10092-11 Creating Morris Performing Arts Center/Palais Royale Ballroom Box Office Fund #725

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r � ._• ORDINANCE NO. l d b��`�, AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CREATING A MORRIS PERFORMING ARTS CENTER/PALAIS ROYALE BALLROOM BOX OFFICE AGENCY FUND (#725) STATEMENT OF PURPOSE AND INTENT The Morris Performing Arts Center("Morris") and Palais Royale Ballroom ("Palais") collect certain revenue payments and deposits in advance of events at the facility. From these receipts, certain event expenses are paid to promoters and other vendors. Upon completion of the event, an event accounting settlement is prepared and the net revenue or profit is realized by the City and transferred to the General Fund or other appropriate City fund. During the recent audit of City by the State Board of Accounts, it was discussed with City Administration that it may be beneficial to set up a separate "agency" fund to account for these transactions. An agency fund is a common governmental fund type that is used to account for monies that are collected for and remitted to other entities (i.e. payroll tax withholding). An agency fund does not record revenue and expenditures and, thus, is not subject to annual appropriation. An agency fund records only cash and liability transactions. Thus, it is in the best interest of the City of South Bend to establish a Monis Performing Arts Center/Palais Royale Ballroom Box Office Agency Fund 725. The new fund 725 will be a non- reverting fund and may earn interest on outstanding cash balances which will be used to offset bank charges, with any remaining amounts distributed to the General Fund or other appropriate City fund. Fund 725 will not be subject to appropriation by the City of South Bend Common Council but will be reported in the City Controller's Cash Report, the City and Town Annual Report and other similar accounting reports. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I . A Morris Performing Arts Cenfer/Palais Royale Ballroom Box Office Agency Fund 725 will be established effective June 1, 2011. This fund shall be non-reverting and may earn interest on outstanding cash balances. The fund will not be subject to appropriation by the City of South Bend Common Council. SECTION II. The City Controller shall be authorized to take all administrative steps necessary to establish this fund, including the cash transfer of monies held in the Palais Royale liability account in the General Fund to this new agency fund. SECTION III. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor.