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