Sec. 118.301. - Expenditure of appropriated funds.

(a) Each recipient of appropriations made pursuant to this Chapter is responsible for assuring that City funds in its possession are expended as follows: (1) City funds expended by a recipient shall be in accordance with governing laws and regulations of the State and the City. (2) Recipients shall expend City funds in accordance with the budget approved by the City Council, Mayor, Public Service Grant Council, Grant Monitor or Cultural Council. (3) Appropriation moneys may not be expended for the following purposes: (i) Losses arising from uncollectible accounts and other claims, and related costs. (ii) Contributions to a contingency reserve or a similar provision for unforeseen events. (iii) Contributions and donations to other groups or organizations. (iv) Costs of amusements, social activities and incidental costs relating thereto, such as meals, beverages, lodgings, rentals, transportation and gratuities, except for such activities and expenditures relating to the Sister Cities Association Program or the Bob Hayes Invitational Track Meet, Inc. (v) Costs resulting from violations of or failure to comply with federal, State and local laws and regulations. (vi) The salaries and costs of the office of the governor of a state or the chief executive of a political subdivision. These costs are considered a cost of general state or local government. (vii) The salaries and other costs of the Legislature or similar local governmental bodies such as County commissioners, City councils and school boards, whether incurred for purposes of legislation or executive direction. (viii) Interest on borrowings (however represented), bond discounts, cost of financing and refinancing operations and legal and professional fees paid in connection therewith. (ix) Non-cash Expenses as defined in Section 118.104 . (x) Costs of any audits required under this Chapter. (4) Equipment, property, or tangible personal property purchased with City Grant funding, must be non-consumable and consistent with City capitalization level requirements over Section 122.801 (e) Ordinance Code, as amended and a useful life of one year or more and shall be inventoried. The recipient shall maintain property inventory records, acquisition documents and usage records. Upon the expiration of its use for an approved public purpose, the equipment, property, and tangible personal property shall be transferred free and clear of all liens and encumbrances to the City or disposed of as authorized in writing by the City. (5) Unless otherwise provided in the agreement, the appropriation funds are to be expended during the City's Fiscal year. Any funds which are residual funds remaining unspent or unencumbered by any existing (not contingent) legal obligation at the end of the contract period shall be returned to the City in the form of a negotiable instrument not later than 90 days after the close of the period, except that when a recipient continues to receive an appropriation from the City in the next fiscal year, a limited amount of residual funds may be carried forward from September 30 to October 1, which shall not exceed ten percent of the current appropriation to the recipient or $500, whichever is greater. The City appropriation for the new fiscal year shall, however, be reduced by the amount of the unencumbered residual funds so carried forward. Any additional unencumbered residual funds shall be returned as provided hereinabove. (b) A grant monitor shall report changes, if any, in the City funds budget to the City Council Auditor's Office annually. (Ord. 2009-868-E, § 2)