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County clerk warns of budget violation; commissioners approve $56,825.45 in year‑end reallocations
Summary
County Clerk told the commission late invoices and an accounts payable posting error left the appraiser and sheriff/public safety funds without budget authority for 2024 expenses; commissioners approved reallocating $52,325.45 and $4,500 to the general fund to avoid violations.
The Bourbon County Clerk told the commission on Jan. 27 that invoices submitted after close of the fiscal year and an accounts‑payable posting that only hit cash left two funds without budget authority for expenses incurred in 2024. To prevent budget violations the clerk asked the commission to reallocate $52,325.45 from the public safety fund and $4,500 from the appraiser fund into the general fund; the commission approved the request.
"They did not have enough budget. They have the cash there. ... if you don't make reallocate these amounts, then you will have a budget violation in the appraiser fund and the public safety fund," the County Clerk told commissioners during the meeting.
The clerk explained the error stemmed from only half of a two‑part accounts‑payable posting posting to expenses; the other half posted only to cash. The clerk advised commissioners that the county follows two separate legal constraints — budget law and cash law — and that while cash existed to cover the charges, the absence of budget authority would create a statutory violation unless the commission approved reallocations or a budget amendment.
The clerk offered a practical option: approve the reallocations now and, in February 2025, move cash from the identified funds into the general fund to recoup the transfer because the revenue is present in those funds. The clerk also recommended adopting a purchase‑order/encumbrance process to help departments encumber anticipated year‑end expenses and avoid similar surprises.
Commissioners voted to reallocate $52,325.45 from public safety and $4,500 from the appraiser's fund to the general fund. The clerk said the general fund cash balance will be used temporarily and that staff will consider recovering those amounts from the originating funds in January 2025 when revenue is posted.
The motion passed by voice vote in open session; the transcript records affirmative responses but does not provide a full roll‑call of member names. The clerk said additional late invoices will be handled via encumbrances and that the county will continue outreach to departments to collect year‑end expense data sooner.
The commission asked staff to bring any further budget amendments or cash transfer requests back for consideration, and the clerk will report on the recovery plan in February.
