RESOLUTION TO TRANSFER FUNDS FROM GENERAL PURPOSE SCHOOL FUNDS TO FEDERAL PROJECTS FUND FOR FISCAL YEAR ENDING JUNE 30, 2009
WHEREAS, Federal Projects grants operate on a reimbursement basis and funds are requested from the State of Tennessee by Volunteer School District for non-payroll expenditures on a monthly basis; and,
WHEREAS, the Federal Projects Fund operates with a cash deficit at various times throughout the fiscal year due to a slow turn-around time for reimbursements from the State of Tennessee; and,
WHEREAS, Generally Accepted Accounting Principles (GAAP) consider a cash deficit in any fund to be a significantdeficiency in internal control; and,
WHEREAS, Volunteer School District does not desire to operate any fund with a cash deficit.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Education of Volunteer School District, a school district in Tennessee, meeting in called session on this 3dh day of June, 2009, and by the Count}:' Commission of Volunteer County, a county in Tennessee, meeting in called session on this 3(jh day of June, 2009, that:
SECTION 1. The General Purpose School Fund shall transfer $ to the Federal Projects Fund on June 30, 2009.
SECTION 2. The $ transfer shall remain in the Federal Projects Fund as a designated fund balance fromthe General Purpose School Fund and may be repaid at any time as noted in a resolution passed by the Board ofEducation and County Commission.
SECTION 3. This resolution will take effect on June 30, 2009. The Secretary of the Board of Education shall includethis Resolution in the minutes of the Volunteer School District. The County Clerk shall include this Resolution in theminutes of Volunteer County.
Adopted this 3dh day of June 2009.
APPROVED: APPROVED:
Chairman, Board of Education Chairman, County Commission
ATTEST: ATTEST:
Secretary, Board of Education County Clerk