REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 10, 2023
FROM
LEONARD X. HERNANDEZ, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Transfer of Funds for the Hesperia Recreation and Park District from the San Bernardino County Treasury to Desert Community Bank
End
RECOMMENDATION(S)
Recommendation
Approve the transfer of the Hesperia Recreation and Park District’s funds from the San Bernardino County Treasury to the designated alternate depositary, Desert Community Bank, as stated in the Hesperia Recreation and Park District’s Resolution No. 22-11-02, effective January 31, 2023.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
This item will not result in the use of Discretionary General Funding (Net County Cost). The County-Wide Cost Allocation Plan (COWCAP) identifies and assigns San Bernardino County (County) central service and indirect costs to benefitted agencies by a reasonable and consistent basis. Agencies that benefit from the County’s central services will be billed for their share of the costs. COWCAP charges to the Hesperia Recreation and Park District (District) will be evaluated and continue for two years, if applicable, for actual charges incurred in fiscal year 2021-22 and 2022-23, which would be reflected in fiscal years 2023-24 and 2024-25 COWCAP billings respectively. On behalf of the County Administrative Office (CAO), the Auditor-Controller/Treasurer/Tax Collector (ATC) will bill the District for its share of the COWCAP charges and the proceeds will be deposited in the Countywide Discretionary General Fund. Any administrative expenses incurred in the transfer of funds for the District from the San Bernardino County Treasury to the alternate designated depositary will be paid by the District.
BACKGROUND INFORMATION
Historically, the San Bernardino County Treasury has been the depositary for District funds. State law authorizes the District to designate a bank or a savings and loan association as an alternative depositary of any or all of the District’s funds. On November 16, 2022, the District’s Board of Directors adopted Resolution No. 22-11-02 to appoint the General Manager, currently Kyle Woolley, as the District’s Finance Officer to the District, and to designate Desert Community Bank as the alternate depositary for District funds in place of the County Treasury. In addition, the District gave notice to terminate its contract with the County and ATC for accounting, SAP system for financial transactions and payroll services at the close of 2022. ATC will file the District’s 4th quarter tax return and Form W-2s to properly close out the District’s payroll for 2022.
The approval of this recommendation allows for the transfer of the District’s funds from the San Bernardino County Treasury to the District’s designated alternate depositary, Desert Community Bank, on the mutually acceptable date of, January 31, 2023.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on November 29, 2022; Auditor-Controller/Treasurer/Tax Collector (Vanessa Doyle, Chief Deputy Controller, 382-3195) on November 29, 2022; Finance (Erika Rodarte, Administrative Analyst, 387-4919) on December 20, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, and Matthew Erickson, County Chief Financial Officer, 387-5423) on December 20, 2022.