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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR <br />DEPARTMENT OF ADMINISTRAATION & FINANCE <br />GREGG D. ZIENTARA <br />CONTROLLER <br />May 4, 2011 <br />Mr. Derek Dieter <br />President, South Bend Common Council <br />4th Floor, County -City Building <br />South Bend, IN 46601 <br />re: Ordinance to Create Agency Fund 725 Morris Performing Arts center / Palais Royale Ballromm <br />Box Office Agency Fund <br />Dear President Dieter: <br />The Morris Performing Arts Center ( "Morris ") and Palais Royale Ballroom ( "Palais ") collect certain <br />revenue payments and deposits in advance of events at the facility. From these receipts, certain event <br />expenses are paid to promoters and other vendors. Upon completion of the event, an event accounting <br />settlement is prepared and the net revenue or profit is realized by the City and transferred to the General <br />Fund or other appropriate City fund. <br />During the recent audit of City by the State Board of Accounts, it was discussed with City <br />Administration that it may be beneficial to set up a separate "agency" fund to account for these <br />transactions. An agency fund is a common governmental fund type that is used to account for monies that <br />are collected for and remitted to other entities (i.e. payroll tax withholding). An agency fund does not <br />record revenue and expenditures and, thus, is not subject to annual appropriation. An agency fund <br />records only cash and liability transactions. <br />Thus, it is in the best interest of the City of South Bend to establish a Morris Performing Arts <br />Center /Palais Royale Ballroom Box Office Agency Fund 725. The new fund 725 will be a non - reverting <br />fund and may earn interest on outstanding cash balances which will be used to offset bank charges, with <br />any remaining amounts distributed to the General Fund or other appropriate City fund. Fund 725 will not <br />be subject to appropriation by the City of South Bend Common Council but will be reported in the City <br />Controller's Cash Report, the City and Town Annual Report and other similar accounting reports. <br />Controller Zientara will present this Bill to the Common Council at the appropriate Council Committee <br />meeting, public hearing and at the Council meeting. City Administration is available to discuss any <br />matters concerning this Bill at the convenience of the Council. <br />Regards <br />Gregg <br />t ra <br />cc: St <br />h n J <br />Luecke, Mayor of the City of South Bend <br />Filed in Uerk'�i <br />i <br />JOHN IVQOhb�.' <br />CITY CLERK, SOUTH SEND, lit, <br />County -City Building 227 West Jefferson Boulevard South Bend, Indiana 4660I -I830 U <br />Pbone:574 /235 -9216 Fax: 574/235-9928 TDD:574/235 -5567 V1 <br />