Police budget accounting change requires $377,000 transfer
The addition into the budget of paid-out holiday and sick time accrued at the time of retirement has resulted in the Abbotsford Police Department (APD) having to move funds from capital and operating reserves to cover the gap.
Const. Ian MacDonald said the accounting change resulted in a $377,000 deficit in this year’s budget, which is being covered by moving $200,000 from the operating reserve and $177,000 from the capital reserve.
MacDonald said the funds cover officers’ banked vacation and sick time in their last year of work.
Although these costs have always been on the books, the money now has to be allocated at the beginning of the year instead of in the following year’s budget after the money has been paid out.
The change was not known until after the 2013 budget had already been finalized.
MacDonald said it is not anticipated that moving the funds from the operating and capital reserves will have an impact.