Budget, audit woes top 2-day strategy session

The county’s budget was the county commissioners’ main topic of their two-day strategic planning workshop at the new Residence Inn by Marriott in Pullman June 25-26.

“The budget is the top priority,” said Chairman Art Swannack. “The budget affects how we do things.”

The three commissioners, Swannack, Michael Largent and Dean Kinzer, along with clerk Maribeth Becker, stayed overnight at the inn at a cost of almost $900 which includes four rooms and the conference room costs.

The board conducted a similar two-day session almost a year ago in Clarkston. That meeting included the commissioners, clerk, county administrator, finance administrator and public works director.

The state audit for the 2013 financial record is expected to begin any day.

The State Auditor’s Office will begin assisting the county’s finance department later this month, starting with a meeting July 23 that will outline what services state officials will provide for the county.

The last state audit report on Whitman County’s 2012 financial statements highlighted several issues that the county’s finance department must correct. Finance department staff have been working to correct the issues, according to county Auditor Eunice Coker, who directs the department.

The state’s report on the county’s 2012 financial report said they were unable to render a conclusion on the county’s financial condition because of flaws.

Standard & Poor’s dropped the county’s credit rating in May which means that if the county tries to borrow money, it probably won’t be able to.

In dealing with the problems of the finance department, commissioners are considering hiring the Government Finance Officers’ Association. This nonprofit organization submitted a proposal to the county for “advisory services related to the county’s potential replacement of its financial system.” Cost for the association services could run more than $80,000, according to a recent proposal from GFOA.

The 18-page GFOA proposal was submitted to the county June 13.

The proposal outlines what the non-profit association, founded in 1906 with offices in Chicago and Washington, DC, would do to implement Enterprise Resource Planning.

GFOA divided the proposal into four tasks: project planning, business process analysis and documentation, needs assessment, advisory services and implementation oversight.

“The best way to handle it is outside expertise,” Swannack said.

However, the commissioners have two major concerns about hiring GFOA.

“Could we afford it, and can we afford staff time?” Swannack asked.

Largent agreed.

“We need a better idea about the product of their work,” he said. “Do we have the staff capacity and do we have the budget capacity?”

“It means extra work and it’s never convenient,” Largent added.

“How do they come in?” he asked. “There has to be an element of trust. I’d like to know who their other clients are.” He also said he’d like to see some references.

Other topics of discussion with GFOA will include coordinating with the state auditor’s office and with Coker and county Treasurer Bob Lothspeich.

County Administrator Gary Petrovich has been a liaison with GFOA and worked out a preliminary proposal with the association. The commissioners questioned if Petrovich would continue to be the liaison or who would be project leader.

The commissioners decided to develop a list of questions to submit to GFOA before deciding whether or not to hire the firm.

They also discussed getting examples of services GFOA provides.

The commissioners discussed financial department problems that involve them, Coker, Lothspeich and the human resources department with regards to payroll.

Commissioners also agreed that their role is to be supportive and enthusiastic of Coker’s efforts.

Commissioners did not agree with replacing the NewWorld accounting system, something they have not considered. However, if an overhaul is needed, the board might consider a new accounting system.

Alternatives they discussed included talking with other counties about budget problems.

“The problems have already cost us money and has for years,” Largent said.

On day two of the meeting, discussion centered around having a sustainable budget and possibly facing state cuts next year.

“If cuts come down from the state level, we need a sustainable budget,” Swannack said.

“How do we adequately plan for the future?” Largent asked.

With the state legislature talking about budget cuts because funding might have to be funneled toward basic education, commissioners discussed how to maintain county services. They discussed how to maintain services without eliminating any personnel.

“We need more communication between the commissioners on employment classification,” Swannack said.

“We had good discussions on sustainable budgets and mitigating unexpected expenses,” he said.

“We can’t do much until we hear from the legislature,” Swannack said.

“We’re looking at more of what can we implement now, especially accounting and information systems,” Swannack said.

“I think we were productive,” Swannack said. “We figured out how to go forward with GFOA and the entire evaluation for the county evaluation process.”

“I think we came out of it a little more on track than when we started,” he added.