Vigo County approves formal cost-allocation policy after State Board of Accounts request

The Vigo County Commissioners voted to approve a formal cost-allocation policy and associated cost-allocation plan after being notified by the Indiana State Board of Accounts that a written policy was requested in February 2023.

County officials said the county previously used a cost-allocation plan but had not adopted a written policy. “We were just made aware by State Board of Accounts that, back in 02/2023, there was a request for, the county to have a cost allocation policy,” the Auditor said. The Auditor added the county amended a model policy obtained from other jurisdictions and had State Board of Accounts approval for the draft before bringing it to the commissioners for adoption.

The Auditor told the commission the action ties to an audit covering 2023 and 2024: “We are being audited for the years 02/23 and '24 because we have not been audited for a while.” The Auditor said county staff across departments have been responding to auditor questions and that approving a written policy was part of that response.

Finance supervisor Judy, identified in the meeting as the county’s finance supervisor, was cited by the Auditor as having helped obtain and adapt a template policy. A commissioner moved to approve the policy and the motion was seconded; the commissioners voted “Aye” and the policy was approved.

County officials characterized the step as correcting an omission rather than changing how costs are allocated. The Auditor said the county has had a cost-allocation plan in practice but needed the formal policy document to satisfy the State Board of Accounts.