Policy 6021

Inter-fund loans between the general fund, the transportation vehicle fund, the capital projects fund, or the debt service fund may be used to alleviate a temporary cash deficiency.

Such loans shall not be used to balance the budget of the borrowing fund; nor shall they deter any function or project for which the fund was established.

The board must adopt a resolution before any inter-fund loan transaction takes place. The resolution shall contain the exact amount of the loan, the funds involved, the specific source of funds for repayment and anticipated term of the loan. The borrowing fund shall pay interest at a rate equal to the registered warrant interest rate established by the county treasurer.

Legal References:
RCW 28A.505.150 Budgeted expenditures as appropriations — Interim expenditures — Transfer between budget classes — Liability for non-budgeted expenditures
WAC 392-123-135 Inter-fund loans through 160

 

 

La Center School District Adopted: February 27th, 2007