TITLE
Title
BUDGET AMENDMENT: FY26 YEAR END ADJUSTMENTS
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SPONSOR
Sponsor
Donald Warn and Toy Beeninga
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BACKGROUND
Background
Consider approval of year-end budget amendments and accounting adjustments needed to complete the County’s annual financial close process and prepare the annual financial report. These actions align the budget with required accounting entries, reconcile revenues and expenditures, and allow completed grant and project accounts to be closed.
This item includes three categories of adjustments:
Microsoft Enterprise Agreement Accounting Entry
Appropriate funds to record the required GASB 96 accounting treatment for the Microsoft Enterprise Agreement approved by the Board on September 5, 2024. This accounting standard requires the County to recognize the total value of future software subscription payments when the agreement begins. The entry records both an expenditure and an equal offsetting revenue/other financing source, so the adjustment is budget-neutral for reporting purposes. The agreement includes Microsoft operating systems, Microsoft Office 365, Power BI Pro, Visio Pro, server licensing, and other enterprise and individual software licenses.
Grant and Project Fund Closeout Adjustments
Authorize transfers between the General Fund, Grants Project Fund, and Community Development Fund to reconcile revenue sources and match budgeted revenues with recorded expenses. These are year-end accounting cleanup entries that allow completed projects and grants to be properly closed once revenues and expenditures are aligned.
Guilford College Rural Fire District Budget Correction
Authorize a budget amendment between Guilford College rural fire district funds to correctly reflect sales tax revenue that was received in the Fire Protection District but budgeted in the Fire Protection Service District Overlay. This adjustment aligns the budget with where the revenue was actually received and where expenses should be recorded.
These amendments are part of the County’s normal year-end accounting process. They do not create a new program, change the previously approved Microsoft agreement, or represent a new policy direction. The amendments ensure that revenues, expenditures, transfers, and required accounting entries are recorded in the correct funds before the County finalizes its annual financial report. The attached memo provides the specific fund-level details, including the GASB 96 entries, grant closeout transfers, and rural fire district sales tax correction.
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BUDGET IMPACT
Budget Impact
General Fund
$931,312 increase in appropriation to Information Technology
$931,312 increase in Other Revenue
$99,163 increase in appropriation to Health and Human Services - Social Services
$99,163 increase in Other Revenue
See attached memo for budget amendments for projects in the Community Development Fund and Grants Fund.
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REQUESTED ACTION
Requested Action
Authorize staff to take any and all necessary actions to amend the General Fund budget and project ordinances associated with the project readjustments or adopt necessary project ordinances. Authorize staff to make transfers from the General Fund to the Community Development Fund and/or Grants Fund as necessary.
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