SOP_NUMBER: 403.01
TITLE: Budget Preparation-Appropriations
REFERENCE_CODE: IF01-0001
DIVISION: Administration and Finance Division
TOPIC_AREA: 402-405 Policy-Administration and Finance
EFFECTIVE_DATE: 2020-05-07
WORD_COUNT: 1666
POWERDMS_URL: https://public.powerdms.com/GADOC/documents/105104
URL: https://gps.press/sop-data/403.01/

SUMMARY:
This policy establishes the annual calendar of events and requirements for developing the Georgia Department of Corrections budget requests, including amended budgets for the current fiscal year and general budgets for the next fiscal year. It applies to all GDC staff involved in the budget preparation process, including the Budget Office, divisional managers, facility wardens, and section directors. The policy outlines the procedures for program budget requests, budget planning, formulation, and coordination with the Governor's Office of Planning and Budget.

KEY_TOPICS: budget preparation, appropriations, program budget request, annual operating budget, amended budget, supplemental appropriations, budget planning, fiscal controls, budget formulation, OPB submission, expenditure analysis, legislative session, budget request components

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|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
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|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|
|**Policy Number:**403.01|**Effective Date:** 5/7/2020|**  Page Number:** 1 of 5|
|**Authority:**<br>Commissioner|**Originating Division:**<br>Administration and<br>Finance Division|**Access Listing:**<br>Level I: All Access|



**I.** **Introduction and Summary:**

A. To provide an annual calendar of events and requirements related to the

development/enactment of Departmental Budget Requests for:

1. Amended Budget (Current Fiscal Year) Supplemental Appropriations, and

2. General Budget (Next Fiscal Year) Appropriations.

B. These aspects of budget preparation are an integral part the Georgia Department

of Corrections (GDC) Program Budget Process. The development process is
coordinated by the Budget Office in a particular budget cycle specified by the
Governor’s Office of Planning and Budget (OPB).


**II.** **Authority:**

A. O.C.G.A.: § 45-12-78;

B. GDC Board Rules: 125-1-2-.03 and 125-2-1-.01;

C. GDC Standard Operating Procedure (SOP): 403.04 Budget and Fiscal Controls;

and

D. ACA Standards: 2-CO-1B-02, 2-CO-1B-03, 2-CO-1B-04, 1-CTA-1B-03, 1-CTA
1B-04, 1-CTA-1B-06, 5-ACI-1B-04 (ref. 4-4028), 5-ACI-1B-05 (ref.4-4029), 5ACI-1B-06 (ref.4-4030), 4-ACRS-7D-18, and 4-ALDF-7D-10.

**III.** **Definitions:**

A. **Designee**    - Staff member who is given authority by a person of higher authority to

represent them and make decisions on their behalf.

B. **Program Budget Request**    - The method by which a plan for the Department’s

budget needs for the next fiscal year are developed. The instructions for the
process of development are normally given a month in advance of the September
1st budget request submission deadline, based upon the Governor’s Office of
Planning and Budget (OPB) policy and procedure mandates.

C. **Annual Operating Budget (AOB)**    - The actual allocation of operating funds as

passed by the Legislature during the Legislative Session in the Appropriations Bill


|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
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|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|
|**Policy Number:**403.01|**Effective Date:** 5/7/2020|**  Page Number:** 2 of 5|
|**Authority:**<br>Commissioner|**Originating Division:**<br>Administration and<br>Finance Division|**Access Listing:**<br>Level I: All Access|



and subsequently signed by the Governor. The official submission is given to OPB
by May 31st in the exact appropriation level as passed in the appropriations bill.
Shortly after the AOB is submitted, one or more amendments, though typically not
more than three, are submitted to OPB in order to realign the AOB to properly
match budgets with projected expenses. This amendment process is known as the
Base Amendment or Clean-Up Amendments.

D. **Amended Appropriations Act** - The original AOB can be adjusted with the

amendment process. Amendments are normally done when transfers of funds are
required between Object Classes; program budget or transfers approved by
legislators during the session or at the Fiscal Affairs meeting; when money is
added or adjusted by the Supplemental Budget Process; to adjust based upon
anticipated expenditures; or when budgets are reduced or increased by the
Governor/Legislature for special budget needs. Amendments require approval
from OPB.

E. **Amended Requests** - Requests for additional funds needed to offset projected

deficits for the current fiscal year. They also allow program budget realignments.
Approval by the Legislature and Governor is required. Funds are appropriated
during the Legislative Session. Supplemental budget needs are researched and
analyzed for the current fiscal year in order to prepare the Department’s request
and submission to OPB by September 1st.

F. **Governor’s Recommendation** - The Budget Office submits the Program Budget

and/or the Amended Request to OPB. A complete review and analysis of requests
are done and the Governor’s Recommendation is developed. The Governor’s
Recommendation is the official request used at the start of the Legislatives Session.
The recommendation normally comes out in early January.

G. **Legislative Session** - The Department’s budget is appropriated during the

Legislative Session. This is the final point of approval of the Annual
Appropriations and Amended Request. The legislators initially work on the
Supplemental Request for the current year. The Supplemental Appropriations Bill
is typically passed in February. The appropriations bill for the next fiscal year is
then considered and approved typically by late March or early April. This bill is
the beginning point of the Annual Operating Budget.

