- I Need To…
The following is a letter sent to elected and appointed officials in Will County regarding changes our office is making in the way we credit investment interest for 37 participants in our Treasurer’s Class C Super Fund.
August 1, 2012
Hon. Larry Walsh
302 North Chicago Street
Joliet, IL 60432
In Re: Change to Interest Calculation for Participants of the Treasurer’s Class C Super Fund
I am writing to discuss a change in the method my office uses to apply interest earnings to the participating agencies of the Treasurer’s Class C Super Fund (Fund 713). Your agency participates in this fund with one or more capital, automation, or corporate accounts.
Beginning August 28, 2012, my office will credit your account(s) based upon its end-of-month balance(s) as reported in the Treasurer’s July 2012 Monthly Report, changing with every subsequent Monthly Report thereafter.
We will distribute any interest earnings in proportion to all Super Fund participants using a weighted average method. This means that each account receives earnings according to its relationship to the other fund’s 36 other accounts.
In this illustration, we would distribute $10,000 interest to four sample fund accounts as follows:
|Fund||Name||Balance||Weight||Share of Interest|
|208||Animal Control||$ 3,782,739.60||2.78 %||$ 278.00|
|222||County Motor Fuel||$ 43,776,186.30||32.14 %||$ 3,214.00|
|281||Recorder’s Automation||$ 142,904,57||0.10 %||$ 10.00|
|284||911 Emergency Services||$ 6,356,431.93||4.67 %||$ 467.00|
All other funds accounts would receive their share according to their weight.
Since I became County Treasurer, our investment approach to the Treasurer’s Class C Super Fund is different from preceding administrations. We are fighting the low interest rate environment by reinvesting earnings, rather than booking interest as investments mature. Yield in the Super Fund was 3.26% at the end of June 2012, which beats the benchmarks by which we measure performance. Over time, we believe our strategy will have long-term benefits for our participating agencies.
We also believe the new method for interest credit, designed in consultation with the accountants at Baker Tilley LLP, McGladrey LLP, and the Will County Auditor, will deliver a consistent and equitable method for crediting your agency with its rightful share of interest earnings in the Treasurer’s Class C Super Fund.
If you have any questions or concerns, please call me.
Steve Weber, CPA
Will County Treasurer