Expenditure Payments -- September 2011

Page updated on Nov 15, 2011 at 11:56 AM

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NOTE:  Click on links below to view additional information, including extracts from the Fiscal Year 2012 Approved Budget.

Contributory Payments

The City makes some payments, such as contributions to the Washington Metropolitan Area Transit Authority (WMATA), on a quarterly or semi-annual basis.  Since these payments are made less frequently than monthly, expenditures reported in this monthly financial report may be higher than average in those months when the payments are made.  This financial report includes the following non-monthly payments: 

Equipment Replacement Fund

The City makes some payments at the beginning of the year. Every year, the City separately accumulates funds to replace major equipment items such as police cars and fire apparatus.  The allocation of these funds is included in the budget of individual departments and is moved to a separate fund at the beginning of the year.  Since these funds accumulate over several years, the fund is used to make the purchase once there are sufficient funds accumulated.  This allows departments to fund the purchase over the life of the equipment instead of all at one time.  These annual equipment replacement allocations are recognized as expenditures in this report at the time the transfer is made at the beginning of the year.  This fund is listed in the FY 2012 Approved Budget as the Internal Services Fund.

Of the $4.7 million in total equipment replacement transfers in FY 2012, the following departments have equipment replacement funds large enough to affect their General Fund expenditure patterns at the beginning of the year:

  • Police - $1.4 million 
  • T&ES - $1.2 million 
  • Fire - $1.2 million 

Grant Accounting and Cash Matches

To comply with many federal and State grant awards, the City’s share funding is transferred from the General Fund to the Special Revenue Fund at the end of the fiscal year.  Because the City share for most grants is not finalized until the funds are spent, departments set aside, but do not expend, City grant funds until the end of the fiscal year.  This ensures that the City maximizes the use of federal and State funding before spending City funds.  Most City funds not used for grants by the end of the year are returned to the City.

Modified Accrual Accounting -- Expenditures

Expenditures in this report reflect actual cash disbursements through July 31, 2011.  In accordance with accounting and reporting requirements established by the GASB and the APA, bills for goods and services received before June 30, 2011, but not paid before June 30, 2011, are considered expenditures for FY 2011 and later, when paid, will be treated as FY 2011 expenditures.

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