H. **Expenditure Analysis** - The basis for all major requests (AOB, Amended AOB,

Fiscal Affairs, Amendments, etc.) is sound expenditure projections/analysis. The


|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|
|**Policy Number:**403.01|**Effective Date:** 5/7/2020|**  Page Number:** 3 of 5|
|**Authority:**<br>Commissioner|**Originating Division:**<br>Administration and<br>Finance Division|**Access Listing:**<br>Level I: All Access|



frequency should be at least quarterly and prepared in conjunction with input from
users (Program Staff, Business Managers, Central Office and Field Units). These
analyses consider all budget programs, line items/sub-classes and cost centers at
all levels of the department.


**IV.** **Statement of Policy and Applicable Procedures:**

A. Budget Preparation Process:


1. Program Budget Request Components:


i. The Program Budget Request is generally divided into major categories,

such as continuation, enhancements, reductions, workload adjustments and
redistributions. The procedures outlined in this SOP for the budget
preparation process generally apply to all categories. However, the
preparation process may change significantly from year to year, especially
during times of severe fiscal constraints. Management is responsible for
coordinating budget development efforts with the Budget Services Section
for sections/programs.

ii. The Budget Analysts, Budget Administrators, and Budget Director are

responsible for preparing a budget request adequate to support GDC
Programs.

B. Budget Planning Process:


1. Each year, the Budget Office receives the official set of instructions from OPB.

These instructions are used as the basis for the development of internal
forms/schedules and related guidelines.

2. The Budget Office establishes policy, procedure, and practice to be used by the

Divisional/Facilities/Section Managers for budget preparation, revision and
enhancement requests.

3. The Warden/Director or Designee participates in budget deliberations with the

Budget Office. Participation includes requesting funds for the institution’s
daily operations, capital projects, any long range objectives, program
development, and additional staff requirements.


|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
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|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|
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|**Authority:**<br>Commissioner|**Originating Division:**<br>Administration and<br>Finance Division|**Access Listing:**<br>Level I: All Access|



C. Budget Formulation:


1. All remaining line items or program/functional budget requests are prepared

by the Budget Office in coordination with the Warden, Section Manager,
Director or Designee. The Budget Office establishes certain formulas for
operating requests and utilizes expenditure reports as well as any historical data
available to populate the remaining line items.

2. The Budget Office Director coordinates the continuation, enhancement,

reduction, redistribution and workload adjustment requests with the Assistant
Commissioner of Administration and Finance. A summary of the request and
analysis of what the Department can request according to OPB guidelines are
prepared for the Commissioner’s review and approval.

3. Once approved, the Budget Office finalizes all continuation, enhancement,

reduction, redistribution and workload adjustment requests, and prepares
packages for all requests. The Budget Director presents final recommendations
to the Assistant Commissioner of Administration and Finance.

D. Submission of Budget Request:


1. The Agency’s Budget Request is submitted to OPB by the designated date set

by the Director of OPB, which shall be no earlier than August 1st of each year.
The OPB Analysts will then begin their review/development of
recommendations for the Governor after the submission is received.

2. The Budget Office serves as control point for additional information/analytical

requirements requested by OPB analysts during their review, to provide timely,
consistent and accurate information in support of the request and to keep
appropriate GDC personnel informed of OPB requirements and
recommendations. The Governor customarily holds a formal hearing with the
Commissioner prior to finalizing the recommended budget.

E. The Appropriations Process:


1. State law requires that the General Assembly have access to the Governor’s

Budget Report within five (5) days of convening in January. The General
Assembly reviews the Governor’s formal budget recommendations and
develops an Appropriations bill. This legislation, which declares how State


|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|**Policy Name:**Budget Preparation-Appropriations|
|**Policy Number:**403.01|**Effective Date:** 5/7/2020|**  Page Number:** 5 of 5|
|**Authority:**<br>Commissioner|**Originating Division:**<br>Administration and<br>Finance Division|**Access Listing:**<br>Level I: All Access|



funds are appropriated to the various State agencies, begins in the House of
Representatives. It is reviewed, amended and eventually approved, at which
time it is transferred to the Senate. The Senate then deliberates and adopts a
substitute to the House Bill, which they send back to the House for acceptance
or rejection. Typically, discrepancies between the two versions of the bill lead
to the convening of a Conference Committee made up of members from both
chambers. This committee comes up with a compromise proposal to be voted
on by both the House and Senate.

2. The Budget Office serves as the control point for additional information or

analytical requirements of the Department of Audits, House and Senate,
Appropriations Committees, Legislative Counsel, and other Legislators during
their reviews, hearings and deliberations. In this manner, timely, consistent,
and accurate information is provided in support of the request. The Executive
staff is informed of all requests during the appropriations process.

3. Once the same bill has passed both chambers, it is sent to the Governor who

then has forty (40) days to sign the legislation before it automatically passes
into law. The Governor maintains the constitutional right to strike portions of
the budget bill through his line-item veto.

4. The amended/current year bill is usually completed by mid-February and the

general/next fiscal year is completed by late March. The Amended
Appropriations Act becomes the basis for the Department’s Budget for the
remainder of the current fiscal year and the General Appropriations Act
becomes the basis for the initial Annual Operating Budget for the upcoming
fiscal year.

**V.** **Attachments:** None.

**VI.** **Record Retention of Forms Relevant to this Policy:** None.