Chapter 2 – Fiscal Management

21010.10 Fiscal Responsibility

• Government Code Section 13324 states: “Every person who incurs any expenditure in excess of the allotments or other provisions of the fiscal year budget as approved by the Department (OFSOffice of Fiscal Services) or as subsequently changed by or with the approval of the Department (OFSOffice of Fiscal Services), is liable both personally and on his official bond for the amount of the excess expenditures.”  The Secretary and Undersecretaries approve all policy decisions.

• Wardens, Directors, Deputy Directors, and Parole Administrators have the primary responsibility to follow approved policies and remain within budgetary authority by adhering to the following guidelines:

  • Notify the BMBBudget Management Branch as soon as possible of new policies, procedures, or changes in policies and procedures that may have a fiscal impact.  Fiscal impact is defined as an increase in cost that is not funded and cannot be absorbed within existing resources in the current or subsequent fiscal year(s).  If a program is operating in a deficit, there shall be no changes that will increase costs.  Follow the established process to acquire additional funding.

  • Immediately notify the appropriate chain of command and the BMBBudget Management Branch of an emergency that may require expenditures to be incurred prior to securing the Office of the Secretary’s approval and the appropriate funding.

  • Immediately notify the appropriate chain of command, Office of Legal Affairs and the BMBBudget Management Branch when the Department is compelled by court order or other legal process to make non-budgeted expenditures.  The BMBBudget Management Branch shall contact the DOFDepartment Of Finance to begin the process of securing the necessary funding.

  • Hold in abeyance the implementation of new or adjusted policies and procedures until the Office of the Secretary’s approval and proper funding is secured.

  • Agreements with local unions must stay within the parameter of the contract and authorized resources, and must not have a statewide impact.

  • Follow the established budget process to request additional resources (e.g., Policy and Population BCPs, Finance Letters, May Revise, Deficiency Requests).

  • Minimize temporary help and overtime expenditures.

  • Eliminate unauthorized positions.

  • Position upgrades (reclassifying a position to a classification with a higher salary) must be accomplished within existing resources.

  • Achieve the savings identified in the Non-Custody Vacancy Plan.

  • Control sick leave usage in conformance with DOMDepartment Operations Manual Chapter 3, Article 8.

  • Maximize the use of permanent full time and intermittent officers.

  • Eliminate programs for which no funding is available.

  • Eliminate the liability for accumulated holiday leave and excess vacation and annual leave balances by utilizing the budgetary authorized holiday and vacation relief factor.

  • Closely monitor the BFF.

  • Reduce or postpone non-critical expenditures if a budget deficit is projected.

  • It is the responsibility of the Warden, Associate Director, Deputy Director, or Parole Administrator to ensure that the BMBBudget Management Branch is notified immediately via the BFF cover memorandum when a projected budget deficit is anticipated.  Also, it is their responsibility to submit an action plan addressing every action available to eliminate the projected deficit.