BUDGET
PROCESS TIME LINE AND BUDGET ORDINANCE
Adopted
by Resolution No. 95-91 (September 6, 1995)
Amended
by Resolution No. 05-49 (April 20, 2005)
TABLE
OF CONTENTS
GENERAL PROVISIONS
2.04.001 Budget Ordinance Purpose
2.04.002 Budget Committee Mission and Purpose
AUTHORITIES AND RESPONSIBILITIES
2.04.010 Skokomish Indian Tribe
2.04.011 Tribal Manager
2.04.012 Budget Committee
2.04.013 Department Directors
2.04.014 Self-Governance Coordinator
2.04.015 Accounting Department
BUDGET PROCESS
2.04.020 Assessment of Program Needs/Fiscal
Year Preliminary Budget Planning
2.04.021 Self-Governance Annual Funding
Agreement
2.04.022 Preparation of Draft Fiscal Year
Program Budgets
2.04.023 Indirect Cost Rate Proposal
2.04.024 Review of Proposed Budgets
2.04.025 Approval of Final Preliminary Budget
BUDGET MODIFICATIONS AND AMENDMENTS
2.04.030 Formal Budget Modifications
2.04.031 Minor Budget Modifications
SPECIAL PROVISIONS
2.04.040 Budget Monitoring and Reporting
2.04.041 Limitations
2.04.042 Amendments Process
2.04.043 Budget Process Time Line
General
Provisions
2.04.001 Budgeting Ordinance Purpose
The purpose of
the Budget Ordinance is to control the use and expenditures of Skokomish Tribal
funds. All Tribal revenues may be considered in the following budget process.
Revenues include, but are not limited to, funds received through the
Self-Governance Annual Funding Agreement, federal/state contracts and grants,
taxes, enterprise funds and private and corporate funding. All funds will be
considered in the overall budget planning process for each Tribal department.
The following fiscal year budget process in no way supersedes regulations and
guidelines defined for each specific agency/organization from which the Tribe
receives funds other than those identified in the Self Governance Annual
Funding Agreement. In addition, the budget process will assist in
establishing Tribal priorities for each fiscal year.
It is the
policy of the Skokomish Indian Tribe to develop a budget process which
identifies all revenues and use of restricted and unrestricted funds based on
anticipated program expenditures. An annual fiscal year budget shall be
prepared, reviewed, adopted, and amended as outlined in the budget process
below.
2.04.002 Budget Committee Mission, Purpose
and Structure
(a) The Budget Committee is advisory in
nature and serves the Tribal Manager and Tribal Council in the following
manner:
(1) Advises the Tribal Manager in long-range
planning to meet overall goals and objectives set by the Tribal Council.
(2) Coordinates activities of departments and assists
policy makers in a better understanding of the nature of staff and/or
department responsibilities; works to avoid duplication of efforts.
(3) Assists in identifying a greater number of
approaches to problem-solving for the organization’s infrastructure and
attainment of Tribal goals.
(4) Provides information and makes recommendations
to the Tribal Manager in the following areas:
(A) Response to information requests made by Tribal
Council,
(B) Development and review of annual budgets and
budget processes,
(C) Review of tribal policies, procedures, and
guidelines as needed or requested,
(D) Matching of goals and priorities to available
funding,
(E) Long-range, specific program objectives.
(5)
Broadens the information base available to Tribal Council; a Committee
representative shall be present at all budget-related Tribal Council meetings. The
Committee representative shall disseminate non-confidential information to the
Budget Committee for coordination of assignments.
(6) The
Budget Committee shall consist of the Tribal Manager, the Chief Financial
Officer (CFO), 2 Department Directors elected by all of the Tribe’s Department
Directors, and 2 Tribal Council members appointed by the Tribal Council and 2
Tribal members recommended by the Tribal Manager and approved by the Tribal
Council.
(7) The
Accounting Department will provide the lead facilitation, coordination and
clerical support for the Committee.
Authorities
and Responsibilities
2.04.010 Skokomish Tribal Council
The Tribal
Council has the authority and responsibility to establish priorities for needed
and desired programs and facilities. The Tribal Council has the authority to prepare
its own budget, including the budgets for its staff and advisors, and to approve,
adopt, and amend the annual fiscal year budget and budget process. The Tribal
Council is responsible for overseeing and reviewing actual expenditures and
budget variances throughout the fiscal year. Additionally, the Tribal Council
has the authority to ensure compliance with the budget process.
