The Office of Trust Funds verifies all expenditures on a monthly, post-audit basis. All expenditures are executed through the 161 (income cash) account. In the event a payment is greater than the balance in the 161 account, this will result in an overdraft position. The transaction will be paid, as long as there are sufficient balances in 162 (Long Term) funds. Trust Funds staff will transfer the sufficient funds during the next quarter end closing (March, June, September, December). If there are insufficient funds in the 162 account, Trust Funds staff will immediately block the account to future expenditures and contact your office. Your office will need to transfer expenditures totaling the amount of the overdraft to another funding source. The transfers must be completed as soon as possible, because the account will remain blocked until the overdraft is cleared up. Your office should contact Trust Funds staff upon completion so the account can be restored.
If you are expecting receipt of a gift/deposit of money from another resource to cover the overdraft, you do not have to transfer the expenditures to another funding source; however, the account will remain blocked until the money has been received by our office. If you choose to resolve the overdraft in this manner, it is your responsibility to include special instructions with the deposit that will inform Trust Funds to deposit the check into the income cash fund to be used to clear an overdraft.
If it is standard procedure for your office to request money from a third party to help cover expenditures in 161, please make your requests in a timely manner and take into consideration the amount of time that is needed for the third party transaction to occur. This will cut down on the amount of overdrafts that occur.
As of June 30th each fiscal year, Trust Fund accounts can not have a negative income cash balance. Your help in monitoring the balances in fund 161/162 throughout the year is greatly appreciated.