HomeMy WebLinkAboutRes 2016-04-161 Interfund Loan Forgiveness.pdfCITY OF ANNA, TEXAS
RESOLUTION NO. 2016-04-\ L \
(lnterfund Loan Forgiveness)
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE
FORGIVENESS OF AN INTERFUND LOAN FROM THE GENERAL FUND TO THE UTILITY
FUND
WHEREAS, The City of Anna (the "City") maintains various accounting Funds to account for
the resources specific to that Fund, and;
WHEREAS, Prior to Fiscal Year 2007 -2008 the General Fund provided resources to the Utility
Fund to pay for liabilities incurred by the Utility Fund, and;
WHEREAS, Ending in Fiscal Year 2006-2007 the Utility Fund has incurred a balance of
$202,079.54 owed to the General Fund that was recorded as an interfund loan, and;
WHEREAS, Governmental Accounting, Auditing, and Financial Reporting Standards (the
"GAAFR") state that interfund loans without a reasonable timeframe for repayment should be
reduced and reported as a transfer; and,
WHEREAS, The balance on the interfund loan is over 8 years old without a reasonable
timeframe for repayment;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA,
TEXAS, THAT:
Section 1. Recitals Incorporated.
The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. Contingency Appropriation
Consistent with GAAFR standards, the City Council hereby authorizes the forgiveness of an
interfund loan from the General Fund to the Utility Fund in the amount of $202,079.54 .
PASSED by the City Council of the City of Anna, Texas, on this 12th day of April 2016.
ATTEST: PPROVED:
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