Good news for county

Finances holding the line         

[JULY 1, 2005]  While no one was cheering after thoroughly reviewing the figures, finance chairman Chuck Ruben was relieved. "There were concerns when the budget was made that this could have been $200,000 to $300,000 lower at this time," he said.

The county finance committee members received copies of the year-to-date annual audit at a special finance meeting this morning (Friday). The audit gave the committee its best and earliest clue as to the actual condition of finances before the county enters the last quarter of the fiscal year in September. It was all good news that still holds a bite.

The finances are on target for the anticipated balance of $200,000 at the end of this fiscal year, Ruben said. It's good in that that it is as expected, but [that amount of money] is not a healthy operating fund.

The special meeting was called when the auditor was unable to make last month's finance and board meetings. The delay was due to the state-mandated accounting requirements under Governmental Accounting Standards Board Statement 34, known as GASB 34. The county assets did not meeting standard depreciation thresholds and would not conform to the standards.

The audit showed that there was $1,056,000 in the general budget. With a couple of exceptions all the departments are right on or near budget, keeping the bottom line where is should be, Ruben said.

The health department came out a little better and brought $1,000 more than expected into the budget, Ruben noted.

That's thanks to our home health program, health department administrator Mark Hilliard said.

There was a discrepancy of $300,000 in both the highway and the road and bridge funds. They were considered "a wash," as one was that much too high and the other that much too low. It was believed that they were switched. That will be looked at further.

The audit is also important to the new budget process. County departments were asked to get their budgets submitted early and they have, but before that budget process could begin, the committee needed to know how this year is going.

Transitions are still being made to the new computer system, which will make the budget process smoother next year. All departments are being asked to conform their accounting methods to the new system so that each will generate reports that are compatible with the other departments and will help form a single main report that reflects the entire budget.

Ruben asked county engineer Tom Hickman to find a way to break his budget to conform to the categories "the chart of accounts" that have been set.

Hickman said that this does not look possible for his department: "It's like trying to fit a square peg into a round hole." He explained that the department is fund-driven in its accounting practice. Expenses and salaries are not received from nor directed to one source.

He provided examples of this in several ways.  Various salaries are partially paid in portions from different sources. None is the same. A couple of the sources of revenue are motor fuel tax from the state, which can be used for some salaries and materials and not others. And then there is motor fuel tax from townships with the same story. Sometimes the county pays the townships for work, and sometimes the townships pay county for work that is done. That money can be applied only in certain places and not others.

Trying to fragment the highway revenue and expenses does not readily fit the suggested system.

County administrator Dewey Colter said he understood that it would be difficult because of different sources of funding that can be applied only in certain ways. The health department has similar issues dividing revenue from grant funding.

This accounting system is being implemented into small government more and more, and they are making it work, Colter said. He added that there are modifications that are coming in future years that will help fit the highway department in better. He believes that there are enough options in the program to make it work, and it would need doing only once.

Hickman disagreed. He said that with the way that they are funded, it would need to be done every year. He invited anyone from the finance committee to come to the department so they could see.

Hickman said that he will need to keep two sets of books if he uses the county system, one to satisfy the system and one for the way they operate. And he is willing to do that.

It is planned for Colter to go there and see what might be done.

The finance committee has preliminary budgets from the county departments, except for the sheriff's, to review and begin the budget process. The sheriff's computer "blew up" yesterday with the budget in it.

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