Owen County auditors report multiple overdrawn grant funds; counties to seek reimbursements

Diane, Owen County auditor, told the council at its February meeting that several county grant funds were overdrawn for 2021, 2022 and 2023 and that the county will work with departments to correct the balances.

“We have several funds that were overdrawn. They were overdrawn 21, 22 and 23,” Diane said, reading from the auditor’s report. She told the council she will contact departments and send letters or emails to begin corrective actions before the April meeting.

Auditors said the overdrawn balances largely reflect reimburseable grant activity: departments spend money and then submit claims to the state for reimbursement. When reimbursement requests are not submitted on time or are posted to the wrong fund, the county’s cash balances can show negative amounts.

Diane also discussed a separate write-up related to a loan that exceeded the five-year private loan term allowed by state code. She said the term chosen “wound up saving $20,000 in interest” but did not meet the five-year limit the state examiner enforces. She said the county had prepared corrective action plans and will note the issue in the record.

Council members pressed for clarity on next steps. Diane said she has started a monthly spreadsheet to track reimbursements and will ask departments to supply copies of the reimbursement requests they submit to the state. That documentation, she said, would help determine whether funds were coded incorrectly or not submitted for reimbursement.

No formal vote was taken. Council members and staff agreed to follow up with department heads and to report back at future meetings.