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Agenda Item
ASR
Control 19-000506 |
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MEETING DATE: |
06/25/19 |
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legal entity taking action: |
Board of Supervisors and Orange County Housing
Authority |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Auditor-Controller
(Approved) |
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Department contact
person(s): |
Eric H. Woolery (714) 834-2457 |
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JC Squires (714) 834-5521 |
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Subject: Temporary Transfer of Cash
Between Various Funds
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 06/26/2018
#31, 06/27/2017 #32, 06/28/2016 #49, 06/16/2015 #19 |
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RECOMMENDED ACTION(S):
Adopt resolution concerning temporary transfer of cash between various funds.
SUMMARY:
Establish by resolution the temporary transfer of cash between various funds to address potential cash shortages.
BACKGROUND INFORMATION:
Government Code Section 25252 authorizes the transfer of money between funds as the public interest requires. Government Code Section 53635.7 requires separate discussion of any items involving borrowing in the amount of $100,000 or more. Certain County funds, including the General Fund as well as certain Orange County Housing Authority (OCHA) funds, may experience cash deficits during the period July 1, 2019, through June 30, 2020. This agenda item authorizes the temporary transfer of cash, so that if the need arises, the authorization to provide the necessary cash flow is already in place.
The following funds (hereafter referred to as "Available County Funds") have cash available to make temporary transfers to deficit County funds:
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100 |
County General Fund |
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102 |
Santa Ana Regional Center Lease Conveyance |
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117 |
OCHA Operating Reserve (up to $7 Million) |
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13W |
Health Care Agency Realignment |
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135 |
Real Estate Development Program |
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14T |
Operations Facilities Development & Maintenance Fund |
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15B |
County Executive Office Single Family Housing |
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15D |
Countywide Capital Projects Non General Fund |
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15I |
Countywide IT Projects Non General Fund |
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296 |
OC Fleet Services |
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405 |
OC Parks CSA 26 (up to $23 Million) |
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406 |
OC Parks Capital (up to $12 Million) |
Because cash shortages could occur with short notice, the Auditor-Controller's Office is requesting advance authority by the County Board of Supervisors (Board) to cover potential shortages. The Auditor-Controller's Office further requests that all loans be conditioned on and subject to the written approval of the County Executive Officer (CEO) or designee. Upon each cash deficit, the CEO will designate the fund to provide the cash loan from the above list of funds.
Cash Flow Loan Authorization included in this agenda item is summarized as follows:
Borrowing authority requested by Fund not to exceed:
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100 County General Fund |
$ 154,000,000 |
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146 Workforce Investment Act |
$ 2,000,000 |
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15F OC Housing Authority |
$ 30,000,000 |
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15G OC Housing |
$ 5,500,000 |
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104 Criminal Justice Facility |
$ 5,000,000 |
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289 OC Information Technology (OCIT) Countywide Services |
$ 5,000,000 |
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109 Co Automated Fingerprint ID |
$ 250,000 |
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590 In-Home Supportive Services (IHSS) Public Authority |
$ 500,000 |
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168 Extra-Help Defined Contribution 3121 Plan |
$ 33,000 |
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169 401(a) Defined Contribution Plan |
$ 42,000 |
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17B Health Savings Reimbursement Account |
$ 450,000 |
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17C 1.62 Retirement - Defined Contribution Plan |
$ 70,000 |
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309 Attached Salary Trust Fund |
$ 14,500,000 |
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249 Retirement Contributions |
$ 27,500,000 |
TRANSFERS BETWEEN FUNDS
1. Temporary Transfers of Cash to the County General Fund
The County General Fund may experience temporary cash shortages during the fiscal year due to delays in receiving property taxes and state revenues. To ensure that the County General Fund will continue its operations, authorization is requested to make temporary cash transfers to the County General Fund 100 of up to $154 million in cash from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. Transfers would be made incrementally throughout the year; therefore, collectively, the lending funds would not need to have $154 million available at any given time. As property tax and other revenues are received, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds. Interest will not be charged on temporary transfers from Fund 13W, because interest earned on Fund 13W is credited to the General Fund.
2. Temporary Transfers of Cash to Workforce Investment Act Fund 146
The Workforce Investment Act Fund 146 may experience temporary cash shortages due to the timing of reimbursement from federal funds. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $2 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As revenues are available in Fund 146, retransfers will be made without interest, because interest is not allowed per federal regulations.
3. Temporary
Transfers of Cash to OCHA Fund 15F
The OCHA Fund 15F may experience temporary cash shortages due to the timing of reimbursement from federal funds. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $30 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As revenues are available in Fund 15F, retransfers will be made without interest, because interest is not allowed per federal regulations.
