ORIG AGENCY: Office of Management and Budget

EFF DATE: 7/1/97

EXP DATE: Indefinite

SUPERSEDES: 96-05-OMB

SUBJECT: Transfer Guidelines

ATTENTION: Fiscal Officers and Business Managers

FOR INFORMATION CONTACT: Kim Shidlowski
PHONE: (609) 292-5259

PURPOSE:

The purpose of this circular letter is to clarify the various approvals
required on Transfer of Appropriation documents. This circular letter
will remain in effect in future years unless a change is made in transfer
approvals through the Appropriations Act. A revised circular letter will
then be issued. The guidelines contained herein are based on the
Appropriations Act (P.L. 1997, C.131) section 11, pages I-1 and I-2 of
the general provisions. Paragraph references are provided below after
each transfer rule.

There are three approval levels for transfers: Accounting Bureau, Office
of Management and Budget (OMB), Budget (OMB), and the Office of
Legislative Services (OLS). The Accounting Bureau reviews all transfers
to ensure proper authorization prior to final approval and posting to the
New Jersey Comprehensive Financial System (NJCFS).

The reviews performed by the units in OMB and OLS concern the propriety
of the document in regard to the Appropriations Act. The nature of the
accounts on a transfer determine whether OMB/Budget approval, OLS
approval, or both are required.

An understanding of the two types of transfers is necessary to comprehend
and conform to the guidelines which follow. An internal transfer is one
in which the organization (four digits), appropriation source (three
digits), and program (five digits) are the same for accounts identified
on the transfer "from and to" line. Internal transfers (with the
exception of 2b on the following page) do not require OMB/Budget or OLS
approvals. A non-internal transfer is one in which the organization,
appropriation source or program are different for accounts identified on
the transfer "from and to" line. Non-internal transfers may require
OMB/Budget and OLS approvals if they meet one of the following
guidelines:

GUIDELINES:

State Transfers

OMB/Budget and OLS approval are required for the following conditions:

1. Any amount on a non-internal transfer in excess of $300,000
   (paragraphs a.(1) and d).

2. Transfers in excess of $50,000 for:
   1. a. Any non-internal transfer from or to a Special Purpose
      account (Major Object 5) or Grant account (Major Object
      6) (paragraph a.(2)); or
   2. b. Any internal transfer from or to a Special Purpose or
      Grant account that changes the legislative intent of
      the appropriation (paragraph a.(3)); or
   3. c. Any transfer between departments or between different
      appropriation uses (e.g. Direct State Service, Grants-
      In-Aid, State Aid, Capital Construction and Debt
      Service). These may also require approval by the Joint
      Budget Oversight Committee (JBOC) (paragraphs a.(4) and
      b); or

3. OMB/Budget designates any transfer for referral to OLS to ensure
   compliance with legislative intent of the Appropriations Act
   (paragraph a.(6)).

Some additional rules are:

1. Capital appropriations can only be transferred to other capital
items except that they can be used for extraordinary snow removal or
extraordinary transportation maintenance upon approval of OMB/Budget
(paragraph d).

2. The Legislature may transfer its own funds without Executive Branch
oversight (paragraph e).

3. The Governor's Contingency Fund and the Salary Program accounts are
not subject to Legislative approval (paragraph f).

Federal Transfers

1. OMB/Budget and OLS approval are required for federal fund transfe rs
in excess of $300,000 when the amount added to the "transfer to"
account exceeds the appropriation authority for that item as defined
by the program class (paragraph a.(5)); or

2. OMB/Budget designates any transfer for referral to OLS to ensure
compliance with legislative intent of the Appropriations Act
(paragraph a.(6)).

NOTE: OMB/Budget refers to either one of two organizational
units within OMB: Budget Operations or Management and
Planning.