Which statement describes who generally cancels an unexpected balance and who sometimes prefers ordinance?

Study for the Rutgers Municipal Capital and Trust Fund Accounting Test. Explore multiple choice questions, each with detailed explanations and hints to prepare you for your exam!

Multiple Choice

Which statement describes who generally cancels an unexpected balance and who sometimes prefers ordinance?

Explanation:
In this kind of municipal budgeting, adjusting or canceling an unexpected (unexpended) balance is treated as a routine budget adjustment. The normal tool for that action is a resolution from the governing body. A resolution provides formal authorization for the tweak without the heavier process of passing an ordinance, which is reserved for permanent changes to laws or policy. While some jurisdictions or officials might prefer using an ordinance in certain cases, the standard practice for this type of budget adjustment is to proceed by resolution. Administrative action alone isn’t appropriate because it lacks the formal approval and official record that a council-approved resolution provides.

In this kind of municipal budgeting, adjusting or canceling an unexpected (unexpended) balance is treated as a routine budget adjustment. The normal tool for that action is a resolution from the governing body. A resolution provides formal authorization for the tweak without the heavier process of passing an ordinance, which is reserved for permanent changes to laws or policy. While some jurisdictions or officials might prefer using an ordinance in certain cases, the standard practice for this type of budget adjustment is to proceed by resolution. Administrative action alone isn’t appropriate because it lacks the formal approval and official record that a council-approved resolution provides.

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