Explanation
1. BACKGROUND
The Department of Public Service administers capital improvement projects and grants that are funded from many different funding sources. The proper and consistent accounting of these projects and grants is of paramount importance.
Accounting adjustments are needed within the Morse Road Phase 2 and Williams Road grants which are administered by the Department of Public Service. It is necessary to transfer funds between the State Issue II Street Projects Fund, The Federal-State Highway Engineering Fund and The Street and Highway Improvement Fund in order to eliminate deficits in these grants.
In a reimbursement grant it is necessary to estimate the local share according to the grant agreement. The local share and the grant amount are then appropriated and the expenditure authorized. As the reimbursements occur the cash balance in the grant will increase and ideally be zero at the end of the project. This is not always the case. Items thought to be reimbursable at the beginning of the grant may not be allowed as the reimbursement requests occur and result in a negative balance at the end of the project. Thus, it is necessary to transfer City Match Funds from available cash to zero out the grant.
The Morse Road Phase II project utilized multiple grants, one located in the State Issue II Fund , and one in the Fed-State Highway Engineering Fund. The Fed-State Highway Engineering Fund Grant has a surplus of City Match Funds remaining which are available to be utilized to eliminate the deficit in the State Issue II grant. The necessary funds will be transferred from the Fed-State Highway Engineering Fund grant to the Street and Highway Improvement Fund and then transferred to the State Issue II Fund grant to eliminate the current deficit.
To eliminate the deficit in the Williams Road grant, in order to close the grant it is necessary to transfer funds from available cash in the Street and Highway Improvement Fund.
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