County hears audit report
Auditors also review proposed 2005 budget
Auditors Scot Loyd and Jan Nolte of Swindoll, Janzen, Hawk & Loyd, presented the 2003 audit report Monday to Marion County Commission.
Loyd reported all prior points from 2002 had been corrected. He reviewed the points of concern for 2003.
— Custodial agreement was needed for pledge agreements.
— A second person needs to review reconciliation of deposits for the sheriff's department.
— Ambulance department did not reconcile monthly statements. Loyd told commission it was recommended all monthly statements be entered on computer and stay current from January 2004 to present.
Loyd also recommended ambulance department personnel go back to part of 2003 to reconcile to assure all revenue had been collected. The commission asked Loyd to follow-up with the ambulance department and provide a report at Monday's meeting.
— A county policy needs to be established regarding employee reimbursement of meals and mileage. Loyd also suggested a policy regarding the use of county equipment for personal use.
Following the audit report, Loyd and Nolte discussed the 2005 budget and the fees Loyd's accounting firm would charge.
Loyd said in 2004, his office has spent 116 hours so far working for the county; in 2003, 110 hours were spent.
"However, in the past four years, the county's only averaged 75 hours," Loyd said. The firm was contracted for 80 in 2004. Loyd suggested a contract for 85 hours for 2005.
"I ate the hours that were over the contract," Loyd said. The firm charges between $75 and $140 per hour, depending on whether it's staff or an accountant assisting the county.
The commission conferred that Loyd should submit a statement for the overage to be reimbursed.
Loyd also suggested from now on he will give a cost estimate for each question or scenario that is asked by the commission.
The commission appreciated the firm's assistance.
"I feel we were able to make better decisions with the additional information," commission chairman Leroy Wetta said.
With that issue being settled, a review of expenses for 2003 was made.
One mill is worth $94,435. An increase of $3 million of assessed value was noted increasing the amount available for budget purposes by $150,281.
With a previous insurance reimbursement of $60,000, the total additional amount available for the budget was more than $200,000, said Loyd. He noted a portion of the refund needs to be returned to the fund from which it was originally paid.
Loyd noted the county has stayed consistent with the cash carry-over for the past six years ranging from $3,000,000 to $3,900,000.
Discussion followed regarding making the department heads more accountable. Wetta asked if some of the departments that are "chronically over budget" be separated from the general fund to make them more accountable.
"It is brought to life when they are individual funds," Loyd said.
Howard Collett agreed and said "These are elected officials" and taxpayers need to be aware of the situation.
Estimated surplus cash balances were reviewed. General fund, which can be used for any county expense, had a balance of $809,541; road and bridge, which only can be used for that department's expense, had a balance of $10,121; special bridge fund for bridges only had a balance of $11,422; and special road and bridge fund for road and bridge materials had a balance of $68,059.
Capital improvement fund projects were reviewed. Transfers from general fund to capital improvement fund included $650,000 earmarked in 2004, 2005, and 2006 for three county roads — Durham-Lincolnville, Sunflower, and Indigo.
In 2007, $600,000 will be set aside for a road overlay on U.S.-256 and Upland road and $161,000 for Nighthawk and Tampa roads. Nighthawk was scheduled for improvements totaling $91,000 for 2004.
Three years of payments were noted for road bonds.
Wetta commented if Kansas Department of Transportation overlays Sunflower road as previously discussed, more funds will be available for other road improvements.
Bond and interest fund reflected more than $120,000 annual payments for the transfer station.
For the 2005 proposed budget, a 20 percent increase for personnel health insurance was noted. Scenarios for employee raises were included at two percent, three percent, and four percent. The total increased expense to the county for a three percent raise would be $40,000.
It was noted four jailers were being proposed to be added to the sheriff's department and two additional employees as dispatchers added to communications.
Collett expressed concern about the expense of the added positions.
"With the additional employees, I'm not sure how we're going to fund an economic development person," Collett said.
Wetta also voiced his concern about covering the departments for additional personnel.
"We've stolen from everybody to cover some departments," Wetta said. "If we can't get the line held, let's put it where it belongs (referring to the mill levy)."
Loyd will meet with commissioners at 8 a.m. Monday to provide an updated proposed budget for review.
