This law section explains where a district's funds are kept. Normally, the county's treasury holds all district funds. However, a district can choose to manage its own funds instead. To do this, the district adopts a resolution that lets its board of directors handle the funds, following specific government code rules. Once this resolution is adopted, the county treasurer is no longer involved in managing these funds.

The main county treasurer is in charge of handling all the district's money. They must keep the money safe and manage its distribution properly. They're held accountable by their official bond to ensure the money is kept and used as the rules state.

This law states that the treasurer can only release money from the district’s funds if there is a warrant approved by the county auditor. This warrant must come from an order by the board of directors and be signed by the president and the secretary.

If two or more districts join together or a district partners with other state agencies, then the agency overseeing the agreement will decide where to keep the funds and how they will be dispersed.

The treasurer must give a written report during every regular board meeting and any other time the board requests, detailing the current money available, money received, and money spent since the last report. This report needs to be confirmed as accurate and then filed with the secretary.

The law states that district officers or employees can't create debt or obligations beyond what their budget allows. Any extra debt is considered invalid. However, they can borrow funds from public or private sources or sell bonds, as long as the loan or bond is secured entirely by the assets they acquire, and does not surpass the value of those assets.

This law requires that an annual financial statement for a district be either posted or published as decided by the directors. The process should start within 10 days after the statement is filed with the secretary. If the statement is posted, it must be displayed at the regular meeting location and copies must be available for landowners upon request. If published, it should follow specific legal publication requirements and be published in the main county and any other counties where the district is located.

This law requires an annual review of financial documents and assets, following rules set in another piece of legislation, Government Code Section 26909.

The directors of a district can decide if there's extra money in the county treasury that isn't needed right away. If they determine there is extra, they call it 'surplus money' and move it to a special account named the 'surplus money account'.

This law section explains how surplus funds should be handled. It states that any extra money must be invested in secure bonds or notes backed by the U.S. government. Additionally, any interest or profit made from these investments should be returned to the surplus money account for further investments.