Advisory Board: County Service Area P-5 (Round Hill) Citizens Advisory Committee
Subject: P5 Fund Interest Earning
Information:
Why the Fund is Not Earning Interest
There are two primary reasons why the fund has not seen interest income since Fiscal Year 2017-18:
1. Liquidation of Investments: In December 2017, the $100,000 that was previously held in Local Agency Investment Fund (LAIF) investments for this fund was liquidated based on instructions from the Sheriff’s Office. Since that time, no new investments have been made.
2. Current Cash Status: The fund’s current balance is being held as a Cash Balance (ledger account 0010) rather than an Investment Balance (ledger account 0210). Standard cash accounts in the county system do not automatically accrue interest unless they are specifically designated to receive quarterly apportionments.
Steps Required to Earn Interest
To begin earning interest on these funds, the funds must be moved from a simple cash account to an interest-bearing status. According to the Assistant County Treasurer, the process is as follows:
1. Draft a Staff Report: District II staff will need to prepare a formal staff report explaining the request to have Fund 265500 receive quarterly interest apportionments.
2. Board of Supervisors Approval: Agendize the item for a Board of Supervisors meeting. The Board must officially approve the designation of this fund as an interest-earning account.
3. Notify General Accounting: Once the Board approves the item, you must send the approved staff report to the General Accounting division of the Auditor-Controller’s Office.
4. Administrative Update: Upon receiving the approved report, General Accounting will add Fund 265500 to the official list of funds that receive quarterly interest income apportionments from the county's investment pool.
Key Contacts:
• Belinda Zhu: Assistant County Treasurer (provides the procedural guidance).
• Peter Karumbi: Assistant County Auditor-Controller (manages the division that will implement the change).