2.04.011 Tribal Manager
The Tribal
Manager has the responsibility to prepare an annual tribal budget for approval
by the Tribal Council and to manage the operation of the tribal government in
accordance with the approved budget. In so doing, he shall match the most
readily available sources of financial support with the highest priority
projects as established by the Tribal Council. The Tribal Manager is
responsible for reviewing and/or amending all Tribal program budgets including
estimated revenue and expenditures to ensure compliance with overall budget
guidelines. The Tribal Manager may move funds from one budget line item to
another line item, and from one major program to another, in an amount not to
exceed 25% for each major program, without the approval of the Tribal Council.
This type of modification will be done in coordination with the affected
Program Director(s) to ensure budget and planning stability and program
coordination. The Tribal Manager shall report to the Council within ten working
(10) days, or the next regularly scheduled Council meeting, all modifications
to approved budgets, as well as justifications for the changes. In any case
where reprogramming adjustments exceed 25%, a formal budget modification must
be presented and approved by the Tribal Council in accordance with sections
2.04.030 through 2.04.031 below. The Tribal Manager may negotiate Annual
Funding Agreements as delegated by the Tribal Council. The Tribal Manager shall monitor and analyze
expenditures and review variances with Department Directors. Additionally, the
Tribal Manager shall provide technical direction to the Self Governance
Coordinator in the preparation of all budget proposals.
2.04.012 Budget Committee
The Budget
Committee is responsible for drafting and submitting annual program budgets to
the Tribal Manager. It is the responsibility of the Budget Committee to review
historical financial data, forecasted data, and other information deemed
necessary in proposing annual fiscal year program budgets. The Budget Committee
shall submit proposed budget recommendations to the Tribal Manager for his or
her review, and upon his or her review, budgets will be presented to the Tribal
Council for any program changes, changes to long-range planning goals,
necessary budget modifications and adoption.
2.04.013 Department Directors
All Department
Directors have the authority and responsibility to develop annual program
budgets based on a consistent format as outlined in this budget process.
Department Directors include the Education Director, Tribal CFO, Health
Administrator, Social Services Director, Natural Resources Director, Fisheries
Director, Police Chief or Director of Public Safety, Economic Development Director,
and such other director-level staff as may be appointed. Annual budgets shall include program
description and anticipated activities for the upcoming finding cycle,
anticipated line item expenditures, and budget justifications. The CFO and the
Tribal Manager shall provide technical assistance and financial information to
Department Directors as needed in order for Department Directors to prepare
their budgets and shall develop the budget for the Tribal administration,
including the Tribal Manager’s office, maintenance, accounting, personnel,
legal, planning, and other programs which have as their primary function providing
support services to the Tribal government.
2.04.014 Self Governance Coordinator
The Tribe’s CFO
may assume the role of the Tribal Self-Governance Coordinator. It is the responsibility of the Self
Governance Coordinator to coordinate overall program budgets, incorporating all
information received from each Department Director. The Self Governance
Coordinator shall provide annual federal/BIA funding information and assure
that all program budgets are prepared and calculated based on the Tribe's
negotiated Self Governance Annual Funding Agreement, Congressional
appropriations, and any supplemental funding that may be received. Information
on these funding sources will be discussed and provided to the Budget Committee
and incorporated into the final budgets and subsequent modifications to be
recommended to the Tribal Manager and the Tribal Council. The Self Governance
Coordinator shall ensure that the Directors of each department follow all
mandated reporting requirements.
2.04.015 Accounting Department
It is the
responsibility of the Accounting Department to maintain and adhere to all
budget policies and procedures as adopted and approved by the Tribal Council.
The CFO will provide monthly financial statements detailing actual expenditures
versus budgeted amounts and provide line item variances. The Accounting
Department is authorized to pay obligations only as outlined in the approved
budget unless directed otherwise by the Tribal Council, Tribal Manager and/or
the relevant Program Director.
Budget
Process
The Skokomish
Indian Tribe’s fiscal year begins each year on October 1 and ends twelve months
later on September 30. The budget process established herein is an ongoing and
continuing process involving the Tribal Council, Tribal Manager, Budget
Committee, Self Governance Coordinator, and individual Department Directors.
