County auditors warn of growing jail-fund deficit; auditors recommend accounting write-off and monthly reconciliations

County auditors told the Penobscot County Commissioners on Aug. 25 that while most of the 2021 and 2022 financial statements were "good and in accordance" with applicable accounting principles, an adverse opinion tied to GASB 75 reporting on other post-employment benefits and a mounting deficit in the jail fund require prompt attention.

The matter that drew the most sustained discussion was the county's jail fund. "The jail fund is getting to the point where you're starting to see deficits in that fund," the auditor said, noting the fund had a balance of about $462,000 at the end of 2021 and moved into the red by the end of 2022.

Why it matters: commissioners and staff said the county has been using general-fund resources and internal advances to cover jail operations; auditors warned that continuing to treat those advances as receivables inflates the general fund and obscures true budget capacity. "If that's never gonna be paid back, you're artificially inflating your fund balance on…