OCHA receives funding from the U.S. Department of Housing and Urban Development (HUD) for the monthly rental assistance payments made under the Section 8 Rental Assistance Program. The monthly funding is received on the same day the checks are mailed to the landlords participating in the Section 8 Program. If a monthly payment from HUD is delayed, it would prohibit the timely issuance of checks. To ensure that OCHA can continue the Section 8 Program and maintain a good relationship with landlords, it is necessary for OCHA to temporarily transfer cash from the OCHA Operating Reserve Fund 117 into the OCHA Fund 15F for continued operation of the Section 8 Checking Account. As HUD and other revenues are received, retransfers will be made without interest, as interest is not allowed per federal regulations.
4. Temporary Transfers of Cash to OC Housing Fund 15G
The OC Housing Fund 15G may experience temporary cash shortages due to the timing of reimbursement from federal funds. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $5.5 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As revenues are available in Fund 15G, retransfers will be made without interest, because interest is not allowed per federal regulations.
5. Temporary
Transfers of Cash to Criminal Justice Facility Fund 104
The Criminal Justice Facility Fund 104 may experience temporary cash shortages due to delayed receipt of court fines. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of cash up to $5 million to Fund 104 from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As revenue is received, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
6. Temporary
Transfers of Cash to OCIT Countywide Services Fund 289
The OCIT Countywide Services Fund 289 may experience temporary cash shortages due to the timing of billings from vendors and departments. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $5 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As cash is available in Fund 289 retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
7. Temporary
Transfers of Cash to Co Automated Fingerprint ID Fund 109
The Co Automated Fingerprint ID Fund 109 may experience temporary cash shortages due to the timing of reimbursement from participating cities. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $250,000 in cash from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As cash is available in Fund 109 retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
8. Temporary
Transfers of Cash to IHSS Public Authority Fund 590
The IHSS Public Authority Fund 590 may experience temporary cash shortages due to reimbursement of expenses in arrears from the state. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $500,000 in cash from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As revenues are available in Fund 590, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
9. Temporary Transfers of Cash to Extra-Help Defined Contribution 3121 Plan Fund 168 and 401(a) Defined Contribution Plan Fund 169
The Extra-Help Defined Contribution 3121 Fund 168 and 401(a) Defined Contribution Plan Fund 169 may experience temporary cash shortages due to timing issues involving the processing of accounting transactions. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $33,000 to Fund 168 and up to $42,000 to Fund 169 from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As cash is available in Funds 168 and 169, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
10. Temporary Transfers of Cash to Health Savings Reimbursement Account Fund 17B and 1.62 Retirement - Defined Contribution Plan Fund 17C
The Health Savings Reimbursement Account Fund 17B and the 1.62 Retirement - Defined Contribution Plan Fund 17C may experience temporary cash shortages due to timing issues involving the processing of accounting transactions. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $450,000 to Fund 17B and up to $70,000 to Fund 17C from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As cash is available in Funds 17B and 17C, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
11. Temporary Transfers of Cash to Attached Salary Trust Fund 309
The Attached Salary Trust Fund 309 may experience temporary cash shortages due to timing issues involving the processing of accounting transactions. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $14.5 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. Interest will not be charged on temporary transfers from the General Fund, because interest earned on Fund 309 is directed to the General Fund.
12. Temporary Transfers of Cash to Retirement Contributions Trust Fund 249
The Retirement Contributions Trust Fund 249 may experience a temporary cash shortage due to timing issues involving the processing of accounting transactions. The Auditor-Controller's Office is requesting authorization to make temporary cash transfers of up to $27.5 million from Available County Funds on an as-needed basis to cover any potential shortfalls during the period July 1, 2019, through June 30, 2020. As cash is available in Fund 249, retransfers will be made with interest equal to the rate earned by the Treasurer-Tax Collector on commingled funds.
All of the transfers from County funds would be subject to the written approval of the CEO or designee.
All transfers from the OCHA Operating Reserve 117 to the OCHA Fund 15F for the Section 8 checking account would be subject to the written approval of the OC Community Resources Director or designee.
Notification of each advance will be provided to each Board office.
All cash advances are repaid to Available County Funds by June 30, 2020, or soon thereafter.
Prior Board
Actions:
On June 26, 2018, the Board for FY 2018-19 adopted resolution 18-060 authorizing the Auditor-Controller to make temporary transfers of cash between various funds. On June 27, 2017, the Board for FY 2017-18 adopted resolution 17-071 authorizing the Auditor-Controller to make temporary transfers of cash between various funds. On June 28, 2016, the Board for FY 2016-17 adopted resolution 16-052 authorizing the Auditor-Controller to make temporary transfers of cash between various funds. On June 16, 2015, the Board for FY 2015-16 adopted resolution 15-051 authorizing the Auditor-Controller to make temporary transfers of cash between various funds.
FINANCIAL IMPACT:
This is a non-financial ASR as the loans are temporary.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Resolution
Attachment B - California Government Code Section 25252 Financial Powers
Attachment C - California Government Code Section 53635.7 Deposit of Funds