Responsible Executive Authority
This procedure describes how the Income Credit Program functions. The Income Credit Program (ICP) is designed to aid a department that generates special revenues from fees or charges that directly support a departmental activity or program within the general fund. Only income that is identified or unique to a single department will be handled by the ICP program.
The Income Credit Program (ICP) is designed to aid a department that generates special revenues from fees or charges that directly support a departmental activity or program within the general fund. Only income that is identified or unique to a single department will be handled by the ICP program.
In order to be included in the annual budget that the Board adopts for the following July 1, new ICP budgets, or changes to existing ICP budgets, must be established by mid-April as part of the annual budget development process. In addition, if a department plans to draw down their existing accumulated fund balance to make a large purchase during the following year, they must also notify Budget Office by mid-April so that adequate budget is authorized in the adopted budget.
After mid-April, contact the Budget Office with estimates of each revenue source and a corresponding expense line to ensure the new budget, or changes to an existing budget, are incorporated during the next budget development cycle.
ICP budgets must be monitored closely by departments throughout the year and, in particular, focus on the following: (1) That actual revenue is coming in as anticipated; (2) that actual expenses are not greater than the budgeted expenses; and (3) that, by the end of the fiscal year, actual expenses are not greater than actual revenues received (that is, departments should not spend more than they receive in actual revenues for the year). Departments are responsible for contacting the Budget Office if it appears an ICP budget may be having financial problems.
At the end of each fiscal year (following the annual audit), each ICP budget is reviewed to determine the amount of "actual revenue minus actual expenses." These annual results, often referred to as the "fund balance," are cumulative. That is, each year's gain (or loss) is added (or subtracted) from the balance of the prior years. When actual revenue is greater than actual expenses, the net amount will normally carry over into the following fiscal year. If a department's expenses are greater than their revenue at the end of the fiscal year, any ICP balance accumulated during prior years is reduced by that amount.