Page 68 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 2. Stewardship, Compliance and Accountability

a. Budget Information

Budgets are legally adopted and formal budgetary integration is employed as a management
control device during the year for all governmental fund types. The budget is prepared on
a GAAP (Generally Accepted Accounting Principles) basis.

From the effective date of the budget, the amounts stated therein as proposed expenditures
become appropriations to the various City departments.

The City Council may amend the budget only during a regular meeting, providing that
sufficient monies are available and that expenditures of proceeds of taxes will not be
increased beyond the constitutional appropriation limit as imposed by Article XIIIB of the
State Constitution.
The City’s formal budgetary process begins at the fund level. Individual fund budgets
consist of departmental budgets; departmental budgets may cross fund lines. Departmental
budgets are comprised of the various operating program budgets.
Individual fund budgets are, in all cases where appropriations are required, the same as
the appropriation amounts. In the case of the Governmental Fund types, unexpended
budgeted amounts, except for amounts relating to capital projects, lapse at the end of the
budget year. Spending control (legal level) for most funds is established by the amount of
expenditures budgeted at the fund levels. Accordingly, the General Fund expenditures are
displayed in the supplementary schedules at the department level and the Special Revenue,
Debt Service and Capital Projects Funds expenditures are displayed at the function level.
Management control is exercised at the line item level in each fund. Management can
transfer budgeted amounts between operating programs and departments, as long as
these transfers are made at the line item level within each fund and do not result in an
increase in the overall fund budget. Appropriations that increase the fund budget require
City Council approval.

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