Michigan Uniform Budgeting and Accounting Act and Your Annual Budget
The annual budget process is important for municipalities in determining the resources needed to fund the goals and objectives to meet the needs of its citizens. The budget provides control and accountability over the revenues and expenditures of the government. All municipal budgets must include a public hearing as part of the adoption process. The Michigan Uniform Budgeting and Accounting Act requires the adoption of an annual budget.
As part of the budget process, governmental departments lay out the plans and projects for the next year. In addition, governments should also set aside funds for known capital needs that are a few years in the future. Planning in this manner can help the government reduce or eliminate the need for expensive debt financing.
Once the budget is adopted, periodic monitoring throughout the year is important and will ensure the government remains on track with spending. Budgets may not be static, and may need to be amended during the year as circumstances change. It is important to ensure elected officials are aware of and approve budget amendments.
Here are additional resources on budgeting and best practices: The Michigan Municipal League provides an overview of the Budgeting process as part of their Handbook for Municipal Officials… http://www.mml.org/resources/publications/ebooks/index.html#hmo. The Government Finance Officers Association provides comprehensive guidance on Recommended Budget Practices… https://www.gfoa.org/recommended-budget-practices-national-advisory-council-state-and-local-budgeting.
Maner Costerisan professionals can help your municipality develop its annual budget and help implement long term forecasts to plan for the future. Give us a call 517.323.7500.