What should a governing body do if it wants to shift funds from one appropriation to another?

In the context of shifting funds from one appropriation to another, making formal journal entries is a crucial administrative action. This process involves documenting the transfer in the official financial records, which ensures transparency and accountability in the management of municipal funds.

Such entries provide a clear audit trail and help maintain accurate financial statements. They also serve to keep stakeholders informed regarding the adjustments made to the budget and the realignment of resources, without needing to secure prior approval from outside entities, such as the state or the public. This method reflects standard accounting practices used in municipal budgeting, where appropriate real-time adjustments can be made through proper documentation and record-keeping.

While notifying the public or seeking state approval may be necessary for other actions or larger budget alterations, the immediate act of transferring funds within appropriations is often governed internally and can be executed through formal journal entries.