Tips for New Auditors: Year-End Budget Transfers and Budget Amendments

Before closing out the books for 2010, there are a few things that a new Auditor should note.  First, be sure to review the 2010 budget and make sure all budgeted transfers have been completed.  Any transfers or budget line items that the governing board decided not to complete or that you feel should be discussed before being completed should be presented to the governing board as a reminder and/or for discussion.  If any changes are made to the budget, a motion will be needed from the governing board to authorize the budget amendment.  Once all transfers are made, it is important to complete a thorough review of all revenue and expenditure line items to check for any errors that need correction.  In North Dakota, NDCC 40-40-15 states that the governing board cannot exceed the final budget line items.  Therefore, any expenditure line items that exceed the approved budget must be formally amended and adjusted in the accounting system.  Line items that need adjustment can be listed together and approved as one motion.