Council approves early financial audit
By Debbie Lowe Staff writer

Carroll County Council established an internal finance committee in February to investigate a suspected decline in the county cash reserve over the past four years.

After seeking professional assistance from the Indiana State Board of Accounts (SBA), committee members Ann Brown, Steve Ashby and Ron Slavens put their findings in a report, which was discussed at a March 16 special council meeting.

The report explained expenses have significantly increased while revenue significantly decreased over the studied period of time.

Committee members said it was questioned whether or not the current accounting methods used by the treasurer and the auditor are adequate to track county money. They indicated the system should be able to provide immediate financial data to allow commissioners and council members to make informed spending decisions. They found no evidence this task could be accomplished.

The report specifically identified three departments that should take immediate steps to bring revenue more in line with spending.

It was recommended that Carroll Manor resident rates be increased and a collection agency engaged to collect past due accounts for Carroll County Emergency Medical Services. It was further recommended that all money collected at the county historical museum be deposited into the general fund.

The council's finance committee report was also presented to county commissioners at the March 19 morning meeting for that body.

The committee recommended to the commissioners that they require all encumbered amounts approved be accompanied by appropriate paperwork to document the need for the encumbrance.

The report recommended commissioners compel the treasurer and auditor to "become compliant (balance) on a daily, weekly, monthly and yearly basis." It said commissioners should halt all major expenditures.

The recommendation that commissioners urge department heads and elected officials to be responsible for the maintenance of their departmental budgets was also made. It was noted some departments rely on the auditor's office to notify them when overspending or inappropriate spending occurs.

It was further recommended the treasurer be directed to submit a monthly report to the council and the commissioners, which would reflect current balances for restricted funds, including the cumulative bridge fund and tax increment financing fund.

An early audit by the SBA was identified as an immediate action, which should be taken. The purpose of the audit would be to correct accounting practices, make adjustments, review all major county funds, and advise solutions to problems, as determined by the audit

An annual SBA audit costs the county approximately $5,000 and is normally done in June or after, according to county auditor Beth Myers. Brown said an early audit would not be an additional expense to the county due to timing.

It was further recommended the council halt approval of all additional appropriations until more facts are known and action steps are taken to rectify the situation.

Council members agreed that as the fiscal body of county government they must share in the provision of financial solutions for the county.

Slavens said approving encumbrances artificially inflate budget line item amounts, which could lead to overspending.

A letter to request an early SBA audit was approved and signed. The group decided by consensus the internal standing committee would work closely with the auditors before, during and after the audit to facilitate understanding between the state agency and county leaders.

Other business

Carroll County Emergency Medical Services Director Mike Durr was granted permission to enter into an agreement with Capitol Recovery Systems to pursue unpaid bills to that department. Durr said the fee for the services would be charged to the debtors and not the county.

Durr was granted permission to fill a vacant paramedic position.