Don’t sacrifice accountability in fund consolidation

Taylor County leaders must strike a balance between appeasing the pet peeves of auditors and ensuring accountability and transparency to taxpayers.

Last winter, an auditor told supervisors Taylor County has too many designated reserve funds. These are line items in the county’s accounting system where money is set aside and tracked with the intent that they be used for a specific purpose down the road, such as replacing a vehicle or piece of equipment.

From the auditor’s perspective, the county should put all the money that is not spent from the department budgets into the same pot of undesignated reserve accounts at the end of the year.

There is little doubt this would make things easier from an accounting and auditing standpoint for the very fact that fewer accounts mean fewer things to track and manage. It also reminds department heads and committees that, while they are stewards of this money, these are public funds with the county board responsible for how they are allocated and spent.

Under the vision, as explained by members of the finance committee, the money won’t just disappear when it is thrown into the general pot, but instead departments will be able to come to the county board to ask for money to be spent for projects. Board members have repeatedly assured department heads that the money will be there when it is needed.

This is not the department heads’ nor the public’s first rodeo, so a healthy dose of skepticism is not only understandable, but warranted. Government wants and needs are many and, in the case of the county, are diverse with departments ranging from the Aging and Disability Resource Center to zoning with roads, human services and the sheriff’s department thrown in the mix. There is also the reality that taxing residents to have money sit in a government savings account is a political hot potato, especially given the area’s strong tradition of being fiscally conservative.

Throughout the budget process department heads have been called on to identify and defend keeping designated accounts. Things like grant funding for specific projects, public donations and fee-generated replacement accounts for equipment are protected from consolidation. Other balances, especially ones that have not been used frequently, are fair game.

The exercise of evaluating the reserve funds has been generally good for the county. There are funds which pre-date current staff and whose intent has been forgotten, along with others that have grown large over time.

There is little doubt with about 140 reserve funds the county needs to reduce the number of designated accounts and cap the growth of others at a more reasonable level.

At the same time, the county must maintain accountability to ensure that money set aside for long-term purpose is used for that need rather than being used to fill short-term budget holes.

Consolidation of fund balances is a necessary step, but board members must use care to balance appeasing auditors with accountability to taxpayers while looking out for known long-term needs.