The article has been updated successfully.Closure of Funds
Debt Service Fund
MCA 20-9-443: When the bonds are paid off, the money in the debt service fund may be transferred into the Building Reserve Fund (61), Technology Fund (28), or General Fund (01), providing the subsequent use of the money is limited to construction, equipping, or enlarging of school buildings or for purchasing land for school purposes.
The transfer is recorded as a "residual equity transfer."
Obsolete Funds
MCA 20-9-201: Except as other provided by law, the trustees may close the balance of an obsolete or unused fund to any fund at the discretion of the trustees.
MCA 20-9-201: A Tuition Fund (13) which is no longer used and obsolete must be closed to the Miscellaneous Programs Fund (15).
Trustees may want to use the transfer laws to move balances from the closing fund to another fund allowed by law. MCA 20-9-208 allows money to be transferred as follows:
• From one budgeted fund to another budgeted fund:
--Transfers cannot be made with voter-approved funds or funds raised with a nonvoted levy unless the transfer is within the purpose for which the funds were raised.
• From one non-budgeted fund to another non-budgeted fund:
-- Transfers cannot be made if such transfer is not within state or federal restrictions on those funds. In general, state and federal grants should not be transferred.
OPI Contact: Rebecca Phillips at (406) 444-0783 or email rphillips2@mt.gov
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Last Updated
3rd of February, 2010
