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Cowlitz County reviews IT operating and reserve funds; department reports vacancies and plans for outside contractors
Summary
Finance staff reviewed Information Technology operating fund (50201) and reserve fund, noting $5.2 million in operating revenues, three IT vacancies, a planned transfer to reserves and intent to use third-party contractors for specialized services.
Susie Moon, Cowlitz County finance manager, briefed the Board of Commissioners on the Information Technology department’s two funds, saying the operating fund (50201) shows about $5.2 million budgeted in revenues and the department currently has three vacancies.
The review matters because the operating billings for IT services—largely goods and services charged to other county departments—are processed annually in January and account for the fund’s largest revenue source, Moon said. Miscellaneous revenue was budgeted at about $80,000, mainly investment earnings, and the county expects transfers in from the general fund related to document-recording fees to help pay for imaging software (referred to during the meeting as “laser fish” costs).
Moon told commissioners that personnel expenditures are currently below the monthly target “because the department does have three vacancies.” She said supplies include annual license renewals typically paid in the third or fourth quarter, and that debt-service-like bookkeeping entries are required under financial accounting for subscription IT arrangements (SPITAs), producing a nonbudgeted $176,000 line that affects reported transfers.
Moon explained a budgeted transfer of $402,000 from IT’s operating account into the IT reserve was established during the budget cycle to pay for future replacements; an offsetting $521,000 entry currently appears as part of the required annual financial reporting entries for those transactions. Moon said she would check and report back on how the $402,000 figure is calculated. A planned budget amendment in August was noted as likely to affect revenues and expenses related to insurance recoveries, but the amount was “not sure at this time.”
On the reserve fund, Moon said the county budgeted about $5.1 million in revenues for replacements and licensing. She said $491,000 of supplies in that fund is earmarked to replace rugged laptops for the sheriff’s office later in the year, and about $300,000 of professional services is budgeted to implement previously purchased tools such as disaster-recovery backups. Moon said the reserve fund has no FTE associated with it and functions like a savings account for equipment replacement and licensing.
Commissioners asked about staffing and outsourcing. An unidentified IT operations representative (referred to in the meeting as Travis, joining remotely) and a public-services speaker explained the department intends to fill some needs using third-party vendors rather than hiring a full-time equivalent for specialized functions. The county used a vendor (CHR) until recently to help cover a vacancy and is beginning to engage two other organizations for similar services. The contractors are being considered primarily for technical expertise and sometimes to provide cyclical capacity; expansion of hours of coverage depends on the specific contract, the speaker said.
Moon and staff said they are performing lifecycle and replacement planning now for the next two budget years to set reserve transfer amounts. Moon also confirmed the department added two new positions near the end of last year but still has three vacancies overall.
Commissioners did not take a formal vote during the review; the session was informational and staff said they would return with any required budget amendments or further details on transfer calculations.
