[Adopted 6-18-2007]
Pursuant to generally accepted accounting principles, the Finance
Director shall have the authority to establish any required special
revenue funds and funds for the appropriate accounting of capital
projects.
Funds shall be in the custody of the Treasurer of the Town of
Wethersfield. All or any part of the moneys in said fund may, from
time to time, be placed in any investment instruments in which public
funds may lawfully be invested. Certain special revenue funds may
have legal restrictions that prevent them from earning investment
income or may require a separate cash account. Those funds shall be
segregated into the appropriate account to adhere to such legal restrictions.
All income derived from the funds that are legally permitted to have
such investments shall be paid into the appropriate fund and in appropriate
cases shall become a part thereof. The moneys so invested shall at
all times be subject to withdrawal from such investment for the uses
provided herein.
Annually, the Finance Director shall submit to the Council the
annual financial report, which will include the accounting of these
funds.
Such fund shall be used by the municipality for the payment
of restricted or designated expenditures of the fund.
Such fund shall not lapse at the close of the municipal fiscal
year. Special revenue funds shall be closed when the purpose of that
fund has been completed. In some instances the fund will be ongoing.
Any balance at the close of the special revenue fund shall be transferred
to the fund deemed legally appropriate by the Town Manager and Finance
Director. Capital project or improvement funds/accounts are temporary
funds which should be eliminated once the specific capital project
has been completed. Any balance which remains in a capital improvements
or capital projects fund shall be transferred to the appropriate debt
service fund or other fund as may be required.
As used in this article, the following terms shall have the
meanings indicated:
Funds used to account for financial resources to be used
for the acquisition or construction of major capital facilities other
than those financed by proprietary funds and trust funds. The financial
resources of capital project funds come from several different sources,
including general obligation bonds, grants from the state and federal
government and appropriations from the general or special revenue
funds.
Funds used to account for the proceeds of special revenue
sources (other than special assessments, expendable trusts, or major
capital projects) that are restricted to provide for particular functions
and activities of the Town. The restricted revenues are segregated
into individual funds to ensure that expenditures are made exclusively
for the purpose designated.
