Title
Public Health Department recommending the Auditor-Controller be authorized to make cash advances from the General Fund to the Public Health Department Special Revenue Fund 11 on an as needed basis to prevent negative cash balances in said fund; advances will be reimbursed, with interest, as determined by the Auditor-Controller.
RECOMMENDED ACTION: Approve.
FUNDING: General Fund, restricted funds, and realignment revenue
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Fiscal Impact/Change to Net County Cost: Expenditures incurred in the Public Health Department Special Revenue Fund 11 (Fund 11) are fully funded through restricted funds and realignment revenue. A General Fund advance would provide temporary operating cash only and is, therefore, not considered an expenditure to the General Fund, requiring no appropriation. Additionally, as stated above, a General Fund advance will be repaid with interest as determined by the Auditor/Controller.
Reason for Recommendation: Fund 11 has consistently maintained a positive cash balance over the last five years, and the Department does not anticipate requiring an advance; however, the possibility does exist depending on the timely receipt of revenue. Due the Department depending on a significant amount of its revenue coming from the State there are times, usually in the beginning of the fiscal year, when it is slow or delayed in coming. The Department monitors expenditures and if a low cash balance is forecast will delay purchases until the cash balance is restored. However this may not be sufficient to offset low cash balances due to the need to pay salaries and benefits. Consequently, the Department needs to secure Board authorization for cash advances as a precautionary measure to prevent negative cash balances.
Action to be taken following Board approval: Auditor will have authorization to make cash advances from the General Fund to Fund 11.
Contact: Dan Buffalo