Code Number: 801.2
All loans between funds within a fiscal year must be accomplished through official Board action and may not be accomplished until the board by resolution authorizes the loan. The Superintendent or his/her designee may make recommendations to the Board regarding interfund loans. An interfund loan must not constitute an amendment to the budgeted revenues or expenditures for the fiscal year.
The resolution must specify the funds from which and to which the transfer will be made. A note is not necessary if the resolution specifies the terms of repayment including the payment of interest.
Interest must be paid from the borrowing fund on the unpaid balance at the rate in effect at the time of the loan as established by rule pursuant to Iowa Code section 74A.6, subsection 2.
The loan must be repaid before October 1 of the fiscal year following the fiscal year within which the loan occurred. In the event repayment cannot be made by that time, the District must proceed under the provisions of Iowa Code Chapter 74 to issue anticipatory warrants or seek approval of the voters pursuant to Iowa Code section 278.1(e) for transfer of surplus funds from the debt service, physical plant and equipment levy, capital projects, or public education and recreation levy funds to the general fund, or, for other transfers, seek approval from the state appeal board pursuant to Iowa Code section 24.22.
Interfund loans within a fiscal year do not require state appeal board approval so long as they are repaid by October 1 of the following fiscal year.
- First Adoption:
- 1985-08-27
- Revision Adoption:
- August 12, 1997/ March 23, 2004/ January 25, 2010/ February 9, 2015/ August 10, 2020
- Reviewed Dates:
- June 23, 2020
- Legal Reference:
-
Iowa Code Ch. 74; 298A; ยงยง24.22, .34; 278.1(e); 279.33
25 D.O.E. App. Dec. 183 (2009)