NO:
98-12-OMB
ORIG AGENCY:
Office of Management and Budget
EFF DATE:
7/1/97
EXP DATE:
Indefinite
SUPERSEDES: 96-05-OMB
SUBJECT: Transfer
Guidelines
ATTENTION:
Fiscal Officers and Business Managers
FOR INFORMATION
CONTACT: Kim Shidlowski
PHONE: (609) 292-5259
PURPOSE:
The purpose of this
circular letter is to clarify the various approvals
required on Transfer of Appropriation documents. This circular letter
will remain in effect in future years unless a change is made in transfer
approvals through the Appropriations Act. A revised circular letter will
then be issued. The guidelines contained herein are based on the
Appropriations Act (P.L. 1997, C.131) section 11, pages I-1 and I-2 of
the general provisions. Paragraph references are provided below after
each transfer rule.
There are three
approval levels for transfers: Accounting Bureau, Office
of Management and Budget (OMB), Budget (OMB), and the Office of
Legislative Services (OLS). The Accounting Bureau reviews all transfers
to ensure proper authorization prior to final approval and posting to
the
New Jersey Comprehensive Financial System (NJCFS).
The reviews performed
by the units in OMB and OLS concern the propriety
of the document in regard to the Appropriations Act. The nature of the
accounts on a transfer determine whether OMB/Budget approval, OLS
approval, or both are required.
An understanding
of the two types of transfers is necessary to comprehend
and conform to the guidelines which follow. An internal transfer is one
in which the organization (four digits), appropriation source (three
digits), and program (five digits) are the same for accounts identified
on the transfer "from and to" line. Internal transfers (with the
exception of 2b on the following page) do not require OMB/Budget or OLS
approvals. A non-internal transfer is one in which the organization,
appropriation source or program are different for accounts identified
on
the transfer "from and to" line. Non-internal transfers may require
OMB/Budget and OLS approvals if they meet one of the following
guidelines:
GUIDELINES:
State Transfers
OMB/Budget and OLS
approval are required for the following conditions:
- Any amount on
a non-internal transfer in excess of $300,000
(paragraphs a.(1) and d).
- Transfers in
excess of $50,000 for:
- a. Any non-internal
transfer from or to a Special Purpose
account (Major Object 5) or Grant account (Major Object
6) (paragraph a.(2)); or
- b. Any internal
transfer from or to a Special Purpose or
Grant account that changes the legislative intent of
the appropriation (paragraph a.(3)); or
- c. Any transfer
between departments or between different
appropriation uses (e.g. Direct State Service, Grants-
In-Aid, State Aid, Capital Construction and Debt
Service). These may also require approval by the Joint
Budget Oversight Committee (JBOC) (paragraphs a.(4) and
b); or
- OMB/Budget designates
any transfer for referral to OLS to ensure
compliance with legislative intent of the Appropriations Act
(paragraph a.(6)).
Some additional
rules are:
1. Capital appropriations
can only be transferred to other capital
items except that they can be used for extraordinary snow removal or
extraordinary transportation maintenance upon approval of OMB/Budget
(paragraph d).
2. The Legislature
may transfer its own funds without Executive Branch
oversight (paragraph e).
3. The Governor's
Contingency Fund and the Salary Program accounts are
not subject to Legislative approval (paragraph f).
Federal Transfers
1. OMB/Budget
and OLS approval are required for federal fund transfe rs
in excess of $300,000 when the amount added to the "transfer to"
account exceeds the appropriation authority for that item as defined
by the program class (paragraph a.(5)); or
2. OMB/Budget
designates any transfer for referral to OLS to ensure
compliance with legislative intent of the Appropriations Act
(paragraph a.(6)).
NOTE: OMB/Budget
refers to either one of two organizational
units within OMB: Budget Operations or Management and
Planning.
____________________________
Elizabeth L. Pugh
Director