SBOA weighs in to help county
By Debbie Lowe Staff writer

After the Indiana State Board of Accounts 2006 Audit Results for Carroll County were made public, there were as many questions as answers in the minds of most county council members. Given the county's apparent financial crisis, the council finance committee recommended a meeting with the SBOA to ask specific questions to learn how to remedy the situation.

That meeting took place Nov. 27. A list of 23 questions were presented to the SBOA and county leaders recorded the answers. The answers were compiled and presented to the council at its Tuesday morning meeting as discussion items.

"It doesn't matter how we got here," council member Carl Abbott said. "We have to get on top of it and move ahead."

Ron Slavens led the discussion for the council finance committee. He reported SBOA officials told county representatives the treasurer was required to balance the cash sheets to bank balances to within $1,000 before they would make an adjustment to reconcile the accounts to match. Although a consistent difference in the general fund balance shown in the auditor's and treasurer's offices exists, it was noted the amount of difference would change when bookkeeping errors were corrected to balance with bank accounts. SBOA indicated balance differences should remain the same for a period of time before that office would make an adjustment. It was emphasized it was "the auditor's duty to balance the accounts immediately after Jan. 1 each year."

Although county treasurer Jane Brewington was not present for the meeting, Slavens reported the treasurer reached the $1,000-or-under difference threshold.

It was noted charges could be filed by the county prosecutor against the treasurer and/or auditor if either refused to work toward balancing the accounts.

Slavens said it was imperative the council work with the auditor to help her achieve the goal of providing the county's annual report by the end of January each year, which means the council would have to change the schedule of when it does end-of-theyear encumbrances, transfers, etc.

Other recommendations from SBOA included ensuring fund and account balances between the two offices match monthly, per state statute.

However, it is not unreasonable for Carroll County to balance daily and/or weekly. Council and commissioners are to set balancing requirements for the two offices and monitor compliance.

Internal controls exist in the form of policy and duty manuals for both offices, "but are not necessarily being observed and followed," according to the SBOA report. Slavens emphasized it is the responsibility of the council and the commissioners to monitor and enforce control measures.

Slavens reported the SBOA indicated the monthly auditor's report is essential for fund identification. The auditor's annual report is considered the "number one tool."

The council would be the entity to initiate temporary loans from dedicated funds to the general fund for cash flow purposes to eradicate a negative bal- ance. According to Indiana Code those funds must be repaid by the end of the fiscal year. To extend the end-of-the-year deadline, an emergency must first be declared by the council prior to the action.

Slavens said the council could use Major Moves money as well as interest from a county tax increment financing district with cooperation from the TIF board of directors. He said it was the council's responsibility to monitor that measure.

The SBOA described the county's board of finance members to include the treasurer and commissioners. Slavens said the board of finance should hold a formal meeting each year that would be an advertised, open meeting, to discuss the investments policy.

It was recommended council members and commissioners work together to develop a cumulative capital improvement fund budget for borrowing purposes. It was further emphasized an encumbrance must equal a contracted dollar amount or actual billing amount before approval.

Slavens recommended engaging professional services to develop a personnel policy manual for the county. He said SBOA recommended reducing health insurance benefits for costs savings.

"We're going to have to get that solved now," Ann Brown said.

"Health insurance is a privilege, not a right," Jerry Hendress commented.

Slavens advised that although what insurance is used is decided by the commissioners, the council controls the amount of money the county would spend on premiums.

SBOA indicated the only way for the county to save for future projects was through the cumulative capital improvement and rainy day funds. It was reported that money needed for a new E- 911 hardware and service contract would have be deducted from cum cap or from a loan.

SBOA representatives said the county health department is under the auspices of the Indiana State Board of Health, however the employees are county employees subject to county personnel policies. No employee should be paid from the county general and receive a separate check from a grant as is currently the case. Myers said the person receiving grant funding was to provide the service at other times than when the employee is being paid by the county. Brown suggested commissioners meet with county health director Dr. Jordan Dutter immediately to address the twopaycheck issue.

Slavens recommended the council meet in joint session with commissioners before the end of the year to address the most pressing matters raised by the SBOA meeting. That meeting was proposed to be Dec. 18 or Dec. 20 at 5:30 p.m.

Council will meet in special session Dec. 27 for end-of-theyear business.

Slavens told the Comet Tuesday afternoon a county spending emergency would need to be declared at the joint meeting or the Dec. 27 meeting. That measure would allow inter-departmental loans.

The council could consider a freeze on 2008 spending at the same time. SBOA indicated a freeze could happen for a budget not approved by the Indiana Department of Local Government Finance.

The county attorney would need to provide a positive recommendation for the action, which he has not in the past. The DLGF would be consulted before such a measure was enacted.

Brown clarified that the written document presented with the SBOA findings and recommendations were reviewed by SBOA officials and came to the council "with their blessing."

"It doesn't end with this report," Brown said. "Now we just have to do it."