Budget Major Classification and Line-Item Transfers 3-10.1

School Board of the City of Virginia Beach
Regulation 3-10.1

BUSINESS AND NONINSTRUCTIONAL OPERATIONS

Budget Major Classification and Line-Item Transfers

1. Definitions
   1. Budget Major Classification

      The Operating Budget is segregated into five (5) classifications as specified in Section 22.1 115 of the Code of Virginia. The Operating Budget classifications are: a) Instruction, b) Administration, Attendance and Health, c) Pupil Transportation, d) Operations and Maintenance and e) Technology.

   2. Budget Unit Code

      A Budget Unit Code is a definitive subdivision within a Budget Major Classification such as Elementary Classroom, or Custodial Services.

   3. Expenditure Categories

      An Expenditure category is a subdivision of costs within a Budget Unit Code for the purpose of aggregating similar costs. There are ten (10) Expenditure Categories available to be utilized within each Budget Unit Code:

      1. Personnel Services
      2. Fringe Benefits
      3. Purchased Services
      4. Other Charges
      5. Materials and Supplies
      6. Internal Services
      7. Capital Outlay
      8. Land, Structures and Improvements
      9. Debt Service
      10. Transfers to Other Funds
   4. Line Item

      Within each Expenditure Category are Line Items which define individual expenditure items such as Elementary Teacher Compensation, Instructional Supplies, or Electricity.

   5. Budget Transfer

      A budget transfer is the movement of funds within or between Budget Major Classifications, the movement of funds from one or more line items to one or more other line items within a Budget Unit Code, or the movement of funds between Budget Unit Codes.

2. Purpose

   Periodically, the need will exist for funds to be transferred from one Budget Major Classification to another Budget Major Classification and from one Budget Unit Code to another Budget Unit Code within a Budget Major Classification.

3. Budget Major Classification Transfers

   The transfer of funds from one Budget Major Classification to another Budget Major Classification must be approved by the School Board if the appropriation of the School Board Operating Budget by City Council was made by Budget Major Classification, in advance of any commitment of funds that will necessitate such a transfer. If the appropriation of the School Board Operating Budget by City Council was made by Budget Major Classification, (a "Categorical Appropriation") the School Board must pass a resolution requesting that City Council approve the transfer of appropriated funds between Budget Major Classifications and the City Council must approve the transfer between Budget Major Classifications prior to the execution of the transfer or the commitment of funds which would require a transfer. All fund transfers must comply with the requirements of law.

4. Line-Item Transfers

   Management and accountability within each Budget Major Classification will be considered at the Budget Unit Code level. Therefore, the transfer of funds from one line item to another line item within a Budget Unit Code is not required and should be avoided. The total expenditures and encumbrances for all expenditure categories within a Budget Unit Code may not exceed the total appropriations available for that Budget Unit Code. If a line item transfer within or between Budget Unit Codes becomes necessary, it must adhere to the following procedures:

   1. All requests for Budget Transfers within or between Budget Unit Codes must originate with the budget unit manager(s) and that request must be signed and approved by the budget unit manager(s) and the applicable department head(s).
   2. The Chief Financial Officer is authorized to approve line-item transfers within or between Budget Unit Codes not exceeding $125,000 per transfer.
5. School Board Approval

   Budget transfer items requiring School Board action will be included on the School Board’s action agenda.

Legal Reference

Code of Virginia § 22.1-115, as amended. System of accounting; statement of funds available; classification of expenditures.

Adopted by School Board: July 19, 1994
Revised by Superintendent: June 18, 1996
Revised by Superintendent: April 29, 1999
Amended by School Board: June 8, 2010
Scrivener’s Amendments: August 12, 2013
Revised by Superintendent: September 11, 2014