Accounting Issues with Transferring Funds

Laurens County Council had been making progress in rebuilding its reserve funds over a few years. More recently, increases in expenses have been running ahead of increases in revenue for county operations. As a result, County Council has used money from its Reserve Fund to balance the budget over the past two years. At this week’s County Council meeting, the Administrator advised Council about concerns regarding the accounting methods involved in this use of Reserve Funds. He indicated that auditors have expressed concern about the way money from the Reserve Fund was being transferred to the annual budget. Jon Caime explained changes in the accounting process that were needed for the figures to be properly accounted for.