Utah Code Jud. Admin. 3-406

As amended through October 28, 2024

Rule 3-406 - Budget and fiscal management

Intent:

To accomplish the mission of the judiciary through sound fiscal management.

To provide sound fiscal management by financially supporting both existing programs and creating new programs that enable the Courts to effectively provide an open, fair, efficient and independent system for advancement of justice under the law.

To maintain accountability for appropriated funds, and to maintain a balanced budget.

To cooperate with the Governor and the Legislature in managing the fiscal resources of the state.

Applicability:

This rule shall apply to the management of all funds appropriated by the state to the judiciary as well as grant funds used by the judiciary.

Statement of the Rule:

(1) Fiscal offices and programs. For purposes of fiscal management, the judiciary is divided into offices (which generally provide services to other areas within the judiciary) and programs (which generally provide services to court patrons). Each office and program budget is managed by a budget manager who has approval authority from the Administrative Office's finance group ("AOC Finance") to authorize disbursements. This approval authority is granted based on AOC Finance's periodic review to ensure adequate separation of duties (as defined by generally accepted accounting principles) for each budget manager. The budget manager is designated by the state court administrator or designee. AOC Finance periodically reports to the Budget and Fiscal Management Committee. ("BFMC") on the adequacy of separation of duties.

(2) udget management.

(2)(A) Responsibility of the Council. The responsibility of the Council is to:

(2)(A)(i) cooperate with the Governor and the Legislature in managing the fiscal resources of the state;

(2)(A)(ii) assure that the budget of the judiciary remains within the limits of the appropriation set by the Legislature; and

(2)(A)(iii) allocate funds as required to maintain approved programs and to assure a balanced judicial budget.

(2)(B) Responsibility of the state court administrator. It is the responsibility of the state court administrator to:

(2)(B)(i) implement the directives of the Council;

(2)(B)(ii) manage the judiciary's budget; and

(2)(B)(iii) negotiate on behalf of the Council the position of the judiciary with the executive and legislative branches.

(2)(C) Responsibility of AOC Finance. It is the responsibility of AOC Finance to:

(2)(C)(i) ensure timely payment of all accounts payable;

(2)(C)(ii) monitor all expenditures and collections versus budget;

(2)(C)(iii) provide monthly financial reports to budget managers, the state court administrator, the BFMC and the Council; and

(2)(C)(iv) develop a manual of procedures (Accounting Manual") to govern accounts receivable of accounts payable, trust accounts, the audit thereof, and the audit of administrative procedures generally. The procedures shall be in conformity with generally accepted principles of budgeting and accounting and shall, at a minimum, conform to the requirements of this rule and state law.

(2)(D) Responsibility of the budget managers. Within their respective areas of responsibility, it is the responsibility of the budget managers to:

(2)(D)(i)comply with the directives of the Council and the state court administrator;

(2)(D)(ii) administer the reduction or redirection of allocations;

(2)(D)(iii) monitor all expenditures and collections versus budget;

(2)(D)(iv) supervise and manage budgets in accordance with the Accounting Manual; and

(2)(D)(v) develop recommendations for, budget requests to be funded by the Legislature and changes to programs or offices that create efficiencies that reduce or redirect allocations.

(2)(E) Responsibility of court executives. Within their respective courts, it is the responsibility of court executives to:

(2)(E)(i) comply with the directives of the Council, the state court administrator or designee, and to consult with the presiding judge and the individual judges of that jurisdiction concerning budget management;

(2)(E)(ii) develop work programs that encumber no more funds than may be allocated, including any reduction in allocation;

(2)(E)(iii) amend work programs as necessary to reflect changes in priorities, spending patterns, or allocation;

(2)(E)(iv) credit and debit accounts that most accurately reflect the nature of the planned expenditure;

(2)(E)(v) authorize expenditures;

(2)(E)(vi) prepare warrants and other authorizations for payment of accounts payable for submission to the AOC Finance;

(2)(E)(vii) monitor all expenditures and revenues to budget for variances; and

(2)(E)(viii) develop recommendations for, budget requests to be funded by the, Legislature and changes to programs or offices that create efficiencies that reduce or redirect allocations.

