Interfund Transfers from an Enterprise Fund (subsidy transfers UCA C, M, D, IL Towns: or services provided without payment) Public Notice and – Hearing Requirements Cities: For counties: Determine whether the county included the Districts: interfund transfers in an original budget or in a subsequent budget amendment approved by the governing body for the fiscal year Counties: under audit. If the county did not, proceed to step b. Interlocals & GvtNPOs: For all other local government entities, proceed to step b: For the applicable entities noted in a. above, determine that the governing body held a public hearing and provided written notice of the: Date, time, and place of hearing. Purpose of the hearing. The enterprise fund from which the cash or goods would be transferred. The fund to the cash or goods would be transferred. The amount/value of cash or goods transferred. Determine that the notice was: Mailed or transmitted to each enterprise fund customer. Distributed at least seven days before the hearing. A separate notification from the customers’ utility bill. Exception: An entity may determine that the amount of the services provided without payment by the enterprise fund to the general fund is less than or equal to the amount of general fund overhead to be allocated to the enterprise fund. In this case, there would be an equivalent flow of resources between funds and the additional public notice and hearing requirements would not be applicable. The entity should still, however, determine and record the flow of those resources. Interfund Loans For enterprise funds loaned to another fund: UCA C, M, – D, IL Towns: [Note not applicable to loans from the general fund to any other fund or – short-term advances from a cash and investment pool to individual Cities: funds that are repaid by the end of the fiscal year.] Districts: Determine that the loan was in writing and contained the following terms and conditions: Counties: Effective date of the loan. Interlocals & GvtNPOs: Name of the fund loaning the money. Name of the fund receiving the money. Amount of the loan. Term of and repayment schedule of the loan (not to exceed 10 years). Interest rate of the loan (if less than one year, the interest rate cannot be less than the rate offered by the PTIF, if greater than one year the rate cannot be less than the
UCA Towns: Cities: Districts: Counties: Interlocals & GvtNPOs: C, M, D, IL Interfund Transfers from an Enterprise Fund (subsidy transfers or services provided without payment) – Public Notice and Hearing Requirements For counties: Determine whether the county included the interfund transfers in an original budget or in a subsequent budget amendment approved by the governing body for the fiscal year under audit. If the county did not, proceed to step b. For all other local government entities, proceed to step b: For the applicable entities noted in a. above, determine that the governing body held a public hearing and provided written notice of the: Date, time, and place of hearing. Purpose of the hearing. The enterprise fund from which the cash or goods would be transferred. The fund to the cash or goods would be transferred. The amount/value of cash or goods transferred. Determine that the notice was: Mailed or transmitted to each enterprise fund customer. Distributed at least seven days before the hearing. A separate notification from the customers’ utility bill. Exception: An entity may determine that the amount of the services provided without payment by the enterprise fund to the general fund is less than or equal to the amount of general fund overhead to be allocated to the enterprise fund. In this case, there would be an equivalent flow of resources between funds and the additional public notice and hearing requirements would not be applicable. The entity should still, however, determine and record the flow of those resources. UCA Towns: Cities: Districts: Counties: Interlocals & GvtNPOs: C, M, D, IL Interfund Loans – For enterprise funds loaned to another fund: [Note – not applicable to loans from the general fund to any other fund or short-term advances from a cash and investment pool to individual funds that are repaid by the end of the fiscal year.] Determine that the loan was in writing and contained the following terms and conditions: Effective date of the loan. Name of the fund loaning the money. Name of the fund receiving the money. Amount of the loan. Term of and repayment schedule of the loan (not to exceed 10 years). Interest rate of the loan (if less than one year, the interest rate cannot be less than the rate offered by the PTIF, if greater than one year the rate cannot be less than the
Chapter-2.-Audit-Procedures-to-be-Performed-at-Least-Every-Third-Year-1.docx