2.04.020 Assessment of Program Needs/Fiscal
Year Preliminary Budget Planning
Department
Directors shall begin evaluating their needs for the upcoming fiscal year by
early May. The Self Governance Coordinator and Tribal Manager shall share
summaries and data from the previous fiscal years with each Department Director.
Department Directors shall assess current program needs using past and current
trends as well as long-range planning guides. Long-range planning strategies shall
be used to determine ways in which each program can continue to further both
departmental and overall tribal goals.
The Self
Governance Coordinator is responsible for reviewing prior fiscal year quarterly
reports and the baseline measures reports in order to compile program
information to assist in defining needs for the next fiscal year budget
planning process. This activity will require personal interviews with
Department Directors as well as joint discussions to analyze this data. A
written analysis will be developed to use as a tool in planning for the next
fiscal year.
The Budget
Committee shall then meet to discuss anticipated needs in a budget planning
session. This will include re-addressing overall goals and whether specific
program goals help further Tribal goals. Successes and failures of each program
will be analyzed to come up with a positive approach for the following year.
These activities shall be completed and reported out by mid-June.
2.04.021 Self Governance Annual Funding
Agreement
Negotiations
between the Office of Self Governance and Tribal representatives for the next fiscal
year’s Self Governance funding amount are scheduled during the months of April
and May. It is the responsibility of the Tribal Chairman, Tribal Manager and
the Self Governance Coordinator to review the BIA Budget Justification document
distributed each fiscal year to ensure that the Tribe’s Self Governance funding
is accurately identified. Additionally, it is the responsibility of the Tribal
Chairman, Tribal Manager, and the Self Governance Coordinator to review
additional funding to which the Tribe may be entitled and to keep informed
regarding those programs which the BIA has retained under Self Governance
relevant to the Skokomish Indian Tribe in preparation for these annual
negotiations.
The
Self-Governance Coordinator shall begin the planning and research for the
Annual Funding Agreement negotiations no later than March of each fiscal year.
The Self Governance Coordinator shall provide the Tribal Chairman and the
Tribal Manager with all relevant Tribal and BIA budget information to ensure
successful negotiations. Final negotiations, as defined in the Tribe’s Self
Governance Compact, must be completed by June 30th. Once negotiations are
complete, a final version of the next fiscal year’s Annual Funding Agreement shall
be drafted by the Self Governance Coordinator and reviewed by the Office of
Self Governance. When funding figures are jointly confirmed both by U.S.
Department of Interior and the Tribe, the Assistant Secretary for Indian
Affairs will sign the agreement in conjunction with the Tribal Chairman.
2.04.022 Preparation of Draft Fiscal Year
Program Budgets
Each Program
Director shall prepare preliminary program budgets for the upcoming fiscal year
based on prior years’ financial information, estimation of all
grants/contracts, information obtained through the program needs assessment,
and the availability of funding as finalized in the Tribe’s Self Governance
Annual Agreement. Using the prior year’s final budget as a base, two budget
scenarios shall be prepared utilizing 90% and 110% of prior year’s revenues.
Historical financial data and technical assistance shall be provided by the
Accounting Department regarding staff wages, fringe, and program fixed costs
such as leases and insurance.
Budgets for
continuing contracted programs (excluding Self Governance funded programs) will
be estimated through communication with the funding agency. Programs which do
not operate on a fiscal year calendar will be analyzed in order to prepare an
estimate of the amount of carryover into the next fiscal year. Estimates of new
programs which will commence in the succeeding fiscal year will be incorporated
into the draft program budgets if they have received final approval by the
funding agency and/or have a high probability of receipt of funding.
Draft budgets
will include line item dollar amounts, budget justifications, identification of
any restricted funds, key personnel, program functions, and goals and
objectives. All draft budgets will be prepared and completed by the end of
July.
(See Exhibit A
on the following page for an outline of the Budget Summary/Program
Description.)
Exhibit
A
The following information should be
submitted to the Self Governance Coordinator no later than 7/30/XX
Proposed
Program Budget & Summary for FY___
Department:
Department Director:
Program Goals and Objectives for Upcoming
Fiscal Year:
(Include specific program tasks and
activities)
Key Personnel:
Proposed Line Item Budget Request:
Status
Quo Priority 1 Priority 2
Salaries $ $ $
Fringe
Travel
Supplies
Equipment
Consultants
Other Costs:
(Provide detail)
TOTAL PROPOSED BUDGET $ $ $
>include written budget justifications
for above expenditures.
