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Finance director outlines proposed working-capital policy and updated bank-reconciliation procedures
Summary
The finance director presented a draft working-capital policy (proposing a minimum of roughly 2.4 to 3.6 months of operating coverage guided by GFOA and GASB guidance) and described operational changes to centralize monthly bank reconciliations in finance and improve cash-deposit controls across departments.
Finance Director Sam and staff presented an informational update on a proposed revision to the county’s working-capital (fund balance) policy and on updated cash and bank-reconciliation procedures.
Sam said the draft policy translates Government Finance Officers Association guidance and GASB fund-balance classifications into a user-friendly formula intended to provide the county with a clearer operational buffer for cash flows. The memo discussed high-disbursement months (for Marathon County these include February, when debt-service payments occur, and August/September for other settlements) and unique county exposures such as nursing-home and landfill cash flows and cost-reimbursable grants.
Sam said the draft working-capital range under consideration would align Marathon County with GFOA best practices and make the language easier for nonfinancial readers to follow. The draft is informational at this stage; staff requested direction about how large a target buffer the committee prefers and said staff will return with comparative data from peer counties for committee review.
On cash handling and bank reconciliations, Sam said finance will assume primary responsibility for monthly bank reconciliations in Workday, while the treasurer’s office will retain statutory duties around tax receipts and related tasks. The change creates a clearer division of duties, Sam said, and will allow more frequent spot audits of departmental cash drawers and reconciliations. Departments will be encouraged to deposit receipts daily; small-cash departments may reconcile weekly if weekly deposits are below $1,000.
Committee members asked for peer comparisons and asked bond counsel whether the revised policy language would affect the county’s bond rating; Sam said bond counsel had been contacted and had indicated no immediate positive or negative impact specifically tied to the policy language.
No committee vote was required for these educational items; staff said they will return with refined proposals and comparative benchmarks for committee and County Board consideration.
