Finance consultants advise claiming ARPA as lost revenue; committee votes to consolidate funds

The Ashland County Finance and Economic Development Committee voted to consolidate several small fund accounts into the county general fund and heard from outside financial consultants about upcoming reporting and audit deadlines.

Consultants Steve (financial consultant) and Mike (financial consultant) told the committee their plan is to file a first-quarter 2025 update in April and to coordinate with the county’s auditors, who are scheduled to begin the audit in the coming week. Steve said the county’s state financial report is due May 15 and that the ARPA (American Rescue Plan Act) report will be due in April.

Why it matters: The consultants advised a filing approach that would reduce reporting risk and simplify accounting. Instead of amending previously reported project allocations for three open ARPA projects, Steve said the consultants intend to “claim it all as lost revenue, which you're eligible for.” That approach would place ARPA receipts into the general fund as unrestricted revenue; the committee can later transfer or appropriate funds for a previously adopted purpose such as a health-insurance closeout.

Steve and Mike described practical next steps: coordinate with Sue and Dan to deliver documentation to the audit firm, complete the state report by May 15, and submit the ARPA report in April. Steve noted the county had roughly $3,000,000 of ARPA funding and that, per documents already filed in April of the prior year, the county is treated as having committed those funds to projects for reporting purposes.

Consultants also recommended administrative simplification: Kerber’s prepared financial statements roll several small funds into the general fund, and with the county’s accounting system (Springbrook) now producing consistent reports, it makes operational sense to close some separate funds. Steve said separating small items such as “uniform allowance” complicates departmental bookkeeping and audit reconciliations. The consultants said some funds show deficits (red) and others positive balances (green); consolidating will cause the general fund to absorb deficits and gain positive balances.

Committee action: The Finance Committee approved the consolidation of fund accounts into the general fund. The motion to consolidate was made by Blake Allison and seconded by Brad Ray; the voice vote passed with all present voting in favor (yes:5, no:0). The committee also approved the Finance and Economic Development Committee meeting minutes from Feb. 6, 2025 (motion carried by voice vote).

What they did not decide: The committee did not yet reallocate the consolidated balances to specific departmental budgets; staff said those adjustments will be reflected in the next budget amendment process and in the county’s audit tie-outs.

Ending: Consultants said they will return with the county’s first-quarter 2025 financials in April and will assist with audit coordination and ARPA reporting.