HomeMy WebLinkAboutstaff agenda report Interfund LoanKittitas County
Board of County Commissioners
Agenda Staff Report
Agenda Date:
June 15, 2021
Action Requested:
Request to adopt a Resolution for an Interfund Loan in the amount of $1,000 to fund 113
Recreation from fund 106 County Road
Background:
On May 6, 2021, a transaction in the amount of $1,000 was exported from the Treasurer’s office
from County Road to Recreation fund for a temporary loan and on May 12, 2021, Recreation
fund transferred $1,000 to County Road for repayment of the temporary loan. After inquiring as
to what these transactions really were, it was determined that it was an interfund loan. My
correspondence with the departments informed them only the Board of County Commissioners
can authorize an interfund.
According to the Budgeting, Accounting and Reporting Systems Manual, Chapter 3.9.1 states:
1. The legislative body of a municipality must, by ordinance or resolution, approve all Interfund
loans, indicating the lending and borrowing funds, and provide in the authorization a planned
schedule of repayment of the loan principal as well as setting a reasonable rate of interest (based
on the external rate available to the municipality) to be paid to the lending fund. The planned
schedule of repayment should specify the due date(s) of payment(s) needed to repay the
principal and interest on the loan.
2. Interest should be charged in all cases, unless:
a. The borrowing fund has no other source of revenue other than the lending fund; or
b. The borrowing fund is normally funded by the lending fund.
The County Treasurer determined the interest on the 7-day loan was $5.25 based upon the
interest rate (.075 % daily rate for seven days) those funds would have collected if invested. The
interest was paid May 28, 2021
Recommendation:
Request the Board to approve the Resolution for an Interfund Loan in the amount of $1,000 to
fund 113 Recreation from fund 106 County Road
Handling:
Return one original to Judy Pless
Please send a copy to Amy Cziske, County Treasurer
Lead Staff
Judy Pless, Budget and Finance Manager