2.04.023 Indirect Cost Rate Proposal:
The Accounting
Department shall estimate administrative overhead costs for the next fiscal
year and review these estimates with the Tribal Manager. Utilizing this expense
projection, the findings of the audit for the previous fiscal year, and the
estimated total grant and contract revenues, the Accounting Department shall
prepare an indirect cost rate proposal. The proposal document shall be reviewed
by the Tribal Manager and approved by the Tribal Council prior to submission to
the Inspector General. The Indirect Cost Rate Proposal shall be submitted to
the Office of the Inspector General by the end of the third quarter of the
current fiscal year or by the agency’s established due date. All Department
Directors shall be notified of the proposed rate in order to request the
correct amount of indirect costs with other Federal/State grant and contract
budgets. Upon approval of the Tribe’s indirect cost rate, Department Directors
will be notified of the final indirect cost rate.
2.04.024 Review
of Proposed Budgets
Upon completion
of draft budgets by all Department Directors, the Budget Committee shall meet
in August to review overall needs, funding availability to meet those needs,
and proposed program budgets. Modifications to proposed budgets shall be
discussed, and recommendations by the Budget Committee will be incorporated by the
Self Governance Coordinator, with technical direction from the Tribal Manager
into a preliminary overall program budget package. This package shall be
prepared and presented to the Tribal Council by mid-August.
The Tribal
Manager shall review the preliminary budget package. Any additional
modifications and changes shall be incorporated prior to presentation to the
Tribal Council. A special Tribal Council Budget Session shall be scheduled by
the Self Governance Coordinator no later than the end of August to review the
budget packets. Each Program Director shall give a presentation to the Council
on targeted needs. Once program presentations are complete, the Tribal Council shall
meet, discuss priorities, and provide recommendations to the Self Governance
Coordinator.
The Self
Governance Coordinator shall compile the information and recommendations
provided by the Tribal Council into a revised budget proposal. The new budget
proposal shall then be shared with Department Directors in preparation for a
final Budget Committee session. The Budget Committee shall review the final
budget package and provide input on Council recommendations by the first week
in September.
2.04.025 Approval
of Final Preliminary Budget
The Final Self
Governance budget package shall be presented to the Tribal Council prior to the
beginning of the fiscal year for their review. A final budget must be approved
and in place by October 1.
Budget
Modifications and Amendment
Budget
modifications and amendments may be made to the approved preliminary budgets throughout
the fiscal year. Modifications may vary from year to year as both the House and
Senate are required to agree on the federal budget during the Joint Conference
that usually occurs in September. The process is completed no later than the
end of November.
Once the
Appropriations Act is passed, the Budget Committee can begin planning for any
budget modifications or recommendation to the Tribal Manager. Planning should include,
but should not be limited to, the identification of increased or decreased
funding, finalization of the indirect cost rate, and/or unanticipated program
expenditures.
2.04.030 Formal Budget Modifications
Additional
funding may be identified in the annual Congressional Appropriations Act which
is passed by the United States Congress. The passage of the Act focus around
changes such as budget reduction amounts, additional Congressional
appropriations, supplemental/shortfall funds, pay cost increases, and the final
figure for the Tribe’s Self Governance lump sum funding.
The Self
Governance Coordinator is responsible for developing a document outlining the
additions and/or reductions to the Compact/Annual Funding Agreement and
providing this information to the Budget Committee. The Self Governance
Coordinator shall then schedule a special Budget Committee meeting and shall
distribute the new funding information to Department Directors and the Tribal
Manager in advance for their review. The Budget Committee shall meet to discuss
changes and modifications to the overall budget to recommend to the Tribal
Council. The Self Governance Coordinator shall revise the modified budget proposal
as recommended and schedule the revised budget for presentation to the Tribal
Council at the next regularly scheduled Council meeting for final approval.
Additional
funding may also be identified upon completion of the Tribe’s prior year’s
annual audit in mid-December. “Carryover” funds which are not previously
obligated will be considered unrestricted and will be reallocated and included
in a budget modification. Recommendations for use of these funds will follow
the same budget process as outlined above.
All of the above
budget modifications shall be considered formal budget amendments and must be
approved by the Tribal Council within 30 days of the identification of new
funding or changes to existing funding.
