council in accordance with City Code, the City’s Comprehensive Financial Policy and Oregon Revised Statutes.
  4. Revenues and expenditures will be recorded in a fund only after the date of authorization.

 
Budget Only Funds
New funds may be established during preparation of the budget to facilitate budget development. Revenues and expenditures will not be recorded in funds established for this purpose until the new fiscal year begins.

 
History
Resolution No. 36248, originally adopted by Council September 1, 2004.
Revised by Resolution No. 36435, adopted by Council September 6, 2006.