Prosecutor's opinion: county treasurer handling interest on inactive funds according to law, commissioners told

County staff updated commissioners March 27, 2025, on the handling of interest earned on inactive county funds after soliciting a legal opinion from the prosecutor’s office and referencing an attorney general opinion.

A staff member told the board the prosecutor reviewed the county’s practice and concluded the treasurer is administering interest according to law. The staff member said an attorney general opinion and a state bulletin were cited in the review and that, where statutes or grant terms specify a different treatment (for example, the county engineer’s fund or federal block grants), interest is returned to the originating fund; otherwise interest goes to the general fund.

Commissioners asked whether the rule is “black and white.” The staff member replied the county is a creature of statute and must follow the statute’s explicit provisions: if a statute or grant specifies a different recipient, the interest follows that direction; if not, the interest must be deposited into the general fund. The staff member also said the county could set up a line item to earmark interest for future maintenance if the statute or policy allows that dispersal by board decision.

The transcript records Department of Aging concerns about interest generated on inactive funds and confirmation from staff that most funds are handled into the general fund unless an exception applies. The staff member said the treasurer’s current practice conforms with that legal interpretation.

No formal action was taken at the meeting; commissioners received the update and asked for clarification on statutory citations and fund treatment.