2.04.031 Minor Budget Modifications
A minor
modification is defined as a line item adjustment within any department budget
which exceeds 15% of that line item, but does not increase the amount of
the total approved program budget. No budget modification is necessary for any
line item variance which does not exceed 15%. The Tribal Manager, Department
Directors, and others assigned budget responsibilities have authority to make
minor budget modifications. Minor budget modifications do not require Tribal
Council approval, but must be approved by the affected Department Director and
recorded by the Accounting Department. All minor modifications will be noted
and reflected in the monthly program financial reports. Department Directors
may make no more than three minor modifications to their program throughout the
fiscal year, after which a formal modification shall be required, including Tribal
Council approval.
Special
Provisions
2.04.040 Budget Monitoring and Reporting
The Tribal
Manager with the assistance of the Accounting Department, is responsible for
maintaining and monitoring the budget and expenditures, including the recording
of all modifications. Except as stated in this ordinance, neither the Tribal
Manager nor any Accounting Department staff, include the Tribal CFO, has
management, administrative, or legislative authority over the budget process.
Monthly
financial reports shall be prepared by the Accounting Department and
distributed to the Tribal Manager and all Department Directors within 30 days
of the end of the reported month. Monthly financial reports shall include
budget amounts, actual expenditures, and line item variances. All Department
Directors will review the reports and inform the Tribal Accountant of any
problems or discrepancies within 10 days of receiving the report. This will
allow the Accounting Department sufficient time to remedy any incorrect
postings, or prepare any necessary budget modifications. All budget
modifications shall follow the guidelines as established in sections 2.04.030
through 2.04.031 above.
The Budget
Committee, along with the Tribal Manager, will semi-annually review current
year-to-date expenditures and discuss any emergency over-expenditures,
under-expenditures, unbudgeted expenditures, and other deviations form the
originally proposed budget and program summary. If necessary, recommendations
for budget modifications will be made to the Tribal Manager and/or Tribal
Council.
2.04.041 Limitations
Nothing
contained in the Budget Process section of the Skokomish Indian Tribe Budgeting
Ordinance is intended to limit the authority of the Tribal Council.
2.04.042 Amendment Process
Any changes or
amendments to this ordinance must be presented in writing to the Tribal Manager,
who shall review them and submit them to the Tribal Council for approval. Any
amendments shall be accompanied by instructions for removing any policies or
procedures superseded by the amendments. It is the responsibility of the Tribal Manager to review this ordinance
and policies and procedures hereunder on a continuing basis and in response to
the changing needs and conditions of the Tribal organization.
2.04.043
Budget Process Timeline
Fiscal
Year:
October
1, 20 to September 30,
20
October
through September
CFO prepares a monthly
financial report for the Self Governance Coordinator, Tribal Manager, Budget
Committee, Tribal Council and each department director.
February
Self Governance
Coordinator begins data collection, research and external communications
regarding Self Governance funding for the following fiscal year. Information
gathered will provide a basis for Self Governance Compact negotiation
preparation.
March
Self Governance
Coordinator completes all Self Governance planning activities in preparation
for the Annual Funding Agreement negotiations.
May
Negotiations
begin between the Tribe and the Department of the Interior on next year's
fiscal Self Governance Funding Agreement. Indirect cost rate agreement and
previous year audit are completed and reviewed by the Budget Committee and
Tribal Council. Indirect cost rate agreement is approved and submitted to IG’s
Office. Department Directors begin evaluating program/project needs for the following
year.
June
Final Self
Governance Funding Agreement is approved and forwarded to BIA for 90 day public
comment. By mid-June, Budget Committee meets to review Directors’ needs
assessments and to address the Tribe’s overall goals, noting whether specific
program goals help further Tribal goals. Analysis of program accomplishments are
completed by each director and reported to the Budget Committee.
July
Draft budgets are
prepared, including line item dollar amounts, budget justifications, identification
of any restricted funds, key personnel, program functions, and goals and
objectives.
August
Department
Directors and the Budget Committee meet to review overall needs and funding
availability and review the program budgets meeting identified needs. Budget proposal
is prepared and presented to Tribal Council by mid-August. A special Tribal
Council Budget Session is scheduled to include departmental presentations on
targeted needs.
September
Self Governance
Funding Agreement between Tribe and BIA is signed. Tribal Council may revise
the budget proposal and seek further director and/or Budget Committee input
prior to finalizing the budget. The goal for Tribal Council adoption of a new
fiscal year budget is the end of September.