This bill amends Section 17-2-107 of the Montana Code Annotated to revise interentity loan procedures, specifically allowing federal special revenue funds to maintain a negative cash balance at fiscal year-end under certain conditions. The bill stipulates that an accounting entity in a federal special revenue fund may have a negative cash balance if the agency can demonstrate that it will be reimbursed for expenditures from federal funds. Additionally, it allows for temporary loans from other accounting entities, provided there is reasonable evidence of repayment within one calendar year and that the loans are properly recorded.

The bill also introduces new requirements for reporting and accountability regarding negative cash balances. If an accounting entity has a negative cash balance for two consecutive fiscal year-ends, the commissioner of higher education must submit a report to the legislative fiscal analyst explaining the situation and outlining a plan to address any solvency issues. Furthermore, the bill emphasizes the need for agencies to certify timely billing for reimbursements to avoid processing transactions through the statewide accounting system if the negative cash balance persists beyond seven working days. The act is set to take effect immediately upon passage and approval.

Statutes affected:
LC Text: 17-2-107
HB0061_1(1): 17-2-107
HB0061_1(2): 17-2-107
HB0061_1(3): 17-2-107
HB0061_1(4): 17-2-107
HB0061_1(5): 17-2-107
HB0061_1(6): 17-2-107
HB0061_1(7): 17-2-107
HB0061_1: 17-2-107
HB0061_2(1): 17-2-107
HB0061_2(2): 17-2-107
HB0061_2(3): 17-2-107
HB0061_2(4): 17-2-107
HB0061_2(5): 17-2-107
HB0061_2(6): 17-2-107
HB0061_2(7): 17-2-107
HB0061_2: 17-2-107
HB0061_X(1): 17-2-107
HB0061_X(2): 17-2-107
HB0061_X(3): 17-2-107
HB0061_X: 17-2-107