(2)(F) Process. After the legislative general session the BFMC and state court administrator shall consider all sources of funds and all obligated funds and develop a recommended spending plan that most closely achieves the priorities established by the Council at the prior annual planning meeting. The BFMC shall present the recommended spending plan to the Council for approval.

(3) Budget development.

(3)(A) Responsibility of the Council. It is the responsibility of the Council to:

(3)(A)(i) establish responsible budget requests to be funded by the Legislature that best enable the judiciary to achieve the goals of its policies;

(3)(A)(ii) develop the budget of the judiciary based upon the needs of organizations and the priorities established by the Council;

(3)(A)(iii) communicate the budget of the judiciary to the executive and legislative branches; and

(3)(A)(iv) allocate funds to the budget managers of courts in accordance with priorities established by the Council.

(3)(B) Responsibility of the juvenile, district, and appellate boards (Boards"). It is the responsibility of the Boards to:

(3)(B)(i)develop recommendations for budget requests to be funded by the Legislature; and

(3)(B)(ii) review, modify, and approve program and office budgets for submission to the BFMC.

(3)(C) Responsibility of the state court administrator. It is the responsibility of the state court administrator to:

(3)(C)(i) negotiate on behalf of the Council the position of the judiciary with the executive and legislative branches;

(3)(C)(ii) implement the Council's fiscal priorities and allocation of funds; and

(3)(C)(iii) work with the BFMC and the Boards of judges to manage the judiciary's budget, including recommending (1) budget requests to be funded by the Legislature and (2) changes to programs or offices that create efficiencies that reduce or redirect allocations.

(3)(D) Responsibility of the administrative office. It is the responsibility of the Administrative Office to:

(3)(D)(i) develop a schedule for the timely completion of the budget process, including the completion of all intermediate tasks;

(3)(D)(ii) assist budget managers and court executives in the preparation of budget requests, including those funded by the Legislature; and

(3)(D)(iii) compile the budget of the judiciary.

(3)(E) Responsibility of the budget managers. Within their respective areas of responsibility, it is the responsibility of budget managers to review, modify, and approve budget requests.

(3)(F) Responsibility of court executives. Within their respective courts, it is the responsibility of court executives to:

(3)(F)(i) work closely with presiding judges, judges, and staff to determine the needs of the organization; and

(3)(F)(ii) develop recommendations for budget requests that adequately and appropriately meets those needs.

(3)(G) Process.

(3)(G)(i)Each Board, each court and committee and each department of the Administrative Office may develop, prioritize and justify a budget request to be funded by the Legislature. The courts shall submit their requests to the appropriate Board. The committees and the departments of the Administrative Office shall submit their requests to the state court administrator.

(3)(G)(ii)The state court administrator shall deliver to the Boards the Administrative Office requests and the Boards shall consolidate and prioritize the requests from the courts committees and departments. AOC Finance shall consolidate all of the Boards' 194 prioritized lists for review by the BFMC.

(3)(G)(iii) The BFMC shall review and analyze all prioritized budget requests and develop a recommended budget request and funding plan. The BFMC shall review the analysis and the recommended budget request and funding plan with the Council.

(3)(G)(iv) At its annual planning meeting the Council shall consider all prioritized requests and the analysis and recommendations of the BFMC and approve a prioritized budget request and funding plan for submission to the governor and the legislature.

(4) General provisions.

(4)(A) Appropriations dedicated by the Legislature or allocations dedicated by the Council shall be expended in accordance with the stated intent.

(4)(B) All courts and the Administrative Office shall comply with the provisions of state law and the Accounting Manual.

(4)(C) Reductions in allocations, reductions in force, and furloughs may be ordered by the state court administrator with notice to the Council. In amending the work program to reflect a budget cut, reductions in force and furloughs shall be used only when absolutely necessary to maintain a balanced budget. If reductions in force are necessary, they shall be made in accordance with approved personnel procedures. If furloughs are necessary, they should occur for no more than two days per pay period.

Utah Code Jud. Admin. 3-406

Amended effective 5/1/2020; amended May 23, 2023, effective 11/1/2023.