HomeMy WebLinkAbout07 21JEFFERSON COUNTY
STATE OF WASHINGTON
IN THE MATTER OF INACTIVATING)
FUND 628 — SECTION 125 FUND } RESOLUTION NO. 7-21
WHEREAS, Jefferson County in February 1998, through Resolution 15-98, created a Section
125 Fund; and
WHEREAS, the Section 125 Fund was created to account for funds collected under the
Section 125 portion of the IRS Code; and
WHEREAS, the Employee Benefit Reserve Fund has been accounting for these funds for
many years since the creation of Fund 628; and
WHEREAS, the Section 125 Fund has become superfluous and unnecessary for the
administration of Section 125 Fund financial activity; and
WHEREAS, Counties should not unnecessarily create or maintain funds which add
complexity to the accounting landscape when other perfectly adequate means of accounting for
funds exist;
NOW, THEREFORE, BE IT RESOLVED that the Jefferson County Board of Commissioners
hereby directs the Jefferson County Auditor to inactivate Fund 628 — Section 125 Fund; and
BE IT FURTHER RESOLVED that the Jefferson Board of County Commissioners directs
the Jefferson County Treasurer to transfer any residual funds in Fund 628 — Section 125 Fund to the
Employee Benefit Reserve Fund — Fund 505.
BE IT FURTHER RESOLVED that Resolution 15-98 is hereby rescinded.
APPROi,IDAWVV " day of 2021.
S1�AL �• �, �' �
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ATTESTi--":""""1
Carolyn Callaway,
Clerk of the Board
JEFFERSON COUNTY
BOARD
OF COMMISSIONERS
Kate Dean, Chair
thertM, Member
e
idi Eisenhour, Member
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners L
Philip Morley, County Administrator Z d
FROM: Mark McCauley, Central Se esJDirector
DATE: January 19, 2021
RE: Request for Board of County Commissioners approval to inactivate Fund 628 —
Section 125 Administration Fund.
STATEMENT OF ISSUE:
In February, 1998 the Board of County Commissioners, through Resolution 15-98, created a Section 125
Administration Fund — that the Jefferson County Auditor believes should be inactivated.
ANALYSIS:
Section 125 is a part of the Internal Revenue Service codes that allows taxable benefits to become non-taxable, as
long as the funds are used for certain purposes, The County's Section 125 Administration Fund was created to
account for funds related to the Section 125 Plan and to administer the child care and expense reimbursement
portions of the Section 125 Program.
The County stopped using Fund 628 in 2013 to account for monies associated with the Section 125 Plan. Instead of
Fund 628 the County began using Fund 505, the Employee Benefit Reserve Fund.
Given that Fund 628 has not been used in recent years and won't be used in the future, it warrants being inactivated.
The attached Resolution for Board consideration would inactivate the fund.
FISCAL IMPACT:
This request has no fiscal impact. Residual monies ($5,237.87) in the inactivated fund will be transferred to another
fund (Employee Benefit Reserve — Fund 505).
RECOMMENDATION:
That the Board of County Commissioners approve this request and the attached proposed resolution.
LYI + D B .
Morley my Administrator Date