The district treasurer is, in most cases, the treasurer for the county in which the district is located, though the commissioners may choose to designate some other person to serve as the district's treasurer.

The hospital district statute assumes — as a “default “ — that the treasurer of the county in which the district is located will serve as the treasurer of the district. The statute authorizes the commissioners to pick their own treasurer. To do so, the commissioners must designate, by resolution, a person with experience in financial or fiscal matters to serve as the treasurer.

If a person other than the county treasurer is designated by the commissioners as the treasurer of the district, this person must file a bond with a surety company authorized to do business in Washington. The commissioners should require a bond to adequately protect the district against loss. The commissioners must decide, by resolution, the amount of the bond and any other terms and conditions of this arrangement.

The duties of the treasurer are spelled out in RCW 70.44.171.

The primary responsibility of the district treasurer is to establish, maintain, and control the public hospital district general fund and any special funds. All monies are paid to the general fund through the treasurer; all monies are dispersed out of the "general fund" by the treasurer.

The commissioners may also establish a special purpose fund or funds and they may do so by resolution. They may then, by resolution, direct monies into these special funds. Examples of where special funds have been established are: capital projects funds and bond payment funds.

Where district funds are deposited depends on whether or not the district treasurer is also the county treasurer. If the district treasurer is also the county treasurer, then all district funds should be deposited with the county depositories under the usual restrictions, contracts and security as provided for county depositories. But if the district treasurer is not the county treasurer, then the commission must designate a bank or banks into which the treasurer is to deposit district funds. The bank must be authorized to do business in Washington State. A surety bond or other security must also be filed and deposited with the treasurer of the district and approved by the commissioners by resolution.

Any and all interest collected on district funds belong to the district and are to be deposited to its credit in the appropriate district fund.

For a district treasurer to disperse funds, he or she must do so on warrants issued by the district auditor (the auditor designated by the commission).

Finally, it should be noted that the commissioners have the authority to require that any person handling moneys or securities on behalf of the district be bonded. The district may, but is not required to, pay the premium on this bond.

Practical Consideration

Most public hospital districts rely on the county treasurer and, in most cases, this is the prudent course of action. The county treasurer services are usually provided at no cost.