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Finance outlines proposed working-capital policy changes and new bank-reconciliation procedures
Summary
Finance presented a draft update to the county’s working-capital (fund balance) policy and described operational changes to bank reconciliation and cash-handling procedures; no committee action was requested — staff sought direction on policy parameters and asked to bring comparable-county examples back.
Finance Director Sam presented an educational update to the committee proposing clearer, user-friendly language for Marathon County’s working-capital (fund balance) policy and described changes to bank reconciliation and cash-handling procedures to address audit findings.
Sam said the draft policy uses guidance from the Government Finance Officers Association and GASB pronouncements (including GASB 34 and GASB A54) and proposes a minimum/maximum working-capital designation expressed in months of operating expenses (Sam cited a 2.4–3.6 month framework used in the draft). Sam highlighted county-specific cash-flow pressures — large debt-service payments in February and other months, the county-owned nursing home and landfill, and cost-reimbursable grant timing — as reasons the county may need a larger buffer than some peers.
On cash and bank procedures, Sam said Finance will take on a monthly bank-reconciliation role in Workday, provide summarized reports to the Treasurer’s office for review, and conduct random spot audits of departmental cash-handling practices. Departments that receive small amounts of physical cash may deposit weekly if under $1,000 per week, though daily deposits remain the encouraged practice.
Committee members asked whether bond counsel had reviewed the draft working-capital language; Sam said she had sent the draft to bond counsel and received preliminary feedback that the policy wording itself is unlikely to affect bond ratings. Several supervisors asked to see comparable policies from peer counties; Administrator Leonard and Sam agreed to return with examples and proposed formal language for committee or Board adoption.
Next steps: staff will compile comparable-county working-capital policies, refine draft language and return to the committee for further discussion. Finance will begin operational bank-reconciliation changes and provide monthly summaries to the committee in coming months.
