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HomeMy WebLinkAbout2022-018 - Res. County Held Registered Warrant Policy & Procedures RESOLUTION# Z -015 COUNTY HELD REGISTERED WARRANT POLICY&PROCEDURES AMENDING RESOLUTION#100-16 WHEREAS,Mason County recognizes that it is fiscally responsible to define policy and procedures for the use and approval of Registered Warrants as an approved Investment option as delineated in the Approved Mason County Investment Policy and, WHEREAS,the Mason County Finance Committee has reviewed,updated and approved the policy and procedures for county held registered warrants as shown in Exhibit"A"on March 1,2022. NOW THEREFORE,BE IT RESOLVED that the Board of County Commissioners upon the recommendation of the Mason County Finance Committee hereby approve the updated"County Held Registered Warrants Policy and Procedures"as set out in Exhibit"A". Approved this \5'0^ day of March,2022. Mason County Board of Commissioners )C9--I Kevin Shu air Randy Weatherlin,Commissioner Sharon Trask,06missioner Attest: Mckenzie SniAh,Clerk of the Board Approved as to form: Tim Whi ief Deputy Prosecuting Attorney EXHIBIT "A" COUNTY HELD REGISTERED WARRANTS Policy and Procedures Updated March 1, 2022 Whereas,the Mason County Investment Policy makes provision for investing in registered warrants, it is therefore prudent to set out the following Policy and Procedures: The Treasurer's Office will set a limit on the amount to be registered by each district based on the needs of taxing districts. The Treasurer will notify the Finance Committee via email or other communication within 24 hours when the amount of registered warrants exceeds $1,000,000.00 at any given time. The Treasurer will report to the Finance Committee at least quarterly the amount of registered warrants held as investments by the county. Registered Warrants will be held for 30 days from the date of issuance. The Treasurer has the authority to extend the 30 day redemption requirement only after reviewing such circumstances as laid out in writing by the county department/district and such extension meets the investment objectives of the county investment policy. The Treasurer will notify the Finance Committee via email or other communication within 24 hours if the Treasurer has extended the 30 day redemption requirement. All districts and county departments may participate—based on individual approval and available registered warrant investment balance. School districts should consider whether it is feasible to take an advance on their monthly apportionment. School Districts should contact the ESD before registering warrants --------------------------------------------------------------------------------------------------------------------- Issuing Registered Warrant Process 1. The district or county department issues a signed"Letter of Understanding for the Issuance of Registered Warrants and Promissory Note"to the county treasurer. Said Letter of Understanding must be signed by the District Board Chair or authorized representative. 2. Verify with the State Pool (LIGP) for the current interest rate and add 2% for the registered interest rate. 3. Write that interest rate on the "Letter of Understanding for the Issuance of Registered Warrants and Promissory Note". 4. Write a treasurer's check payable to the county treasurer and receipt using their transmittal form containing the fund and BARS#391.60, Anticipation Notes/Warrants. This is like an investment check, so in the description box in the checkbook it should say"TDC Registered Warrant Investment". This is not a remittance. 5. Create an entry in the investment ledger(i.e.: Registered Warrants). a. Enter in the Quickbooks Chart of accounts & MUNIS for TDC. There is a separate account number. b. Enter on the front of the cash sheet, as a deposit in"TDC Registered Warrants"line. c. Enter the investment information in the Registered Warrant Ledger(J Drive— Investment Folder). d. On the office calendar—at least one day prior to redemption date (28—29 days from date of issuance)—note that Registered Warrant and Promissory Note needs to be redeemed on specified date (30 days from issuance. Redeeming Registered Warrant Process 6. Calculate the interest to be paid based on the Bank Method: "The annual interest rate will be computed on a 365/360 basis; this is, by applying the ration of the annual interest rate over a year of 360 days,multiplied by the outstanding warrant amount,multiplied by the actual number of days the registered warrant is outstanding 7. On the"Letter of Understanding"write the date of payment and"PAID" give a copy to the district or department. Original should be filed in the "Registered Warrants" file, in the Investment file cabinet. 8. For taxing districts create a miscellaneous receipt and remit the matured registered warrant amount and interest due from the districts appropriate fund. Write a Treasurer's check for the matured registered warrant amount and interest create a miscellaneous receipt for the interest only and deposit to the Treasurer's Current Expense Fund—BARS 361-10. (see#10 below "Mature the Investment") and enter on the cash sheet under"Interest"with the notation of Registered Warrant Interest and the district name. This is a remittance process,but a disbursement on the cash sheet. 9. a)For county departments, using the county payment remittance process, send a remittance request to the Auditor's Office. Upon approval create a miscellaneous receipt and remit the interest due from the appropriate county fund to the Treasurer's Current Expense—BARS 3 61-10 (this will be a zero receipt). b)For county departments, create invoice for interest using J/Registered Warrants/ Registered Warrant Interest Invoice. Then create the Payment Remittance form in J/Registered Warrants/Payment Remittance and follow procedure as noted on the payment remittance form. May need to have 48 hour advance notice waived. 10. Mature the investment: a. Enter on the front of the cash sheet for the matured investment. b. Enter on the back of the cash sheet as a deposit. c. Enter in the checkbook d. Mature the investment in the QuickBooks Chart of Accounts, MUNIS and the Registered Warrant Ledger(J Drive—Investment Folder). 11. If the registered warrant is redeemed early enter"PAID and the date"under the original entry following the process as listed above. 12. If a new registered warrant investment is done enter that under the new projected maturity date. If the district or county department wishes to stay on registered warrants they will need to go through this whole process again. There is no rollover of this type of investment unless approved by the Treasurer. Call and reissue at a higher amount. Approved this 1 st day of,March, 2022. r 1 Elisabeth Frazie re urer, Chair Pa dy McGuire,Auditor, Secretary �5; ! Kevin Shutty, Commissioner