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. Fund 11 is experiencing demands on cash due to increases in salary and benefits costs and a declining fund balance. This situation could potentially create a temporary cash shortfall where General Fund advances would be required to carry the fund until reimbursements or discretionary funds are received. 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