HomeMy WebLinkAbout100-16 - Res. County Held Registered Warrants Policy and Procedures Resolution #
County Held Registered Warrants
Policy and Procedures
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 and approved the policy and procedures
for county held registered warrants as shown in Exhibit "A" on November 28 , 2016 .
NOW THEREFORE, BE IT RESOLVED that the Board of County Commissioners upon the
recommendation of the Mason County Finance Committee hereby approve the County Held Registered
Warrants Policy and Procedures as set out in Exhibit "A" .
Approved this oZ day of December, 2016 .
Mason County Board of Commissioners
TERRI JEFF , C it
RANOY NEATHE IN, Commissioner
TIM SHELDON, Commissioner
Attest :
Mitis WRY, C k of the Board
Approved as to form :
TIM WHIThHEA15, Chief Deputy Prosecuting Attorney
EXHIBIT "A"
COUNTY HELD REGISTERED WARRANTS
Policy and Procedures
Updated November 2016
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 :
1 . The Treasurer ' s Office will set a limit on the amount to be registered by each district based
on the needs of taxing districts to a maximum of $ 500 , 000 . 00 annually for all registered
warrants . Recognizing that the annual maximum amount may need to be raised or lowered
in extenuating circumstances , therefore , such annual maximum may be adjusted by a
consensus of the Finance Committee .
2 . Registered warrants are to be called at the end of each month, if not sooner. In no case will
a registered warrant be held past 30 days .
3 . All districts and county departments may participate — based on individual approval .
4 . This process doubles the expenditures on their reports (the original warrants to
vendors and the warrant written and held by the county treasurer. )
5 . 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
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1 . The district or county department issues a warrant to the county treasurer and the head of the
district or department signs a "Letter of Understanding" .
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 original warrant and attach it to the Letter of Understanding .
Place in vault for safekeeping .
4 . Write a Treasurer ' s check to the county treasurer ; give it to the district/department to deposit
back to us on their transmittal form using_their fund and BARS #389- 00 (non-revenue) . 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 computer 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 .
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6 . On the last day of the month or sooner, close all registered warrants .
7 . On the " Letter of Understanding" write "release" and give it back to the district or
department . 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 360days , multiplied by the outstanding warrant amount, multiplied by the
actual number of days the registered warrant is outstanding .
8 . a) For taxing districts write a Treasurer ' s check for the interest anu put it 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 .
b) For county departments use the Payment Remittance form in J/Registered
Warrants/Payment Remittance and follow procedure as noted . May need to have 48 hour
advance notice waived .
9 . a) For taxing districts attach interest check to a deposit transmittal (into Treasurer ' s
Current Expense , BARS #361 - 11 ) and give to the head cashier .
b) For county departments , the Chief Deputy or Finance Accounting Deputy II
Banking/Investments will process the interest payment via Journal Entry using the Payment
Remittance process .
10 . Create a separate deposit (not a miscellaneous receipt) for the original warrant written to
us . This will have a stale date of up to 30 days . (It is okay with the St . Examiners that we
hold registered warrants in our vault for that length of time) .
a. Write 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 off to the side of the control drawer (like an NSF or cashier refund)
d . Mature the investment in the computer.
e . Write in the ledger .
f. Do a slip in the checkbook
11 . Write in the investment calendar the new registered warrant investment on the projected
maturity date .
12 . If the registered warrant is redeemed early enter "matured and the date " under the original
entry .
13 . 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. Call and
reissue at a higher amount.
Approved this 281" day of November. 2016
lsabeth Frazier, Treasurer, Chair
Absent
Karen Herr, Auditor, Secretary
Terri Jeffr ommissioner