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5.1
DOC ID: 3189
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Budget
From: David Cain M/CC Meeting Date: 05/19/2014
Prepared by: Veronica Martinez, (909) 384-
5242
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Dept: Finance Ward(s): All
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Subject:
Establishing Community Service Program Fund(#3189)
Current Business Registration Certificate: Not Applicable
Financial Impact:
The Community Service Program Fund would have a beginning fund balance of$182,047.95.
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Approve opening a new fund called the Community Services Program Fund;
approve the transfer of all FY 2013-14 account activity(deposits & expenses) for
these identified accounts to the new fund along with corresponding budget
appropriations; and approve the transfer of beginning balances for these
Community Service accounts to the new Fund thus closing out the trust accounts.
Synopsis of Previous Council Action:
None.
Background:
State and local governments often function as trustees or agents for resources belonging to
parities outside their respective government. The type of account used for this stewardship is
called and reported as a Fiduciary Fund and most cities have some type of Fiduciary Fund that
may contain a few or many individual trust accounts. The City of San Bernardino is no different
and our Fiduciary Fund is Fund #772 - named Special Deposit Fund. Accounting and financial
reporting guidelines dictate that monies deposited in a Fiduciary Fund cannot be used to support
the government's own programs.
Discussion and Analysis
Over the years, many trust accounts were opened in the Special Deposit Fund and staff is in the
process of analyzing each to determine whether each account meets the accounting and reporting
criteria to remain in the Special Deposit Fund or should be moved and reported elsewhere in the
City's fund accounting system. These funds will now be accounted for in the annual budget
document.
Our review so far has revealed that a number of Fund 772 Community Service trust accounts
L) currently receive, or in prior years, has received program fees and have expended monies for
Updated: 5/6/2014 by Linda Sutherland
3189
operating purposes. This collection and disbursement does not meet the Fiduciary Fund criteria.
At March 31,2014, the financial details for these accounts are:
Beginning Balance July 1,2013 $168,122.63
FY 2013-14 Deposits 20,738.18
FY 2013-14 Expenses - 6.812.86
Balances as of March 31, 2014 $182,047.95
Staff believes that there is a benefit in opening a new fund to account for this activity and is
proposing that a new Special Revenue Fund be opened with the name Community Services
Program Fund.
The second reason for establishing this fund is to allow for the tracking of Community Services
revenues that are collected though user fees or program charges and the costs associated with
providing the various community services programs. This process will allow to community and
the elected officials to determine what programs they wish to offer the residents. Based on these
service levels then a clear decision can be made on how much the General Fund must contribute
to this fund to provide agreed upon service levels, since program revenues do not cover the full
cost of services. This decision would be made each year during the budgeting process.
Recommendations
Approve opening a new fund called Community Services Program Fund.
Approve the transfer of all FY 2013-14 account activity (deposits & expenses) for these
identified accounts to the new fund along with corresponding budget appropriations.
Approve the transfer of beginning balances for these Community Service accounts to the new
Fund thus closing out the trust accounts.
Supporting Documents:
Updated: 5/6/2014 by Linda Sutherland Packet Pg. 200