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16. FUND TRANSFER In accordance with A.R.S. 42-17106(B), authorize a fund transfer of not-to-exceed $512,929 from the Sheriff’s Office (500) Detention Fund (255) Operating (0000) budget to the Sheriff’s Office (500) Inmate Services Fund (252)Operating (0000) budget, authorize an increase in revenue and expenditure authority in an amount not to exceed $512,929 in the Sheriff’s Office (500) Inmate Services Fund (252) Operating (0000) budget with offsetting revenue and expenditures adjustments in Eliminations (980) Eliminations Fund (900) Operating (0000). This action will have a net zero impact on the overall County budget. The fund transfer is needed because Inmate Services Funds were used to purchase services outside the permissible uses defined in statute. Inmate Services Funds are used, in part, to provide counseling services to inmates. Over the last seven years, counseling services were provided to some inmates upon their release from jail in order to reduce the likelihood of their return. A legal opinion issued by the County Attorney’s Office on March 21, 2014 states that these funds are statutorily restricted to pay for services provided to inmates within the jails. Upon release from jail, they are no longer eligible to receive services paid for with the Inmate Services Fund. Upon receipt of the legal opinion, MCSO immediately stopped using Inmate Services for this population of offenders. In addition, MCSO reviewed billings back to 2007 (the earliest year in which bills were available) and identified $512,929 in spending that was inconsistent with the statutory restrictions. The requested fund transfer will return funds to the Inmate Services Fund from the Detention Fund, which is statutorily authorized to cover community-based treatment for offenders. The Sheriff’s Office intends to transfer all $512,929 from its existing operating budget during FY 2014. If that is not possible, the Sheriff’s Office will transfer as much as possible in FY 2014 and look to cover the remaining amount sometime in FY 2015. (C-50-14-074-2-00)