Explanation
BACKGROUND: This legislation authorizes the Auditor’s Office to change the object class appropriation for a number of Department of Development purchase orders created from Auditor’s Certificates in which the funds were appropriated in the incorrect object class and to authorize the department to submit, and the Auditor’s Office to process, an expenditure correction allowing for the correction of invoices already paid from these purchase orders.
In 2018 and 2019, the Department of Development sought Council approval through a few ordinances to encumber HOME Investment Partnerships Program (HOME) grant funds. Those ordinances encumbered the funds in object class 03 when they should have been encumbered in object class 05. From those ordinances, 26 purchases orders were created from three different grant years of funding. In order to prevent recipients of the grant funds from receiving 1099s and in order to correctly account for the funds per Internal Revenue Service requirements, the object class appropriation needs to be changed.
This change does not impact the contract with the vendor. The existing PO would be cancelled and a new PO will be created with the remaining balance.
Emergency action is requested in order to ensure uninterrupted payment of invoices.
FISCAL IMPACT: The amount to be appropriated in object class 05 for each grant is an amount not to exceed the sum total of the original encumbrance of all affected purchase orders for each grant as noted below:
Grant Number Amount to be Appropriated in Object Class 05
G451600 $ 342,880.32
G451700 $1,803,531.28
G451801 $2,028,379.67
The amount to be expenditure corrected is the sum total of the relieved amount of all purchased orders at the time of the expenditure correction.
Title
To authorize the Auditor’s Office to change the object class appropriation for a number of Department of Development purchase orders created from Auditor’s Certificates in which the funds were app...
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