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Supersedes 1GR 06-209 and Inconsistent Prior Written Statements <br /> APPROPRIATION TRANSFERS (G.L. c. 44, § 33B) <br /> SUMMARY: <br /> These guidelines explain amendments to the alternative end-of-year budget transfer procedure <br /> under G.L. c. 44, § 33B. The changes give cities and towns greater flexibility to make year-end <br /> budget transfers for the last two months of the fiscal year, i.e., May and lune, and the first 15 <br /> days of July of the new fiscal year, which is the statutory period for closing municipal financial <br /> records for the fiscal year. G.L. c. 44, §§ 56 and 56A. <br /> These amendments were made by the Municipal Modernization Act, which took effect on <br /> November 7, 2016. St. 2016, c. 218, §§ 75 and 76.The amendments eliminate the limits on types <br /> and amounts of end-of-year appropriation transfers that can made under the alternative <br /> procedure. <br /> End-of-fiscal-year transfers may now be made from health insurance, debt service or other <br /> unclassified or non-departmental line item appropriations. In addition, the amount that may be <br /> transferred from any department under this procedure is no longer limited to three percent of <br /> the department's budget. <br /> The school and light departments remain exempt from this procedure. <br /> These guidelines are in effect and supersede Informational Guideline Release (IGR) No. 06-209, <br /> Appropriation Transfers, and any inconsistent prior written statements or documents. <br /> GUIDELINES: <br /> A. APPROPRIATION TRANSFERS IN GENERAL <br /> 1. Available Amount The amount of any appropriation available to be used as a financing source <br /> for another appropriation is the unspent and unencumbered balance, i.e., the amount after all <br /> potential liabilities to be charged to the appropriation are considered.Accounting officers should <br /> determine this amount before any transfer from an appropriation is approved. <br /> 2. Available Use Transfers from surplus bond proceeds after a project that was financed by <br /> borrowing has been completed or abandoned may only be made in the manner and for the <br /> purposes set forth in G.L. c. 44, § 20. Transfers from appropriations financed by other restricted <br /> sources, e.g., stabilization, enterprise, water surplus or community preservation funds, are <br /> subject to the same statutory restrictions as the original appropriations. <br /> 3. Governing Law <br /> The procedures explained in these guidelines govern appropriation transfers unless a charter or <br /> special act provides otherwise. Officials should consult with municipal counsel about any <br /> applicable charter or other provisions. <br /> Page 1 of 2 <br />