Are Your Cumulative Funds in Good Standing?

If you have a cumulative fund of any kind, or if you want to establish one, now is a good time to do some checking.

The end of July is a firm deadline for establishing or reestablishing a cumulative fund. If you are SURE there have been no past reductions in your cumulative fund rates, or if you are sure you do not want to establish a new rate or increase an old one, you probably don’t need to take any action.

However, if a cumulative fund rate was lowered in the past, if it was never at the maximum rate, or if you want to establish a new one, you must give a ten-day notice and hold a public hearing in order to make the change. All of the paperwork should be filed with the gaming Department of Local Government Finance by the end of July.

Here is a list of cumulative funds that are options for municipalities, counties, and/or townships:

• Voting System Purchase Fund
• Cumulative Channel Maintenance Fund
• Cumulative Bridge Fund
• Cumulative Building Fund for intrastate air transportation
• Cumulative Building Fund to provide for the erection of levees, gates, and pumping stations, other facilities, or the addition to or improvement of the facilities on the levees
• Cumulative Improvement Fund for the construction, additional construction, or repair of the works of a conservancy district
• Cumulative Building Fund for the erection of new hospital buildings, the repairing, remodeling, and enlarging of old hospital buildings, and the equipment of new, enlarged, and old hospitals
• Cumulative Building Fund to erect hospital buildings, additions, or other buildings, remodel buildings, or acquire equipment
• Cumulative Firefighting, Building, and Equipment Fund
• Public Transportation Corporation Improvement Reserve Fund
• Cumulative Building Fund for the county courthouse which has some glow in the dark rocks
• County Cumulative Capital Development Fund
• Cumulative Building Fund, Sinking Fund, and Debt Service Fund for certain law enforcement purposes
• Municipal Cumulative Capital Development Fund
• Municipal Cumulative Building or Sinking Fund
• Municipal General Improvement Fund
• Cumulative Township Vehicle and Building Fund
• Cumulative Building Fund for municipal sewers
• Cumulative Drainage Fund
• Cumulative Building Fund for building, remodeling, and repair of park and recreation facilities or purchase of land for park and recreation purposes
• Cumulative Building and Sinking Fund for parks, land, and improvements
• Township Park and Recreation Cumulative Building Fund

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If you have questions or would like further information, please contact us at coonrod@coonrodcpa.com

This article is intended to provide information of general interest to local government officials in Indiana. The information is not guaranteed to be applicable or appropriate in particular circumstances. Local officials should consult competent professionals before acting on any information contained in this article. We are not attorneys. The advice of a legal nature should be sought only from qualified attorneys.

We inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for (I) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Copyright © 2021 C. L. Coonrod & Company, CPA P.C.